CHAPTER 1

A. The Definition of Poverty World Bank

The World Bank Group’s mission is carved in stone at our Washington headquarters: “Our Dream is a
World Free of Poverty.” This mission underpins all of our analytical, operational, and convening work in
more than 145 client countries, and is bolstered by our goals of ending extreme poverty within a
generation and promoting shared prosperity in a sustainable manner across the globe.

There has been marked progress on reducing poverty over the past decades. The world attained the first
Millennium Development Goal target—to cut the 1990 poverty rate in half by 2015—five years ahead of
schedule, in 2010.  Despite the progress made in reducing poverty, the number of people living in
extreme poverty globally remains unacceptably high. And given global growth forecasts poverty
reduction may not be fast enough to reach the target of ending extreme poverty by 2030.

  According to the most recent estimates, in 2013, 10.7 percent of the world’s population lived
on less than US$1.90 a day, compared to 12.4 percent in 2012. That’s down from 35 percent in
1990. 
 Nearly 1.1 billion people have moved out of extreme poverty since 1990. In 2013, 767 million
people lived on less than $1.90 a day, down from 1.85 billion in 1990. 

While poverty rates have declined in all regions, progress has been uneven:

 The reduction in extreme poverty between 2012 and 2013 was mainly driven by East Asia and
Pacific (71 million fewer poor)—notably China and Indonesia—and South Asia (37 million fewer
poor)—notably India. 
 Half of the extreme poor live in Sub-Saharan Africa. The number of poor in the region fell only
by 4 million with 389 million people living on less than US$1.90 a day in 2013, more than all the
other regions combined. 
 A vast majority of the global poor live in rural areas and are poorly educated, mostly employed
in the agricultural sector, and over half are under 18 years of age. 

The work to end extreme poverty is far from over, and many challenges remain. It is becoming even
more difficult to reach those remaining in extreme poverty, who often live in fragile contexts and
remote areas. Access to good schools, healthcare, electricity, safe water and other critical services
remains elusive for many people, often determined by socioeconomic status, gender, ethnicity, and
geography. Moreover, for those who have been able to move out of poverty, progress is often
temporary: economic shocks, food insecurity and climate change threaten to rob them of their hard-
won gains and force them back into poverty. It will be critical to find ways to tackle these issues as we
make progress toward 2030.
 B. The Definition of Poverty

Condition where people's basic needs for food, clothing, and shelter are not being met. Poverty is
generally of two types:

 Absolute poverty is synonymous with destitution and occurs when people cannot obtain
adequate resources (measured in terms of calories or nutrition) to support a minimum
level of physical health. Absolute poverty means about the same everywhere, and can
be eradicated as demonstrated by some countries.
 Relative poverty occurs when people do not enjoy a certain minimum level of living
standards as determined by a government (and enjoyed by the bulk of the population)
that vary from country to country, sometimes within the same country.

C. The Definition of Poverty according to The Experts

 Reitsma dan Kleinpenning, poverty is the inability of individuals to meet their needs,
both material and non-material.
 Suparlan, poverty is a low standard of living because of a lack of material on a number
or group of people when compared with the standard of living prevailing in the
surrounding community.
 Friedman, poverty is the inequality of opportunity to formulate social power in the form
of assets, financial resources, socio-political organizations, social networks, goods or
services, knowledge and skills, and information.
 Hall and Midgley, suggest poverty can be defined as a material and social deprivation
condition that causes individuals to live under decent living standards, or conditions in
which individuals experience relative deprivation compared to other individuals in
society.
 Levitan, poverty is the lack of goods and services needed to achieve a decent standard
of living.
CHAPTER 2
A. Poverty Data in Indonesia
 In September 2017, the number of poor (people with per capita expenditure per month
below the Poverty Line) in Indonesia reached 26.58 million people (10.12 percent),
decreased by 1.19 million people compared to March 2017 conditions which amounted
to 27.77 million people (10.64 percent).

 The percentage of poor people in urban areas in March 2017 of 7.72 percent decreased
to 7.26 percent in September 2017. While the percentage of poor people in rural areas
in March 2017 of 13.93 percent decreased to 13.47 percent in September 2017.

 During the period of March 2017-September 2017, the number of poor people in urban
areas fell by 401.28 thousand people (from 10.67 million people in March 2017 to 10.27
million people in September 2017), while in rural areas fell by 786, 95 thousand people
(from 17.10 million people in March 2017 to 16.31 million people in September 2017).

 The role of food commodities against the Poverty Line is far greater than the role of
non-food commodities (housing, clothing, education, and health). The contribution of
the Food Poverty Line to the Poverty Line in September 2017 was 73.35 percent. This
condition is not much different from the condition in March 2017 that is equal to 73.31
percent.

 Types of food commodities that affect the value of poverty line in urban and rural areas
are rice, clove cigarettes filter, beef, chicken eggs, chicken meat, instant noodles, and
sugar. While non-food commodities that have a big effect on the value of poverty line in
urban as well as rural are housing, gasoline, electricity, education, and toiletries.

B. Poverty Data in North Sulawesi

The percentage of poor people in North Sulawesi Province in September 2017 was 7.9
percent, down 0.2 percent compared to March 2010 condition of 8.1 percent.
CHAPTER 3
The Types of Poverty :

1. Subjective Poverty
     Subjective poverty is the poverty that occurs because each person based his own thinking by
stating that his needs are not adequately met even though they are not very poor
     Example: Seasonal beggar in Jakarta

2. Absolute Poverty
     Absolute Poverty is someone who has income below the poverty line that is insufficient to
meet their clothing, food, shelter, health and education needs.
     Example: Less fortunate families

3. Relative Poverty
     Relative poverty is a form of poverty that occurs because of the influence of development
policies that have not reached all levels of society, causing inequality pendaptan or imbalance
welfare standards.
     Example: lack of employment creates a lot of unemployment

4. Natural Poverty
     Natural Poverty is a poverty that occurs due to poor natural conditions or rare natural
resources (SDA), so that the productivity of society becomes low.
     Example: The people in Zimbabwe there are short of natural resources, because the
surrounding is only barren land.

5. Cultural Poverty
     Cultural poverty is the poverty that occurs because of the attitudes and habits of a person or
society that generally comes from cultures or customs that are relatively unwilling to improve
living standards with modern procedures.
     Example: Bedouin tribe who rejects the modern teachings and remains firm with its customs

6. Structural Poverty
     Poverty that occurs due to the inability of the system or social structure to connect a person
with the existing resources.
     Example: Lazy works, Freeport case
CHAPTER 4
A. Causes of Poverty in Indonesia
Poverty is still a part of Indonesian society. Despite many efforts by the Indonesian
government to eradicate poverty, poverty remains a hot topic on the television screen. The
struggles that occur in the present day make various kinds of factors causing poverty becomes
increasingly difficult to overcome. Poverty can be caused by several factors such as:

 People's mindset
 Education
 Competition in the world of work

Indonesian people's mindset is one of the factors of poverty, because people's mindset is
only settled. (For example there is a mother to be a beggar then the mother will tell her child to
beg also follow in the footsteps of the mother). Hence life is generated which will subsequently
remain in poverty. If the mother is aware of the importance of education and collect the money
and send their children to school then the child will get a better education from the job
(beggars) so that the next generation will be generated their lives will be better.

The low level of education in Indonesia is also a factor of poverty. If a person has a high level
of education mka will also high quality of life that they have. From the education makes the
competition between communities very strict to get a job. This competition raises
unemployment that causes poverty itself.

From several factors that have been mentioned above it can be concluded that there are
still many things that can affect the existence of poverty in Indonesia. Despite many efforts
made by the Indonesian government, but still the problem of poverty still can not be solved until
now. Therefore we must help each other to help solve the problem of poverty in Indonesia.

B. Causes of Poverty in North Sulawesi

The number of poverty in North Sulawesi (North Sulawesi) reached 8.98 percent or
about 216,608 people from the total population of 2,412,118 people. "This is a concern for the
local government to mobilize all the capabilities that exist in the fight against poverty," Governor
Olly Dondokambey said at a coordination meeting to prepare for the poverty reduction and
unemployment acceleration in Manado on Monday.

The governor said regional development has been directed towards achieving the vision
of regional mid-term development plan (RPJMD) 2016-2021. "This vision is geared towards
realizing a sustainable, economic, sovereign, and governing culture within the government, and
it is hoped that the whole government will fully understand and support its achievements," he
said.
 Senior politician of the Indonesian Democratic Party of Struggle (PDIP), who was elected
governor of the December 9 election, said that in the near future there will be "Operation of
Poverty Completed Region" in Bolaang Mongondow Selatan Regency.
Strategies to be taken he said, among others sharpen the efficiency of social protection
programs, improve access to basic services, empowerment of poor communities and create
inclusive development. "The target of poverty reduction in North Sulawesi will be reduced to 5.1
percent and unemployment 6.3 percent in 2019," he said. Similarly, Deputy Governor Steven
Kandouw said, in eradicating poverty it is expected that the head of the regional apparatus unit
will help the governor by conducting field surveys of the poor who need help. "Vertical agencies
that have CSR programs to channel the program on target," he hoped. In the future, he said, the
government will focus on eradicating poverty so that the vision and mission of governor and vice
governor to build the region will be realized well.

C. Causes of Poverty in our Survey Result

CHAPTER 5
Policies and Programs of Poverty

Poverty can be overcome through at least two main routes.

1. Through the labor market; among other things through the availability of employment and
decent wages and the wide narrow capacity of industrialization and agriculture in absorbing the
workforce
2. Government intervention through
a. Fiscal and Monetary Policy
b. Social Security System
c. Government programs; including agricultural subsidies and water supply and
sanitation.

Governments can indirectly influence the first line through minimum wage policies as well as
through domestic investment and FDI. Instead, the government may determine or control directly
through the second line: through fiscal policies, social security systems, and PK programs it organizes

Schematically, the position or portion of most government PK programs will have a half weight
in reducing poverty. The rest will have to be done through macroeconomic policy through fiscal policy
(taxes, subsidies) and monetary (interest rate, inflation) The success of PK policies and programs can be
measured from at least two criteria and dimensions.

a. Efficiency and effectiveness, in the sense that policies and programs have
reached with the existing costs and institutions; This criterion is important in
assessing the extent to which its institutional and institutional technical opera- tions
are effective and efficient in providing services and services to the hands of users /
citizens in a timely manner and in acceptable quality. In addition, policy can also be
measured from the extent to which
b. Impacts the program to solving poverty problems. This can be seen, among
other things, from relevant indicators such as the number of recipients, the number
of jobs, the unemployment rate, the number of drop-out rates, the decrease in
maternal mortality, and so on.

Over the past 10 years, PK Government policies and programs can be categorized into several efforts,
including, the provision of facilities and infrastructure in rural areas, in areas where lack of facilities and
infrastructure such as roads, bridges, markets and so on, provision of low-interest working capital such
as KUR (Credit for the People) channeled through banks such as BRI; and the provision of health services
such as Jamkesmas and Jampersal, Provision of grants for schools such as BOS.