Publication: The Political Economy of Teacher Management in Decentralized Indonesia
Loading...
Published
2016-12
ISSN
Date
2017-01-05
Author(s)
Editor(s)
Abstract
Indonesia faces serious challenges in the number, cost, quality, and distribution of teachers. This paper examines the role of political economy factors in producing these challenges and shaping efforts to resolve them. It argues that the challenges have their origins in the way in which political and bureaucratic elites have for decades used the school system to accumulate resources, distribute patronage, mobilize political support, and exercise political control. This orientation has meant that teacher numbers, quality, and distribution have been managed to maximize flows of rents and votes from schools to the elite, lubricate patronage and political networks, and ensure that elites maintain political control rather than maximize educational performance and equity. The fall of the New Order, the authoritarian and centralized regime that ruled Indonesia from 1965 to 1998, led to efforts to change this situation, but these have had little impact so far. The paper concludes by assessing what can be done by proponents of teacher management reform in this context to promote better outcomes.
Link to Data Set
Citation
“Rosser, Andrew; Fahmi, Mohamad. 2016. The Political Economy of Teacher Management in Decentralized Indonesia. Policy Research Working Paper;No. 7913. © World Bank. http://hdl.handle.net/10986/25812 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions(Washington, DC: World Bank, 2026-01-08)Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.Publication The Evolution of Local Participatory Democracy in Nepal(Washington, DC: World Bank, 2025-11-05)Nepal is, according to its constitution, among the world’s most decentralized countries, with a long and complex tradition of local-level public participation. This paper traces the evolution of Nepal’s modern participatory institutions, examining the extent to which they are “induced” by external interventions versus being “organically” rooted in indigenous practices. The paper identifies three broad phases: an initial focus on participation in project implementation; a subsequent phase that expanded citizen engagement; and a third phase of citizen empowerment, culminating in the 2015 federal constitution, which granted unprecedented local autonomy. The analysis yields five key findings. First, over the past 50 years, successive reforms have progressively expanded opportunities for citizens to influence local decision-making. Second, these reforms have integrated traditional participatory mechanisms into formal institutions of local government. Third, although central-level initiatives exist, most participatory platforms continue to operate at the local level. Fourth, the federal constitution has created a new landscape of local democracy, embedding autonomy and accountability. Fifth, although they are still valued in many ethnic and territorial communities, traditional participatory practices are gradually disappearing. The paper concludes by offering policy recommendations to help donor agencies and governments strengthen Nepal’s democratic trajectory. It argues that effective interventions should build on Nepal’s deep participatory traditions while recognizing the constitutional reality of far-reaching local autonomy.Publication Institutional Capacity for Policy Implementation: An Analytical Framework(Washington, DC: World Bank, 2026-01-07)State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.Publication Closing the Gender Gap in Entrepreneurship: Overcoming Challenges in Law and Practice for Female Entrepreneurs(Washington, DC: World Bank, 2026-01-07)Despite significant strides toward gender equality, women around the world continue to encounter systemic obstacles that hinder their entrepreneurial success. This paper systematically reviews the literature on the barriers female entrepreneurs face and the solutions proposed to overcome these challenges. It discusses institutional factors, financial factors, human capital factors, and social and cultural factors. The literature overview is complemented by a series of stylized facts that illustrate how overcoming some of these existing barriers is correlated with improved women’s entrepreneurship and female labor force participation, drawing on the World Bank’s Women, Business and the Law database as well as the World Bank’s Enterprise Surveys. The findings underscore the need for creating an enabling environment where women can thrive as entrepreneurs.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Teacher Reform in Indonesia : The Role of Politics and Evidence in Policy Making(Washington, DC: World Bank, 2014)With close to three million teachers, Indonesia has one of the largest and most diverse cadres of teachers in the world. The evolving nature of its education system and the increasingly complex challenges facing individual teachers and the teaching profession as a whole are of immense importance to the nation’s future development. In 2005 the Indonesian government approved a comprehensive Teacher and Lecturer Law that radically reformed the nation’s teacher management and development process. This book explores this uniquely comprehensive reform by focusing on the nature of Indonesia’s teaching profession before and after the Teacher Law; the educational and political economy context of the law; the structures, strategies, and processes that arose from the law including a comprehensive system of teacher appraisal and salary increases which effectively doubled the income of certified teachers; the political and economic factors which distorted the reform process; its impact on teacher knowledge, skills, and motivation and student outcomes; and the (in)efficiencies derived from the reform in terms of the system’s financing and the distribution of its teachers. This book’s framework promotes an approach to teacher reforms through improving the nature of recruitment into the profession; pre-service education; induction, mentoring, and probation; formal certification; continuing professional development; teacher performance appraisal; and ongoing career development. It should therefore be of particular interest to Ministries of Education and development agencies contemplating similar comprehensive reforms. The lessons and recommendations from this analysis include the following: • The doubling of teacher income has increased the status of the teaching profession and attracted better candidates to apply to teacher training institutions. • The mere fact of certification and the consequent doubling of teacher income have not achieved the better teaching and learning that was expected. • A quality assurance framework needs to be put in place from the beginning of any reform process. • The costs of extending the certification program to all teachers are associated with significant trade-offs within the education sector. Estimates suggest that spending on teacher compensation will need to absorb a much larger share of the education budget and require reductions in spending in other areas.Publication Political Economy Studies : Are They Actionable? Some Lessons from Zambia(2011-05-01)In recent years, the number of studies looking at the effect of politics on economic outcomes has flourished. For developing economies, these studies are useful to better understand why long overdue reforms are not implemented. The studies analyze the overall context within which reforms are being implemented and the underlying incentive framework. However, it seems difficult to make such studies actionable, especially in sectors where donors have a heavy presence that can sometimes distort incentives in addition to the reluctance from some governments to amend the existing systems in place. This paper focuses on some conclusions emerging from the political economy diagnostics carried out in Zambia in various sectors in recent years. Based on interviews of World Bank task managers, the paper attempts to assess the relevance of these studies for the implementation of projects and the policy dialogue and draws lessons on how they have influenced the implementation of the World Bank's support to programs in various sectors in Zambia as well as the main challenges for this type of exercise.Publication The Political Economy of Social Accountability in Nepal(World Bank, Washington, DC, 2011)The World Bank has introduced a new Program for Accountability in Nepal (PRAN) to enhance the capacities of civil society and government actors to utilize social accountability approaches and tools. This political economy study seeks to inform the PRAN by identifying the strengths and opportunities as well as risks and obstacles for social accountability initiatives in Nepal. It includes recommendations for managing and addressing these issues. The study is based on primary and secondary research conducted from September 2010 to February 2011. The research methodology utilized for this study was three-fold. First, a literature review was undertaken including in-country laws, policies and regulations, as well as a range of studies and articles on issues of relevance to social accountability in Nepal. A bibliography of these materials is attached as annex one. Second, semi-structured interviews were conducted with key civil society leaders, non-governmental organization (NGO) staff, journalists, academics, government officials, and citizens. A list of people interviewed and guiding questions are attached as annex two. Third, the research team made field visits to the eastern and western regions of the country to observe social accountability initiatives and interview local stakeholders. In total 75 people were interviewed, including 12 civil society leaders. Focus group discussions with citizens were also conducted in Ilam, Dhankuta, Itahari, and Palpa. The first section of the paper provides a brief historical overview of political development in Nepal, and highlights how these historical legacies influence current day citizen-state relations and accountability relationships. Section two analyzes the legislative and institutional framework for social accountability in Nepal. The third section of the paper analyzes a range of contextual factors influencing social accountability in Nepal. Section four identifies citizen information, citizen voice, and collective action as three key elements of social accountability in Nepal, and discusses current strengths and weaknesses with regard to each of them. Section five of the paper looks at each one of the PRAN's three focal areas - public financial management, municipal governance, and community-based monitoring and evaluation of public services. Finally, section six outlines conclusions and recommendations for promoting social accountability in Nepal.Publication Political Analysis of Decentralization : Capturing the Stakeholder Perspective Lessons from the Bangladesh Study(World Bank, Washington, DC, 2009-02)The objective of this note is to provide guidance to the World Bank task teams engaged in supporting decentralization reform on useful approaches to understanding the broader political dynamics which may affect their operations and dialogue. It does this by synthesizing lessons from an analysis of the political economy of decentralization in Bangladesh, which was carried out to support the World Bank operational engagement.Publication Mongolia : The Political Economy of the Resource Paradox, Synthesis Note(Washington, DC, 2009-09)This report discusses Mongolia's increasing dependence on mining revenues and the associated vulnerability to boom and bust economic cycles, and calls for special attention to governance in mining resource management. It seeks to identify can be learned from the experiences of other mineral dependent countries that have succeeded in converting their mineral endowment into broadly shared growth, as well as from those that have not. A challenge for the Bank is to be able to formulate good reform solutions which fit the country's' implementation capacity, and are flexible enough to respond to changing country dynamics. The Bank could modify its support better correspond to Mongolia's realities, such as taking into account concerns that by entering into an investment agreement, the government will lose the ability to influence or veto decisions that negatively impact national security. The report looks at the Public Investment Program, focusing on the principles of development oriented investments, and what this would imply across sectors, by taking into account the policymaker's concern that public procurement of public investment projects must disburse quickly, so that procurement efficiency is improved.
Users also downloaded
Showing related downloaded files
Publication Design Thinking for Social Innovation(2010-07)Designers have traditionally focused on enchancing the look and functionality of products.Publication Government Matters III : Governance Indicators for 1996-2002(World Bank, Washington, DC, 2003-08)The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.Publication Governance Matters IV : Governance Indicators for 1996-2004(World Bank, Washington, DC, 2005-06)The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.Publication Governance Matters VIII : Aggregate and Individual Governance Indicators 1996–2008(2009-06-01)This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.Publication Breaking the Conflict Trap : Civil War and Development Policy(Washington, DC: World Bank and Oxford University Press, 2003)Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.