Introduction SUB DISTRICTS POVERTY LEVEL DETERMINATION

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Chapter 2 SUB DISTRICTS POVERTY LEVEL DETERMINATION

USING ORDERING DUALLY IN TRIANGLE ORDIT RANKING METHOD

2.1 Introduction

Poverty is one of major problems faced by Indonesia and other developing countries from year to year BPS 2011. As mentioned in Chapter 1, although the number of the poor in Indonesia has decreased, Indonesia still faces the problem of poverty. This problem is becoming increasingly unable to be resolved. Poverty is both a cause and a consequence of poor health Alisjahbana 2011. Poverty increases the chances of poor health. Poor health in turn traps communities in poverty. Infectious and neglected tropical diseases kill and weaken millions of the poorest and most vulnerable people each year Schirnding and Mulholland 2001. There are several criteria that can be used as a basis for determining the poverty threshold. It depends on the policy of a government to determine the indicator. The most commonly used definition of global poverty is the absolute poverty line set by the World Bank . Poverty is set at an income of 2 a day or less , and extreme poverty is set at 1 a day or less . This line was first created in 1990 when the World Bank published its World Development Report and found that most developing countries set their poverty lines at 1 a day. The 2 mark was created for developing nations with slightly better income levels than their 1 a day. In Indonesia, the number of people in poverty is a population that is under the poverty line. The poverty line is used as a boundary to determine whether or not a person is poor. The poor are the people who have an average per capita expenditure per month below the poverty line of Rp 211.726 about U.S. 20 BPS 2011. Poverty line is a criterion to detect a person as the poor or not the poor. But, because of different standard of living in different regions, it is not easy to determine number of people in poverty using this criterion. Poverty criteria used in this research are health insurance for the poor hip or askeskin and poverty letters 16 PL or surkin or SKTM. As indicators of poverty, HIP and PL will be counted aggregately for every sub district. The concepts of askeskin and surkin will be explained in section 2.2.4. Connected to the poverty problem, poverty alleviated program is a concern of the Government as a way out to reduce poverty. P olicies should be made related to yield the right decision for fund allocated. The poverty alleviated fund should be received by the right sub districts or districts. For this reason, Government should know the priority areas, which can be obtained from accurate ranking. ORdering Dually In Triangle ORDIT, a ranking method developed by Myers and Patil, is used to rank sub districts based on poverty using two indicators. ORDIT was developed with the purpose to provide convenient computational capability and visualizations for preliminary partial or progressive prioritization based largely on concepts of partial order theory and implemented in R software. It was illustrated in a context of conservation and sustainable stewardship across landscapes with ecosystem services as a complex multidimensional domain that must be placed in public and private perspective in pursuit of multi-resource management Myers and Patil 2010. In other words, ORDIT was developed for ranking with convenient computational and visualization providing. The method is also powerful for ranking process with multi indicators as shown through the illustration by Myers and Patil. Due to the limitation of data resources, the number of indicators in this study is just a few, that is 2 indicators, i.e. number of health insurances for the poor and number of poverty letters. The objective of this chapter is to rank sub districts in Java Island base on poverty or severity level using ORDIT. According to the ranking result, 7 most severe and 7 least severe sub districts will be revealed. The result of ranking will be grouped into 3 levels, i.e. worst, moderate, and mild to simplify interpretation and to distinguish two sub districts in terms of poverty level. Furthermore, this ordinal level will be used for modeling in Chapter 4 as ordinal response variable. 17

2.2 Theoretical Background