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Poverty reduction around the coffee citizens: Social capital optimization and participative planning of creative economic empowerment in jember regency

Authors:

Abstract

The reality of the poor in the vicinity of plantations and forestry also occurs in Jember Regency, including the poor surrounding coffee plantations mostly owned by Limited Plantation Companies (PTP). The problem is whether "self-capacity building" through optimizing the utilization of social capital and participatory planning empowerment The creative economy for the poor around the coffee plantations to cope with poverty has been done or not. Analysis of this data is necessary to obtain a picture of poverty alleviation community around the coffee plantation. Through analysis of this data then prepared action plan and implementation of action plan that have been prepared. In preparing action plans and implementation of community poverty reduction action plans around the coffee plantations are required Participant Rural Appraisal (PRA) methods. The results of this study provide a picture that poverty alleviation is still conventional, providing cash assistance. Poor people around the sugar cane plantations are not involved to alleviate their own poverty. Through optimizing the development of self-capacity and social capital, the poor surrounding sugarcane plantations can utilize various wastes of coffee plantations to welfare the family economy.
Editorial Board
Editor in Chief
ARDI GUNARDI
Dept. of Management,
Faculty of Economics & Business,
Universitas Pasundan,
Indonesia
Associate Editor
Prof. Dr. Hapzi Ali, CMA
Mercu Buana University,
Jakarta, Indonesia
Managing Editor
Vijay Kumar Jha
Serials Publications Pvt. Ltd.
New Delhi
Editorial Board Members
XIE Wenjing
Department of Economics,
Baptist University of Hong Kong,
Kowloon Tong,Â
Hong Kong, China.
Â
HU Yichuan
Department of Economics,
The Chinese University of Hong Kong, Shatin,
Hong Kong, China.
Â
YANG Yixin
Department of Economics
The Chinese University of Hong Kong, Shatin,
Hong Kong, China
Â
XU Xinyi
Department of Economics,
The Chinese University of Hong Kong, Shatin,
Hong Kong, China
Â
Liu Ziyuan
Ph.D candidate in Department of World Economy,
School of International Business and Administration
Shanghai U of finance and Economics,Â
China
Â
..:: Serials Publications ::.. http://www.serialsjournals.com/editorial-board.php?journals_id=22
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Yi Guanxi
UCLA Anderson Business School
110 Westwood Plaza. Suite C-310Â
Los Angeles,
Â
Wang Danli Wang
Chinese University of Hong Kong
HYS 509, Shatin, N.T.,Â
Hong Kong, China
Â
Prof. N. Narayana
Department of Economics,Â
University of Botswana,
Private Bag UB 705,Â
Gaborone,Â
BOTSWANA
Â
Dr. Teena Bagga
Professor,Â
Amity Business School,
Amity UniversityÂ
Uttar Pradesh
Dr. Mosab Tabash,Â
Assistant Professor,
College of Business Administration,
Al Ain University,
UAE
Â
Dr. Harsh KumarÂ
Associate Professor
Amity College of Commerce and Finance
Amity University, Noida
Dr. Renuka BakshiÂ
Assistant Professor
Amity College of Commerce and Finance
Amity University, Noida
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International Journal of Applied Business and Economic Research
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447 International Journal of Applied Business and Economic Research
Poverty Reduction Around the Coffee Citizens: Social Capital Optimization and Participative Planning...
International Journal of Applied Business and Economic Research
ISSN : 0972-7302
available at http: www.serialsjournal.com
© Serials Publications Pvt. Ltd.
Volume 15 Number 19 2017
Poverty Reduction Around the Coffee Citizens: Social Capital
Optimization and Participative Planning of Creative Economic
Empowerment in Jember Regency
Sukidin, Pudjo Suharso, Wiwin Hananto, Zuliyanto1
Lecturer in Department of Economic Education FKIP Universitas Jember
E-mails : sukidin.fkip@unej.ac.id; skdn2016@yahoo.co.id; harso.FKIP@unej.ac.id; harsodit@yahoo.co.id; wiwinhartanto@unej.ac.id;
zulianto.fkip@unej.ac.id
Abstract: The reality of the poor in the vicinity of plantations and forestry also occurs in Jember Regency,
including the poor surrounding coffee plantations mostly owned by Limited Plantation Companies (PTP).
The problem is whether “self-capacity building” through optimizing the utilization of social capital and
participatory planning empowerment The creative economy for the poor around the coffee plantations to
cope with poverty has been done or not. Analysis of this data is necessary to obtain a picture of poverty
alleviation community around the coffee plantation. Through analysis of this data then prepared action plan
and implementation of action plan that have been prepared. In preparing action plans and implementation of
community poverty reduction action plans around the coffee plantations are required Participant Rural Appraisal
(PRA) methods. The results of this study provide a picture that poverty alleviation is still conventional, providing
cash assistance. Poor people around the sugar cane plantations are not involved to alleviate their own poverty.
Through optimizing the development of self-capacity and social capital, the poor surrounding sugarcane
plantations can utilize various wastes of coffee plantations to welfare the family economy.
Keywords: Poverty, social capital, participatory planning, and creative economy
RESEARCH BACKGROUND
In the reality of the social economic order of society, poverty is still a serious problem facing the Indonesian
nation. According to BPS data, the distribution of the number of poor people in Indonesia is mostly in
rural areas. Data from BPS (2010) revealed that 74% of the poor are in rural areas and some of the poor
are scattered in plantation and forestry clusters in various parts of the country this.
In the report book issued by the Asian Development Bank (ADB) on the Evaluation of Regional
Technical Assistance (RETA, 2010) disclosed that for the Java Island poor population who are in plantation
International Journal of Applied Business and Economic Research 448
Sukidin, Pudjo Suharso, Wiwin Hananto, Zuliyanto
and forestry clusters scattered starting from Lebak district of Banten, Bandung regency, regency Banjar,
Tasikmalaya regency of West Java, Wonosobo regency, Pati regency, Blora regency, Temanggung regency
of Central Java, Gunung Kidul regency of DIY, Ngawi regency, Madiun regency, Lumajang regency, Jember
regency, Banyuwangi regency, and Situbondo regency of East Java.
The reality of the poor in the vicinity of plantations and forestry also occurs in Jember Regency,
including poor people around coffee plantations, mostly owned by Limited Plantation Companies (PTP).
Poor people around coffee plantations in Jember spread in Panti Subdistrict, Mayang Subdistrict, Jelbug
Subdistrict, Arjasa Subdistrict, Silo Subdistrict, and Sumber Baru Subdistrict.
The number of poor people in Jember Regency according to BPS data of Jember District (2010) is
about 13% of the total population in Jember District. This poverty rate is slightly different from the data
released by the Jember District government listed in the Regional Action Plan of Mellinium Development
Goals (RAD MDGs) of Jember District (2011) which states that the poverty rate in Jember regency is
11.5% of the population in Jember District. The poverty rate in Jember Regency is still below the national
poverty rate which reached more than 15% in 2010.
When associated with the type of work, the reality of poverty in Jember district revealed that the
majority of poor families (51.7% of the poverty rate of Jember District) have jobs in the agricultural sector
(including plantations and forestry). This means, the agricultural sector has not been able to provide a good
income, especially for poor families. (RAD MDGs Jember District, 2011).
This is possible because almost all poor families, especially those around coffee plantations in Jember
Regency, do not own their own land and work as farm laborers in coffee plantations around their dwellings,
both as pickers, planters, and others. Another possibility is not yet optimal development of productive
coffee potency or incapability of poor community “to develop self capacity” to get out of poverty, both
because of cultural and structural factors.
It should be acknowledged that in addition to revealing the success, poverty alleviation that has been
done by the government, but the efforts that have been done by the government also shows failure in
many places. Consciously or not, there are various problems in poverty alleviation itself. However, whatever
the problems and challenges, poverty alleviation must continue, as well as the shared responsibility of
central government, local government, business and society. Efforts to overcome poverty need to be a
sustainable social movement that is continually perfected from time to time.
In the context of poverty alleviation for the poor living in coffee plantations in Jember District, many
programs from local governments and those conducted by PTP XII and XIII have been conducted through
CSR (corporate social responsibility). However, efforts to reduce poverty among the poor around coffee
plantations Seems to still leave a general weakness that needs to be evaluated and improved.
The general weaknesses of poverty alleviation of the poor around the coffee plantations of Jember
Regency are seen as follows: (1) still oriented towards macro growth; (2) a centralized policy that emerges
that poverty reduction is the responsibility of the government; (3) is more charitable; (4) positioning
the poor as an object and not taking into account the potential participation of better-off citizens,
(5) a worldview about economic oriented poverty, (6) and the assumption of frequent problems and
mitigation.
449 International Journal of Applied Business and Economic Research
Poverty Reduction Around the Coffee Citizens: Social Capital Optimization and Participative Planning...
Given the weakness of poverty alleviation, it is very necessary to evaluate poverty alleviation that has
been done either by the local government of Jember Regency and PTP XII and XIII accompanied by
efforts to implement new strategies for poverty alleviation of poor communities around the coffee plantation.
Therefore, the new strategy for poverty alleviation in the vicinity of coffee plantations should include
efforts to “self-capacity development” through the optimization of social capital and creative economic
empowerment that can be developed by the poor around the coffee plantations. Of course, this effort can
not only be through the mainstream instrument of strengthening the current economic or technological
approach, but also must be pursued through various related dimensions. In other words, the “self-
development capacity” process of the poorest plantations should be built within a comprehensive, holistic
and harmonious framework of approach with regard to social capital that includes a value system, an
institution that grows and develops in local communities, local potentials, community business units and
carrying capacity Environment and coupled with participatory planning of creative economic empowerment
outside the plantation economy (mainstream economy).
With the new strategy of poverty alleviation of the poor around the plantation is expected not only
will increase the participation of poor communities around coffee plantation area for decision making and
supervision of resource management of coffee plantation. But it will also be able to better ensure the
sustainability of improving people’s welfare and conservation of coffee plantation resources.
The problem is not all the poor around the plantation not only understand all of them, but also do
not understand what to do with life that is being lived. This problem is also experienced by the poor around
coffee plantations in Jember district, especially in the centers of life of coffee plantation communities such
as in Silo, Mayang, Arjasa, Jelbug, Panti, and Sumber Baru subdistricts. Communities in this coffee production
center are not able to optimally empower themselves to cope with the poverty experienced, not
only because they face the constraints of estate regulation but also problems in optimizing social capital
and lack of participatory planning of creative economic empowerment available outside the plantation
economy.
It should be understood that the community poverty alleviation around the coffee plantation is not
enough to be given only material assistance, or facilities for improving the quality of infrastructure, access
and services for the poor. It is important, but it will be more important if the poor are given the opportunity
to “develop themselves” through social networks, participatory planning of creative economic empowerment
as well as farm labor coffee plantations, and the development of social capital to carry out social and
economic transitions.
The poor around the coffee plantations can not “develop self-capacity” to alleviate their own poverty.
The poor will be able to cope with their poverty if joint efforts are made through the social capital they
possess and the creative economic development available around the coffee plantation, whether in the off
farm that can be done by the poor or the development of small-scale home industries that can be “grafted”
Collectively in the area around the coffee plantation.
The problem is whether “self-capacity building” through optimizing the utilization of social capital
and participatory planning of creative economic empowerment for poor communities around the coffee
plantations to overcome poverty has been done or not. If so, how is the existing poverty reduction product
and is the effort made effective in tackling the poor? If not, what steps have been taken to optimize “self-
International Journal of Applied Business and Economic Research 450
Sukidin, Pudjo Suharso, Wiwin Hananto, Zuliyanto
development” through the utilization of social capital and participatory planning of creative economic
empowerment outside the plantation economy?
The purpose of this research is to: (1) map and understand the poverty of the community around the
coffee plantation in Jember Regency; (2) to evaluate the various poverty alleviation that has been done;
And (3) designing community poverty reduction measures around the coffee plantation through participatory
planning of creative economic empowerment and social capital as a new strategy for poverty reduction.
This research is useful for reference in designing policy and implementation of policy of poverty alleviation
of poor people around coffee plantation through participative planning of empowerment of creative
economy and social capital. In addition it is useful for academic development related to poverty problem
of coffee plantation community and reference for other researchers to deepen about poverty of coffee
plantation community in Jember Regency. For the poor, this research can be useful for an inspiring reference
to self-capacity building efforts and expanding social networks to improve the dignity of life.
RESEARCH METHOD
This research is done by using action research approach. Action research is a process of controlled, self-
recycled, independent reflective investigation, which aims to make improvements to the system, workings,
processes, content, competencies, or situations. In the context of this study the action approach is aimed at
evaluating poverty reduction policies and actions and designing new strategies for poverty alleviation of
poor communities around coffee plantations which are then accompanied by action plans that need to be
done by multi-stakeholders.
In action research, in general the research cycle will be performed according to procedures or steps:
Planning, action, observation and reflection. The steps to be taken in action research are problem
identification, formulating problems, analyzing problems and finding solutions, creating action plans and
monitoring, processing and interpreting data, and making reports.
In the context of this research, the research team will identify the problem of community poverty
alleviation around the coffee plantation, formulate the problem of poverty eradication that has been done
by multi-stakeholders, analyze the poverty alleviation that has been done and offer other alternative poverty
alleviation, make action plan to diffused, and implement the action plan through participatory planning on
poverty alleviation.
Data collection is done through observation techniques, in-depth interviews and involved
obser vations. Obser vations were made on the phenomenon of poverty and the efforts of poverty
alleviation of the poor around the coffee plantations. In-depth interviews were conducted with multi-
stakeholder informants who had been involved in community poverty alleviation around the coffee
plantations and observed involvement by researchers in which researchers would temporarily reside in
the vicinity of the population around the coffee plantation. Data analysis was done by using qualitative
analysis technique. Steps taken: (1) review the data; (2) reducing data; (3) categorize data; (4) display
data; And (5) interpret the data.
All data relating to poverty, poverty alleviation, social capital, off-farm activities, and capacity building,
whether obtained through interviews, observation, documentation, or observation are involved through
specific interpretations for further steps. After the data obtained are reviewed, the next step is to select and
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Poverty Reduction Around the Coffee Citizens: Social Capital Optimization and Participative Planning...
sort data related to poverty, poverty alleviation, social capital, off farm activities around the coffee plantation,
and self-development capacity. Irrelevant data is discarded so as not to interfere with categorizing steps.
The data is then categorized based on the researcher’s interest which includes five aspects (poverty,
poverty alleviation, social capital, creative economic activity, self-capacity building). The next step is to
interpret the data obtained and diialized with various theories.
Analysis of this data is very necessary to obtain a picture of poverty alleviation community around
coffee plantations. Through this data analysis then prepared action plan and implementation of prepared
action plan. In preparing action plans and implementation of community poverty reduction action plans
around the coffee plantations are required Participant Rural Appraisal (PRA) methods. It is a participatory,
multi-stakeholder participatory planning method and is used to facilitate the society’s deep insight into
oneself and its possibilities, and allows members to express their ideas, discoveries in their own varied,
meaningful, and usable and realistic ways (RETA , 2010: 9).
The steps taken in this method are: (1) information sharing; (2) consultation; (3) collaboration; (4)
persuasion; And (5) joint control. The researchers first exchanged information on poverty, poverty alleviation,
and others included in the focus of this study. Then proceed with consultations with various parties,
ranging from village elders, village bureaucracy apparatus, to the poor about what needs to be done to
overcome poverty.
After that the researchers cooperate with multistakeholders to develop action plans for poverty
prevention of the community around the plantation. With this cooperation is expected the poor are able
and willing to express their views and feel involved so as to obtain social efficacy. If this step is not
optimally done persuasion by researchers. Finally everything that has been designed, decided, implemented
with the control together so hopefully will get the expected results.
RESULT AND DISCUSSION
The Problem of Poverty and Its Countermeasures
Poverty alleviation is one effort to improve the welfare of the community. Poverty alleviation is a mandate
of the 1945 Constitution which is outlined in various national and regional development agenda, among
others through RPJMN / RPJMD where poverty reduction is the main agenda and priority to reduce
poverty that has become global commitment in Millennium Development Goals (MDG’s) in 2015 .
Poverty alleviation is the effort of all parties (multi-stakeholders) to reduce the number of poor
people and prevent non-poor population into the poor or below the poverty line. The poor around the
coffee plantations in the district of Jember are generally in a dismal condition. The poor are unable to meet
their basic needs and do not have access to resources to improve the quality of their more dignified lives.
The cause of poverty in the coffee plantation community in Jember can be both cultural and structural
factors. From the cultural aspects can be the attitude of a person / group of people who are influenced by
consumptive lifestyle, habits of life and cultural attitudes (apathy, resignation, no motivation). While from
structural aspect can be uneven resource structure, ability of society unbalanced, inequality of opportunity
in effort and earn income from plantation coffee sector.
International Journal of Applied Business and Economic Research 452
Sukidin, Pudjo Suharso, Wiwin Hananto, Zuliyanto
The results of this study indicate that the dominant dimension of poverty accompanying the poor
around the plantation is helplessness. Powerlessness in: (1) meeting basic needs such as food and nutrition,
clothing, shelter, education and health; (2) conducting productive business activities; (3) access to social
and economic resources; (4) self-determination and always discriminated against, have feelings of fear and
suspicion, and apathy and fatalism; And (5) free oneself from the mental and cultural poor and always feel
that they have low dignity and dignity.
Optimization of Social Capital and Participatory Approach
Social capital instruments are referring to parts of social organization - networks, norms of interdependence,
and trust - that facilitate cooperation for mutual benefit (Putnam, Robert D, 1999: 3). In social capital,
membership in various types of social networks can be observed, plus “invisible moral resources” such as
trust, cooperation, interdependence, support, and information flow, concerned with and strengthening
one another. Taken together, the parts that make up this social capital will support social stability and
sustainable economic vitality.
In community life, as well as in the poor around the coffee plantations, various networks exist within
society, reaching outward (horizontally) to other groups, and connecting people (vertically) to other authority
people. These relations are respectively referred to as the act of binding, bridging, and linking social capital.
The poor in the coffee plantation region rely on such assets (social capital) as channeling to such people
who assist them, for example when they are sick or need a nanny (binding social capital).
They rely on relationships with people outside their own group who can help them, for example
individuals in the field of coffee plantation work in relation to other workplaces outside the coffee plantation
(social capital bridging); And relationships with people in positions with political or financial power to gain
both vertical and horizontal opportunities and mobility (social capital linking). According to Narayan Deepa
(1997: 22), everyone relies on relationships with others whom they trust to advance, but for poor people
may rely more on social capital than on education to survive.
Because the poor rely so heavily on social networks, the development of social capital is crucial to
helping poor people make the social, economic, and cultural transition necessary to “develop self-capacity”.
Therefore, poverty alleviation does not only improve the quality of infrastructure, access, the provision of
temporary material assistance, and services for the poor.
In a theoretical perspective, social capital can be increased if there is a participatory or enhanced
learning environment where a participatory approach is systematically incorporated into all stages of poverty
reduction, from conceptualization through implementation to evaluation. James Coleman (2000: 34), said
that if this participatory approach is accompanied by trust among group members or social networks, or if
different social groups and networks can unite to work together and support each other, the poor will be
able to achieve More in many ways, including being able to cope with the poverty he experienced.
According to Thomas Carroll (2001: 56), the depth of participatory approach and maximum
participation will be achieved if there are actions of empowering or joint control. Communities develop
action plans and manage their own activities based on their own priorities and ideas. In the context of
poverty reduction, they should be given space and opportunities to develop poverty reduction plans and
manage their own activities based on their own priorities and ideas that reduce poverty.
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Empowerment of Creative Economy of Coffee Plantation Community
The concept of creative economy develops as an antithesis to mainstream economic concepts.
Creative economy is the activity of production and reproduction of goods and services that are
outside the main economic activities resulting from the process of creative thinking. In simple
language the creative economy is the production and distribution activity of “side” outside the main
livelihood.
In the living order of the poor, the creative economy is a rational choice to be made amidst the
limitations of its key economic power. The condition of the main economic power that is unable to
provide the economic and social needs of the poor, forcing the poor to “get out” of the poverty trap
through various means, including struggling beyond the main economy (survival strategy).
In the creative economy, the poor usually not only provide a mobilized family workforce, but also
provide time outside of their main economic activity. In cultivating the creative economy, the poor often
also provide a longer outpouring of labor rather than the outpouring of labor provided for the main
economy.
A form of creative economic development in coffee plantations generally lies in off farm economic
activities that are generally accessible to the poor. Including the plantation’s creative economic activities,
are economic activities outside the agriculture and off farm sectors such as home industry, culinary, plantation
tourism, environmental waste processing to be sold products, and others.
In the context of coffee plantations, creative economies that can be developed include coffee plantation
tours, coffee stalls, coffee fruit waste processing, wooden coffee crafts, culinary support coffee garden
tourism, or souvenirs to support coffee tours. Beyond the development of a creative economy based on
coffee products, there may also be other productive economic enterprises organized in a community of
collective enterprises or productive economies that are endeavored by individuals.
In the theory of local economic development (local economic development) developed A.H.J. Helming
(2005: 27) said that the development and empowerment of creative economy for the community is a policy
choice that needs to be decided to help people cope with the poverty they experienced. The local term in
terms of the local economy does not designate an administrative boundary area, but rather the increase in
local component content and the optimization of local resource use.
Facilitating the Establishment of Independent Groups
The potential of the community around a huge coffee plantation in Jember can not be utilized optimally.
This study focuses more on the study of community empowerment around coffee plantations through
social capital approach and participatory planning to improve the welfare of poor communities living
around the plantation.
In its implementation group formation was preceded by inviting the community to form independent
groups. The formation of community self-help groups is aided by the research team and adapted to
each of the “self-capacities it is possible to develop. Steps to facilitate the formation of self-help
groups and the participation of self-help groups in poverty reduction can be illustrated in the following
picture.
International Journal of Applied Business and Economic Research 454
Sukidin, Pudjo Suharso, Wiwin Hananto, Zuliyanto
The formation of self-help groups around the coffee plantations to manage the creative economy is
able to raise the degree of economically viable people’s lives. With the formation of self-help groups, each
group develops its different economic potentials so that the creative economy efforts undertaken by self-
help groups can be complementary.
Generally these self-help groups set up creative economic endeavors aimed at off-farm economic
development, such as coffee shop businesses providing hot coffee drinks for plantation visitors, typical
Jember food stalls, and others.
Various independent groups’ efforts in setting up various economic endeavors can improve their
welfare, and most importantly they are responsible for the developed effort that ultimately is able to
independently cope with the poverty that has been experienced.
Formating of Self Help
Group
The Goal of Self
help group
Activity of Selfhelp
Group and Society
Role
Role of Selfhelp
Group in Poverty
reduction
Implementation
poverty reduction by
selfhelp group design
Management of
selfhelp group
participation in
poverty reduction
Introduction of social
character, economy
and culture of
selfhelp group
Problem
identification of
selfhelp group
Formulation Action
Plan
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Poverty Reduction Around the Coffee Citizens: Social Capital Optimization and Participative Planning...
CONCLUSION AND RECOMENDATION
Conclusion
The reality of poor people around plantations and forestry occurs around coffee plantations that are
mostly owned by Limited Plantation Companies (PTP). Poor people around coffee plantations in Jember
spread in Panti Subdistrict, Mayang Subdistrict, Jelbug Subdistrict, Arjasa Subdistrict, Silo Subdistrict, and
Sumber Baru Subdistrict. Self-capacity development through the optimization of social capital utilization
and participatory planning of creative economic empowerment for poor communities around coffee
plantations to overcome poverty has been done, but the results have not been optimal. In preparing action
plans and implementation of community poverty reduction action plans around the coffee plantations are
required Participant Rural Appraisal (PRA) methods. It is a participatory, multi-stakeholder participatory
planning method and is used to facilitate the society’s deep insight into oneself and possibilities, and allows
members to express their ideas, discoveries in their own varied, meaningful, and usable and realistic way.
Recomendation
The phenomenon of poverty is not a single reality so that efforts to overcome it need an integrated
approach. The involvement of all parties should be more emphasized in order to solve the problem of
poverty can run optimally. Participatory planning for creative economy empowerment can be developed
continuously in the face of Asean Community and free trade era.
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