Does Government Responsibility and Social Capital Empower the Poor in Aceh, Indonesia?

Abstract

This study aims to analyze how the government's policy response, that is the government's responsibility to provide infrastructure needed by the community and cash assistance, as well as social capital owned by the poor to increase of community empower of the poor in Aceh. This study used primary data sourced from surveys of poor households with questionnaires and in-depth interviews with 300 respondents in Aceh, Indonesia. Data collection was carried out in three districts that represented three economic growth zones in Aceh. The data collection techniques were carried out by purposive sampling. Data were analyzed by structural equation modelling analysis. Before conducting the test structural models, it is ensured that all constructs have met the test of fit index. Structural model test results found that the construct of social capital, has an influence on improving the empower of the poor in Aceh. While government policy responses have little effect, this indicates that the government's responsibility to empower the poor needs to be directed towards empowerment programs rather than providing cash assistance. All indicators tested had a value indicator above the cut-off, but some indicators had great value. Indicators in the social capital that contribute greatly to improving the empower of the poor were groups and networks, solidarity and communication. While the indicator of cash aids is of little effect on increasing the empower of the poor. The government or policy maker can intervene the indicators that have a major contribution as a strategy to improve the empower of the poor in Aceh. Keywords—Empowerment; Social capital; poverty, Construct; Indicator; Government responsibility