A Way To Tackle Poverty In Indonesia Economics Essay

A Way To Tackle Poverty In Indonesia Economics Essay Some indicators can be used to measure the development of a country. One of them is the rate of the poverty. Not only how this measurement be used in a developed country but also in a developing country. In other hand, many policies to reduce poverty have been made by the government or the multinational organization such as World Bank or United Nation. The big question is why it is that important to overcome poverty. Then the next question would be whether the policies have significant impact to decrease the rate of poverty. If the answer is ‘not’, are there any other solutions to help people who are still in the poverty lines? Therefore, this paper will provide descriptive issues about the recent condition of poverty and how social entrepreneurship can becomes the solution to tackle the poverty in developing countries specifically Indonesia. Keyword: Social Entrepreneurship, Poverty SOCIAL ENTREPRENEURSHIP PARADIGM: A WAY TO TACKLE POVERTY IN INDONESIA By: Huda Jamilah Poverty at Glance United Nation (1998) defines poverty as violation of human dignity. Usually, the poor does not have sufficient basic capacity to participate effectively in society. In addition, poverty is pronounced deprivation in well-being (World Bank, 2000). Poverty is the deprivation of food, shelter, money and clothing that occurs when people cannot satisfy their basic needs. We can say someone who earns under $2 a day is face absolute or extreme poverty. The proportion of the developing world’s population living in extreme economic poverty fell from 28 percent in 1990 to 21 percent in 2001. Most of this improvement has occurred in East and South Asia. In East Asia the World Bank reported that â€Å"The poverty headcount rate at the $2-a-day level is estimated to have fallen to about 27 percent [in 2007], down from 29.5 percent in 2006 and 69 percent in 1990.† In Sub-Saharan Africa extreme poverty went up from 41 percent in 1981 to 46 percent in 2001, which com bined with growing population increased the number of people living in extreme poverty from 231 million to 318 million   [ 1 ]   . Poverty can be understood simply as a lack of money, or more broadly in terms of barriers to everyday life. But the truth is poverty rate cannot be decreased until zero condition so that policymakers always have poverty on their development agenda for some reasons. Many studies show some aspects that have caused poverty. Specially, economic factor is the main cause of poverty. Chen and Ravallion (2001) revealed that from 150-country level data, the change in mean income can affect poverty rate. It indicates that at least 80% of people earn less than $10 a day   [ 2 ]   . The total wealth of the top 8.3 million people around the world, rose 8.2 percent to $30.8 trillion in 2004, giving them control of nearly a quarter of the world’s financial assets. In other words, about 0.13% of the world’s population controlled 25% of the worldâ⠂¬â„¢s financial assets in 2004 (World Bank, 2008). In Indonesia, although the rate of poverty decrease to 12,49% this year, the sum of pauper still 20 until million people. Besides, they should face the high rate of inflation year to year. There are several majors causes poverty in Indonesia. Low rate of minimum wage, unemployment, difficult to access information, and lack of entrepreneur.