THE DYNAMIC OF LOCAL INSTITUTION IN POVERTY REDUCTION: CASE STUDY ON MANAGEMENT OF “KREDIT MIKRO NAGARI” IN WEST SUMATERA, INDONESIA

Mahdi Mahdi, Melinda Noer, Rian Hidayat, Nofialdi Nofialdi

Abstract


Abstract: Sustainable poverty reduction considers local institution as a main factor in determine, guarantee, and contest people’s entitlements. From social constructivist view, poverty reduction effort should bring local people into decision making process. In this paper, we analyze political process at Nagari level in managing microcredit, a program for poverty reduction, in West Sumatra. Nagari is the lowest-level political unit in the Minangkabau ethnic group, to which almost all of people in the study site belong. We applied Institutional Analysis and Development (IAD) framework to study the access of poor household to microcredit which is disbursed by West Sumatra Provincial Government. Based on the study at eight Nagaris, it is concluded that different political process and action arena have different effect on access of poor household to credit. There is likely strong correlation between social homogeneity and sustainability of microcredit management.

Key words: institution , sustainability of microcredit, Sumatera Barat

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References


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