Sustainable Village Governance: Optimizing Rural Fund Management For Inclusive Development

Abstract

This study aims to analyze the impact of village fund management on inclusive development in rural areas. The primary focus of this research is to examine how transparency, accountability, effectiveness, and community participation in village fund management contribute to village economic growth, access to public services, poverty reduction, and overall community well-being. A quantitative approach is employed, utilizing linear regression analysis to examine the relationship between the independent variable (village fund management) and the dependent variable (inclusive development). Data were collected through structured questionnaires distributed to village officials and community members, as well as secondary data from village financial reports and rural development indicators. The sample was selected using a stratified random sampling technique, targeting villages that received village funds over the past five years.

The findings indicate that sound village fund management has a significant positive impact on inclusive development. Transparency and accountability in fund management enhance public trust and improve the efficiency of budget utilization. Furthermore, community participation in planning and monitoring village fund allocations ensures that development programs are more targeted and responsive to local needs. These findings confirm that better governance of village funds leads to greater improvements in community welfare, rural economic growth, and equitable access to public services.

This study provides policy recommendations to enhance the capacity of village officials through financial management training and to strengthen transparency and public participation mechanisms through village forums and accessible financial information systems. Additionally, periodic evaluations of village fund programs are necessary to ensure more effective budget utilization and tangible benefits for rural communities. Transparent, accountable, effective, and participatory village fund governance is a key factor in achieving inclusive and sustainable rural development. Therefore, strengthening the capacity of village governments and reinforcing oversight mechanisms are strategic measures to optimize village fund utilization and accelerate the achievement of inclusive development goals in rural areas.