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Analysis of Poverty Development Post Fiscal Decentralization Policy in Aceh Province

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Analysis of Poverty Development Post Fiscal Decentralization Policy in Aceh Province International Journal of Research and Review Vol.7; Issue: 6; June 2020 Website: www.ijrrjournal.com Research Paper E-ISSN: 2349-9788; P-ISSN: 2454-2237 Analysis of Poverty Development Post Fiscal Decentralization Policy in Aceh Province Teuku Muhammad Iqbal Chaira1, Sya’ad Afifuddin2, Prawidya Hariani R.S3 1Posgraduate Students, Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia 2,3Postgraduate Lecturer, Faculty of Economics and Business, Department of Economics, Universitas Sumatera Utara, Indonesia Corresponding Author: Teuku Muhammad Iqbal Chaira ABSTRACT third world and between countries in these regions. Nearly half of all people live in Aceh is a province in Indonesia which is located poverty. The biggest burden of poverty lies on the northern tip of the island of Sumatra and with certain groups. Women are generally is the westernmost province in Indonesia. There the disadvantaged parties, in poor is one problem that is never resolved properly, households, they are often the ones who namely poverty. Where the level of poverty in Aceh is very high, especially after the tsunami bear a heavier workload than men. Likewise in 2004 which destroyed almost 80% of the with children, they also suffer from this capital of Aceh Province with many economic inequality and their future quality of life is systems operating there. Aceh Province is one threatened by inadequate nutrition, equity in of the provinces that has a poverty rate higher health and education besides poverty is very than the national poverty level. This research is common in certain minority groups. a mini quantitative research, which aims to Poverty is a problem that involves estimate and analyze the relationship between many aspects because it is associated with variables that have been determined to answer low income, illiteracy, low health status and the problem formulation. The data presented is inequality between the sexes and poor panel data wherein the study uses cross section environment. (World Bank, 2004). data, the data studied are more than one; and time series, the time collected in different years The purpose of Economic simultaneously. The data that will be examined Development itself is to eradicate poverty, are Regencies / Cities in Aceh Province and the where PPB, one of which is to reduce time of research collected is 2015 to 2018 poverty. Sustainable goals or known in published by the Ministry of Finance of the English Sustainable Development Goals or Republic of Indonesia (KEMENKEU RI) and briefly with SDGs are 17 goals with 169 the Central Statistics Agency (BPS). The measurable measurable achievements set by variables to be observed are the variables that the United Nations as a world development will be influenced by poverty and special agenda for human benefit on planet Earth. autonomy funds. The 17 goals (without poverty, without hunger, healthy and prosperous life, Keywords: Poverty Rate, General Allocation Fund, Special Allocation Fund, Village Fund, quality education, gender equality, clean Revenue Sharing Fund, Gross Regional water and proper sanitation, clean and Domestic Product. affordable energy, decent work and economic growth, industry / innovation and INTRODUCTION infrastructure, reduced inequality, cities and Poverty that is prevalent now has an communities sustainable, responsible uneven distribution between regions in the consumption and production, handling International Journal of Research and Review (ijrrjournal.com) 497 Vol.7; Issue: 6; June 2020 Teuku Muhammad Iqbal Chaira et.al. Analysis of poverty development post fiscal decentralization policy in Aceh province climate change, marine ecosystems, Saharan Africa, which includes 80 percent terrestrial ecosystems, peace / justice and of those living in extreme poverty. The new resilient institutions, partnerships to achieve threat caused by climate change, conflict goals). and food insecurity means that more work is This goal was declared jointly by needed to bring people out of poverty. intergovernmental countries in the UN Poverty is a major problem in the resolution issued on October 21, 2015 as an economy. The high poverty rate can reduce ambitious joint development until 2030. the government's achievements in This goal is a continuation or replacement development activities, because one of the of the Millennium Development Goals means of development is to improve agreed by leaders of 189 countries as the economic conditions in a better group. Millennium Declaration at the UN Development activities that do not change headquarters in 2000 and has not been valid the conditions of poverty will arise social since late 2015. and political problems. State stability will Eradicating poverty in all its forms depend and will usually turn simultaneously remains one of the greatest challenges to disrupt economic performance. Because facing humanity. While the number of the problem of poverty has become a people living in extreme poverty fell by common agenda for every country. One more than half between 1990 and 2015 - important aspect to support poverty from 1.9 billion to 836 million - too many reduction strategies is the availability of are still struggling for basic human needs accurate poverty data and later on target in (www.undp.org/content/undp/en/home.html tackling it. Reliable poverty measurement ). becomes a powerful instrument for policy Poverty is a problem of economic making in focusing attention on policy development, not only in poor countries but making in focusing attention on the living also in developed countries. The problem is conditions of the poor. Finally good data on the same but the dimensions are different poverty can be used to evaluate government between developed and poor countries. The policies on poverty, compare poverty across problem of poverty in developed countries time and regions, and determine the target is the smallest part of the components of of the poor with the aim of improving their their society, but for developing countries conditions (BPS, 2008). the problem becomes complex, because the One of the national development number of poor people is almost half of the goals of the Republic of Indonesia is as population. There are even very poor mandated in the fourth paragraph of the countries where the number of poor people Preamble of the 1945 Constitution, namely exceeds two thirds of the population (Booth to advance public welfare. General welfare and Sundrum, 1978). according to the Central Statistics Agency Globally, more than 800 million (2000) is a condition of fulfilling the people still live on less than US $ 1.25 per material, spiritual and social needs of the day, many of which lack access to adequate country's population in order to be able to food, clean drinking water and sanitation. live properly and be able to develop Rapid economic growth in countries such as themselves, so that they can carry out their China and India has lifted millions of people social and economic functions. Public out of poverty, but the progress has been welfare in Indonesia can be described one of uneven. Women are more likely to live in them based on the level of poverty of the poverty than men because of unequal access population in Indonesia. There is a negative to paid employment, education and relationship between general welfare and property. poverty levels in Indonesia, the lower Progress has also been limited in poverty levels in Indonesia illustrate the other regions, such as South Asia and sub- International Journal of Research and Review (ijrrjournal.com) 498 Vol.7; Issue: 6; June 2020 Teuku Muhammad Iqbal Chaira et.al. Analysis of poverty development post fiscal decentralization policy in Aceh province higher welfare of the population in relatively high poverty rate compared to Indonesia. some countries around it. Various national development Even poverty is a complex and activities are carried out by the government multidimensional problem. Therefore, to improve public welfare. One of them is efforts to reduce poverty must be done by directing various development activities properly, covering various aspects of to regions, especially development in areas community life, and implemented in an that have relatively low population and integrated manner. welfare levels. Development itself is carried The population of the poor out in an integrated and sustainable manner population in Indonesia from 2015 - 2018 according to the priorities and needs of each has decreased. This is due to the improved region with its roots and targets set through economy in Indonesia in this period national short-term and long-term according to BPS (2018). development programs. One of the main The Central Statistics Agency (BPS) noted indicators of the success of national that Indonesia experienced the lowest point development is the decline in the number of in terms of the percentage of poverty since poor people in Indonesia. 1999, which was 9.82% in March 2018. Government strategies and With a poverty percentage of 9.82%, the instruments in setting growth targets number of poor people or monthly per effectively in each region, one of which is capita expenditure was below the poverty by issuing laws relating to the line reached 25.95 million people. implementation of regional autonomy, such When compared with the previous as: 1 Law No. 5 of 1974 concerning period, namely September 2017 the Principles of Government in the Regions; percentage of poverty reached 10.12% or (2) Law No. 22 of 1999 concerning equivalent to 26.58 million inhabitants of Regional Government; 3 Law No. 25 of Indonesia. There is a decrease in the 1999 concerning Fiscal Balance between the percentage of poverty in urban and rural Central Government and Regional areas. The percentage of poor people in Governments; 4 Law No. 32 of 2004 urban areas as of March 2018 was 7.02%, concerning Regional Government; 5 Law down compared to September 2017 which No. 33 of 2004 concerning Financial reached 7.26%. Similar to rural areas, where Balance between the Central Government the percentage of poor people in urban areas and Regional Governments; 5 Perpu No.
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