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eco261.rg.uitmsabah
3.1 POVERTY
3.1.1 CONCEPTS AND MEASUREMENTS
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The concepts:
1. Absolute poverty
A condition in which the gross monthly income of a household is insufficient to purchase certain minimum necessities of life income less than the PLI.
income/household/month
RM 425
Cont
2. Absolute hardcore poverty
A condition in which the gross monthly income of a household is less than half of the PLI.
income/household/month
RM 425 RM 212.5
Cont
3. Relative Poverty
Income inequality between groups
i. Between rural and urban dwellers
income/household/month
Urban dwellers
Rural dwellers PLI
Cont
ii. Between high and middle income earners
income/household/month
Cont
iii. Between races
income/household/month
Chinese
Indian Malay
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Table 1
Poverty rate : Rural (59%) > urban Rural : Agricultural activities highest poverty rate (68%) Agricultural activities : Padi farmers (highest incidence of poverty)
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Table 2
Malays : Highest poverty rate (46.3%) Poverty in Peninsular Malaysia rural, agricultural, and Malay phenomena
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Measures to eradicate
1. Implementing various policies 2. Modernize their traditional methods of production 3. In situ development 4. Establishment of farmers market in urban centers 5. Training & education 6. Government provide infrastructural and basic amenities
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Causes:
1. 2. 3. 4. High cost of living Little access to basic amenities High cost of basic goods and amenities Lack of job opportunities in the rural areas (migration)
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Strategies to eradicate:
1. Housing low cost housing 2. Job opportunities Ensure urban economy create job opportunities Encourage housewives to work part time Space provided for hawking, pasar malam. 3. Educational facilities 4. Better town planning 5. (Other strategies?........)
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Strategies to eradicate:
Strategies implemented by the government:
1. Development program of the Hardcore Poor (Program Pembangunan Rakyat Termiskin)
Register and profile of the hardcore poor household Delivery of appropriate project to meet their specific needs
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2.
Increase income
3.
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Cont..
4. Health & Nutrition Food supplement and subsidized milk for primary school children Old folks home Allowance for handicapped worker
5.
Direct assistance
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Strategies implemented by the NGO (Non Government Organization)
1. Provide small business loan, industrial training and job opportunities, educational support & better housing. Examples of NGO:
1. Yayasan Basmi Kemiskinan (YBK) 2. Amanah Ikhtiar Malaysia (AIM)
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3. By states
All states had improvements in per capita GDP & household incomes. Reasons for the persistent disparities among states:
i. Private entrepreneurs prefer to invest in the more developed states ii. Dependence of the poorer states on traditional agriculture iii. Lack of basic infrastructure
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2. Reasons for inequality between areas? 3. Reasons for inequality between states?
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Cont Measures to solve unequal income distribution from the Islamic perspective
2 ways Legal measures Positive measures Law of Inheritance Zakat Prohibitive measures Optional charity Optional measures Charity of surplus
Prohibition of interest
Prohibition of hoarding wealth Wasteful expenditure Unhealthy business
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2. Zakat
The property of the deceased is divide among many of his near relatives. If no near relatives, the property is taken over by the state distributed to the citizens.
A compulsory levy collected from the well to be spent on the poor The purpose To meet the needs of the poor and the needy Helps spread wealth in the community
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Interest is not allowed. Unjust, irrespective of the nature of the loan or the rate charged.
Wealth should be utilized to produce more wealth for the benefit of the community
Which are likely to create and increase inequality of wealth in the community are prohibited
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8. Charity of surplus