pmd chapter 10- pursuing pauperisation

8/13/2019 PMD Chapter 10- Pursuing Pauperisation

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Pursuing Pauperisation

People Management Debates
http://www.apiit.edu.my/


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Learning Outcomes

What is Pauperisation?

Poverty & Inequality

Poverty and Social Economy

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What is Pauperisation?

the act of making someone poor

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Pauperisation

During the recent years the living conditions of thevast majority of the population have in real terms

been deteriorating while a tiny few holding

economic power has become richer. Our society is

being steadily pauperised.

The line between this pauperisation and abject

poverty is getting thinner and the gap between the

rich and the poor still rife. This is inevitably leading to social frustration,

instability and is generating other societal

problems.

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Who are the poor?In United States: They are people who live only on less than one or

two US dollars a day.

Almost two third of the world populations are poor: 1,2 billion of them living with less than

one US Dollar a day, 2,8 billion with less than two Dollars. In Malaysia, A major assumption for the adoption of the affirmative-action New Economic

Polciy (NEP, 1971-90) was that a majority of bumiputera families were still living below the

poverty line in 1970. Thus one of the two prongs of the NEP was to eradicate poverty

regardless of race. (The other was to restructure economic occupations so that

occupations would not be associated with ethnic groups.) Hence in the Five-Year Plans,

Malay padi farmers, rubber smallholders, fishermen, the indigenous peoples of Sabah and

Sarawak living in the interiors, but also the predominantly Indian estate labourers, Chinese

New Villagers, and urban squatters of all races, were perennially identified as the poor in

need of government aid and attention.

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Pauperisation


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Three categories of poverty:

(a) Convivial poverty(b) Voluntary poverty

(c) Modernised poverty

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(a)Convivial poverty

- The conventional type of poverty

- Proper to vernacular societies

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Pauperisation


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(b) Voluntary poverty

- Is the predicament of the few exceptional

men and women who voluntarily choose

poverty as a means of liberation from

dependency creating needs can be

categorised as imposed conditions.

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(c) Modernized poverty

- Is a corrupted form of poverty that was

generated after Industrial Revolution.

- It could be seen as a break from all the

previous forms of poverty

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Equality can be understood as parity in the

enjoyment of fundamental rights and freedoms, and

equality of opportunities with regards to education

and work and the fulfillment of ones potential. Equity relates to a degree of equality in the living

conditions of people, especially in terms of income

and wealth, that society considers desirable.

Reduction of inequalities is then justified by equityconsiderations.

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Government can promote equality andsocial justice in several ways:

- Ensuring people are equal before law

- Carrying out policies with a view to equalization of opportunities- Expanding and improving access to basic services

- Providing equal opportunities in public-sector employment

- Encouraging formation of cooperatives and community-based

institutions

- Minimize negative effects of structural adjustment programmes

- Promoting full access to preventive and curative health care

- Expanding basic education, improving its quality, enhancing access to

formal and non-formal learning, ensuring equal access to education of

girls

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Over the past decades, inequalities in income

distribution and access to productive resources,

basic social services, opportunities, markets, and

information have been on the rise worldwide, oftencausing and exacerbating poverty.

Globalization occurs in the absence of a social

agenda, aimed at mitigating the negative impacts

of globalization on vulnerable groups of society.

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A social perspective on development emphasizesthe view that inequality impairs growth and

development, including poverty eradication efforts

and that equity itself is instrumental for economic

growth and development.

It aims at providing a better understanding of the

effects of economic and social policies on equity in

societies and promotes ways of advancing policiescontributing to the reduction of inequalities.

Policies for both inequality and poverty reduction

are mutually reinforcing.

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Social economy institutions and organizations playan important role in promoting livelihoods and job

creation in the fight against poverty.

Social economy enterprises offer an important

source of employment in the face of globalunemployment and underemployment problem.

Currently, it is estimated that the global cooperative

movement directly provides productive self-employment for several hundred million workers-

owners of production and services cooperatives, as

well as the non-member employees and other

cooperative enterprises.Slide 14 of 18


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Agricultural cooperatives create employment in

areas such as food production, marketing, credit,

insurance and transportation.

Cooperatives also provide more quality job

opportunities for youth, women, indigenous peoples,

persons with disabilities and other marginalized

groups.

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Cooperatives contribute to poverty reduction by

typically placing more emphasis:

- on job security for employee-members and

employees family members- paying competitive wages

- promoting additional income through profit-sharing

- distribution of dividends and other benefits- and supporting community facilities such as health

clinics and schools that do private sector

businesses.

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Shifting Structure Of Poverty

Malaysia

May 13 Incidentin 1969purpose was to

narrow the disparities in wealth between the

Malayand non-Malay communities in thecountry through aggressive affirmative action

and state intervention in the economy.

As the country modernised, new forms ofpoverty appeared; one such problem was that

of urban poverty

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http://en.wikipedia.org/wiki/May_13_Incidenthttp://en.wikipedia.org/wiki/1969http://en.wikipedia.org/wiki/Malay_peoplehttp://en.wikipedia.org/wiki/Affirmative_actionhttp://en.wikipedia.org/wiki/Affirmative_actionhttp://en.wikipedia.org/wiki/Malay_peoplehttp://en.wikipedia.org/wiki/1969http://en.wikipedia.org/wiki/May_13_Incident


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Economic development has been named

as the cause of poverty amongst "single

female headed households, the rural

elderly, unskilled workers and migrantworkers" by a local economist

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Although the apparent focus of

government policy has been on

addressing poverty in rural communities,

commentators have argued that due tourbanisationthe proportion of

Malaysians living in urban areas

increasing from 27% in 1970 to 62% in2000 the urban communities have been

unfairly neglected.

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http://en.wikipedia.org/wiki/Urbanisationhttp://en.wikipedia.org/wiki/Urbanisation


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The official figure for urban poverty is

given as 2%; critics have argued that this

significantly underestimates urban poverty,

as the poverty lineis set at RM500 permonth for a family of four a monthly

income which has been argued as

unrealistically low for a family of four tomeet its needs.

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http://en.wikipedia.org/wiki/Poverty_linehttp://en.wikipedia.org/wiki/Ringgithttp://en.wikipedia.org/wiki/Ringgithttp://en.wikipedia.org/wiki/Poverty_line


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A survey of Kuala Lumpur has suggested that about a

quarter of the population lives in squattersettlements,

which commentators have argued is a more reasonable

estimate of the poverty rate.

Prior to urbanisation, urban poverty was largely a

problem confined to the non-Malay communities, as they

were significantly urbanised at the time of independence.

However, as Malay villagers migrated to the cities, theproportion of Malay poor has likewise increased

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http://en.wikipedia.org/wiki/Squatterhttp://en.wikipedia.org/wiki/Squatter


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New inequalities, new poor

The adoption of neo-liberal economic

policies in order to make Malaysia attractive in

the era of a globalised market economy hasresulted in several contradictions.First, regional

inequalities have widened. The Klang Valley,

southern Johore and the state of Penang have

grown rapidly while the states of Kelantan,Terengganu, Sarawak and especially Sabah

have lagged behind.

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Second, the rural areas were neglected in the

new economy resulting in a steady migration of

young Malays, Dayaks and Kadazan-dusuns,

including from the Felda schemes, from ruralhinterlands to the urban industrial areas.

Whereas in the past the Klang Valley, Penang

and Johore Bahru were overwhelmingly

populated by non-Malays, nowadays Malayspredominate.

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Similarly, little attention was devoted to the

estate agricultural sector. Wages in the rubber

and oil palm estates have lagged behind those

who get employed in the new economy. Untilvery recently, these workers, mostly Indians,

were daily-rated. Under the new so-called

monthly-wage system, many still find it hard to

make ends meet. Hence many youths from theestates have also migrated to the urban

industrial areas in search of better paying jobs.

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Third, much foreign labour migration into Malaysia has also occurred

during this era of globalisation. Official estimates suggest that there

might be as many as 1.2 million forced migrants in the country,

about half, about 600,000 in Sabah alone. These estimates include

both documented as well as undocumented migrants, especially

from Indonesia and Philippines, but also from Thailand, Myanmar,Vietnam, Nepal, Lanka, India and China. Many have fled to Malaysia

due to poverty and in some cases conflict situations at home.

Foreign labourers are not entitled to the usual benefits that accrue

to workers under the various laws such as days off, health benefits

and workmens compensation- not to mention educationalopportunities or even time for their own children.

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ATHENS, Nov 13, 2007 (IPS) - A third of Greeks live

close to the poverty line or under, a new survey has

found. The poverty limit is drawn at an income of 470

euros a month per adult.

Unemployment, a heavy pensions bill, and deregulation

of the labour market have widened poverty zones, and

hit particularly the younger and the older people, he said.

"On top of this, the safety net provided by the welfarestate is rapidly disappearing, making it impossible to

alleviate social inequalities."

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Over the last ten years many Greek families have fallen

into a new kind of poverty, developing dependency on

easy credit from an aggressive banking system.

Five hundred thousand households pay more than half

their income to cover their debt," says lawyer Melina

Mouzouraki. Many other families with relatively large

income, and thus far above the official poverty limit, pay

huge amounts for covering their debt. The report says

this puts them in extreme financial difficulties and closeto net poverty even though they are not officially

considered poor.

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In a rapidly ageing and indebted society that

consumes many times more than it produces,

Greeks borrow more than 40 million euros per

day. Debt contributes to a general feeling of social

insecurity. According to the Kapa Research

report 60 percent of Greeks live with the fear

that they might one day fall under the povertylimit and become dependent on a problematic

welfare system.

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Spending on welfare is not marginal in

Greece - 26 percent of the national income

is dedicated to welfare and poverty

reduction (the European average is 27.3percent). But more than 90 percent of this

goes into paying pensions.

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Tutorial

Question: The above was from a report in 2007;

What is the state of Greece

today?

Research the above; answer the questions:

1) Globalisation played a role in this case? Justify

2) How could have this been handled/mitigated

You are required to prepare a comprehensive

research.

pmd chapter 10- pursuing pauperisation

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