Poverty and Welfare Analysis in Sharia Perspective Using the Cibest Model in Medan Kota Sub-District

Muda I, Soemitra A, Sugianto S and Mujaddid NSA

Published on: 2023-12-30

Abstract

This research aims to determine poverty and welfare from a sharia perspective using the CIBEST model in Medan Kota Sub-district. This research is a quantitative descriptive research with the type of field research (filed research). The data sources of this research include primary data and secondary data. Data collection techniques in this study include interviews, observation, and documentation. The sampling technique in this research is by using purposive sampling. The data analysis technique in this study is to use the CIBEST (Center of Islamic Business and Economic Studies) method. The results of this study indicate that before the assistance the community had an income of Rp. 1,877,384 per capita with a welfare index of 0.35, a material poverty index of 0.32, a spiritual poverty index of 0.19, and an absolute poverty index of 0.39. After the assistance, the community's income increased by Rp. 330,637, with the community earning Rp. 2,208,021 per capita each month. The poverty index of the community also changed, including the welfare index increased by 0.29, the material poverty index decreased by 0.7, the spiritual poverty index decreased by 0.13, and the absolute poverty index decreased by 0.39. It can be concluded that aid affects poverty in Medan Kota.

Keywords

Poverty; Welfare; Sharia Perspective; CIBEST Model

Introduction

Currently, Indonesia is experiencing an economic crisis, according to data from the Central Bureau of Statistics the social welfare rate of the Indonesian people is very low, which is only 21.9%. Basically, the government has realized various efforts to increase the economic index. These efforts succeeded in increasing the economic index of the Indonesian nation by 5.3%. Ironically, these efforts have not been considered significant considering that the data as of September 2022 the poverty rate has actually increased. The data presented by the author above shows that poverty and low welfare intensity originate from a poor economy. In fact, until now Indonesia is still struggling with prolonged poverty, which has led to social segregation. In Ferezagia the measure of poverty is more than just food shortages or low income. Furthermore, poverty must be reviewed from various aspects such as education, health, legal treatment and so on. All of these aspects are considered defective so that the Indonesian people have not touched a prosperous economy. Ideally, a good economy in accordance with the nation's goals is an economy that is able to accommodate all the needs of society according to Pancasila. Unfortunately, the substantive values contained in the Pancasila economy are still unable to be fully internalized by the community and government. The Pancasila economy rests on the concept of mutual cooperation which contains the concept of solidarity in economics. So far, efforts to maximize the economy in Indonesia have only been limited to philanthropy. Generally, in Sharia, the concept of philanthropy is regulated in the Qur'an. The concept of philanthropy in Islam aims to improve the economy, whose obligations are often equated with the obligation to pray [1-3]. Unfortunately, the implications of the concept of Sharia philanthropy implemented in Indonesia are still unable to alleviate poverty and run aground at a mere ceremonial level. On the other hand, there are also concepts of economic development that can be realized according to the concept of Sharia. For example, in surah Quraysh there are values of economic solidarity by doing business. This concept emerged to alleviate poverty in the city of Mecca and bring up the productivity of the community. The difference between the concepts of solidarity and philanthropy lies in the fulfillment of productivity. Philanthropy aims to save the primary needs of the poor, while solidarity is able to bring productivity so that economic activity becomes dynamic. Realities that are not in line with ideals give rise to evident social segregation. At this level, the Indonesian economic system has not yet found common ground [3]. The fact that poverty and welfare in Indonesia are still low is interesting to analyze further. In this article, the author includes an additional variable, namely spirituality, in an effort to maximize the economy.

The urgency of adding spiritual variables is to make society a religious subject to bring about productivity. The author assumes that the application of the CIBEST concept in the economy has a visionary concept in the context of economic improvement. At this level, the CIBEST model is juxtaposed with poverty and welfare to analyze the problems of poverty and welfare through a Sharia perspective.

Literature Review

Poverty Reduction in Sharia Perspective

Improving poverty is fundamental in building the civilization of a country. At this level, widespread poverty has a negative impact on the achievement of economic growth, so revamping the economy is a necessity. The theory that is relevant to the improvement of poverty is dependency theory. This theory argues that poverty is caused by structural injustice and dependence on developed countries and multinational corporations [4]. Therefore, efforts to improve poverty must change unjust economic and political structures and strengthen the economic independence of developing countries [5,6] From a Sharia perspective, poverty is a social problem that must be resolved in a just manner according to the guidance of the Qur'an. Generally, poverty and its allegiance are multidimensional and not limited to material aspects but also spiritual. With the acceptance of ZISWAF, high community income will be channeled to underprivileged communities so as to improve welfare. Revamping the economy shows the importance of strengthening the solidarity sector in alleviating poverty in Indonesia. Whereas in Islam, poverty and its allegiance are multidimensional things and are not limited to material aspects but also spiritual. . Therefore, the improvement of poverty is a moral responsibility for the community and the government.

Social Welfare in the Context of Statehood

Globalization has put Indonesia in a dilemma in creating people's welfare. This article uses the Welfare State theory, which argues that the government has the responsibility to create conditions that support the welfare of its people. The government must provide social protection, health services, and free or affordable education for all its citizens. In the view of sharia, welfare (maslahah) refers to a condition in which people can live calmly and prosperously in a state of harmony and peace. The social welfare desired by sharia is one that encompasses various aspects of life, such as economic, social, political and spiritual. As a comparison, welfare in the Sharia perspective includes several principles, including: First, Justice is the primary focus in creating welfare. Secondly, Solidarity as part of the worship of the tawhid of the earth. Thirdly, Cooperation as an instrument of problem solving and achieving common goals. Fourth, fair leadership to create a positive impact on society. Fifth, Balance to create spiritual and material well-being for society.

Comparative Literature

As for some previous studies that discuss similar research are Jaenudin and Hamdan. This previous research aims to assess the impact of zakat, infaq, sadaqah in LAZNAS LMI (Infaq Management Institute) with the CIBEST Approach. The difference between previous research and this article is that this article specifically does not discuss the impact of philanthropy but rather analyzes poverty and social welfare. Then Beik and Arsyianti's research which discusses poverty and welfare using the CIBEST model. The difference between previous research and this article is quadrant segregation. In addition, the author sets limits on the location of the research while in previous studies the discussion was more general in scope. Furthermore, the research of Dikuraisyin, et al. Which uses the CIBEST model as an instrument for analyzing community empowerment. The difference between previous research and this article is the substance of the discussion where this article analyzes the problems of poverty and social welfare problems. In Rozalinda the CIBEST model can be used to analyze the productivity of zakat in alleviating poverty. The difference between previous research and this article is the scale of the discussion. This article relies on the substance of poverty and welfare so that the discussion in this article is more extensive than previous research. Furthermore, in Nazah and Amri discusses the urgency of business capital with the aim of maximizing people's businesses using the CIBEST model. The difference between previous research and this article lies in the substance of the discussion where this article discusses poverty alleviation efforts through the concept of Sharia. This article generally provides an evident illustration of poverty and social welfare and is analyzed using the CIBEST model. Then, the author uses Sharia concepts as a comparative indicator of the problem. This article has a contemporary and broad scope of discussion so that it is interesting to analyze more deeply.

Research Methods

This research was conducted using quantitative descriptive analysis method. According to John W. Creswell, quantitative descriptive analysis is a statistical analysis technique used to describe or present data numerically. Quantitative descriptive analysis aims to provide an overview of the characteristics or variables observed in the study [7]. According to Arikunto and Moleong, quantitative descriptive analysis is a data analysis technique used to provide an overview or description of the data obtained in research using statistical values such as frequency, percentage, mean, median, and mode. This research is a field study (field research). According to Sugiyono, field research or field research is a research method carried out in a particular place or location that is the focus of research. This method is usually used in qualitative research which aims to explore and understand phenomena or problems that occur in their true context [8]. Data sources in this study include primary data and secondary data. Primary data is data obtained directly by researchers, both from interviews, observation, and documentation, while secondary data is data obtained indirectly through literature relevant to the research context [9]. Data collection techniques in this study include interviews, observation and documentation. . The sampling technique in the study was to use purposive sampling. According to Miles and Huberman, purposive sampling is a sampling technique that is carried out deliberately and with a specific purpose [10]. The data analysis technique in this study is to use the CIBEST (Center of Islamic Business and Economic Studies) method. CIBEST stands for Center for Islamic Business and Economic Studies, where this model is used to measure the method of the two dimensions, spiritual and material (economic) and combine them to determine the state of poor households without or with the help of zakat.

Results and Discussion

Poverty Index and Community Welfare in Medan City

Medan Kota is one of the sub-districts located in Medan City, North Sumatra, the coordinates of Medan Kota are approximately 3.5952° N (North latitude) and 98.6963° E (East longitude). . The demographics of Medan Kota are 71,844 people. The poverty index in Medan Kota is around 4,490 people. According to data from the Central Bureau of Statistics (BPS), in 2020, the poverty index in Medan City (including Medan Kota) was 5.68%, which means that around 113,250 people live below the poverty line. Meanwhile, to measure the level of welfare, BPS uses the Human Development Index (HDI) which measures health, education, and income achievements. In 2020, Medan City's HDI reached 77.81, indicating an increase from the previous year.

Impact of Aid on the Medan City Community

According to data from BPS in 2020, the average per capita income in Medan Kota was IDR 1,877,384 per month. After the application of assistance to the community in Medan Kota, there was an increase in income as follows:

Table 1: Average Change in Income.

 

Average Monthly Income Before Assistance

Average Monthly Income After Assistance

Household Income/Month of Medan City Community

1.877.384

2.208.021

Source: [11].

Based on the table above, there is a change in the average community income before and after the assistance. The comparison is seen from the average income of the community before the assistance, which amounted to Rp. 1,877,384, and after the assistance, the community's income increased to Rp. 2,208,021. It can be seen that the increase in the average income of the community in Medan Kota increased to Rp. 330,637, indicating that the increase in the average income of the community increased by Rp. 330,637. To see the impact of the utilization of aid funds as a poverty reducer, it is done by analyzing the CIBEST quadrant and calculating the poverty index. The analysis method is carried out by looking at the effect before and after the assistance.

Analysis of the CIBEST Model of Medan Kota Community before Receiving Assistance

Based on the data obtained through the questionnaire, the researcher obtained the following results; based on the data obtained from the community in Medan Kota, there are 11 communities that fall into quadrant I in the welfare category. These 11 communities had their material and spiritual needs met even before the distribution of the assistance. There are 11 communities that fall into quadrant II in the materially poor category. These communities have their spiritual needs met, but have not been able to fulfill their material needs. There are 6 communities that fall into quadrant III in the spiritual poor category. These communities have their material needs met, but have not been able to fulfill their spiritual needs. Furthermore, there are 3 communities that fall into quadrant IV in the absolute poor category. These communities have not been able to fulfill their material and spiritual needs.

Figure 1: CIBEST Model of Medan Kota Community before Receiving Assistance.

Analysis of CIBEST Model of Medan Kota Community after Receiving Assistance

Based on the results obtained through the CIBEST quadrant analysis, the calculation of the Islamic poverty index is as follows:

Table 2: Islamic Poverty Index.

Poverty Index

Before Assistance

After the Assistance

Welfare Index

0.35

0.64

Material Poverty Index

0.32

0.25

Spiritual Poverty Index

0.19

0.06

Absolute Poverty Index

0.39

0

Source: (Primary Data, 2023).

Based on table 2 above, the number of community samples in quadrant I (prosperous category) has escalated by 0.29. It can be seen that this result shows the significant effect of assistance in improving the welfare of the community in Medan Kota. The number of community samples in quadrant II (materially poor category) decreased by 0.07. The number of community samples in quadrant III (spiritual poor category) decreased by 0.13. The number of community samples in quadrant IV (absolute poor category) decreased by 0.39. Based on the calculation through the Islamic poverty index, it can be concluded that aid significantly affects the condition of the people in Medan Kota.

Closing

Based on the results and discussion of this study, the researchers concluded that before the assistance the community earned an income of Rp. 1,877,384 per capita with a welfare index of 0.35, a material poverty index of 0.32, a spiritual poverty index of 0.19, and an absolute poverty index of 0.39. After the assistance, the community's income increased by Rp. 330,637, that is, each month the community obtained an income of Rp. 2,208,021 per capita. The poverty index of the community also changed, including the welfare index increased by 0.29 (quadrant I), the material poverty index decreased by 0.7 (quadrant II), the spiritual poverty index decreased by 0.13 (quadrant III), and the absolute poverty index decreased by 0.39 (quadrant IV). It can be concluded that aid affects poverty in Medan Kota.

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