Poverty rate is still found to be around two times higher in rural areas. However, excesive urbanization, has increased the number of slums in urban areas. Thus, informal economic sectors and poverty will probably become more urbanized in the future. The main purpose of this article is to study the profiles, causes and livelihood strategies of urban poor households in small islands city. Mixed methods of survey, field observation and focus group discussions including in-depth interview by using questionnaire instruments were used to obtain data from 200 selected households. Findings suggest that the profiles of urban poor households have been identified in terms of social demographic, household economic expenditure and urban poverty rate and living standard indicators. Then, the significant causes of urban poverty have been examined as internal and external factors. Internal factors are cultural and structural-including the number of family members, women-headed household and poverty status. External factors are geographical poverty traps, including distance to city center, sanitation status and misused of government policy on rice for the poor program. Livelihood strategies of urban poor households are occupational multiplicity to reduce risks and uncertainty.
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