[Kabar-indonesia] Alarms raised over cash-for-work program for Java quake survivors

[JoyoNews at aol.com]

The Jakarta Post
Monday, June 26, 2006

Cash-for-work program gets close look 

Sri Wahyuni, The Jakarta Post, Yogyakarta

Activists and relief workers have raised alarms about the possible effects of 
a cash-for-work program for quake survivors in Yogyakarta and Central Java.

The warning, aimed at the government and donor agencies as well as local and 
foreign non-governmental groups, came during a discussion of people's 
independence in post-quake reconstruction. 

"Giving out cash without going through the right steps might have the same 
effect as 'overprinting' money," said Awalil Rizky in a seminar organized by the 
Yogyakarta chapter of the Alliance of Independent Journalists (AJI) Thursday 
at the Gadjah Mada University's Center for Peace and Security. 

He was referring to a program in which survivors are given certain jobs, like 
cleaning up villages, in return for cash. 

Rizky, a consultant on management and microeconomics, said circulating more 
money without taking into account the availability of goods might spur 
inflation. 
That would depreciate the buying power of aid. 

"What would happen when the flow of aid supplies increases, and in larger 
volumes?" asked Rizky. 

Another matter that needs to be considered, he said, is the connection 
between inflation and people's expectations. If people believe the price of goods is 
going to rise, it may come true even if the supply of products is sufficient. 

This phenomenon can be seen in the price of bamboo poles, which now stands at 
Rp 8,000 (88 U.S. cents) each -- from the previous price of Rp 2,000 each -- 
despite the abundance of bamboo in quake-affected areas. 

Another speaker, AB Widyanta from Solidarity for Emergency, Advocacy and 
Rehabilitation, raised concern that the cash-for-work program would weaken 
people's spirit of togetherness, locally known as gotong royong (community 
self-help). 

According to Widyanta, the cash-for-work program would make survivors 
dependent on others, encouraging them to wait rather than do something to get back on 
their feet again. 

"It might be better to replace the cash-for-work program with a livelihood 
program," said Widyanta. 

He explained that under a livelihood scheme, quake survivors would still be 
provided with cash as well as building materials, equipment and food. The 
assistance would be provided to the community, however, rather than individuals. 

"Let the community arrange its own schedule. Even if cash payments are 
involved, they should be done selectively, only for skilled workers, and not simply 
for anybody," he said. 

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Joyo Indonesia News Service
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