Poverty and Inequality Analysis

The SMERU Newsletter Edition No. 15, 2005 is a special edition which raises a different dimension of poverty, namely the environment. Through this edition, we attempt to comprehend the link between the environment and poverty, including its social and political-economic aspect. A number of environmental experts contribute interesting topics to this special edition.

The term “inequality” is not new to the majority of readers. Although it has been the subject of public attention for a long time, in the context of Indonesia’s current economic development, inequality is a topical issue and is, in fact, increasingly worthy of examination. The present-day relevance of inequality has encouraged SMERU to present this issue as the focus of discussion in this issue of our newsletter.

Nusa Tenggara Timur (NTT) is one of the poorest provinces in Indonesia. The poverty rate in this province is higher than that of the national average. Statistics Indonesia (2004) indicates that the proportion of the poor population in Indonesia is 17%, while the proportion of the poor in NTT is 28%.

The role of regional government in poverty reduction has become increasingly important since the implementation of regional autonomy in 2001. Since then, a number of public policies that directly influence the lives of the community have been devolved to the district governments.

“Poverty trap” is a phrase often used in many studies on poverty. This phrase describes a structural condition that results in someone or a community becoming trapped in a vicious cycle of poverty that is difficult to break. Nevertheless, amidst the stories of those who remain trapped in poverty, we find various experiences of men and women who are able to free themselves from poverty.