Does government debt squeeze expenditures for development purposes?
No, as indicated above, government spending on development has now reached pre-crisis levels. In fact with high international oil prices the Indonesian Government (at the Central and Regional levels) have an unprecedented opportunity to increase spending to improve growth and reduce poverty. After three decades of engagement how has Indonesia benefited from the World Bank? Community-led Development: Apart from creating important national assets in infrastructure, health, education and food security (see Results Highlights), Indonesia’s community-driven Kecamatan Development Program has become a model for other developing countries. Currently operating in over 34,200 of the poorest villages, the KDP alone has built over 27,690 kms of roads, 6,040 bridges, 6,740 irrigation systems, 6,565 clean water supply units and 2,660 sanitation units. It has built or renovated 1,450 village health posts and 760 scho ols, given scholarships to over 61,000 students. Over 650,000 small businesses have
