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

1. Bi-­‐weekly
Report,
July
2011
POVERTY
IN
INDONESIA
&
THE
CULTURE
OF
POVERTY

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. Numbers
of
Poverty
Population
(000)
5529.3
5369.2
4773.7
1490.9
1125.7
67.8
Source
:
BPS
2010

4. Percentage
of
Poverty
(%)
37
35
28
23
23
22
3
Source
:
BPS
2010

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. 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. 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. 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
culture's
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. 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. 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. 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
person's
daily
life
is
lived
within
the
person's
environment,
a
person's
environment
determines
daily
decisions
and
actions
based
on
what
is
present
and
what
is
not.
Dipkanar
Chakravarti
argues
that
the
poor's
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
person's
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)