<![CDATA[Retracing to the village funds (DD) provided are so large, it should be managed as well as possible. In the implementation of village project and village funds also should involve the communities, so the communities know the progress of their village which is managed by using village funds. For the sake of an independent village creation, the community-based economic potential of the village must be raised. In improving the village economy, it is necessary to involve the community surrounding especially in prioritising the village development or empowerment of village communities. Empowerment is as a process of development, independence and self-reliance. Based on the backgorund of the problem above, this study will discuss about the management in the use of village funds in Pragaan subdistrict and analysis of the effectivenes in the use of village funds in economic development. This study aims to understand the management of village funds and analyse the effectiveness in the use of village funds in economic development.The result of this study is budgets for APBN namely village funds (DD) should be maximized for the project of village to be better. The effective development is the establishment in accordance with the expectation of beneficiaries of village project, especially in the development of village economy. The result of the problem are (1) Management of the village fund used is an activity which is designed for village project and community empowerment. In hopes of getting prosperity and village development. (2) Analysis of effectivenessin the use of village funds in Economic Development is a success for community empowerment in economic development so the community can feel the success of village fund management planning for villlage economic development; Economic development or commuunity empowerment]]>
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