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Implementing Productive Economic Activities For The Poor Based On Social Capital

Author

Listed:
  • Dijan RAHAJUNI

    (Faculty of Economics and Business, Universitas Jenderal Soedirman)

  • Lilis Siti BADRIAH

    (Faculty of Economics and Business, Universitas Jenderal Soedirman)

  • Ascaryan RAFINDA

    (Faculty of Economics and Business, University of Debrecen; Faculty of Economics and Business, Universitas Jenderal Soedirman)

Abstract

The aim of the Indonesian government in the economic field is to advance public welfare. The Program Nasional Pemberdayaan Masyarkat Mandiri (PNPM-M) or Community Empowerment National Program which covered 2007 - 2014, succeeded in reducing poverty in rural and urban areas, but still left problems unsolved including leaving revolving funds in the hands of the community, a high level of community dependence on loan funds scrolling, more than 50% of beneficiaries utilizing revolving loan funds for consumption. In an effort to realize prosperity, efforts should be made to divert the use of loan funds from consumption to productive activities. The socio-economic limitations of the poor are obstacles to productive economic activities. Social capital which is local wisdom in the community include trusts, rules (norms), and networks (networking) and can be used as a means to increase the independence and welfare of the community. The analysis used the ZMET model and obtained the construct connector to increase the economic productivity of the poor, namely: getting to know each other, helping each other, cooperating, or obeying the rules. Willingness to learn, cohesiveness, consistency, correct information or continuous activities come as natural consequences.

Suggested Citation

  • Dijan RAHAJUNI & Lilis Siti BADRIAH & Ascaryan RAFINDA, 2019. "Implementing Productive Economic Activities For The Poor Based On Social Capital," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 19, pages 47-54, May.
    • Handle: RePEc:cmj:seapas:y:2019:i:19:p:47-54
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    Cited by:

    1. Agus SUROSO & MAFUDI & Amber LUMBANTORUAN & Ascaryan RAFINDA, 2019. "The Impact Of Digital Marketing On Rural Products: A Case Study In Sumbang, Indonesia," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 2, pages 137-142, December.

    More about this item

    Keywords

    PNPM-M; Social Capital; Local wisdom; ZMET; Connector construct;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • P46 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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