Making decentralization work for development : methodology of the local government performance measurement (LGPM) framework

This paper discusses the local government performance management (LGPM) tool used to measure and track the performance of local governments (LGs). The purpose is to provide both central and local policy-makers, development partners, and citizens with a simple and transparent tool for gauging LG performance across districts and within different domains of LG activity, as well as a set of best practices that can be replicated. The LGPM tool also measures the performance of LGs against targets that are known to be achievable within a relatively short timeframe and within the Indonesian context. The LGPM tool seeks to capture the four key dimensions of LG performance: public financial management; fiscal performance; service delivery; and the investment climate. Three of the 131 indicators are directly related to water and sanitation: Average perceived quality of five types of infrastructure (district roads, street lighting, water from the local water authority (PDAM), electricity, telephone); Share of population with access to clean water; and Share of population with access to proper sanitation. The LGPM tool was piloted in three locations and results indicated that most indicators were relevant in capturing LG performance.