Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
P. 1
Government Intervention in the Malaysian Economy, 1970-1990:

Government Intervention in the Malaysian Economy, 1970-1990:

Ratings: (0)|Views: 1,497 |Likes:
Published by xuan123

More info:

Published by: xuan123 on Mar 01, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/08/2013

pdf

text

original

 
 
GOVERNMENT INTERVENTION IN THE MALAYSIANECONOMY, 1970-1990: LESSONS FOR SOUTH AFRICA
 RALPH ARTHUR SIMPSONA research report in partial fulfilment of the requirements for the degree of Master of Public Administration in the Faculty of Economic and Management Sciences,University of the Western Cape.Supervisor: Professor Lisa ThompsonJuly 2005i
 
GOVERNMENT INTERVENTION IN THE MALAYSIANECONOMY, 1970-1990: LESSONS FOR SOUTH AFRICA
Ralph Arthur Simpson
KEYWORDS
ColonialismPoverty and InequalityNew Economic Policy (NEP)Poverty EradicationRestructuringIndustrialisationNEP OutcomesGrowthInterventionSouth Africaii
 
ABSTRACT
GOVERNMENT INTERVENTION IN THE MALAYSIAN ECONOMY,1970-1990: LESSONS FOR SOUTH AFRICARALPH ARTHUR SIMPSONMPA research report, Faculty of Economic and Management Sciences, University of the Western Cape.The research report examines the role the Malaysian government played indeveloping the Malaysian economy as a means to eliminating poverty and inequalityand explores the lessons South Africa can learn from Malaysia's developmentexperience.Under British colonial rule Malaysia developed a divided multi-ethnic societycharacterised by gross inequality and high levels of poverty. Jolted by the 1969 raceriots and in a major departure from the laissez-faire economic policy, the governmentembarked on the New Economic Policy (NEP) in 1970. This ambitious twenty-yearsocial engineering plan ushered in greater state intervention in the economy. Itgreatly reduced poverty among indigenous Malays and made substantial progresstowards achieving inter-ethnic economic parity.The pragmatic Malaysian government used a combination of policy measures toachieve most of its targets. On the one hand it employed growth promoting measuresfavoured by proponents of neo-liberalism. It placed a high premium on politicalstability and continuity of government, macro-economic stability, an efficient civilservice, human resource development, agricultural reform and export orientation. Onthe other hand it pursued interventionist policies on a scale unprecedented inMalaysia's history. It was successful in redirecting vast resources to thedisadvantaged Malays without negatively impacting economic growth. Faced bydeficits during the world recession of the mid-1980s, the government was prepared toadapt its policies and to forge a partnership with the private sector. Its adaptability tochanging conditions was a hallmark of the government's economic management.While the Malaysian model cannot be superimposed on South Africa, lessons can belearned and adapted to suit local conditions. The Malaysian experience emphasisesthe importance of economic growth since growth played a key role in the successfulrestructuring of the economy, poverty reduction and the redressing of ethnicimbalances. To this end it points to the importance of economic fundamentals.However, it also provides a concrete example that the government has a necessary andindeed crucial role to play in redressing poverty and historical imbalances since theseare not automatic outcomes of neo-liberal policies.July 2005iii

Activity (20)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Synne Lo liked this
Synne Lo liked this
Joana Asuncion liked this
Juhary Dragunov liked this
Trish Mendog liked this
sazalina liked this
nik achik liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->