The need to incorporate a range of values that fall outside the market processes has been 

discussed.  The economic valuation of resources associated with NRMP s two field sites was an 

example of how the project acted as an analyst, using short term technical assistance, and then 

as an educator, using the long term adviser.  In the role of educator, NRMP systems for 

including wider value sets were promoted through the Regional Development Policy Unit of 

Deputy V Bappenas.  As a consequence, a long term adviser position was specified to develop 

the systems for allocating public funds to regional development projects based on these wider 

value sets.  No direct policy advice was recommended other than to demonstrate how the 

allocation policy could be enhanced.  This demonstration included stakeholders from local and 

central government, NGO's, and the private sector.  To enable greater stakeholder involvement, 

effective policy advice may require a greater emphasis on the role of educator than had 

previously been provided. 

For donors, the message is clearer; understand the policy process and outcomes that are 

desired and then design interventions around these.  Poorly designed policy inputs have left a 

long list of low impact interventions because they were never designed to achieve anything 

more than that. Donor involvement, whether as advocate, analyst, or educator, needs to be 

more clearly stated; multiple roles need to be avoided.  If the objective is new policies, the role 

of advocate is appropriate.  If the objective is to develop an improved policy making process, 

such as a multi stakeholder policy process, the role of educator is appropriate.  With the existing 

focus of many government policy initiatives being directed at decentralization, consideration of 

using multi stakeholder policy processes as a tool for decentralization needs to be seriously 

assessed. 

1.5  Summary of Lessons Learned from Enabling Policy 

Development  

One of the key issues underpinning a sustainable development pathway is the extent to which 

total stock of both natural and man made capital can be maintained for future generations.  

Some loss of natural resources capital is necessary for any development process, but the rate 

and extent of such losses become essential parameters for establishing a sustainable pathway 

to the future.  The economic development versus natural resources conflict should not remain 

an issue of  yes or no  but rather one of trade offs. 

For Indonesia, these trade offs are complicated by the regional nature of the economies within 

the wider archipelago.  Within the myriad of resources and social systems, these same trade off 

decisions are necessary.  For sustainable development to become operational, society needs to 

determine what current generations should leave to future generations. Policy makers must 

become aware that the priority policy need is more about deciding how to provide for the future 

rather than attempting to prescribe an optimal provision allocation pathway.   

While market based policies and greater industrialization will assist to increase value of natural 

resources to the economy in and of themselves, they will not ensure sustainable development.  

Methods for making decisions about the trade offs between alternate uses are necessary and 

involve decisions without consideration of prices.  Sustainable development requires economic 

development to be managed within an appropriate scale of activity to achieve biological and 

ecological objectives.  The scale of the economy is determined by the population size in an area 

and the level of their resources use.  The level of resources use is a function of access to 

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