Bi-‐weekly Report, July 2011 POVERTY IN INDONESIA & THE CULTURE OF POVERTY
Background § Number of Indonesian underprivileged on 2010 is 31,02 millions (13,33% of all population). The numbers decrease from 32,53 millions (2009); living in urban & sub-‐ urban area. § 15 millions of underprivileged population are living in Java. § Provinces with the biggest percentage of underprivileged are Papua (36%), West Papua (34,88%), and Maluku (27,74%). Source : BPS 2010
Numbers of Poverty Population (000) 5529.3 5369.2 4773.7 1490.9 1125.7 67.8 Source : BPS 2010
Definition of Poverty BPS measures poverty by using the concept of basic needs ability approach. By this approach, poverty seen as inability to fulﬁll the basic needs of food (measured by cost). So, people who lives in poverty means population has below average expenditure per capita (in a month). Source : BPS 2010
Poverty Index Gap & Poverty Severity Index By Region, 1999-‐2010 poverty index gap poverty severity index year urban urban urban rural urban rural +rural +rural 1999 3,52 4,84 4,33 0,98 1,39 1,23 2000 1,89 4,68 3,51 0,51 1,39 1,02 2001 1,74 4,68 3,51 0,51 1,36 0,97 2002 2,59 3,34 3,01 0,71 0,85 0,79 2003 2,55 3,53 3,13 0,74 0,93 0,85 2004 2,18 3,43 2,89 0,58 0,90 0,78 2005 2,05 3,34 2,78 0,60 0,89 0,76 2006 2,61 4,22 3,43 0,77 1,22 1,00 2007 2,15 3,78 2,99 0,57 1,09 0,84 2008 2,07 3,42 2,77 0,56 0,95 0,76 2009 1,91 3,05 2,50 0,52 0,82 0,68 2010 1,57 2,80 2,21 0,40 0,75 0,58 POVERTY GAP INDEX measure the extent to which individuals fall below the poverty line (the poverty gaps) as a proportion of the poverty line. Higher value of the index shows that the gap between average expenditure of the poor & the poor line is wider. POVERTY SEVERITY INDEX describes inequality among the poor. This is simple a weighted sum of poverty gap themselves. Hence, by squaring the poverty gap index, the measure implicitly puts more weight on observations that fell below the poverty line. Higher value of index shows that line inequality among the poor is higher. Source : based on March Panel National Socio Economic Survey, Statistic Indonesia
Poverty in Indonesia as a developing country “Developing country” is a term generally used to describe a nation with a low level of material well-‐being. Since no single deﬁnition of the term developing country is recognized internationally, the levels of development may vary widely within so-‐called developing countries. source :Steven M. Sheﬀrin & Arthur Sullivan – Economics: Principles in Action (2003) Indonesia is top ten of developing countries with people live below poverty 13,33% source: CIA. 2010 29, 4% of Indonesian population live with < US$ 1,25 per day source : UNDP, 2010
Causes of Poverty in Developing Nations (1/3) Poverty as cultural characteristics Development plays a central role to poverty reduction in third world countries -‐ the national mindset itself plays a role in the ability for a country to develop and to thus reduce poverty. There are “cultural factors” which, depending on the cultures view of each, can be indicators as to whether the cultural environment is favorable or resistant to development. The culture of poverty concept is a social theory explaining the cycle of poverty. Based on the concept that the poor have a unique value system, the culture of poverty theory suggests the poor remain in poverty because of their adaptations to the burdens of poverty.
Oscar Lewis gave several characteristics about poverty : “The people in the culture of poverty have a strong feeling of marginality, of helplessness, of dependency, of not belonging. They are like aliens in their own country, convinced that the existing institutions do not serve their interests and needs. Along with this feeling of powerlessness is a widespread feeling of inferiority, of personal unworthiness. People with a culture of poverty have very little sense of history. They are a marginal people who know only their own troubles, their own local conditions, their own neighborhood, their own way of life. Usually, they have neither the knowledge, the vision nor the ideology to see the similarities between their problems and those of others like themselves elsewhere in the world. In other words, they are not class conscious, although they are very sensitive indeed to status distinctions. When the poor become class conscious or members of trade union organizations, or when they adopt an internationalist outlook on the world they are, in my view, no longer part of the culture of poverty although they may still be desperately poor” source : Oscar Lewis -‐ Five Families: Mexican Case Studies in the Culture of Poverty (1959)
Causes of Poverty in Developing Nations (2/3) Poverty as a label Arjun Apadurai writes of the “terms of recognition” , which are given the poor are what allows poverty to take on this generalized autonomous form. The terms are “given” to the poor because the poor lack social and economic capital, and thus have little to no inﬂuence on how they are represented and/or perceived in the larger community. Furthermore, the term “poverty”, is often used in a generalized matter. The speciﬁc ways in which the poor and poverty are recognized frame them in a negative light. In development literature, poverty becomes something to be eradicated, or, attacked. It is always portrayed as a singular problem to be ﬁxed. When a negative view of poverty (as an animate object) is fostered, it can often lead to an extension of negativity to those who are experiencing it. This in turn can lead to justiﬁcation of inequalities through the idea of the deserving poor. Source : Arjun Appadurai – The Capacity to Aspire : Culture & the Terms of Recognition (2004)
Causes of Poverty in Developing Nations (3/3) Poverty as restriction of opportunities The environment of poverty is one marked with unstable conditions and a lack of capital (both social and economical) which together create the vulnerability characteristic of poverty. Because a persons daily life is lived within the persons environment, a persons environment determines daily decisions and actions based on what is present and what is not. Dipkanar Chakravarti argues that the poors daily practice of navigating the world of poverty generates a ﬂuency in the poverty environment but a near illiteracy in the environment of the larger society. Thus, when a poor person enters into transactions and interactions with the social norm, that persons understanding of it is limited, and thus decisions revert to decisions most eﬀective in the poverty environment. Source : Dipankar Chakravarti – Voices Unheard: The Psychology of Consumption in Poverty & Development (2006)
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.