Malaysia is located on the Malay Peninsula in Southeast Asia and is home to more than 30 million people. It has a Gross domestic product (GDP) of $407 million (2022 estimate). Furthermore, improvements in health care have led to a significant increase in life expectancy, from less than 60 years in the ’60s to more than 76 years in 2024.
Renowned for its strides in poverty alleviation, Malaysia’s citizens have reaped the benefits of its economic expansion. According to the Commission on Growth and Development, Malaysia is one of the first 13 countries to experience more than 7% growth yearly for more than 25 years.
Poverty in Malaysia
According to the United Nations Children’s Fund (UNICEF), before the COVID-19 pandemic, approximately 6% or 405,000 Malaysian households experienced acute poverty. However, this number rose significantly to more than 630,000, while the number of families living in extreme poverty tripled to 78,000. Further, migration from rural areas to urban areas has increased urban poverty, which has been exacerbated by crony capitalism and a rising cost of living.
Factors Causing Malaysia’s Poverty
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Rural to Urban Migration
In recent decades, poverty has been much higher in rural areas than in urban areas in Malaysia. As a result, the government’s poverty-reduction programs and policies were focused on rural poverty, neglecting urban poverty. Many people, including many foreign workers, moved to cities from rural areas during that same period.
This rural-to-urban migration put pressure on urban infrastructure and essential services. Currently, more than 70% of Malaysians live in urban areas. This led to increased unemployment and consequently, large families earning low wages now suffer from a lack of basic resources.
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High Cost of Living
The cost of living in urban areas is significantly higher than in rural areas. On average, about three out of 10 Malaysians feel they do not have enough money to purchase basic needs such as food. This is more significant among urban residents, where 28.7% feel this way.
This skews the perception of poverty in rural areas relative to urban areas. However, a Malaysian man says, “In rural areas, the cost of living is cheaper and there is no housing shortage. Food supplies can be supplemented by farming, growing your own vegetables and rearing chickens. But you can’t do that in flats in urban areas.”
Food prices have skyrocketed in Malaysia and several people, especially those from lower- and middle-income households, have to skip meals daily. Despite many years of economic growth, the increase in food prices means Malaysians can experience poverty in urban areas even if they are technically earning an income above the poverty line.
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Ethnic Disparities
Malaysia broadly defines ethnic minorities as “Other Bumiputera,” which encompasses communities such as the Orang Asli and all indigenous peoples living in the Sabah and Sarawak states. Poverty rates among “Other Bumiputera” are consistently much higher than ethnic-majority groups. For example, the poverty rate in the Sabah state is six times higher than the national poverty average.
The Good News
Like any country, some of Malaysia’s citizens are experiencing poverty, which must be addressed. However, Malaysia has made major strides in reducing poverty since the ’80s. Today, the government provides free primary and secondary education for all Malaysians and health care is free in rural areas and very low cost in urban areas. In short, there is always room for improvement and Malaysia is on the path to eliminating poverty.
– Olivia Bradley
Photo: Flickr
Updated: May 27, 2024
Climate Change and the Tuvalu Poverty Rate
Being one of the smallest countries in the world, the country remains in isolation and depends significantly on imports such as food and fuel. With poor natural resource endowments other than fisheries, the Tuvalu poverty rate can be attributed to the minuscule opportunities for monetary gain and the dependence on the outside world.
The most recent record of the poverty rate in Tuvalu was in 2010, placing 26.3 percent of the country’s population below the poverty line. While poverty has declined in the country since the mid-1990s, the lack of local employment opportunities has manifested in high levels of unemployment, which increases the burden of low earnings.
In addition to low employment rates, climate change has also had a significant effect on the people living on Tuvalu’s islands. A recent study found that a significant proportion of individuals living on the islands suffered monetary losses due to natural disasters. Cyclone Pam, the natural disaster that swept over the island in 2015, proved this, as 45 percent of the nation’s population was displaced due to the storm’s effects.
With the highest point of the Tuvalu islands only reaching 4.6 meters above sea level, the country is vulnerable to and significantly impacted by the increased magnitude and frequency of natural disasters. With the poor investing their earnings in their homes, durable goods and furnishings, they are that much more threatened by storm surges and the floods associated with them.
Therefore, while the poverty rate has been decreasing in recent years across the Tuvalu islands, climate change negatively threatens the future livelihoods of the native population and further deepens the levels of poverty.
With the increasing threat from the waves surrounding the islands, more needs to be done to reduce the chance of future impacts. Aso Ioapa, a citizen from Tuvalu, noted that “We have to face that we might have to go to another place. That is hard. But migration is the last option. We want to save our countries.”
Tuvalu citizens will continue to do just that; save the country they love. The ADB country operations business plan emphasizes this. The 2017-2019 plan aims to improve fiscal management, communication services, and island port facilities while also building disaster resilience for Tuvalu.
If the country continues to improve its employment opportunities and address the climate change issues, the Tuvalu poverty rate will continue to reduce over time.
– Tess Hinteregger
Photo: Flickr
Ghanaian Government Supports Free Education Program
The Ghanaian government’s decision to implement this program was based on the desire to educate at a faster rate to encourage national development and progress.
“By free SHS, we mean that in addition to tuition, which is already free, there will be no admission fees, no library fees, no science center fees, no computer laboratory fees, no examination fees, no utility fees. There will be free textbooks, free boarding and free meals and day students will get a meal at school for free,” said President Akufo-Addo.
The program covers topics including agricultural, vocational and technical studies at the high school level, which will prepare students to be successful members of the community.
With free education opportunities, more children throughout Ghana will be able to attend school, especially girls who struggle with increasing teen pregnancy and teen marriage rates.
Students interested in the free SHS program need to apply, and the most eligible candidates are granted access. Girls, for aforementioned reasons, are prioritized in the decision process in an attempt to increase the number of educated Ghanaian females.
All applicants are fairly reviewed for the free education program, and so far over 420,000 young Ghanaians have applied. Out of these, 267,327 applicants have been accepted and placed in schools. When students are denied initial acceptance into the free SHS program at the school of their choice, they are placed on a waiting list and provided a selection of schools with vacancies.
The free education program has been fully supported by the Ghanaian government, and the opening ceremony at WASS was attended by the President, Vice President of the Republic, Minister for Education, Minister of State for Education and several officials from the Ministry of Education.
The work done by the Ghanaian government to provide free SHS opportunities will open the door for several young students who would otherwise remain uneducated with slim to no future career prospects.
“The coming into effect of the free SHS policy is vital for the transformation of the Ghanaian economy,” President Akufo-Addo said.
– Kassidy Tarala
Photo: Flickr
Poverty in Malaysia: Understanding the Root Causes
Malaysia is located on the Malay Peninsula in Southeast Asia and is home to more than 30 million people. It has a Gross domestic product (GDP) of $407 million (2022 estimate). Furthermore, improvements in health care have led to a significant increase in life expectancy, from less than 60 years in the ’60s to more than 76 years in 2024.
Renowned for its strides in poverty alleviation, Malaysia’s citizens have reaped the benefits of its economic expansion. According to the Commission on Growth and Development, Malaysia is one of the first 13 countries to experience more than 7% growth yearly for more than 25 years.
Poverty in Malaysia
According to the United Nations Children’s Fund (UNICEF), before the COVID-19 pandemic, approximately 6% or 405,000 Malaysian households experienced acute poverty. However, this number rose significantly to more than 630,000, while the number of families living in extreme poverty tripled to 78,000. Further, migration from rural areas to urban areas has increased urban poverty, which has been exacerbated by crony capitalism and a rising cost of living.
Factors Causing Malaysia’s Poverty
Rural to Urban Migration
In recent decades, poverty has been much higher in rural areas than in urban areas in Malaysia. As a result, the government’s poverty-reduction programs and policies were focused on rural poverty, neglecting urban poverty. Many people, including many foreign workers, moved to cities from rural areas during that same period.
This rural-to-urban migration put pressure on urban infrastructure and essential services. Currently, more than 70% of Malaysians live in urban areas. This led to increased unemployment and consequently, large families earning low wages now suffer from a lack of basic resources.
High Cost of Living
The cost of living in urban areas is significantly higher than in rural areas. On average, about three out of 10 Malaysians feel they do not have enough money to purchase basic needs such as food. This is more significant among urban residents, where 28.7% feel this way.
This skews the perception of poverty in rural areas relative to urban areas. However, a Malaysian man says, “In rural areas, the cost of living is cheaper and there is no housing shortage. Food supplies can be supplemented by farming, growing your own vegetables and rearing chickens. But you can’t do that in flats in urban areas.”
Food prices have skyrocketed in Malaysia and several people, especially those from lower- and middle-income households, have to skip meals daily. Despite many years of economic growth, the increase in food prices means Malaysians can experience poverty in urban areas even if they are technically earning an income above the poverty line.
Ethnic Disparities
Malaysia broadly defines ethnic minorities as “Other Bumiputera,” which encompasses communities such as the Orang Asli and all indigenous peoples living in the Sabah and Sarawak states. Poverty rates among “Other Bumiputera” are consistently much higher than ethnic-majority groups. For example, the poverty rate in the Sabah state is six times higher than the national poverty average.
The Good News
Like any country, some of Malaysia’s citizens are experiencing poverty, which must be addressed. However, Malaysia has made major strides in reducing poverty since the ’80s. Today, the government provides free primary and secondary education for all Malaysians and health care is free in rural areas and very low cost in urban areas. In short, there is always room for improvement and Malaysia is on the path to eliminating poverty.
– Olivia Bradley
Photo: Flickr
Updated: May 27, 2024
Causes of Poverty in Sweden Mitigated by Strong Policy
Some statistics about Sweden’s economy:
• In 2016, the nation’s GDP was $511 billion
• The nation’s unemployment rate is about 6 percent
One strength that enables Sweden’s economy to achieve as much as it does is how easy the nation makes doing business. In fact, Forbes rated Sweden as the best country in the world for business in 2017. By comparison, the U.S., an undeniable economic power, is ranked 23rd. Some of the factors that Forbes took into consideration were innovation, taxes, technology, levels of bureaucracy and stock market performance.
Another factor that allows for Sweden’s economic success is its interest in defending and promoting gender equality. In 2016, the World Economic Forum created its Global Gender Gap Index and showed the progress that Sweden has made in this area. According to the index, Sweden trails just three nations, Iceland, Finland and Norway, in terms of gender equality. While economic gain may not be the first thing you think of when you improved gender equality, it really is the case. The European Institute for Gender Equality (EIGE) believes in a very simple cause and effect relationship: “If the EU stepped up its efforts to improve gender equality, more jobs would be created, GDP per capita would increase and society would be able to adjust better to the challenges related to the ageing population.”
These and other actions have limited the causes of poverty in Sweden and ensure a good quality of life for its citizens.
– Adam Braunstein
Photo: Pixabay
Is it Possible to Reduce the Sint Maarten Poverty Rate?
Sint Maarten is a country located in the Caribbean that shares a portion of the island it is located on with the French part of the island, known as Saint Martin. Although the island is a beautiful and popular destination spot for tourists, poverty is a problem for the citizens of Sint Maarten.
Poverty has created very dangerous problems for the small country, including issues such as crime, illiteracy and teenage pregnancy. Poverty is defined as “the total absence of opportunities, accompanied by lack of education, physical and mental ailments, social instability and unhappiness”. The Sint Maarten poverty rate has not quite reached a state of crisis, but there have been definite warning signs for the country.
The Sint Maarten poverty rate is an issue that has been present for the past few years. The Board of United Sint Maarten Party has said that “The increased crime rate wherein people are scared to carry out their daily routine, and are in constant fear of becoming victims of crime even in their very home, is evidence enough that the poverty exists on St. Maarten. Another example is when you visit certain communities and you find up to 6 persons living in a one-bedroom apartment with just the bare essentials to get by, that is poverty.”
According to Trinidad & Tobago MCO, the unemployment rate in Sint Maarten is 11 percent, the illiteracy rate is 4.1 percent, residents without a secondary school education is at 42.9 percent and 22 percent of households have no income.
Fortunately, the Sint Maarten poverty rate can be reduced. The country has been recovering from the recession of 2008-2009, and a positive economic growth is envisaged in the coming years. The economy is very open in Sint Maarten, meaning that developments in the external environment—mainly the U.S. economy— will directly affect the small island country’s economy in return. According to the Economic Outlook of Sint Maarten, the economy has a relatively good starting position for further expansion, and is also said to be able to absorb financial as well as economic setbacks better than other Caribbean countries. These factors will contribute to improving the Sint Maarten poverty rate.
– Sara Venusti
Why is Guinea-Bissau Poor?
Nationally, nearly 11 percent of households in Guinea-Bissau are food insecure. In certain regions, though, the percentage of food insecure households can reach up to 51 percent. Despite the widespread poverty, real GDP growth is projected to reach an average of five percent during the 2016-2018 period if agricultural output remains robust and political stability is maintained. So, if it is projected to continue its trend of economic expansion, why is Guinea-Bissau poor?
In order to answer the question “why is Guinea-Bissau poor?”, the country’s history of severe political instability must be taken into account. Since gaining independence from Portugal in 1974, there have been four successful coups in Guinea-Bissau, and 16 coups that were plotted, attempted or alleged. There have also been frequent changes in government. Led by Umaro Sissoco Embaló, the current government is the fifth Guinea-Bissau has had since elections in 2014. This political instability has put a strain on the country’s fiscal situation and has hindered growth and poverty reduction. Inefficiencies in public spending further inhibit the flow of resources to regions that require improved service delivery in order to access basic services.
Political instability has particularly stalled the reduction of rural poverty. During the civil war that took place from 1998 to 1999, 300,000 urban dwellers fled to rural areas to escape the conflict. Increased competition for land and subsequent poor harvests have diminished both food supplies and rural livelihoods. The economy has also suffered, as agriculture represents 90 percent of all exports.
Approximately 85 percent of Bissau-Guineans rely on agriculture as their primary source of income. Irregular amounts of rainfall and volatile prices of imported rice and exported cashew nuts have made chronic food insecurity a reality for 11 percent of the population. Food insecurity, inadequate health services and poor water and sanitation have contributed to widespread malnutrition.
The reliance on cashew nuts for economic livelihood leaves nearly two-thirds of the population vulnerable to trade shocks. According to the World Bank, the diversification of Guinea-Bissau’s economy is of the utmost importance, as it will bolster the country’s resilience against potential economic shocks. Moving forward, maintaining political stability and addressing rising inequality will also be key in sustaining and accelerating the rate of poverty reduction.
The International Monetary Fund (IMF) also asserts that in order to maintain the current positive economic trajectory, efforts should focus on strengthening fiscal discipline and advancing structural reforms.
“Growth has been supported by high cashew prices, increased construction activity, and continued improvements in the supply of electricity and water,” stated Tobias Rasmussen of the IMF. Rasmussen led the IMF team that visited Guinea-Bissau in May 2017 to conduct discussions on the third review of the country’s IMF-supported program. In an end-of-mission press release, Rasmussen added that the improvement of revenue mobilization and the strengthening of expenditure controls would also be integral to the continuation of Guinea-Bissau’s economic expansion.
With a focus on addressing inequality through such means as the enhancement of resource delivery as well as advancements in technology and market support systems, it is the belief of organizations like the IMF and the World Bank that Guinea-Bissau can continue to reduce its poverty rate over the coming years.
– Amanda Quinn
Photo: Flickr
Gates Foundation Report: Optimism in the Fight Against Poverty
The report uses 18 data points from the U.N.’s Sustainable Development Goals, signed in 2015 by world leaders, that are particularly relevant to health and well-being, such as infant mortality and vaccination. Although improvement is stagnating, a majority of the indices show great improvement in the last two decades. Since 1990, more than 100 million lives of children five years or younger have been saved. The rate of infant mortality per 1,000 has dropped from 85 to 38. Maternal deaths have fallen from 275 per 100,000 live births to 179 in 2016.
The report shows that the world is better now than 25 years ago for a large portion of its most vulnerable members. Under the World Bank definition of poverty (living under $1.90 a day), the global poverty rate has decreased from 35 percent in 1990 to 9 percent in 2016.
In terms of health and the fight against infectious disease, the report also emphatically demonstrates how the world is better now than 25 years ago. HIV, for example, has had a remarkable decline in the past two decades, from 0.6 deaths per 1,000 people to 0.25 in 2016. Smoking rates have also significantly improved around the world. In 1990, 22 percent of people 10 years or older smoked; today, that number has dropped to 16 percent. The most impressive improvement is in widespread vaccination, which the report claims is “one of the most impressive public health stories in global health”. 89 percent of target populations have been covered by the eight major vaccines, compared to 73 percent in 1990.
The Sustainable Development Goals have a 2030 deadline, which is why the Gates Foundation report will be released every year until then. Although the numbers demonstrate that the world is better now than 25 years ago, Bill Gates has expressed some concern over a decline and stagnation in funds directed towards foreign aid and global health, especially in the fight against HIV. The remarkable feat of progress achieved so far by the international community at large should serve as an impetus for continued and increased funding, something the Gates Foundation intends to push for.
– Alan Garcia-Ramos
Photo: Flickr
Taking Action on Poverty in Africa: Key to the Future Success
Although population growth is rapid and expansive on the continent, the flow of international aid into Africa has been stagnating and decreasing in recent years. Since 2012, the three most significant forms of financing for African countries—official development assistance, domestic revenue and direct foreign investment—have been steadily decreasing; they are now at their lowest aggregate level since 2009. Since 2012, although its population has increased by 15 percent, the combined resources available for development in Africa have nominally decreased by 22 percent.
The authors of the report emphatically underline that the international community must start taking action on poverty in Africa as soon as possible. Alleviating poverty in Africa is key to the future of the continent, one which is uncertain right now and might present very serious challenges. With the population increasing to an estimated 2.5b billion by 2050, and 50 percent of them being 25 years or younger, there is a great risk of further destabilization of the region and massive waves of migration. According to estimates, by 2020 Africa’s unemployed population will equal that of Germany’s entire population, and 50 years from now that number might increase to 310 million, or half the employed population of continental Europe.
Donors who used to largely finance aid and development on the continent have been largely using aid budgets in the pursuit of short-term foreign policy interests rather than in fighting poverty. This shortsightedness might prove catastrophic. As a young population grows up in conditions of extreme poverty, conflict that resonates around the globe might be unavoidable. This is why the authors of the ONE report so emphatically claim that taking action on poverty in Africa is key to the future of the continent and the world. In its conclusion, the report calls for a renewed partnership with African countries, which include the doubling of investments in education, employment and empowerment “to support a programme of economic and policy reform across the continent”. Hopefully, the international community will heed this call and think in the long term in order to avoid catastrophe before it manifests.
– Alan Garcia-Ramos
Photo: Flickr
Causes of Poverty in Israel
The first of the causes of poverty in Israel is its system of allowances. While Israel, compared to other countries, collects a significant amount of income from the wealthy in the form of taxes, it lacks in its system of allowances. The government’s influence in curtailing poverty is at around 30 percent. Other countries’ participation is at around 60. Of the allowance payments made by the government, most are handled efficiently. Part of the solution lies in more system of allowances by the government.
Another one of the causes of poverty in Israel comes from low participation in the labor market, specifically with two minority groups: ultra-Orthodox Jews and Arab Israelis. As of 2011, only 48 percent of ultra-Orthodox Jewish men and 28 percent of Arab-Israeli women were employed.According to a report by the Bank of Israel in 2015, “the dilemma [of poverty] becomes greater because about half of the poor in Israel belong to the ultra-Orthodox (Haredi) community – a population sector that attributes great value to devoting time to studying the Holy Scriptures – and the traditional Muslim community, in which there are cultural restrictions on the employment of women.”For these cultural reasons, some of the ultra-religious in Israel choose not to search for jobs and therefore fall into poverty. This is also one of the reasons why the government’s influence on curtailing poverty is so low; it believes it will encourage living on allowances instead of looking for other means of income.
These main contributors work in conjunction to create a difficult environment for the government to control poverty. Between the low participation in the labor market and therefore lower system of allowances by the Israeli government, the population has suffered from impoverished conditions.
To combat these issues, the OECD has offered some recommendations that will hopefully decrease the poverty rate, the first of which includes increasing competition and efficiency in the domestic economy. An OECD survey noted that the banking industry is inefficient and concentrated. Therefore, should allow the entry of new competitors into the market, particularly in non-banking credit entities.
Another way to improve the apparent disparity in the labor market is to boost “investment in infrastructure and promoting skills, particularly among disadvantaged groups [which] can both enhance social cohesion and raise long-term growth.” One of the last recommendations given was improving education for those disadvantaged groups like Arab women and the Haredi population so that they may increase their income levels and contribute to the economy.
– Sydney Roeder
Photo: Flickr
Diversification to Reduce the Suriname Poverty Rate
Malnutrition is a rampant problem. Many children are hospitalized for malnutrition and suffer lasting effects that extend into adulthood. In recent years, AIDS has also become one of the primary causes of child mortality.
The education system in Suriname is also wanting. At the same time, as many teachers are poorly trained, many students, mostly boys, leave primary school at an early age. The children that leave school are often forced to work. It is estimated that 8 percent of children between 5 and 14 engage in child labor under difficult working conditions.
As for the girls that are either discouraged from attending school or leave early, many are subjected to sexual exploitation and trafficking. Both inside and outside of prostitution, violent abuse toward children is a rampant problem.
Though the Suriname poverty rate is high, the country’s per capita income is also relatively high, standing at almost $10,000. Inequality between different geographic regions and ethnic groups accounts for the coexistence of the high national income and the high poverty rate.
The Surinamese economy relies on the extraction and exportation of minerals such as alumina, bauxite, gold and oil. While the production of such commodities employs hundreds of thousands of Surinamese and has at times accounted for almost 40 percent of government revenues, the production of these goods is limited to extraction and refinement. As a result, much of the population misses out on economies opportunities.
To lower the Suriname poverty rate, the government should utilize its mineral revenues to subsidize education, health and welfare for the disenfranchised parts of the population. Such measures will serve to increase the value of Suriname’s human capital and work toward diversifying the economy away from commodity exportation.
In addition to actions the Surinamese government can take to reduce poverty in the country, a number of international organizations are already working to improve the Surinamese economy.
The Inter-American Development Bank (IDB), for one, has dedicated millions of dollars in loans and grants under its Low Income Shelter Program (LISP) to provide housing for underprivileged Surinamese. The program has successfully housed more than 3,000 families.
Suriname’s longtime benefactor and ex-colonizer, the Netherlands has also allocated billions of dollars over the past two decades for microcredit lending and infrastructural repair. These efforts have helped facilitate entrepreneurship and stimulate Suriname’s economy from the bottom up.
If these international developmental commitments persist, there may be hope that Suriname can achieve its Multi-Year Development goals, growing small and medium enterprises by 10 percent over the next five years and lifting thousands out of poverty.
– Nathaniel Sher
Photo: Flickr