Localising anti-poverty agenda - Malaysian experience

by Manamendra MEDAWATTEGEDARA

Poverty Alleviation! An attractive slogan for the politicians and the dream of the poor that has yet to become a reality! Is that the way you think of it?

However, that is one of the main objectives on the agenda of every developing country. Therefore, we have been implementing a number of programmes and projects employing different strategies under almost every successive government with the objective of poverty alleviation in Sri Lanka since independence.

However, we have to ask ourselves whether those programmes have been able to reduce poverty level in the country and whether we have addressed the dilemma of poverty effectively.

Still we are using various programmes of which most are at experimental level. Therefore it is high time that we turn our attention to Malaysia and emulate their experience, because Malaysia is about to celebrate her 51st independence Anniversary on August 31, as a booming developing nation in the world. She gained her independence on August 31, 1957; nearly ten years after Sri Lanka gained her independence.

Since her independence, Malaysia has been implementing polices and programmes with a clearly defined sphere of action to overcome the development challenges. Therefore this is the most suitable time to evaluate policies and plans which she implemented to overcome poverty and development challenges in the country and see what we can learn from her experience.

Discipline and target achieving within the time frame is very vital for success for every activity. Malaysia began implementing development polices in the 1970s and the country is continuing her development plans based on national polices, mainly the three factors of production-Land, Labour and Capital.

Land is the main factor utilized in the development process. Capital is obtained through the national and International grants and World Bank assistance. With regard to Labour, The country is rich with skilled, un-skilled labour force. Labour force has made its full contribution to the development process of the country.

I like to quote here Dr. Mahathir Mohamad’s statement about development polices, Programmes and planning of the country “... In Malaysia we do not just plan. We implement them.

While the Economic Planning Unit (EPU) draws up the plans for five years and for each single year, and indeed for each single project or programme, the Implementation and Coordination Unit (ICU) oversees the coordination and implementation of every single plan, reporting back to the government the progress and the problems so that changes and adjustments may be made where necessary in order to achieve the desired results.”

Dr. Mahathir Mohamad, 16 May 1996) Malaysia implemented all development activities mainly based on her four national Polices of which three outlines perspective plans based on national Policies as follows;

The overall poverty level in the 1970s was 52.2% and it was brought down to 5.2% in 2004. Moreover, the absolute (In their context: Hardcore) poverty level, in 1990s was at 4.0 and it had been brought down to 1.2% in 2004.

The above significant achievement, Malaysia was able to attain, because of her Policy Planning, their implementation and evaluation process. In Malaysia, there are policies embodied in all 5-year development plans and long term perspective plans to address inequalities and disparities.

Malaysia experienced one ethnic uprising in 1969 which was in fact the manifestation of the socio-economic deprivation of the Bumiputera, who constitute the majority of the country. Bumiputera’s share in the economic corporate was only 23%, while, the remaining 65% was shared by the foreign countries.

(Non-Bumiputeras share was only 12%). This uprising is the only blood mark we see in Malaysiaya’s historical annals. The government was able to suppress and bring it under control and to address the issue very successfully through policy changes. The social unrest caused the economic policy to revise the social structure and to eradicate poverty.

The first massive socio-economic re-engineering was formulated based on the New Economic policy (1971-1990).

In Malaysiya’s preliminary New Economic Policy (1957 - 1970), the emphasis was more on an export oriented economy and focused on economic and rural development. But in 1971 and until 1990, Malaysia implemented its new economic policy with greater focus on growth with equity.

In the National development policy (1991-2000) Malaysia focused on balanced development. For 2001-2010, Malaysia’s Theme is National Vision Policy and the primary aim is to build a resilient and competitive nation. Under her National Vision, Malaysia wants to enhance her national capabilities. And in keeping with her Vision 2020, based on an industrialized society she wishes to emerge as a developed country.

In order to alleviate poverty there must be clear concepts and measurements of poverty. There must be a clear definition of what do you want to do with poverty and a clear distinction between poverty and absolute poverty. In the 1950s and until 1980s Malaysian Government was seen as the engine of growth.

Therefore, government takes the responsibility to eradicate poverty. Even during the financial turmoil in 1997, not a single cent was taken away from budgetary allocations for that year, for the programmes on eradication of poverty from the surface of the country.

There has always been consistent and substantial budgetary support from the government. In 1991 and until 1997, Malaysia’s economic growth rate was at 9.1% but it plummeted to - 7.4% in 1998 due to the financial turmoil. Thereafter Malaysia’s economy slowly picked up and its economic growth rate in 2004 was 7.1% and in 2005 it was 5.3. There are seven essential elements underlying Malaysia’s success in reducing poverty level and sustaining its development.

The first element is Malaysia’s confidence and ability to formulate its own core development philosophy, Policies and Plans in which Malaysia draws emphasis on growth with equity. The second element is the peaceful coexistence among the racial groups in Malaysia. The third element is the political stability and results - based system of government ruling the country.

The fourth element is the sustained and rapid economic growth. The fifth element is implementing affirmative - action type programmes. The sixth, the final element, is strong budgetary support in the form of systematic planning, implementation, monitoring and evaluation mechanisms.

National Planning: a deliberate, comprehensive time Specific effort, initiated and sustained by the government for the purpose of creating and maintaining conditions that will accelerate economic growth and social development in the country Implementation: Carry into effect planned policies that are translated into programmes and projects and Evaluation: analytical assessments addressing results of public policies, organizations or programmes that emphasize reliability and usefulness of findings to improve information and reduce uncertainty) In Malaysia it is not just planning. She implements them.

There is a separate unit called Economic Planning Unit (EPU) which draws up five year plan, one year plan and indeed plans for each single project / Programme, The Other unit, called Implementation and Coordination Unit (ICU) oversees the coordination and implementation of every single plan, reporting back to the government on the process and the problems encountered so that changes and adjustments may be made where necessary in order to achieve the desired results.

The National Development Council (NDC) in Malaysia plays a key role in the development process. It plays four roles. The NDC has to decide on the overall policies and implementation of development strategies in conformity with Vision -2020.

The NDC also has to ensure that the National Development Plan and policies achieve their objectives in accordance with National Vision Policy. NDC has also to evaluate implementation strategies of development projects under the National Vision Policy and to coordinate the development issues affecting the environment.

It is very clear for us now what strategies are important for us to achieve our objectives.We can summarize them and work out a formula to ascertain where we do not address the problem effectively enough to achieve Sri Lankan development targets. RDp = f (Gr, Cb, Ke, Tp, M) Pws : Where :

RDp = Integrated Rural Development and Poverty Alleviation

f=is the function of:- Gr = Government commitment, National Agenda, Regulate and Generate Growth Cb = Collective Goods - basic infrastructure and amenities for collective benefits Kc = Knowledgeable, Skills and Strong Leadership, People’s Participation, Solidarity, Unity Tp = Market Opportunities, Private Sector Driven M = Management Structure for Sustainable Growth Pws = Political Will and Stability

The foregoing are the areas we also have to identify and develop clearly for alleviation poverty of the country .Malaysia, is now planning the country for 2050.

This clearly indicates that an attempt has already been made to start planning and identify strategies for preparing the country for ensuring her future advancement. She is ready to face future global challenges and minimize globalisation impact on the country. As a nation she has a clear and strong national vision, policy and plans and adopts an implementation process which is backed by strong political will.

Malaysians have cultivated in them a strong sense of nationalism, a feeling of love for their country.

These experiences I was able to share at the international training programme on ‘Poverty Alleviation: Localising the Anti-Poverty Agenda the Malaysian Experience’, in which I participated in Malaysia, along with Mrs. Somawathie Jayatunge, Senior, Assistant Secretary, Prime Minister’s Office and Mrs. Kanthi Gunathilalke, Senior Assistant Secretary, Ministry of Child Development and Women’s Empowerment.

The writer is attached to the Ministry of Rural Development and Self-Employment Promotion