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Socializing Neoliberalism: A Case Study of the National Community Empowerment Program (PNPM) in Central Java

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Drawing upon a theoretical framework that sees the Post- Washington Consensus (PWC) as ‘deeper neoliberalism’, this paper explores how the World Bank’s neoliberal project assisted by social capital – the National Community Empowerment Program (PNPM) – has influenced state-society relations and village politics in Indonesia. An in-depth case study of six villages in three rural districts highlights that, with the promotion of the PNPM, villagers are increasingly encouraged to strengthen their capacity for self-reliance. Meanwhile, they understand their participation in the PNPM as a means of maximizing economic opportunities rather than as a procedure to enhance their political power, suggesting that a neoliberal understanding of ‘participation’ and ‘empowerment’ is taking root among these villagers.

Abstract

Drawing upon a theoretical framework that sees the Post- Washington Consensus (PWC) as ‘deeper neoliberalism’, this paper explores how the World Bank’s neoliberal project assisted by social capital – the National Community Empowerment Program (PNPM) – has influenced state-society relations and village politics in Indonesia. An in-depth case study of six villages in three rural districts highlights that, with the promotion of the PNPM, villagers are increasingly encouraged to strengthen their capacity for self-reliance. Meanwhile, they understand their participation in the PNPM as a means of maximizing economic opportunities rather than as a procedure to enhance their political power, suggesting that a neoliberal understanding of ‘participation’ and ‘empowerment’ is taking root among these villagers.

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