Impact of Infrastructure and Social Network on Multidimensional Poverty: A Spatial Model (Cemorokandang and Wonokoyo Village, Malang City)

As undeveloped urban villages in Malang City, based on unemployment, slum, and education, Cemorokandang Village and Wonokoyo Village have a problem of poverty. Focusing on one factor alone, such as income, is not enough to capture the true reality of poverty. Multidimensional poverty measures can be used to create a more comprehensive picture of poverty. Hence, the questions are: (i) How is the level of multidimensional poverty in Cemorokandang and Wonokoyo? (ii) How is the spatial model of the impact of infrastructure and social network on multidimensional poverty in Cemorokandang Village and Wonokoyo Village? This research investigates the answers through (i) the Multidimensional Poverty Index (MPI) ­– education, health, standard of living, (ii) Social Network Analysis (SNA) – rate of participation, density, and also (iii) spatial approach through Spatial Regression Analysis which expresses the impacts of infrastructure and social network on multidimensional poverty. Based on MPI results, 5 out of 62 neighborhoods (Rukun Tetangga) in Cemorokandang Village and 2 out of 27 neighborhoods (Rukun Tetangga) in Wonokoyo Village are poor in moderate level. It means those areas have a higher vulnerability to extreme poverty. In addition, the regression diagnostics reveal that a high spatial autocorrelation exists in the values of MPI, so Spatial Lag Model is the proper alternative. Based on Spatial Lag Model, by using the values of MPI as the dependent variable, it is known that: the better the quality of infrastructure, and also the lower values of social network, will lead to the higher MPI values. From this research, we conclude that we need to make a better social relations and improve the quality of infrastructure to eradicate poverty in Cemorokandang Village and Wonokoyo Village.