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WINNER 2021 » Poster Session » Resource Windfalls and Local Public Goods in Indonesia
Author: Charan van Krevel, MSc

My poster and presentation cover the relationship between local government spending on public goods and windfalls from oil and gas. Public goods such as education, health, and the environment are important for sustainable development.Since 2001, Indonesia underwent a large-scale decentralization policy that transferred fiscal responsibilities from central to local authorities. As a result, Indonesian regency governments have a strongly grip on how the SDG’s are to be achieved. In the meantime, some regencies suddenly benefitted from a new natural resource revenue sharing scheme, which meant that resource windfalls also accrue to non-natural resource exploiting regencies. This case presents a unique opportunity to study the relationship between unanticipated resource windfalls and public goods that contribute to sustainable development.My presentation will cover the academic paper underlying the poster. This paper presents strong evidence that oil and gas windfalls reduce the share of the budget spent on education, but not the share spent on health and the environment. Beyond the poster, my paper also shows that different sources of government income are spent comparatively more on public goods than oil and gas income. This result is important because it highlights that (1) oil and gas exploitation may harm SDGs relating to health, education, and the environment (aside from the climate impact). It furthermore shows that (2) the policy implication is to curtail oil and gas exploitation or at the very least allocate the rents differently to reach the SDGs.My presentation will emphasize not only the innovative methodology, but also strongly hint towards the interrelatedness of SDGs and responsible governance. While I believe the paper makes an important contribution to the relevant academic literature and is econometrically sophisticated, this will not take center stage given the (expected) audience.

Should you have any questions relevant for this research/project

Mr. Charan van Krevel

[email protected]

Tel: +31 243 612005

Fax: +31 243 612 379


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