Indonesian Farmers call for World Bank Reform
May 17, 1999
World Bank-funded agricultural projects in Indonesia must be more closely
monitored to ensure adherence to basic principles of environmentally sound
and socially just development, according to Yayasan Duta Awam
Foundation (YDA), an Indonesian non-governmental organization. YDA
reached this conclusion after completing 15 months of grassroots
investigation of the Bank-financed "Integrated Swamps Development
Project."
Between July 1997 and September 1998, YDA trained and assisted local
farmers in conducting participatory monitoring of the Bank project's
impacts on their health, agricultural systems and community well-being.
The study was conducted by 37 farmer monitors, who interviewed 342
farmers from 15 villages in West Kalimantan and Riau provinces. Farmers
presented their findings and recommendations to government and World
Bank officials at two provincial seminars and one national seminar.
According to YDA, the survey uncovered extensive problems in
implementation of the Swamps Development Project, some in direct
violation of the Bank's own policies. Problems cited include farmers'
increased use of and dependence on toxic chemical pesticides, lack of
transparency especially regarding terms and conditions of grants and loans
given to farmers, minimal consultation with the community during project
design and implementation, marginalization of women from project
activities and widespread corruption.
The Bank's operational policy on pest management clearly states that
projects must help reduce reliance on chemical pesticides. However, YDA's
study indicates that farmers' use of and dependence on chemical pesticides
has increased significantly over the course of the project. Furthermore, the
Bank's policy stipulates that it will not finance pesticide formulations
classified by the World Health Organization as Class Ia (extremely
hazardous), Ib (highly hazardous) or II (moderately hazardous). Yet 85% of
the pesticides given to farmers in one province participating in the Swamp
Development Project contained active ingredients belonging to these three
classes.
Farmers involved in the survey disclosed that corrupt practices by some
officials involved the unexplained disappearance of both project money and
goods. Farmers documented incidences in which they were required to sign
blank forms or receipts for goods or money that they subsequently never
received.
YDA also pointed out that the Indonesian government does not devote
adequate resources for monitoring the implementation of projects financed
by international financial institutions or donor countries. Government
officials often do not have enough time for direct project involvement, and
many of those working full-time on such projects are foreign consultants
who generally have little understanding of local conditions.
Local farmers and YDA are calling on the Indonesian government and
World Bank to remove hazardous pesticides from the Swamp Development
project's loan packages of agricultural inputs, provide training in
ecologically-based IPM and health effects of pesticides, return monies
improperly collected from farmers, provide goods and monies originally
promised with full and transparent documentation of loan terms and
conditions, and develop future project activities in consultation with
farmers. YDA and partner NGOs such as Pesticide Action Network North
America are calling on the Bank to release all financial and technical audits
of the Swamps Development project. These NGOs are also urging the Bank
to establish an independent body to whom Indonesian farmers can report
complaints, irregularities, extortion, etc. without fear of reprisal.
In a letter to The Jakarta Post, the Indonesian Country Director of the
World Bank agreed with the views of YDA on "the importance of improved
monitoring and participation to ensure the best use of development
assistance." He continued, "Reducing corruption is a huge task that will
need the best efforts of all stakeholders and this means government, media,
NGOs, community groups, and project beneficiaries." As a first step, the
Bank is undertaking a fact-finding survey to investigate farmers' allegations
and ensure successful resolution of the project's problems.
Sources: The Jakarta Post, April 8 and April 20, 1999. Report by YDA and
farmers of affected communities, "Recommendations to improve
implementation of World Bank Project Loan 3755 IND, Integrated Swamps
Development Project (ISDP)." April 1999.
Contact: PANNA.
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