Why must an exit strategy be considered? The lack of an exit strategy may result in inefficient use of resources and in the end may mean that the activity fails to empower its target group. In the context of poverty reduction programs, an exit strategy becomes critically important because it can prevent continued spending on programs that have not proven to be effective, those that have successfully reached their target and should be reoriented towards a new target, or programs that can subsequently be managed and financed by the local community.

An exit strategy looks at the progress and improvements that an activity or intervention has achieved. This is assessed through periodic monitoring and evaluation using a clear set of indicators, as well as a fixed timeframe for the gradual withdrawal of resources. Exit strategies also raise the question of “what’s next?” What further measures must be taken to follow on from the withdrawal in order to sustain the progress and achievements already made? These are the overall challenges faced by poverty reduction programs.

Are poverty reduction programs in Indonesia equipped with exit strategies? To explore this question, this edition invites readers to examine the issue closely. The edition particularly looks at the exit strategy of the subsidized rice (OPSM) program funded by the World Food Programme, which transferred the program to local governments and communities. In addition, NGO activist Suharman Noerman expresses his opinion regarding the OPSM program phaseout and poverty expert Lant Pritchett shares his views on exit strategies.