Document Sample
					                        INCOME INEQUALITIES AND POVERTY

A. Definition of Poverty

         Poverty is a situation where there is an inability to meet basic needs such as food,
clothing, shelter, education, and health. Poverty can be caused by the scarcity of means of
fulfilling basic needs, or the difficulty of access to education and employment. Poverty is a
global problem. Some people understand this term is subjective and comparative, while
others view it in terms of moral and evaluative, and others understand it from a scientific
angle that has been established.

        According Nasikun (1995), conditions that must be understood about the real poverty:
"Poverty is a multifaceted phenomenon, multidimensional, and integrated. Living in poverty
means not just living in conditions of shortage of food, clothing, and shelter. Living in
poverty often means low access to various resources and productive assets are indispensable
to obtain a means of fulfillment of life's most basic needs, among others: information,
science, technology and capital. Moreover, living in poverty often means living in alienation,
low access to power, and therefore life choices narrow and stuffy ". Poverty often means lack
of access to education and employment are able to overcome the problem of poverty and get
decent honor as a citizen. In modern society, poverty is usually equated with the problem of
lack of money.

       Poverty can also be divided into three terms, namely:

1. Relative poverty.

A person is poor relative has actually live above the poverty line but still below the ability of
the surrounding community.

2. Cultural poverty.

Being poor is closely related to the cultural attitude of a person or group of people who do not
want to try to improve the level of life despite the efforts of other parties who assist him.

3. Absolute poverty.

Absolute poverty is the number of residents who are unable to obtain sufficient resources to
meet basic kebutuha. They live below the minimum income level or below the international
poverty line.

       According Ginanjar (1997), absolute poverty:

"The condition of the worst poverty as measured from the family's ability to finance their
minimum needs to be able to live in accordance with the dignity of life worthy of human
B. Factors Contributing to Poverty

       Within a country, surely there is a big challenge in life. One such challenge is poverty.
In Indonesia alone, there are so many people are trapped in poverty. This of course does not
want the people of Indonesia. All due course, there's why. Such as poverty, does not just
happen. However, this happened may be due to factors within the community itself.

        Poverty itself has a meaning of a situation where someone's lack of material means of
subsistence. From that sense, can we analyze the cause or factors that cause poverty. The
factors that cause poverty, among others:

a. Level of education of the average low.

b. This way of thinking that is still traditional and conservative.

c. Apathy and anti novelty.

d. Mentality and work ethic is not good.

e. Unfavorable natural conditions.

f. Keterisoliran geographically from the center.

g. The lack of potency or selling products.

h. The low performance and culture of corrupt local government officials.

      And below are some of the causes of poverty in the opinion of Karimah Kuraiyyim.
Which include:

a. Declining standard of per capita income growth globally.

The important bottom line here is that the standard of per-capita income moves balanced with
productivity that exist in a system. If productivity gradually increases, the per capita income
will also rise. Vice versa, if productivity shrinks the per-capita income will go down together.

      Here are some factors that influence the decline of standard developmental per-capita

a) Increased development of a regional standard.

b) Political economy is not healthy.

c) foreign country factors, including:

* Damage to the terms of trade
* The debt burden

* Lack of foreign aid, and War

d. Government subsidies in the division come less evenly distributed.

        This addition will complicate the fulfillment of basic needs and security guarantees
for the poor, also indirectly lethal source of income citizens. Even on the other side of the
poor countries are still burdened by taxes.

       Poverty may be applicable for individual deficiencies and also on socio-economic
problems in a society. Accordingly, because poverty can be viewed from two dimensions:

1. Individual Dimensions

Shortages of certain individuals that can trigger poverty. The weakness of this individual

usually equal weakness and can cause a person is poor, although he is in a society filled with
opportunities sustenance. The weakness of this individual are as follows:

a. Gambling behavior

Nature of gambling is a practice that causes a person is poor. Those who are addicted to
gambling, will be a lot of lost treasure in gambling activities and often lost their foothold in
the job kerana lost in gambling.

b. Personality problems

In general, personality problems that cause poverty are lazy attitude. Lazy attitude was
reflected in the behavior of such a fanciful, like to gab, and also "said in evasion of work".
People who are lazy is a lack of productivity and they will be missing many opportunities to
seek sustenance.

2. The dimensions of the community

From these dimensions, poverty is something that terhasil of socio-economic problems. His
form in a society and not something caused by the weakness of the individual. Because
poverty is in connection with the problems of society are as follows:

a. Conflict
Conflicts such as wars, riots and so forth will lead to economic activity have been killed and
he also destroyed the infrastructure necessary to maintain wealth. All this will lead to
protracted poverty.

b. Social Injustice

According to the theory of Marxism, in societies that practice free market economy, poverty

"Something that can not be circumvented. In these societies, wealth tends to rely on the
wealthiest class, when people who are poor tend to be poorer. This is because in a free
market, the commodity dijualkan to those who are able to offer a higher price. This principle
causes pengeluargan factors such as land, tend to be owned by the richest group, kerana they
have a higher purchasing power. Pemilikikan factor of this spending will lead to the richest
people become richer, and they will buy more factors at pasa-free spending. This process will
berterusan, so that the richest group is hogging all the expense factors, and lead others in poor
communities do not have the expense factor. "

But the economic theory of Marxism has been proven by one of the economists. All countries
that have tried to follow the theories of Karl Marx failed to reduce poverty. Now almost all
economists and economic historians are free to use economic theory to reduce poverty.

C. Impact Poverty and How to Overcome It

Poverty is a phenomenon frequently encountered, whether in developed or developing
countries like Indonesia. Many problems of poverty in Indonesia is certainly caused by some
triggering factors. Of these trigger factors will create an effect of poverty. The impact of
poverty on society in general are so numerous and complex.

These impacts include:

1. Unemployment.

As we know the number of unemployed in Indonesia so much. With unemployment means
many people who have no income because it does not work. Because it does not work and
have no income they are unable to meet food needs. Automatically unemployment has
reduced the competitiveness and purchasing. So, will impact directly on the level of income,
nutrition, and the average level of expenditure. The size of competitiveness is often used to
determine the ability of a nation in competing with other nations globally.
2. Violence.

Indeed violence rife lately is the effect of unemployment. This is because a person can no
longer make a living through the right path. When there was no guarantee of a person can
survive and maintain its survival then a shortcut can also be done. For example, robbery,
armed robbery, steal, or cheat. From here a poverty could have implications for the survival
of society most. The higher the communities living in poverty, the more dangerous to the
environment in which they live. Because the impact of poverty, they will try to find a shortcut
to maintain their survival.

3. Education.

High school dropout rate is a phenomenon that occurs today. The high costs of education
make the poor can no longer reach the school or education. Obviously they can not reach out
to the world of education is very expensive. Because they are so poor. For one meal a day
they had difficulties. Finally the condition of the poor worse off deeper. The high dropout
rates have an impact on a person's education level rendahya. That would reduce the chance of
someone getting a decent job. This will lead to increased unemployment as a result are unable
to compete in a globalizing world that demands skills in all areas.

4. Health.

As we know, the cost of treatment is very expensive now. Almost every clinic private
hospital treatment let alone impose tariffs or costs of treatment cost is very expensive. Thus,
the costs are not affordable by the poor. Due to the high cost, berdampaklah to people who
fall into the category of poor. The impact of this is exacerbated lives of the poor. They lose
the right to health facilities because they do not have the funds to pay.

5. SARA nuanced social conflict.

       Without being hypocritical conflicts arise due to racial discontent and disappointment
over the poor condition of the acute. This becomes another evidence of the poverty that we
alami.semuanya is an expression of identity of each individual's rebellion. Moreover the
phenomenon of natural disasters that often hit the country that directly impact the growing
number of poor people. All of which add to the long series of poverty list. And it all
happened almost evenly in every region in Indonesia. Both in rural and urban areas.

        Poverty is indeed a complex issue and needs to be addressed by involving the
participation of many parties, including the university. Of the many strategies to alleviate
poverty, social entrepreneurship approach that relies on an entrepreneurial spirit for the
         purposes of social change, now more widely used because it is able to deliver optimal
results. The concept of this approach is feasible or tested within the scope of college because
the basic idea is actually in accordance with the Tri Dharma University, in particular aspects
of community service.

         Poor arise because there are some people who have not participated in development
that have not been able to enjoy the fruits of development adequately. This situation is caused
by limitations in the ownership and control of factors of production so that the ability of
communities to produce and enjoy the fruits of development have not been evenly distributed
and not yet balanced. Therefore, efforts to develop the economic activities of low-income
groups always placed a high priority. Accordingly, providers of production factors including
capital and community capacity building skills as the basis for the development of economic
activities in a sustainable society.

       In principle, the government's development program has made poverty as one of its
main focus. Common program of government itself is a development program that focuses on
reducing poverty, increasing economic growth and employment expansion.

Many of the policy pursued by the government to be able to overcome various problems of
poverty, among others, are as follows:

1. Wisdom is not directly

Wisdom is not directly aimed at creating conditions which ensure the continuity of any
poverty reduction efforts. Conditions which meant among other socio-political atmosphere
that is peaceful, stable economic and cultural developments.

2. Direct Policy

Wise is directed to increasing the participation and peroduktifitas human resources,
particularly low-income segments of society. Through the provision of basic needs like food
and clothing of health and education boards, as well as the development of socio-economic
activities that bekelanjutan to encourage self-reliance of low-income segments of society. The
fulfillment of basic needs will provide opportunities for the poor to social and economic
activities that can provide an adequate income. In this connection, people's socio-economic
development activities prioritized in the development of socio-economic activities of poor
people in poor villages in the form of improving the quality of human resources and an
increase in capital which is fully supported by the activities of coaches.

Apart from the government, from the people concerned were also able to overcome the
poverty in this country. These steps are:
1. Individual Business

Someone may try to resolve the problems of poverty faced by him. In the usual one that can
overcome poverty dirinyadengan way up forwarding education to a higher level.

2. Penyedekahan

Penyedekahan is a good way to help the poorest in society. But he can not solve the overall
problem of poverty.

3. Economic Development

Economic development by the addition of goods and perkhidmatan offered in the market in
sesebuah countries. Economic development is the most memorable ways to address poverty.
But he must be accompanied by a fair pengagihan income in society.

4. Community Development

4. Free market

5. Milton Friedman's free market reserve for economic development and overcome poverty.
If there is economic development there is also poverty reduction. If KDNK grew by 1% of
poverty will be reduced by approximately 1%.

Besides the above methods, poverty can also be addressed as follows:

1. Poverty relief, or help directly to the poor. This approach has been part of European
society since medieval times.

2. Assistance to individual circumstances. Many kinds of policies are implemented to change
the situation of the poor by individuals, including punishment, education, social work, job
search, and others.

3. Preparation for the weak. Rather than providing direct assistance to the poor, many welfare
states provide assistance to people who are classified as being more likely to be poor, such as
the elderly or people with a disability, or circumstances that make people poor, as demand for
health care.

Poverty does not may be omitted, but it is not possible to reduce the percentage of poverty.
Countries that want to build the economy should be able to improve the country's standard of
living, as measured by real per capita income increases. Indonesia as a developing country to
meet the standard aspects of poverty include:

1. Is a leading producer of primary goods

2. Having masalaha population pressure

3. Less optimal processing of natural resources

4. Residents of low productivity due to educational backwardness

5. Lack Capital Development

6. Export orientation of primary goods because of the inability to process goods

goods become more useful.

Therefore, there needs to be some efforts to address the problem of poverty. starting from the
individual's own way in eradicating poverty through education in its own right until kejenjang
higher. Until the efforts taken by the government in reducing poverty.