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

This research aims to evaluate the impacts of village fund allocations on economic empowerment and poverty reduction among low-income populations in Klungkung Regency, Bali. Utilizing a mixed-method approach, the study engaged 259 participants across 37 villages. Methods included observations, interviews, and in-depth interviews for data gathering. Analytical techniques encompassed descriptive statistics, mean difference tests, and path analysis. Key findings reveal that: (1) village funds significantly bolster economic empowerment for low-income groups; (2) while village funds alone do not directly reduce poverty levels, economic empowerment contributes to a marked decrease in poverty; (3) economic empowerment serves as a complete mediator in the relationship between village funds and poverty reduction; (4) the program's implementation exhibits strengths, weaknesses, opportunities, and threats which collectively influence its effectiveness; (5) post-program poverty levels show a notable decline compared to pre-program figures. This study underscores the scarcity of research measuring community empowerment and poverty in relation to village funds, highlighting its potential as a policy-making reference. Contributing to regional economic development literature, this study supports the attainment of Sustainable Development Goals (SDGs) through an integrative analysis of village fund efficacy. © 2024 The authors.