ENSURING CASH-INTENSIVE EFFICIENCY IN THE VILLAGE: META FRONTIER ANALYSIS

Amanah Abdulkadir,Harry Azis,Wendra Afriana

doi:10.20473/jde.v6i2.25638

Abstract

Inequality, poverty, and unemployment in villages are still problems that have not been adequately resolved to date. Starting to allocate village funds in 2015 and Cash For Work (CFW) in 2018, it hopes this would accelerate these problems. This study uses a meta frontier analysis. This study found three factors that significantly affected inefficiency: the variable number of villages that had not budgeted for CFW ≥30%, the number of villages that had not reported CFW, and the CFW process status ≥ 30%. This study proposes three policy recommendations, including the 30 percent minimum working day (HOK) limit that is no longer a benchmark and gives villages the freedom to use the Village Fund using the self-management method. Second, the Government should synergize data on poverty reduction programs and unemployment between ministries or institutions. Third, the Village Government must prioritize the development of village potential while still empowering marginalized communities.Keywords: Efficiency, Cash Intensive WorkJEL: D72, H7

Highlights

This paper sets out to determine the factors that cause technical inefficiency of cashfor-work (CFW) in reducing unemployment in Kebumen, considering the unemployment rate in Kebumen continues to increase, even though village funds disbursed are growing every year
People with lower alternative opportunities are more involved in forest guard activities. These findings indicate the relatively good targeting performance of the Cash For Work (CFW) program, which is corroborated by anecdotal evidence from field surveys, with no records of complaints from households interviewed regarding household selection into the program and overall reported satisfaction with the program
The findings show that implementing the CFW program for post-emergency situations in Sri Lanka is more appropriate using the Generalized Model

Summary

Introduction

This paper sets out to determine the factors that cause technical inefficiency of cashfor-work (CFW) in reducing unemployment in Kebumen, considering the unemployment rate in Kebumen continues to increase, even though village funds disbursed are growing every year. The goal of village funds is to reduce the number of poor people in the countryside through cash-intensive programs. Village funds have increased every year, rural areas’ poverty rate is still relatively high Under these conditions, the Government targets 30% of the disbursed village funds used for cash-intensive programs (CFW). The products are based on using natural resources, labour, and local technology to reduce poverty, increase income and reduce stunting rates This program prioritizes labour absorption as much as possible by empowering the village community (General Guidelines Implementation of CFW in Villages in 2018). Village funds allocated in the form of CFW should optimally reduce the unemployment rate, impacting the decrease in the number of poor people. The number of funds disbursed from the APBN to villages must be followed by improvements in village financial management, improving the community’s welfare (Nafidah & Anisa, 2017)

Literature Review

Findings

Finding and Discussion

Conclusion