SOCIAL CAPITAL AND

POVERTY REDUCTION

Community-Based Organic Farming

Poverty is bad, not only because it restricts people’s choices and their ability to participate in society, but also because, over time, it produces other bad effects on them, on their children and on society as a whole.

Peter Suaders

642 Millions people in Asia are hungry because of the condition of poverty

POVERTY IN THE WORLD

POVERTY IN INDONESIA

Generating Income local community Creating income opportunities Wealth creation

The economy of the real world happens in physical space, in the place where you and I and neighbors interact.

- Mike Green-

Poverty Reduction Development

Conceptual Framework

Development means not only good change, but encompassing change!

SOLUTION

Social capital is good will, fellowship, mutual sympathy, and social intercourse among a group of individuals and families who make up a social unit.

Social Capital has been shown to extend collective well being in a variety of

ways. The quantity and quality of social capital plays a crucial role in a

community’s resilience; its ability to solve problems, act for the future and participate in decreasing of poverty

•Involvement and participation in groups can have positive consequences for the individual and the community (Portes, 1998)

•Networks of relationships, defining it as resources embedded in one’s social networks, resources that can be accessed or mobilized through ties in the networks (Lin, 2001)

•The features of social organizations, such as networks, norms, and trust that facilitate action and cooperation for mutual benefit. (Putnam, 1993)

Social Capital

Social Capital Points

How can Social Capital reduce Poverty Promotes social interaction and associations between

heterogeneous groups of people, i.e., between people and groups across the usual social divides

Social capital is understood to be an essential ingredient in not only building strong societies but in building strong economies as well

Social capital also tends to cumulate when it is used, and be depleted when not and, thus, creating the possibility of both virtuous and vicious cycles that manifest themselves in highly civic and uncivic communities

Social capital at the community level increases with increases with frequency of interaction

Leads to improved coordination and communication which, in turn, facilitates increased mutual trust and willingness to cooperate in future activities or in new area

Development of Social Capital by triggering Sustainable Agriculture

Sustainable agriculture encompasses many different production methods, systems, and approaches that aim to meet the goals of profitability, stewardship, and quality of life. One of those approaches, but by no means the only one, is organic farming.

NEXT DEVELOPMENTORGANIC FARMING

Why Go Community-Based Organic Farming Organic agriculture, while small in total

output relative to other types of farming, creates more jobs per farm.

Organic farming utilizes natural fertility and human labor more than manufactured inputs to produce value.

Urge of Development

Is it POSSIBLE? YES!As long it contains of Fair Trade

Probably the best-known ethical food branding after organic is fair trade.  In brief, fair trade labeled products generally have the following criteria:

Fair price for the farmers Fair labor conditions for workers Direct trade relationships between growers, processors,

and retailers (no speculative intermediate buyers) Democratic and transparent organization of grower

organizations Community development and investment Environmental sustainability

Location Overview

NEXT DEVELOPMENTORGANIC FARMING

Ratung villageLocation : District Rana Mese, Ende, FloresNumber of villagers: 50 kkOccupation : Farmers

Issues

1. Public infrastructure2. Health and hygiene3. Education access4.Economic opportunities

Facts• Travelling to Ratung from Borong is 2 hours drive which only can

be access by driving through river• Education and health facility is located in the nearest city of

Borong• There is no electricity in Ratung• 50 head families depends their lively hood by agricultural• There is no economic improvement in the village• Villagers are living bellow USD 2 / day

Ratung Conditions

Economic Improvement Opportunity

Flores is one of the newest origins for Indonesian coffee. Previously, most Arabica coffee (Coffea arabica) from Flores was blended with other origins. Now, demand is growing for this coffee because of its heavy body and sweet chocolate, floral and woody notes

Daily lively-hood

Indicators of Improvement

Urbanization

Lack of Knowledge in Life-skill

Lack of Access to global market

Poor education standard

Traditional Farming

Poor-paid farmers

Un-farsighted

Local tradition

and behaviorWill to

improve

Lack of jobsMinimum opportunity

access to study

Minimum support of

local government

System Thinking Process

Rejuvenating Ratung Agricultural Methods

EstablishedProgram Maintenance

Program Rejuvenating

Economic Empowerment (Community-based Organic Farming)

Market Potential

Change of Lifestyle

Urban Farming

Food Security

Sustainable Agriculture

Supply & Demand

Behavior Over Time

Corporate Evolvement

Field Assessment

Down – Top Process

Social Welfare

Rural Movement

Social Opportunities & Challenges

1. Market potential in Coffee beans

2. Reduced chemical residues in food and the environment

3. Few strongly negative environmental impacts

4. Economic performance is often equivalent to conventional farming

5. Strong consumer demand and brand recognition

6. Potential for cooperative rural and regional development

1. Ecological justice2. Animal welfare3. Fair trade4. Supply chain development5. Productivity limitations;

and6. Regional adaptation and

global harmonization for standards

Focused Target Group

Life-Skill Development

Reinforcement Strategy

Community-Based Organic Time-Frame Process

1 2 3 4 5 6Sustainable development actions to Achieve Social welfare for local communities in Ratung

Goals PlanStrategy Tactics

Measure MeasureLeverage of social welfare in Ratung local communities through organic farming with the product of coffee

Partnership with education institution, community based – microfinance, international coffee traders and local market

Workshop and Training

Bottom-up process

Program development

GAP Analysis Program Management

Program reporting

Final Report

Sustainable Programs

More InformationSidi Rana Menggala+ 62 813 155 13016sidiranamenggala@gmail.com