S-Space Graduate School of Public Administration (행정대학원) Dept. of Public Administration (행정학과) Theses (Master's Degree_행정학과)
The Role of Policy Transfer in Policy Change in Developing Countries
개발도상국에서의 정책변동에 대한 정책이전의 역할: 인도네시아의 조건부현금급여 정책을 중심으로
- 행정대학원 행정학과(정책학전공)
- Issue Date
- 서울대학교 대학원
- Conditional Cash Transfer; Indonesia; Policy Transfer; Policy Change; Multiple Stream Framework; Social Protection
- 학위논문 (석사)-- 서울대학교 행정대학원 : 행정학과(정책학전공), 2013. 2. 권혁주.
- This study tried to identify the driving forces that enabled the change of the universal fuel subsidy in Indonesia and examine the dynamics of policy transfer of Conditional Cash Transfer (CCT) in the context of policy change. Although Indonesia was able to sustain a high level of the universal fuel subsidy until the 1970s, Indonesia encountered the demand for a reduction of the universal fuel subsidy since the mid-1980s because Indonesian oil production significantly declined and international oil prices soared in contrast. However, there was little progress in reforming the subsidy until the mid-2000s and this resulted in the notable decrease of national revenue and the emergence of a fiscal burden. As international fuel prices began skyrocketing in 2005 and the fiscal burden was intensified more, Indonesian government changed its position and started to reduce the volume of the universal fuel subsidy gradually. In addition to this, Indonesian government introduced CCT, which was the direct transfer of cash to poor households based on conditionalities mainly relating to education, health and nutrition, in this process of change.
Focusing on this case, this study focused on the question of why Indonesia started to reduce the amount of the universal fuel subsidy in the mid-2000s and how the policy transfer dynamics influenced the policy change of universal fuel subsidy. To answer these questions, this paper employs Kingdons multiple streams framework because this framework can be applied to explain both policy change and policy transfer.
For research, secondary data relating to CCT in Indonesia was collected and, based on this data, interviews were carried out between February and April 2012 with policy actors involved in the policy transfer process of CCT in Indonesia through field work. In addition, afterward, several additional semi-interviews were conducted via e-mail.
To summarize the result of this study, Indonesia chose the introduction of CCT in order to gain legitimacy for the reduction of the universal fuel subsidy. Whereas policy, problem and political streams relating to CCT existed before its introduction, it was fiscal crisis occurred in 2005 that facilitated the coupling of three streams. Because of the crisis, the domestic policy demand for the reform of the universal fuel subsidy was strengthened and demonstrations caused by the reduction of the subsidy amount acted as a catalyst for making each stream favourable for the introduction of CCT. However, this was not the only reason for the introduction of CCT in Indonesia. Another reason was that substantial efforts were made by the policy community consisting of international organizations, the national government, and a subnational think tank. In other words, the policy community trying to transfer CCT to Indonesia seized the opportunity to introduce CCT with the fiscal crisis acting as a momentum. Also, this transfer played a significant role in the reduction of the universal fuel subsidy and particularly provided a choice opportunity for the change. Indonesian government tried to compensate economical burden on the people and resistance to the reduction of the fuel subsidy by launching CCT. In conclusion, the policy change of universal fuel subsidy and the policy transfer of CCT provided reciprocal choice opportunity to each other. This result could provide implications for effective ways accomplishing policy reform in developing countries.
In conclusion, the transfer of CCT was facilitated by a social crisis caused by an attempt to reform the universal fuel subsidy and the significant efforts of the policy community at different levels.
This study, however, includes shortcomings along with the results. It is hard to generalize the findings of this research directly because it is a single case study. Also, this research mainly focuses on a very short period of time, from the mid-2000s to 2012, which could be too short to assess the significance of the policy transfer of CCT on policy change in Indonesia. Nevertheless, this research could serve as a good starting point for further research.