spoilers

Changing a Civil Service Culture: Reforming Indonesia's Ministry of Finance, 2006-2010

Author
Gordon LaForge
Country of Reform
Abstract

By the mid-2000s, Indonesia had recovered from a devastating economic crisis and made significant progress in transitioning from a dictatorship to a democracy. However, the country's vast state bureaucracy continued to resist pressure to improve operations. In 2006, President Susilo Bambang Yudhoyono tapped economist Sri Mulyani Indrawati to transform Indonesia's massive Ministry of Finance, which was responsible not only for economic policy making but also for taxes and customs. During four years as minister, Mulyani introduced new standard operating procedures, raised civil servant salaries, created a new performance management system, and cracked down on malfeasance. Her reforms turned what had once been a dysfunctional institution into a high performer. But ongoing resistance illustrated the difficulties and perils of ambitious bureaucratic reform in Indonesia.

This case study was drafted by Gordon LaForge based on research by Rachel Jackson, Drew McDonald, Matt Devlin, and Andrew Schalkwyk and on interviews conducted by ISS staff members from 2009 to 2015. Case published May 2016. Other ISS case studies provide additional detail about certain aspects of the reforms discussed in this case or about related initiatives. For example, see Instilling Order and Accountability: Standard Operating Procedures at Indonesia's Ministry of Finance, 2006-2007.

Franklin Siakor

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E
Ref Batch Number
7
Country of Reform
Interviewers
Graeme Blair
Name
Franklin Siakor
Interviewee's Position
Senator and Chairman
Interviewee's Organization
Planning and Economic Affairs Committee, Liberia
Language
English
Nationality of Interviewee
Liberian
Town/City
Monrovia
Country
Date of Interview
Reform Profile
Yes
Abstract
Franklin Siakor, the senator for Bong County, Liberia, talks about his efforts in capacity building and pushing for legislative reforms aimed at promoting good governance. He discusses the training and support received from the National Democratic Institute, the United Nations Development Programme and the Ghana Institute of Management and Public Administration during capacity building. Along with his colleagues, Siakor worked on passing the Land Reform Act, the anti-corruption bill, and the Community Rights Law through the senate. He relates how the government established anti-corruption and land reform commissions to deal with the respective issues. He also reveals his involvement in the decentralization of the government structure, political authority and financial management of resources. He discusses the challenges of implementing these reforms:  lack of government officials willing to support the changes, lack of transparency, delays during bill passage, lack of a monetary system and capacity at the local level, and personal involvement of government officials in the land issue, which complicated the land reform process.
Profile
At the time of this interview, Franklin Siakor was junior senator for Bong County, Liberia. He ran for the office as an independent candidate in the 2005 elections. He was chairman of the Planning and Economic Affairs Committee, co-chairman of the Maritime Committee and the Posts and Telecommunication Committee, and a member of the Ways, Means and Finance Committee and the Judiciary Committee. Siakor holds a master’s degree in developmental studies. Prior to his election to the Senate, he was director of a non-government organization, Development Education Network of Liberia. Much of his time in this position was spent educating the public about development, leadership and good governance. He was also involved in numerous other community service projects.    
Full Audio File Size
60 MB
Full Audio Title
Franklin Siakor - Full Interview

Amos Sawyer

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E
Ref Batch Number
6
Country of Reform
Interviewers
Graeme Blair
Name
Amos Sawyer
Interviewee's Position
Chairman
Interviewee's Organization
Governance Commission, Liberia
Language
English
Nationality of Interviewee
Liberian
Town/City
Monrovia
Country
Date of Interview
Reform Profile
No
Abstract
Amos Sawyer discusses the Liberian experience with decentralization, land reform and public sector reform. He speaks about further complications, including the aftermath of war and the role of property in exacerbating it; the inefficacy of, and lack of trust in, the judicial department; the unavailability of representative opinion polls; and the relationship between property holdings and women’s empowerment. Sawyer begins by explaining the goals of land reform in the country, and the tortuous process of building support for land reform among the populace, nongovernmental organizations, international donors and the cabinet, and building credibility for the government. Sawyer reflects on public-sector reform and the challenges of coordinating reform throughout the government, especially in relation to patronage and ghost workers. He speaks about corruption reform in the police, judiciary and bureaucracy through the Anti-Corruption Commission, and its effect on institutional memory. Sawyer also reflects in detail about the role of international donor agencies, and the need for contextually sound goals, implemented with patience through cooperation instead of myopic adherence to narrow goals. Lastly, he discusses the role of spoilers in the Liberian reform process, and emphasizes the necessity for visionary leadership.
Profile

At the time of the interview, Amos Sawyer was chairman of the Governance Commission in Liberia, which was set up under the Comprehensive Peace Agreement of 2003. He was the president of the Interim Government of National Unity in Liberia between 1990 and 1994. Sawyer earned a doctoral degree in political science from Northwestern University, and after his presidency was a research scholar at Indiana University in Bloomington. He also wrote two books: Beyond Plunder: Toward Democratic Government in Liberia, and The Emergence of Autocracy in Liberia: Tragedy and Challenge

Full Audio File Size
88 MB
Full Audio Title
Amos Sawyer - Full Interview

Babatunde Fashola

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D
Ref Batch Number
12
Country of Reform
Interviewers
Graeme Blair
Name
Babatunde Fashola
Interviewee's Position
Governor
Interviewee's Organization
State of Lagos, Nigeria
Language
English
Nationality of Interviewee
Nigerian
Town/City
Lagos
Country
Date of Interview
Reform Profile
Yes
Abstract

Babatunde Fashola describes an overhaul of the tax collection system in Lagos that successfully increased revenue for the state and indirectly financed various other reforms.  He secured public support for the overhaul after revealing the corruption in the previous tax agency through an orchestrated, public sting operation, which revealed that corrupt officials sold fraudulent tax documents on the street. He replaced the old tax agency with a smaller internal revenue service staffed by no-contract employees governed by performance incentives rather than state civil-service workers. The new service better enforced existing tax requirements and expanded the taxpayer base by introducing a simplified, single-page tax form for informal businesses.  

Case Study:  Remaking a Neglected Megacity: A Civic Transformation in Lagos State, 1999-2012

Profile

At the time of this interview, Babatunde Fashola was the governor of the Nigerian state of Lagos.  He previously served on the Lagos State Executive Council, State Security Council, Treasury Board, and as chief of staff for the former governor of Lagos.  He received a law degree from the University of Benin, after which he worked at a private Nigerian law firm for more than decade, dealing with mergers and acquisitions, intellectual property and commercial law.

Full Audio File Size
72 MB
Full Audio Title
Babatunde Fashola - Full Interview

Humphrey Assisi Asobie

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H
Ref Batch Number
3
Country of Reform
Interviewers
Tumi Magketla
Name
Humphrey Assisi Asobie
Interviewee's Position
Head
Interviewee's Organization
Extractive Industries Transparency Initiative (EITI)
Language
English
Nationality of Interviewee
Nigerian
Town/City
Abuja
Country
Date of Interview
Reform Profile
No
Abstract
In this interview, Professor Humphrey Assisi Asobie recounts his experiences working for the Nigerian Extractive Industries Transparency Initiative (EITI) to increase transparency within the Nigerian government and its service industries through the increased involvement of civil society organizations. He goes into detail about the challenges he initially faced in his role, including recruitment issues, maintaining a strong moral compass, increasing capacity to undertake the work, countering the culture of secrecy amongst the bureaucracy, and finances. Asobie provides step-by-step guides as to how he tried to address these issues, and how he ensured the ideas were favorably received. He also talks about his efforts to build support for the reform initiatives to help move the reform process along, and the role of NGOs, civil society, and the public. He addresses questions regarding the purpose of transparency initiatives, and how to engage civil society not only in the initiatives, but also in using the information provided. He also emphasizes the need to conduct reform efforts against corruption from the ground up in order to establish a base from which to attack those higher up the ladder. Throughout the interview Asobie is candid about what strategies worked, what strategies did not work, and the lessons learned from the process.
Profile

 At the time of this interview, Professor Humphrey Assisi Asobie was head of the Extractive Industries Transparency Initiative (EITI) for Nigeria. He has been involved in the program since 2004 as the head of Transparency in Nigeria, representing civil society at EITI. Prior to his role at EITI, he was President of the Academic Staff Union of Universities in Nigeria as well as Vice President and subsequently President of Transparency Nigeria. Upon his appointment as Chairman of EITI in Nigeria in 2008, he stopped being a representative of civil society and began representing Nigeria. 

Full Audio File Size
113 MB
Full Audio Title
Humphrey Asobie - Full Interview

Navigating a Broken Transition to Civilian Rule: Somaliland: 1991-2001

Author
Richard Bennet, Michael Woldemariam
Country of Reform
Abstract
After nearly a decade of civil war, Somaliland declared independence in 1991 amid high expectations. Though the war had left the East African country desperately poor and deeply divided, the rebel organization that had won liberation, the Somali National Movement (SNM), had taken steps to ensure that peace and public order would be preserved in the run-up to a transition to civilian government in May 1993. Yet scarcely a year into its administration, the SNM imploded, unleashing a spiral of violence that threatened the country’s future. As the prospect of all-out warfare loomed throughout 1992, the government of SNM Chairman Abdulrahman Ahmed Ali Tuur struggled to navigate the stormy transition from fragmented rebel rule to a legitimate civilian administration. This case study describes these efforts and focuses on the political consensus building that brought Tuur’s successor, President Mohammed Ibrahim Egal, to power. Egal’s early efforts to build coalitions, manage political opponents and disarm clan militias were more successful than Tuur’s, although problems of insecurity and violence persisted. The case offers broader insights into ensuring peace in post-conflict societies and demonstrates how many of the actions needed to build short-term political consensus can come at the expense of long-term efforts to bolster good governance.
 

Richard Bennet and Michael Woldemariam drafted this policy note on the basis of interviews conducted in Hargeisa, Somaliland, in October 2010. The companion case study, “Nurturing Democracy in the Horn of Africa: Somaliland’s First Elections, 2002-2005,” examines how Somaliland successfully avoided violence and instituted efficient electoral processes.

Associated Interview:  Adan Yusuf Abokor, Mohamed Fadal