WPS4212

# **Local Conflict and Development Projects in Indonesia: Part of the Problem or Part of a Solution?**<sup>*****</sup>

Patrick Barron, World Bank Rachael Diprose, University of Oxford Michael Woolcock, World Bank

## <u>Abstract</u>

Drawing on an integrated mixed methods research design, we explore the dynamics of the developmentconflict nexus in rural Indonesia, and the specific role of development projects in shaping the nature, extent, and trajectories of ‘everyday’ conflicts, especially those generated by the projects themselves. We find that projects that give inadequate attention to dispute resolution mechanisms in many cases stimulate local conflict, by injecting development resources themselves or less directly by exacerbating pre-existing tensions in target communities. Projects that have explicit and accessible procedures for managing disputes arising from the development process, however, are much less likely to lead to violent outcomes. We argue that such projects are more successful in addressing project-related conflicts because they establish direct procedures (such as forums, facilitators and complaints mechanisms) for dealing with tensions as they arise. These direct mechanisms are less successful in addressing broader social tensions elicited by, or external to, the development process.

## World Bank Policy Research Working Paper 4212, April 2007

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._

* This paper presents the summary findings from a large study of local conflict dynamics and development projects in Indonesia, a study whose conduct required extraordinary efforts on the part of a team of twelve field researchers. Their efforts, the regular advice of Scott Guggenheim, and the generosity of numerous funding bodies, including DFID, AusAID and the Norwegian Government, are duly acknowledged.  Previous versions of this paper have been presented at seminars hosted by the Center for Global Development, George Mason University, John Hopkins (SAIS), Harvard, MIT, Oxford, Princeton, Universitas Indonesia, the World Bank (Jakarta and Washington), Yale, the Southeast Asia Conflict Studies Network (SEACSN) conference in Penang, Malaysia, and the MOSTLIPI/UNESCO conference on Conflict in the Asia-Pacific in Jakarta.  We are grateful to the comments and probing questions of participants at all events, and at the four feedback workshops we held with local governments and community leaders in each of our research districts.  This version was presented at the 2006 Annual Meeting of the American Political Science Association.  Thanks to the various panelists, especially Ashutosh Varshney and Bridget Welsh, and the discussant (Stathis Kalyvas), for useful comments; similarly detailed and helpful written feedback on the project as a whole was received from Michael Dove, David Mosse and Yongmei Zhou.  Email addresses for correspondence: pbarron@worldbank.org, rachael.diprose@sant.ox.ac.uk and mwoolcock@worldbank.org.

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