Proceedings of the Achieving and Sustaining SDGs 2018 Conference: Harnessing the Power of Frontier Technology to Achieve the Sustainable Development Goals (ASSDG 2018)

Understanding Poverty In The Development Context And Poverty Reduction Policy Using System Dynamics Approach

Authors
Fauzan Ahmad, Iwan Kustiwan
Corresponding Author
Fauzan Ahmad
Available Online January 2019.
DOI
https://doi.org/10.2991/assdg-18.2019.6How to use a DOI?
Keywords
Poverty; Poverty Line; Expenditure Distribution; System Dynamics
Abstract
Poverty is an undesirable phenomenon of development with the main characteristic of lack of welfare which might lead to some social problems such as criminality, low-level education and poor health condition. Generally, since 2000, Indonesia has been experiencing the decrease number of the poor with its up(s) and down(s) performance. The objective of this study is to explore how the poverty is constructed in the context of socio-economic and how the poverty alleviation policy plays a role in combating the national poverty. In this study, the poverty is seen from the perspective of absolute poverty indicated by the poverty line launched by the Central Bureau of Statistics. Conducted with System Dynamics approach, the model simulation results several following findings: (a) the poverty is simply constructed of the expenditure interaction, expenditure distribution, and poverty line; (b) if the budgeting of the poverty alleviation which has direct impact to the society is not being considered in the model then it will cause to the increasing percentage of the national poverty by 15%-18%; and (c) various mechanisms of policy direction in the macro level and long term period that could be implemented are as followed: (1) price control; (2) improvement of the society expenditure distribution; and (3) wage adjustment particularly for the low-income group.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Fauzan Ahmad
AU  - Iwan Kustiwan
PY  - 2019/01
DA  - 2019/01
TI  - Understanding Poverty In The Development Context And Poverty Reduction Policy Using System Dynamics Approach
BT  - Achieving and Sustaining SDGs 2018 Conference: Harnessing the Power of Frontier Technology to Achieve the Sustainable Development Goals (ASSDG 2018)
PB  - Atlantis Press
SP  - 59
EP  - 78
SN  - 2352-5398
UR  - https://doi.org/10.2991/assdg-18.2019.6
DO  - https://doi.org/10.2991/assdg-18.2019.6
ID  - Ahmad2019/01
ER  -