inter-group relations. Second, KDP encourages participation from marginalized groups and collective decision-making; this may lead to behavioral changes and, in so doing, may reshape the relationship between citizens and the state, and between ordinary villagers and elites. Third, KDP may change norms, attitudes, and expectations regarding how disputes should be resolved. We examine these three theses using survey and case data (in both ‘program’ and ‘comparison’ sites) in order to isolate program effects from those of broader processes of social change. We use the wealth of data to explore broader questions of the ways in which democratization and changes in social structure affect conflict and conflict management.

KDP is having a positive impact on all three dimensions, and this is helping make areas more robust to violent conflict. We found that across a range of different identity cleavages, KDP had helped contribute to improvements in inter-group relations. Ethnic, religious and class relations in NTT province have improved since KDP was introduced, and these changes are greater in ‘program’ (treatment) than ‘comparison’ (control) areas. It is important to underscore here that in the eyes of local peoples in NTT these are the three most important identity groupings. For example, in ‘control’ locations 14.9% reported an improvement in relations between religious groups compared to 39.1% in ‘treatment’ locations.<sup>51</sup> Further, improvements in group relations are growing larger over time. Villages that have had KDP for four years show, in general, greater improvements than those that have had the program for shorter periods. KDP provides a space for different groups to come together to collectively discuss their needs and priorities, an opportunity that is rarely afforded them elsewhere (especially at the inter-village level). There is often inter-group involvement in the physical implementation of projects, and KDP also facilitates group interaction by improving transportation networks.

_“Competition [in the KDP process] has positive effects ... the community in a sub-district can all come together and learn the method and process for obtaining assistance. So they get to know the community out there [meaning the communities in other villages].”_ Village Secretary, Panjeng, Jenangan, Ponorogo KDP also appears to be effectively renegotiating the relationship between citizens and the state at the local level. The evidence shows that KDP is successfully helping to democratize village life. Marginalized groups (and, in particular, women) are far more likely to take part in KDP meetings than in other village government meetings, bearing in mind here that this half the proposals considered for funding must be women’s proposals. Moreover, increased participation in KDP appears to be spilling over into other domains of village public life. Fifty percent more villagers reported that more marginalized groups were coming to village meetings in KDP areas than in the ‘comparison’ sites. Three-quarters of all villagers in those villages that had received KDP for the longest time (four years) reported that more groups came to village meetings than in the past. Decision-making in village meetings has also become more democratic, and this effect is greater in KDP areas than in the ‘comparison’ sites. Respondents also reported improvements in the way communities were dealing with problems:

> _“...The community’s democratic maturity following KDP is manifest in the forums found in BPD (village representative body) that follow the KDP pattern... They are more mature in dealing with differences of opinion between BPD members as well as with the Village Head in conflict resolution... Usually the problem relates to land boundaries, it often happens in Padellegan village.  In order to solve the problem, the BPD and the Village Head sit together to mediate between the two disputing land owners.  Then the two land owners are truly satisfied with all the resulting decisions.”_

> 51 Sample size: comparison (n = 47); program (n = 115).

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