Poverty Alleviation & Income Distribution – The Malaysian Way

Economic growth with distribution is the thrust of the Malaysian development philosophy all along. In many ways this stance is in line with views expressed by development economists such as Seers (1969) and Mahbubul Haq (1971) and also of the World Bank (Chenery, 1974). However, over the years the growth and distribution strategies have been adapted to the changes in the economic environment and policy especially after the recession in 1985. Between 1970 and 1992 the overall incidence of poverty has declined from about 49 percent to just about 17.1 percent of total households in peninsular Malaysia according to official numbers. Income inequality has also reduced as shown by the decline in the gini coefficient from 0.513 in 1970 to 0.445 in 1990.

Dr. Sulaiman Mahbob

Source: Poverty Alleviation in Pakistan: Present Scenario and Future Strategy, Mohibul Haq Sahibzada. Republished with permission.