IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i11p8585-d1155518.html
   My bibliography  Save this article

Uncovering the Challenges of Sustainable Development in North Aceh: A Policy Analysis of Special Transfer Funds

Author

Listed:
  • Erlan Wijatmoko

    (National Resilience Study Program, Universitas Gadjah Mada Graduate School, Teknika Utara Street, Barek, Yogyakarta 55284, Indonesia)

  • Armaidy Armawi

    (National Resilience Study Program, Universitas Gadjah Mada Graduate School, Teknika Utara Street, Barek, Yogyakarta 55284, Indonesia)

  • Teuku Faisal Fathani

    (Civil and Environmental Engineering Department, Faculty of Engineering, Universitas Gadjah Mada, Grafika Street, Sleman, Yogyakarta 55284, Indonesia)

Abstract

This study evaluates the management of two special funds in North Aceh, Indonesia, to promote sustainable development goals (SDGs) after a protracted conflict that brought the region to the brink of poverty and suffering. The special autonomy fund and the revenue-sharing funds for oil and gas are forms of fiscal decentralization provided by the central government to help Aceh recover from the conflict’s effects and natural disasters. Despite receiving these funds for over 13 years, Aceh remains among the poorest regions in Indonesia. This study used policy analyzing process theory to evaluate the management of these funds at the district level, specifically in North Aceh. A qualitative descriptive method that combines semi-structured interviews, field observations, and government documents, were used in this research. We revealed that the policy of managing these special funds has yet to achieve SDGs, particularly in North Aceh. The underutilization of revenue-sharing funds, the limited allocation of districts’ special autonomy funds, and the emphasis on infrastructure development as a priority have hindered progress and well-being, resulting in persistent poverty, unemployment, and continued dependence on transfer funds.

Suggested Citation

  • Erlan Wijatmoko & Armaidy Armawi & Teuku Faisal Fathani, 2023. "Uncovering the Challenges of Sustainable Development in North Aceh: A Policy Analysis of Special Transfer Funds," Sustainability, MDPI, vol. 15(11), pages 1-25, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:8585-:d:1155518
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/11/8585/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/11/8585/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-573, October.
    2. Grimes, Paul W. & Lopus, Jane S. & Amidjono, Dwi Sulistyorini, 2022. "Financial life-skills training and labor market outcomes in Indonesia," International Review of Economics Education, Elsevier, vol. 41(C).
    3. Nevena Ćurčić & Andrijana Mirković Svitlica & Jovana Brankov & Željko Bjeljac & Sanja Pavlović & Bojana Jandžiković, 2021. "The Role of Rural Tourism in Strengthening the Sustainability of Rural Areas: The Case of Zlakusa Village," Sustainability, MDPI, vol. 13(12), pages 1-23, June.
    4. Paulina Permatasari & Assyifa Szami Ilman & Carol Ann Tilt & Dian Lestari & Saiful Islam & Rita Helbra Tenrini & Arif Budi Rahman & Agunan Paulus Samosir & Irwanda Wisnu Wardhana, 2021. "The Village Fund Program in Indonesia: Measuring the Effectiveness and Alignment to Sustainable Development Goals," Sustainability, MDPI, vol. 13(21), pages 1-30, November.
    5. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Al Mamun, Md & Sohag, Kazi & Hassan, M. Kabir, 2017. "Governance, resources and growth," Economic Modelling, Elsevier, vol. 63(C), pages 238-261.
    2. Abida Hafeez & Karim Bux Shah Syed & Fiza Qureshi, 2019. "Exploring the Relationship between Government R & D Expenditures and Economic Growth in a Global Perspective: A PMG Estimation Approach," International Business Research, Canadian Center of Science and Education, vol. 12(4), pages 163-174, April.
    3. Akresh, Richard & Lucchetti, Leonardo & Thirumurthy, Harsha, 2012. "Wars and child health: Evidence from the Eritrean–Ethiopian conflict," Journal of Development Economics, Elsevier, vol. 99(2), pages 330-340.
    4. Robert MacCulloch & Silvia Pezzini, 2010. "The Roles of Freedom, Growth, and Religion in the Taste for Revolution," Journal of Law and Economics, University of Chicago Press, vol. 53(2), pages 329-358, May.
    5. Alhassan Abdul-Wakeel Karakara & Evans Osabuohien, 2020. "ICT adoption, competition and innovation of informal firms in West Africa: a comparative study of Ghana and Nigeria," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 14(3), pages 397-414, June.
    6. Michael Fritsch & Viktor Slavtchev, 2007. "What determines the efficiency of regional innovation systems?," Jena Economics Research Papers 2007-006, Friedrich-Schiller-University Jena.
    7. Catherine Baumont, 1995. "Urban economics and endogenous dynamics in regional growth [Economies d'agglomération et dynamique endogène de croissance des régions]," Working Papers hal-01527237, HAL.
    8. Juan Pineiro Chousa & Haider Ali Khan & Davit N. Melikyan & Artur Tamazian, 2005. "Institutional and Financial Determinants of Development: New Evidence from Advanced and Emerging Markets," CIRJE F-Series CIRJE-F-326, CIRJE, Faculty of Economics, University of Tokyo.
    9. David L. Ellison, 2007. "Subnational regionalism in a supranational context: the case of Hungary," IWE Working Papers 177, Institute for World Economics - Centre for Economic and Regional Studies.
    10. Motoyama, Yasuyuki & Cao, Cong & Appelbaum, Richard, 2014. "Observing regional divergence of Chinese nanotechnology centers," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 11-21.
    11. Sorin Celea & Petre Brezeanu & Ana Petrina Păun, 2013. "Fiscal Discipline within the EU: Comparative Analysis," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(2), pages 23-30.
    12. repec:hal:spmain:info:hdl:2441/6493 is not listed on IDEAS
    13. Ola Olsson, 2005. "Geography and institutions: Plausible and implausible linkages," Journal of Economics, Springer, vol. 10(1), pages 167-194, December.
    14. Reis, Anabela & Heitor, Manuel & Amaral, Miguel & Mendonça, Joana, 2016. "Revisiting industrial policy: Lessons learned from the establishment of an automotive OEM in Portugal," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 195-205.
    15. Tapio Riepponen & Mikko Moilanen & Jaakko Simonen, 2023. "Themes of resilience in the economics literature: A topic modeling approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(2), pages 326-356, April.
    16. Savita Bhat & N S Siddharthan, 2010. "Human Capital, Labour Productivity and Employment," Working Papers id:3110, eSocialSciences.
    17. Liubov Zharova, 2016. "Environmental peacebuilding as mechanism of sustainable development during the special period," Economics of Nature and the Environment, Mykhaylo Khvesyk, pages 44-52.
    18. Ravallion, Martin, 2019. "Global inequality when unequal countries create unequal people," European Economic Review, Elsevier, vol. 111(C), pages 85-97.
    19. Massimiliano Affinito, 2011. "Convergence clubs, the euro-area rank and the relationship between banking and real convergence," Temi di discussione (Economic working papers) 809, Bank of Italy, Economic Research and International Relations Area.
    20. Szalavetz, Andrea, 2002. "Az informatikai szektor és a felzárkózó gazdaságok [The informatics sector and the advancing economies]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 794-804.
    21. Burhan Can Karahasan & Firat Bilgel, 2018. "Economic Geography, Growth Dynamics and Human Capital Accumulation in Turkey: Evidence from Regional and Micro Data," Working Papers 1233, Economic Research Forum, revised 10 Oct 2018.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:8585-:d:1155518. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.