The Effect of the Utilization of Village Fund on Family Welfare in Buleleng District, Bali

Abstract

Development in the village is a participatory development model, which is a joint development management system, which is planned, implemented, and evaluated through deliberation, consensus, and cooperation. The objectives of this study are first to analyze the direct effect of community participation, intellectual capital, the role of the government on the use of village funds, village economic performance, and family welfare, second to analyze the direct effect of the use of village funds and village economic performance on family welfare. This study also applies the indirect effect of community participation, intellectual capital, the role of government through mediating the use of village funds and village economic performance on family welfare; analyzing the indirect effect of the use of village funds mediated by the economic performance of the village on family welfare. Data analysis techniques using SEM-PLS with the help of Smart PLS 3.0 software, it was found that direct community participation, intellectual capital, and the role of government have a positive and significant effect on the use of village funds, village economic performance, and family welfare; directly the use of village funds and village economic performance has a positive and significant effect on family welfare, which shows that all variables or exogenous constructs have a direct effect on endogenous variables with P values less than 0.05 or with tcount greater than ± 1.96. The results of this study also found that, indirectly, community participation, intellectual capital, and the role of government had a significant effect mediated by the use of village funds on village economic performance; indirectly community participation, intellectual capital and the role of the government have a significant effect mediated by the use of village funds and village economic performance on family welfare; Indirectly, the use of village funds is mediated by the economic performance of the village which has a significant effect on family welfare.

Impacts of Village Funding on Community Empowerment and Poverty in Klungkung, Bali

“…This program has the strong purpose of increasing the income per capita in the rural areas; hence, the discrepancy between the economic conditions in the city and village areas would be able to be reduced if mainly related to the income that each member obtains. According to the study completed by Diatmika [39], A research study entitled "The Effect of the Utilization of the Village Fund on the Family's Prosperity in Buleleng Regency, Bali Province" found that the most direct and meaningful participation that the communities could make was to actively participate in the empowerment programs. The Besides, the community empowerment program is able to support the long-term qualification of the community members to acquire their individual income independently and to avoid poverty, hence growing the economy of the village areas.…”