Institutional Transformation and Its Impact on Sustainable Community Development Program

Abstract

Institutions are not static but always adapt to change. Institutional transformation has two dimensions: (1) changes in interest among economic actors who triggered institutional transformation, and (2) institutional change is deliberately designed to regulate economic activity. In this context is the institutional rules, formal and informal rules, which is implemented by Activity Management Unit (UPK) as the implementing organization empowerment to carry out community development activities. The study was conducted using a qualitative approach with a case study method to the institutional transformation of the organization implementing the empowerment that took place during the independence. The results show that institutional transformation is not just a difference in form, quality, state from time to time of an institution, but also the differences in the quantity of an institutional activity triggered by the common interests of the perpetrators. UPK institutional transformation as organizations implementing empowerment that took place during the independence has implications: (1) Implementation of development programs in the field were not always as expected, the fact it gave birth to the dependence of the organization implementing the program funds and assistance from the government to continue to do empowerment; (2) The pattern of community development through the establishment of the organization only gives added value to the board in managing the organization and to engage in other activities; (3) Institutional transformation carried out aimed to guarantee activities that bring in revenue for the organization implementing the empowerment and incentives for administrators; (4) Sustainability implementing organization embodied empowerment by focusing on the goal orientation of commercial activities in the form of the ability to generate profits through financial intermediation that beat should embrace social mission, and (5) Management of organizational empowerment is a form of management resulting from the relationship between formal rules and informal rules.

Keywords: institutional transformation, implementing organizational empowerment, community empowerment