Poverty In Indonesia Essay Example
Poverty In Indonesia Essay Example

Poverty In Indonesia Essay Example

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  • Pages: 11 (2816 words)
  • Published: September 10, 2017
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Poverty is a global issue that is evident through an extremely low income and/or wealth. This leads to a minimal standard of living, lacking essential human necessities and insufficient tangible and intangible resources like income, housing, healthcare services, education, knowledge, and culture.

'According to The World Bank, poverty can be measured using three methods. First is defining the welfare measures. Second is selecting and estimating a poverty line. Finally, choosing and estimating a poverty index. Welfare is divided into nonpecuniary and pecuniary categories. To measure pecuniary aspects of poverty, one must choose between income and consumption as the indicator. Consumption proves to be a more effective indicator for measuring poverty than income.'

Poverty encompasses not only insufficient income or consumption but also inadequate outcomes in health, nutrition, literacy, social relations, insecurity, low confidence, and powerlessness. Poverty lines are threshold

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s that differentiate the poor from the non-poor and can be defined by monetary or non-monetary measures. Utilizing multiple poverty lines helps to gain a better understanding of the different levels of poverty.

There are two methods of assessing poverty: comparative and absolute. The measurement process usually consists of three steps, including the headcount index, which identifies the prevalence of poverty; the poverty spread, which gauges the extent of poverty; and the squared poverty spread, which indicates the severity of poverty. Poverty is a societal problem caused by various factors such as overpopulation, unequal distribution of global resources, inability to meet high living standards and costs, limited education and job opportunities, environmental degradation, economic and demographic trends, and welfare incentives. Overpopulation occurs when there is an imbalance between population size and available resources or space.

Overpopulation is caused by densely populate

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regions that result from the effects of colonialism on the unequal allocation of resources in the global economy. Social scientists argue that developed countries exploit natural resources from less affluent nations through neocolonialism. As a result, there is a disparity in wealth and resources between developed and developing countries, leading to varying living standards.

Individuals facing disadvantages in developed nations may possess comparable levels of wealth and resources to those residing in impoverished nations. While developed nations generally have a higher cost of living, impoverished nations often struggle with limited education opportunities and high illiteracy rates. Financial limitations hinder developing countries from offering quality public schools through governmental support. Furthermore, even developed nations encounter elevated unemployment rates that exacerbate poverty levels. Additionally, environmental degradation profoundly affects poverty across various regions worldwide.

Environmental jobs have resulted in the depletion of nutrients, clean water, materials for shelter, and other important resources. This degradation of forests, land, air, and water directly affects individuals without access to these natural resources. Furthermore, economic trends contribute to poverty issues in developing countries. Although some nations may experience significant income growth at times, they also go through periods of low-income growth. Economic recessions especially impact young and less-educated individuals who struggle to find employment. Additionally, the changing labor markets in developed nations have further contributed to the rise in poverty rates.

Moreover, many people in developed nations link the poverty cycles and the persistent poverty of individuals to welfare programs that are overly generous. These programs receive limited support, even from some politicians who push for an end to financial aid for the poor. Those who hold this viewpoint contend that these programs encourage recipients

to rely on continued payments and other forms of assistance, thus perpetuating their state of poverty.

Furthermore, poverty has a broad and often damaging impact. It leads to inadequate nutrition and health issues, causing higher infant mortality rates and lower life expectancies. Poverty can also contribute to infectious diseases, mental illness, and substance abuse. Additionally, the consequences of poverty extend beyond these immediate effects. For instance, long-term hunger and unemployment can trigger depression and potentially lead to criminal activity.

'Malnutrition is a prevalent consequence of poverty in developing countries. The poorest individuals in these countries often lack sufficient calories to maintain their proper body weight, resulting in long-term starvation, which inevitably leads to death. Additionally, the impoverished also face a high risk of infectious diseases due to inadequate shelter conditions that facilitate disease transmission.'

Individuals who are disadvantaged face risks of acquiring infectious diseases and being exposed to bacteria and viruses from both humans and animals if they lack protection. In developed countries, less fortunate individuals have higher rates of mental illnesses, including depression and anxiety disorders. This may be due to a higher occurrence of severe mental illness in impoverished communities, increasing the likelihood of suicide. To manage their anxiety and depression, some people living in poverty turn to drug use.

Many people become addicted to intoxicants, a legal and affordable drug, leading to alcohol dependency. Additionally, some individuals consume illicit drugs that are even more dangerous and can also cause addiction. Poverty is believed by experts to push people into engaging in violent and criminal behavior.

The poor often turn to criminal behavior due to anger, despair, and their urgent need for money to meet basic needs like

food and shelter. Growing up in poverty can also lead to ongoing challenges throughout a person's life because of its long-lasting effects. Research consistently shows that individuals raised in consistently impoverished families face more difficulties compared to those from non-poverty line families. Sociologists and anthropologists assert that poverty has been a significant issue throughout history when societies had social stratification based on wealth, power, and status. In ancient civilizations such as Egypt, Sumer in the Middle East, and the Indus Valley in present-day India, this division resulted in mistreatment of the poor by those who held power and wealth as they saw them as slaves.

'To connect with the unfortunate individuals, Babylon, Talmudic, and the Hagiographas of early Christians from later eras implored the unfortunate for resources and good fortune. As powerful states of Western civilization came into existence, a legal relationship was established between the poor and non-poor.

"The modern welfare systems of the United Kingdom, the United States, and Canada evolved from a 17th-century British legal act commonly known as the Poor Laws."


"The emergence of civilizations also resulted in social stratification among states and regions worldwide."

The powerful and wealthy states established dominance by utilizing energy and resources from less powerful regions.

During two colonial periods, Western European countries, the United States, and Japan established colonial districts in Asia, Africa, and the Americas. The purpose of this colonization was to spread faith and create strategic locations to defend against rivals. Some Western European countries utilized their colonial districts for trade goods and resources during the first colonial period. In the second colonial period, industrial revolution resulted in mechanized goods production for different states. Industrialized nations

depended on colonies to supply required materials for supporting larger quantities of goods and resources.

Small colonial powers such as Britain and the Netherlands often exploit their colonies' resources, while also importing slaves from West Africa to work without pay in the Americas and Caribbean. The poverty experienced in developed countries differs greatly from that of developing nations. In developed nations, most individuals earn more than 200 times what those in the poorest developing countries make.

Developed countries typically evaluate poverty levels based on average income or a threshold indicating the inability of individuals or households to afford basic necessities. Insufficient income can result in homelessness, while those experiencing less severe poverty often live in substandard and occasionally unsafe housing conditions. A significant portion of the impoverished population in developed nations face higher rates of crime and violence. Surprisingly, despite being considered a prosperous nation, the United States has higher poverty rates compared to most other developed countries. In an early 1990s study encompassing 16 developed nations, poverty was defined as earning less than half the median income. The findings showed that around 19% of the U.S. population fell into this category.

The percentage of people living in poverty differs among countries. Brazil, Australia, Canada, Ireland, Japan, Spain, and the United Kingdom have the highest rates (between 10 and 15 percent). On the other hand, Belgium, France, Germany, Italy, the Netherlands, Finland, Norway and Sweden have lower poverty rates ranging from 5 to 8 percent.

Racial minorities and indigenous populations in developed states like the United States and Australia experience higher poverty rates. Native Americans in the US face issues such as depression, high unemployment, and alcohol addiction, while

Aboriginal people in Australia have similar circumstances. Additionally, developing nations also struggle with poverty.

Recent decades have seen famine impacting millions of people, including women, children, the elderly, and individuals with disabilities. In various developing nations, women encounter social inequality that impedes their education and professional prospects. As a result, they often depend on men for financial assistance.

The emigration of women living in poverty from certain developing countries, particularly in Southeast Asia and Eastern Europe, to other nations with the aim of being trafficked into prostitution is a prevalent issue. This problem is widespread in Asian countries like China, India, Korea, and Thailand where impoverished families are encouraged to practice female infanticide by killing their baby girls. These countries encounter challenges related to overpopulation and have cultures that prioritize men's contributions to family economies. Nevertheless, both impoverished families and the governments of many developing countries face difficulties in providing sufficient support for those who lack employment.

Underprivileged children frequently face illnesses, mistreatment, and inadequate medical care. They confront social disadvantages similar to those faced by women in developing nations, such as being forced into labor or exploited as sex workers. Africa is home to some of the world's most impoverished countries, where poverty is worsened by harsh environmental conditions. Vast expanses of arid and infertile land make it challenging for impoverished individuals to depend on subsistence farming for food and agricultural needs.

This clip has resulted in the occurrence of desertification, which has transformed previously arable land into a desert. In certain African countries like Somalia, Ethiopia, and Mali, desertification in the late 20th century led to famine. Additionally, political unrest and conflicts in different sub-Saharan African countries

have also played a role in generating poverty. As a result, the number of individuals living in extreme poverty in sub-Saharan Africa rose from 217 million in 1987 to over 300 million by 1998. In Latin America, regions with prevalent impoverished Native Americans, people of African descent, and ladinos.

In Latin America, individuals of European descent typically have better living standards. Political instability has caused poverty in various countries including Chile, Cuba, Nicaragua, and Panama. These nations have experienced extended periods of military rule or absolute leadership, which has hindered disabled people from having equal access to resources and opportunities. Haiti, located in the Caribbean region, has long grappled with economic difficulties. Cities like Rio de Janeiro in Brazil and Mexico City are known for high levels of urban poverty and unsanitary slums.

In 1998, it was estimated that over 60 million people lived in extreme poverty in this part of the universe. Approximately two-thirds of the world's poorest 1.2 billion individuals were located in Asia during that year, surviving on less than $1 per day. South Asia, including India, Nepal, and Bangladesh, had around 522 million individuals living in extreme poverty in 1996. Among them, India had more than 300 million impoverished individuals, accounting for over one-third of its population. This made India the country with the highest number of poor people globally. The perpetuation of poverty in India is influenced by its Hinduism-associated caste system.

For many generations, a system has trapped numerous families in a cycle of poverty, pushing certain groups into low positions. In East and Southeast Asia alone, approximately 267 million people were living on less than $1 per day in 1998. China,

with its significant rural population, had a considerable number of individuals experiencing poverty. Moreover, Southeast Asian countries such as Vietnam, the Philippines, and Indonesia were also included among the world's most impoverished nations.

The wars in South and East Asia, including World War II (1939-1945), the Korean War (1950-1953), and the Vietnam War (1959-1975), have had a negative impact on poverty in the region. These conflicts caused damage to land, infrastructure, and forests, resulting in loss of livelihoods and millions of deaths. Moreover, deforestation, mining, and damming projects supported by governments and industries during the late twentieth century worsened poverty by harming or limiting access to forests, fields, and water resources. These initiatives also led to displacement of many people from their homes and fields.

As previously mentioned, Indonesia is among the poorest nations globally. In 2006, only 16.7 percent of the population lived below the national poverty line – a significantly higher proportion compared to 49 percent of households living at or below PPP U.S.

About 32% of the population in Indonesia lives below both the national poverty line and the U.S. $2-a-day line, which is significantly higher than other countries in the region. This means that there is a high risk for most families to fall below the poverty line, even if they are not currently poor. The concentration of families around the poverty line is the main reason why a significant number of families that were not poor or near poor may end up below the poverty line each year. In Indonesia, there is a significant movement in and out of poverty.

According to a study in 2004, 38% of poor families were not poor in

the previous year. The increase in household poverty can be attributed to unexpected changes in income and expenses or the rising prices of essential goods. Indonesia has the potential to overcome poverty by implementing social protection measures that are essential for development policies aiming to fight poverty and promote fairness. Governments use poverty measurements to design programs that offer assistance to those in need. Developed countries all have comprehensive anti-poverty initiatives, mainly in the form of social security and welfare systems.

Most developing states have social security programs, but they often do not effectively address poverty. International organizations use poverty measurements to determine the amount of aid to provide and advise on poverty reduction strategies. The Indonesian government offers limited aid to combat poverty, but it is not sufficient. These countries generally have minimum social security programs that offer support during unemployment, illness, disability, retirement, and for the families of deceased workers. Anti-poverty programs are typically prioritized.

International Government Organizations and Government Aid Agencies. World International is also concerned about the poverty that plagued the world. Numerous government organizations have international anti-poverty programs. This includes various regional organizations like the Organization of the American States, the European Union, and the United Nations. The United Nations includes countries from all around the world, fostering global cooperation to combat poverty. The United Nations operates numerous large-scale anti-poverty programs through branch offices.

The United Nations Development Program is implementing various initiatives in developing countries to enhance literacy rates, create employment opportunities, facilitate technology transfer from developed to developing countries, safeguard the environment and natural resources, and ensure the rights of women. Apart from these efforts, other UN agencies are involved in

poverty alleviation in developing nations. One such agency is the United Nations Children's Fund, which specifically focuses on assisting children affected by poverty through programs providing food, medicine, and education globally. Another agency is the United Nations Food and Agriculture Organization, which supports agricultural productivity enhancement, as well as food distribution and nutrition improvement. Additionally, individual governments also have their own anti-poverty programs. For example, in Indonesia, various organizations and initiatives exist to help elevate the country out of poverty.

The Yayasan Peduli organization has three objectives: to reduce and prevent poverty, rehabilitate damaged land, and develop healthy local economic systems. In addition to the organization's efforts, poverty can also be addressed by the government through providing job opportunities for the unemployed, offering free schooling for those who cannot afford it, and improving slums to make them more livable for local communities. The government should also take steps to control the population growth as Indonesia is already overpopulated. Overall, by addressing the causes and effects of poverty, the government should provide employment opportunities and free education to help improve Indonesia's economic structure and gradually reduce the poverty rate.

Reference list:

  1. Poverty - Definition Of Poverty, Global Poverty, Measuring Poverty, Welfare Response, Categories Of Dependence, Weakened Families And Kinship Systems. ( n.d. ) . Retrieved August 31, 2009, from hypertext transfer protocol: //family.jrank.org/pages/1314/Poverty.html
  2. Poverty - Definition Of Poverty, Global Poverty, Measuring Poverty, Welfare Response, Categories Of Dependence, Weakened Families And Kinship Systems. ( n.d. ) . Retrieved August 31, 2009, from hypertext transfer protocol: //family.jrank.org/pages/1314/Poverty.html
  3. Poverty -

MSN Encarta. ( n.d.

) . Retrieved August 31, 2009, from hypertext transfer protocol: //encarta.msn.com/encyclopedia_761577020_7/Poverty.html ( tickets: none | edit tickets )

Poverty Analysis - Measuring Poverty. (n.d.) . Retrieved August 31, 2009, from hypertext transfer protocol: //web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPA/0,,contentMDK:20202198~menuPK:435055~pagePK:148956~piPK:216618~theSitePK:430367,00.html

Yayasan Peduli Indonesian NGO contending corruptness poorness and environmental debasement in Indonesia.

(n.d.). Retrieved August 31, 2009, from hypertext transfer protocol: //www.yayasanpeduli.org/

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