Clean or corrupt: tsunami aid in Aceh

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James, Elizabeth

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Asia Pacific School of Economics and Government, The Australian National University

Abstract

When the Indian Ocean tsunami swept across a large part of the Indonesian province of Aceh on December 26, 2004, the international response was extraordinary. People everywhere opened their hearts and their wallets to the victims. Governments, Non-Government Organisations and international agencies did likewise. In no time nearly US$6 billion had been pledged for Aceh's reconstruction and rehabilitation. Because of Indonesia's reputation for high levels of corruption, the Indonesian Government and donors gave strong public undertakings that the funds would not end up in the wrong hands. This paper examines the problems that are likely to be encountered in meeting such an undertaking.

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