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People Management Debates

Pursuing Pauperisation

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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• The line between this pauperisation and abject poverty is getting thinner and the gap between the rich and the poor still rife.Pauperisation • During the recent years the living conditions of the vast majority of the population have in real terms been deteriorating while a tiny few holding economic power has become richer. instability and is generating other societal problems. • This is inevitably leading to social frustration. Our society is being steadily pauperised. Slide 4 of 18 .

fishermen. 1971-90) was that a majority of bumiputera families were still living below the poverty line in 1970. Almost two third of the world populations are poor: 1. A major assumption for the adoption of the affirmative-action New Economic Polciy (NEP.Pauperisation • • • Who are the poor? – In United States: They are people who live only on less than one or two US dollars a day. Slide 5 of 18 . rubber smallholders. the indigenous peoples of Sabah and Sarawak living in the interiors.) Hence in the Five-Year Plans. Chinese New Villagers. Malay padi farmers. In Malaysia. but also the predominantly Indian estate labourers. and urban squatters of all races. Thus one of the two prongs of the NEP was ‗to eradicate poverty regardless of race‘. were perennially identified as the poor in need of government aid and attention.2 billion of them living with less than one US Dollar a day. 2. (The other was to restructure economic occupations so that occupations would not be associated with ethnic groups.8 billion with less than two Dollars.

Pauperisation • Three categories of poverty: (a) Convivial poverty (b) Voluntary poverty (c) Modernised poverty Slide 6 of 18 .

The conventional type of poverty .Pauperisation (a)Convivial poverty .Proper to vernacular societies Slide 7 of 18 .

Slide 8 of 18 .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.Pauperisation (b) Voluntary 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 Slide 9 of 18 .Pauperisation (c) Modernized poverty . .

Slide 10 of 18 . especially in terms of income and wealth. Reduction of inequalities is then justified by equity considerations. that society considers desirable. • Equity relates to a degree of equality in the living conditions of people. and equality of opportunities with regards to education and work and the fulfillment of one‘s potential.Poverty & Inequality • Equality can be understood as parity in the enjoyment of fundamental rights and freedoms.

Expanding and improving access to basic services .Minimize negative effects of structural adjustment programmes .Ensuring people are equal before law .Promoting full access to preventive and curative health care . ensuring equal access to education of girls Slide 11 of 18 .Encouraging formation of cooperatives and community-based institutions .Poverty & Inequality • Government can promote equality and social justice in several ways: .Providing equal opportunities in public-sector employment .Carrying out policies with a view to equalization of opportunities . improving its quality.Expanding basic education. enhancing access to formal and non-formal learning.

Slide 12 of 18 . aimed at mitigating the negative impacts of globalization on vulnerable groups of society.Poverty & Inequality • Over the past decades. inequalities in income distribution and access to productive resources. • Globalization occurs in the absence of a social agenda. basic social services. opportunities. markets. often causing and exacerbating poverty. and information have been on the rise worldwide.

Poverty & Inequality • A social perspective on development emphasizes the view that inequality impairs 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 policies contributing to the reduction of inequalities. Slide 13 of 18 . including poverty eradication efforts and that equity itself is instrumental for economic growth and development. • Policies for both inequality and poverty reduction are mutually reinforcing.

• Social economy enterprises offer an important source of employment in the face of global unemployment and underemployment problem. it is estimated that the global cooperative movement directly provides productive selfemployment for several hundred million workersowners of production and services cooperatives. Slide 14 of 18 . • Currently. as well as the non-member employees and other cooperative enterprises.Poverty and Social Economy • Social economy institutions and organizations play an important role in promoting livelihoods and job creation in the fight against poverty.

indigenous peoples. • Cooperatives also provide more quality job opportunities for youth.Poverty and Social Economy • Agricultural cooperatives create employment in areas such as food production. Slide 15 of 18 . marketing. persons with disabilities and other marginalized groups. credit. women. insurance and transportation.

paying competitive wages .on job security for employee-members and employees‘ family members .Poverty and Social Economy • Cooperatives contribute to poverty reduction by typically placing more emphasis: .distribution of dividends and other benefits . Slide 16 of 18 .promoting additional income through profit-sharing .and supporting community facilities such as health clinics and schools that do private sector businesses.

– As the country modernised. one such problem was that of urban poverty Slide 17 of 18 . new forms of poverty appeared.Shifting Structure Of Poverty • Malaysia – May 13 Incident in 1969 purpose was to narrow the disparities in wealth between the Malay and non-Malay communities in the country through aggressive affirmative action and state intervention in the economy.

the rural elderly. unskilled workers and migrant workers" by a local economist Slide 18 of 18 .Shifting Structure Of Poverty • Economic development has been named as the cause of poverty amongst "single female headed households.

Slide 19 of 18 .Shifting Structure Of Poverty • Although the apparent focus of government policy has been on addressing poverty in rural communities. commentators have argued that due to urbanisation — the proportion of Malaysians living in urban areas increasing from 27% in 1970 to 62% in 2000 — the urban communities have been unfairly neglected.

Shifting Structure Of Poverty • The official figure for urban poverty is given as 2%. critics have argued that this significantly underestimates urban poverty. as the poverty line is set at RM500 per month for a family of four — a monthly income which has been argued as unrealistically low for a family of four to meet its needs. Slide 20 of 18 .

Shifting Structure Of Poverty • A survey of Kuala Lumpur has suggested that about a quarter of the population lives in squatter settlements. However. as Malay villagers migrated to the cities. urban poverty was largely a problem confined to the non-Malay communities. as they were significantly urbanised at the time of independence. • Prior to urbanisation. which commentators have argued is a more reasonable estimate of the poverty rate. the proportion of Malay poor has likewise increased Slide 21 of 18 .

First. Sarawak and especially Sabah have lagged behind. Terengganu.Shifting Structure Of Poverty • New inequalities. southern Johore and the state of Penang have grown rapidly while the states of Kelantan. Slide 22 of 18 . regional inequalities have widened. new poor The adoption of neo-liberal economic policies in order to make Malaysia attractive in the era of a globalised market economy has resulted in several contradictions. The Klang Valley.

Slide 23 of 18 . the rural areas were neglected in the new economy resulting in a steady migration of young Malays. from rural hinterlands to the urban industrial areas. including from the Felda schemes. nowadays Malays predominate. Penang and Johore Bahru were overwhelmingly populated by non-Malays.Shifting Structure Of Poverty • Second. Whereas in the past the Klang Valley. Dayaks and Kadazan-dusuns.

Shifting Structure Of Poverty • Similarly. Under the new so-called monthly-wage system. mostly Indians. these workers. were daily-rated. Until very recently. little attention was devoted to the estate agricultural sector. many still find it hard to make ends meet. Wages in the rubber and oil palm estates have lagged behind those who get employed in the new economy. Hence many youths from the estates have also migrated to the urban industrial areas in search of better paying jobs. Slide 24 of 18 .

especially from Indonesia and Philippines. about half.000 in Sabah alone. but also from Thailand. health benefits and workmen‘s compensation.2 million forced migrants in the country. Many have fled to Malaysia due to poverty and in some cases conflict situations at home. much foreign labour migration into Malaysia has also occurred during this era of globalisation.Shifting Structure Of Poverty • Third. These estimates include both documented as well as undocumented migrants. Lanka. Foreign labourers are not entitled to the usual benefits that accrue to workers under the various laws such as days off. Slide 25 of 18 . Nepal. Myanmar. about 600.not to mention educational opportunities or even time for their own children. Official estimates suggest that there might be as many as 1. India and China. Vietnam.

" Slide 26 of 18 . 2007 (IPS) . "On top of this. • Unemployment. making it impossible to alleviate social inequalities. he said. and hit particularly the younger and the older people.A third of Greeks live close to the poverty line or under.Shifting Structure Of Poverty • ATHENS. the safety net provided by the welfare state is rapidly disappearing. a heavy pensions bill. a new survey has found. and deregulation of the labour market have widened poverty zones. Nov 13. The poverty limit is drawn at an income of 470 euros a month per adult.

The report says this puts them in extreme financial difficulties and close to net poverty even though they are not officially considered poor." says lawyer Melina Mouzouraki.Shifting Structure Of Poverty • Over the last ten years many Greek families have fallen into a new kind of poverty. Many other families with relatively large income. and thus far above the official poverty limit. Slide 27 of 18 . pay huge amounts for covering their debt. developing dependency on easy credit from an aggressive banking system. • ― Five hundred thousand households pay more than half their income to cover their debt.

Greeks borrow more than 40 million euros per day.Shifting Structure Of Poverty • In a rapidly ageing and indebted society that consumes many times more than it produces. Slide 28 of 18 . • 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 poverty limit and become dependent on a problematic welfare system.

But more than 90 percent of this goes into paying pensions.Shifting Structure Of Poverty • Spending on welfare is not marginal in Greece .3 percent).26 percent of the national income is dedicated to welfare and poverty reduction (the European average is 27. Slide 29 of 18 .

Slide 30 of 18 . What is the state of Greece today? Research the above.Tutorial • Question: The above was from a report in 2007. 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.