Much Is Allocated To Physical Development, Observers Say Village Funds Have Not Reduced Poverty In Aceh

Residents show direct cash assistance from village funds in Meunasah (ANTARA)

BANDA ACEH - Syiah Kuala University (USK) academician in Banda Aceh, Irham Fahmi, stated that the management of village funds in Aceh Province has not been able to reduce the poverty rate, which is currently around 15 percent in the province.

"So far, village funds have been mostly used for physical development activities that cannot answer the problem of poverty," said Irham Fahmi in Banda Aceh, Antara, Tuesday, March 2.

The USK Faculty of Economics and Business lecturer said that the use of village funds for physical development did not touch the root of the problem so that the poverty rate of the people in Aceh Province continued to fluctuate.

According to Irham Fahmi, the inability of village funds to reduce poverty started during the development planning deliberations (musrenbang) at the village level.

Musrenbang mostly agrees on the allocation of village funds to be used for physical development. Meanwhile, budget allocations that are in touch with poverty are minimal.

Irham Fahmi said the poverty rate in Aceh seemed to fluctuate, up and down. The handling of poverty is not carried out systematically.

The village funds should have been used more for empowering the poor.

"As for economic empowerment, it is felt to be lacking. Likewise, the allocation for education is also minimal. In fact, education is a solution to reduce poverty," said Irham Fahmi.