Poverty in-indonesia--the-culture-of-poverty-3

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Poverty in-indonesia--the-culture-of-poverty

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Poverty in-indonesia--the-culture-of-poverty-3

  1. 1. Bi-­‐weekly  Report,  July  2011  POVERTY  IN  INDONESIA  &  THE  CULTURE  OF  POVERTY  
  2. 2. 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  
  3. 3. Numbers  of  Poverty  Population  (000)   5529.3   5369.2   4773.7   1490.9   1125.7   67.8  Source  :  BPS  2010  
  4. 4. Percentage    of  Poverty  (%)   37   35   28   23  23   22   3  Source  :  BPS  2010  
  5. 5. 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  
  6. 6. 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  
  7. 7. 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  
  8. 8. 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.        
  9. 9. 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)  
  10. 10. 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)  
  11. 11. 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)  

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