Analysis of Poverty Trap Due to Cigarette Consumption
Yuhanna Duhanita Firdausina
Faculty of Public Health, Universitas Airlangga, Mulyorejo, Surabaya, Indonesia
Keywords: Poverty trap, Cigarette, Consumption, Impact, low-income.
Abstract: There is an inextricable and pernicious analysis of poverty trap due to cigarette consumption. In many ways,
consumption of cigarettes and poverty are part of the same vicious cycle. Across the globe, smoking is
generally common among the poorest segment of the population. These groups, already under financial
stress, have little disposable income to spend on cigarettes. Consumption of cigarette adds directly to
financial stress. In lower-income countries, The World Health Organization estimates that as much as 10%
of household income can be spent on cigarettes, leaving less money for food, education, housing and
clothing. The aim of this paper is to analyse the poverty trap caused by the consumption of cigarettes. The
method used in this research is qualitative analysis. The technique of data analysis is through literature
review, data attachment and conclusion. In this paper, we understand how cigarette consumption could
make a poverty trap.
1 INTRODUCTION
Poverty is a deficient condition which means being
unable to fulfil basic living needs such as clothing,
food, shelter, education and health and is caused by
many factors. To measure poverty, the Central
Bureau of Statistics (BPS) uses the concept of basic
needs approach. By using this approach, poverty is
seen as an economic inability to meet the basic
needs of food and non-food as measured by
expenditure. In brief, Poor People are residents who
have an average monthly per capita expenditure
below the poverty line.
Figure 1: Poverty in Indonesia
The food poverty line (GKM) is the value of
the expenditure needs of drinking food equalised
with 2100 kilocalories per capita per day. According
to BPS data, records of 2011-2015 show the poverty
line in Indonesia has increased every year.
Firdausiana, Y.
Analysis of Poverty Trap Due to Cigarette Consumption.
In Proceedings of the 4th Annual Meeting of the Indonesian Health Economics Association (INAHEA 2017), pages 187-191
ISBN: 978-989-758-335-3
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
187

Cigarettes are processed tobacco products,
produced from Nicotiana Tabacum plants, Nicotiana
Rustica, and other species or synthetics containing
nicotine and tar with or without additives (Heryani,
2014). Cigarettes are advertised by some people as a
reason to contribute to the country's economy.
However, in fact, cigarettes actually contribute to
poverty at the level of individuals, households and
even countries. While the cigarette industry enjoys
substantial margins, the poor smokers and their
families suffer the burden of suffering from cigarette
consumption, which makes it more difficult for them
to get out of the poverty trap. According to The
Tobacco Atlas 3rd edition (2009), the percentage of
smokers in the population of the largest ASEAN
countries is Indonesia (46.16%), Philippines
(16.62%), Vietnam (14.11%), Myanmar (8.73%),
Thailand (7.74%), Malaysia (2.90%), Cambodia
(2.07%), Laos (1.23%), Singapore (0.39%) and
Brunei (0.04%).
Figure 2: Percentage of Smokers in ASEAN
Various literatures have shown the negative
impact of cigarette consumption on health. There are
different kinds of cancer, cardiovascular (heart -
vascular), lung disease and impotence among the
many health problems caused by smoking. Cigarette
consumption causes the deaths of more than 5
million people in the world each year or the
equivalent of one death every six seconds. As many
residents of developed countries have begun to quit
smoking, the current development of cigarette use
has shifted to epidemics in poor and middle-income
countries, accounting for about 82% of total
cigarette users in the world. Indonesia has a
significant position in the cigarette atlas of the world
because it has the third largest number of smokers in
the world.
The impact of cigarette consumption has a broad
dimension, not only on health aspects, but also on
social and economic dimensions. This paper is
intended to analyse the occurrence of poverty trap
caused by people's habit in consuming cigarettes.
This study is expected to give an idea of how the
consumption of cigarettes can lead to poverty traps
with poor people becoming gradually poorer.
2 METHODS
The qualitative method is used in this research. The
type of data used in this study is secondary data. The
data are taken from existing sources that have been
processed by a third party, within a certain time (at a
point of time) that can describe the situation /
activity at that time. This study is using literature
review to find how the poverty trap is caused by the
consumption of cigarettes. The data used in this
study come from the Badan Pusat Statistik (BPS),
publication files from the Ministry of Health
Republic Indonesia, RISKESDAS and WHO. Other
information comes from other literary studies in the
form of scientific journals and textbooks.
3 RESULT
In this research, the researcher collected research
results from various countries.
Table 1: Research and Policy Focus Related to
Tobacco Control
No
Country and
Organisation
Research and Policy Focus
1
Argentina ‐
Unión
Antitabáquica
Argentina
Researchers analyse the
relationship between household
spending on tobacco products in
low‐income families and the
resources available for basic
needs, such as food, health,
education and utility services.
The role that tobacco control
policies could play in improving
the health and quality of life of
the poor populations was the
main emphasis of advocacy
activities.
2
Vietnam-
HealthBridge
Vietnam
Researchers identify
Vietnam‐specific evidence on
the relationship between
tobacco and poverty and,
furthermore, to identify the
current research gaps, to assess
the actual impact of tobacco
control policies on overall
national employment. The
implementation and
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188

No
Country and
Organisation
Research and Policy Focus
enforcement of various tobacco
control measures was explored
as means not only to improve
public health, but also to reduce
poverty.
3
Brazil‐Aliança
de Controle
do
Tabagismo
(ACTbr)
The researchers discussed the
lack of information available to
key stakeholders involved in the
development and enforcement
of tobacco control policies
related to tobacco production in
Brazil, notably the National
Program to Support Production
Diversification in Tobacco
Growing Areas for integrated
sustainable rural development.
In particular, the study
addressed the beliefs and
experiences of constraints faced
and strategies implemented by
small‐scale farmers to reduce
their economic dependence on
tobacco through crop
diversification and alternative
livelihood schemes; then
explored how this information
best used to inform
decision‐making about to
tobacco control.
4
Cameroon
(individual
researchers),
Mali-
Association de
Lutte contre le
Tabac,
l’Alcool, etles
Stupéfiants
(ALUTAS)
and Senegal
Mouvement
Anti‐Tabac du
Sénégal
(MAT)5
Researchers in each country
sought to examine how
expenditures on tobacco
represented opportunity costs
related to basic needs,
particularly among the poor.
Even though smoking rates in
Sub‐Saharan Africa are still
lower than they are in other
regions of the world, the
significantly high rates of
poverty in these countries, and
the reality that more than half of
the households are not able to
afford their basic daily
expenses, makes any tobacco
expenditure an important
contributor to poverty.
Advocacy activities addressed
not only the impact of tobacco
expenditures on the current
lives of the poor, but also on
their future.
5
India-
Voluntary
Health
Association of
India
(VHAI)
Researchers investigate the
working conditions and
socioeconomic and health
issues associated with tobacco
farming, bidi production and
tendu leaf plucking to expose
No
Country and
Organisation
Research and Policy Focus
tobacco industry myths
promoting the safety and
viability of tobacco
employment. Because
short‐term policy measures will
not solve financial problems for
these workers, the researchers
explored the inclusion of
alternative income‐generating
activities into an all‐inclusive
programme of safer, sustainable
alternative livelihoods for
tobacco workers.
6
Indonesia-
Center for
Health
Research,
Universitas
Indonesia
Researchers examined the
relationship between household
tobacco consumption and
children health status among the
poor to provide evidence to
support the policy of tobacco
control. The focus on negative
child health impact of tobacco
consumption is used to counter
the government’s reluctance to
commit to tobacco control
because of its belief in the
profitable commercial aspects
of tobacco production and sale.
7
Mexico-
Instituto
Nacional de
Salud Pública
(INSP)
Researchers analysed the
financial impact of tobacco
consumption on the ability of
low‐income households to
afford basic needs. The focus of
the advocacy efforts is how
tobacco control policies could
complement poverty reduction
policies and strategies.
8
Peru-
Comisión
Nacional
Permanente de
Lucha
Antitabaquica
Researchers examined
household expenditures on
tobacco and their effect on
families’ ability to afford basic
needs; in particular they
examined the negative impact
of tobacco spending on
households with children. In a
country where one‐third of the
population is poor, and where
the poorest households have the
most children, fiscal policies
that support effective tobacco
control will contribute to the
achievement of the Millennium
Development Goals, a central
government policy objective.
Analysis of Poverty Trap Due to Cigarette Consumption
189

4 DISCUSSION
The analysis of poverty trap due to cigarette consumption can be illustrated through the following chart:
Figure 3: Poverty Trap and Cigarette Consumption
The occurrence of poverty trap caused by cigarette
consumption can be illustrated through the following
chart:
Table 2: Family allocation of expenditure
Group of Goods
Percentage (%)
Rural
Area
Urban
area
Rural and
urban
area
Grains (rice, etc)
4.98
10.04
6.82
Tubers
0.38
0.80
0.53
Fish /
shrimp/squid/clams
3.06
4.40
3.55
Meat
2.30
1.94
2.17
Eggs and milk
3.06
2.79
2.96
Vegetables
3.01
4.75
3.65
Nuts
0.97
1.30
1.09
Fruits
2.05
2.02
2.04
Oil and coconut
1.06
1.84
1.34
Drink materials
1.34
2.30
1.69
Seasonings
0.79
1.28
0.97
Other consumption
0.89
1.19
1.00
Instant Food and
Drink
15.22
12.27
14.14
Cigarettes
5.45
8.91
6.72
Total
44.57
55.83
55.83
Consumption of cigarettes will cause the
allocation of expenditure to buy basic family staple
food to reduce. This is the evidenced from the
Central Bureau of Statistics data in 2016 which
show that the average percentage of cigarettes per
capita expenditure per month by category of goods
occupies the third position of 6.72% after finished
food and beverages (14.14%) in the first position
and rice (6.82) in the second position. From the data,
it can be concluded that Indonesian society
prioritises purchasing cigarettes compared to other
staple foods containing protein, nutrients and
vitamins that are useful for the body such as meat,
fish, vegetables, fruits, tubers and so on. Household
conditions with inadequate food intake and other
basic necessities that are set aside for the purchase of
cigarettes will cause the welfare of families to
deteriorate. Thus, people are caught in poverty.
Consumption of cigarettes can cause low public
health status. Smoking habits have been shown to be
the cause of approximately 25 types of diseases that
attack various organs of the human body. These
diseases include mouth cancer, oesophagus,
pharynx, larynx, lung, pancreas and bladder. Also
found are chronic obstructive pulmonary disease and
various other pulmonary diseases, namely disease of
the blood vessels.
Consumption of cigarettes causes the death of
more than five million people in the world each year
or the equivalent of one death every six seconds.
The suffering caused by cigarettes will cause the
cost to finance the disease treatment to increase
which will increase household expenditure.
Cigarettes not only exacerbate the poverty of the
users, but, in general, cause a huge financial burden
for the country. At the national level, the costs
incurred by tobacco use include increased health
financing, loss of productivity as a result of illness
and death of productive age, declining foreign
exchange rates and environmental damage. The state
bears the burden of health financing and enormous
productivity loss as a result of illness and premature
death from tobacco use. In developed countries, the
annual health costs associated with tobacco use
range from 6% and 15% of total healthcare costs. In
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190

China, a study in the mid-1990s estimated direct and
indirect health costs as a result of smoking was US
$6.5 billion per year. While, in Egypt, the direct
annual cost of treatment for diseases caused by
tobacco use is estimated at US $545.5 million. If the
trend of tobacco use is not decreased, it is estimated
that 650 million people from the world population
will now die from tobacco, and half will die in their
productive age, losing 20 to 25 years of their lives.
The occurrence of disease will lead to reduced
revenue due to decreased productivity and accidents.
Conversely, there is increased spending to treat
diseases caused by cigarette consumption, which
will further increase the occurrence of poverty.
5 CONCLUSION
Based on the data analysis by using qualitative
method, it can be concluded that the poverty trap
caused by cigarette consumption is illustrated in the
behaviour of the people who prioritise cigarette
purchase compared with the basic needs that can
support their welfare. Consumption of cigarettes can
lead to low health status due to the emergence of
various diseases. Consequently, there is an increase
in spending to finance the treatment of such
diseases. The suffering will result in decreased
productivity and even death. This incident causes
costs to increase and income to decrease. Thus, there
is a poverty trap.
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