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Poverty

Immigrant labor: Can it help Malaysia’s economic development?

Rafael Munoz Moreno's picture


Malaysia has been able to reach remarkable achievements over the past decades, including extreme poverty eradication and promotion of inclusive growth. It aims to reach a high-income nation status by 2020, which goes beyond merely reaching a per capita GDP threshold. As the 11th Malaysia Plan points out, the goal is to achieve a growth path that is sustainable over time, reflects greater productivity, and is inclusive. High-income status can be achieved if we ensure that future generations have access to all the resources, such as education and productive opportunities, necessary to realize their ambitions and if Malaysia’s economy is globally competitive and resource-sustainable.

Over the years, immigrants have played a crucial role in the economic development of Malaysia, with around 2.1 million immigrants registered and over 1 million undocumented as of 2013. Education levels among the Malaysian population have increased remarkably over the last two decades, and immigrant workers have become one of the primary sources of labor for low-skilled occupations, most commonly in labor-intensive sectors such as construction, agriculture and manufacturing. Economic studies show that a 10% net increase in low-skilled foreign workers could raise Malaysia’s GDP by 1.1% and create employment and increase wages for most Malaysians.

Growing together: Reducing rural poverty in Myanmar

Nikolas Win Myint's picture

The changes underway in Myanmar can be felt almost everywhere: in Nay Pyi Taw, portraits of Bogyoke Aung San grace the walls of parliament; in Yangon, traffic is choking roads while construction cranes dominate the skyline; and across the country, ports, airports and border crossings are booming with trade.  Felt almost everywhere that is, except in rural areas, where the impacts of change have been less visible. 
 

2006: Bringing libraries to every classroom, and mobile telephones and internet to every town, in rural Mongolia

Jim Anderson's picture

Today we look at 2006, the 16th year of the 25 year partnership between Mongolia and the World Bank. The economy continued to grow, checking in at 8.6% for the year, as did industry’s share of GDP which peaked that year at 43%. 

The year 2006 was a banner year for the World Bank’s program in Mongolia, with several iconic projects approved that year, starting with one in rural education. 

An institutional and governance review of budget expenditure for education found that the pupil-per-teacher ratio is higher in urban schools. Among other findings, the Public Expenditure Tracking Survey (PETS), on which the report was based, illustrated that students in rural schools obtained significantly lower test scores than those from urban schools, consistent with “a pattern where the more disadvantaged — and therefore lower-performing students — systematically fail to advance their schooling and drop out at a younger age in the rural areas.”  The need to provide rural children better education opportunities, which had been a theme for years, had further evidence.

‘I matter’: giving unemployed young Papua New Guineans a second chance

Tom Perry's picture

Young people account for almost half of Papua New Guinea’s population and comprise a large part of the urban poor. In the capital, Port Moresby, an increasing number of young people are leaving school without the necessary skills for entry-level jobs.

The Urban Youth Employment Project (UYEP) provides disadvantaged young people (aged between 16 and 35) in Port Moresby with life skills and employment training to increase their chances of finding long-term employment, also the motivation to make a fresh start in life. To help meet immediate economic needs, the project is also providing temporary employment opportunities.

Malnutrition denies children opportunity and stunts economic development

Axel van Trotsenburg's picture

Nearly 50 years ago, books such as Asian Drama: An Inquiry Into The Poverty Of Nations, by the Swedish economist and Nobel laureate Gunnar Myrdal, offered a dire prediction of famine and poverty for the region in coming decades.

Five facts about rice and poverty in the Greater Mekong Sub-region

Sergiy Zorya's picture

The Greater Mekong Sub-region (GMS) is a major global rice producer and exporter but its population suffers from serious levels of poverty and malnutrition.
 
Spanning six countries – China, Myanmar, Lao PDR, Thailand, Cambodia and Vietnam – the region is home to 334 million people. Nearly 60 million of them are involved in rice production, growing collectively over 44% of the world’s rice. All of the countries, except China, are net exporters of rice. This means they have more rice available than required for domestic consumption. Yet, nearly 15% of the population is seriously malnourished and about 40% of children under five are stunted, in other words, too short for their age as a result of under nutrition.
 

Taxes and budget 2016: On the road to a developed country

Faris Hadad-Zervos's picture
This article first appeared in The Edge Malaysia Weekly

MALAYSIA has travelled far on the road to economic growth and shared prosperity. Using its natural resources, the country not only eliminated absolute poverty from 49% in 1970 to less than 1% in 2014, but also lifted the incomes of households at the bottom 40% of the income bracket. The Gini Coefficient — a measure of income inequality in an economy — dropped from 55.7 to 42.1 over the same period, implying that gaps in incomes were narrowing. This road is now leading towards a developed country, with a vibrant and growing middle class where aspirational households have access to relevant education and training, higher income opportunities, more savings for retirement and a safety net to protect the vulnerable from shocks.

Underlying this journey to developed country status is a series of structural reforms that have formed the bulk of the national development plans, most recently the 11th Malaysia Plan. The quest moving forward is therefore to sustain and finance this process. The 11th Malaysia Plan is budgeted to cost RM246 million between now and 2020. Taxation choices will matter a great deal for Malaysia’s prospects in this journey, more so in an environment of low or volatile oil and commodity prices and a global and regional economic slowdown.

Cambodia: from poverty reduction to shared prosperity

Axel van Trotsenburg's picture
Photo: Saroeun Bou/World Bank

Before I set foot in this beautiful country, I was told the story of Siv Mao and her newborn baby.

Last year, Siv Mao, a young woman from a village in northern Cambodia gave birth to a boy after an emergency Caesarean section at a new hospital in her province’s capital.

The boy was named Rith Samnang “Lucky” for a good reason: without the doctors and modern equipment in the new 16 Makara Hospital in Preah Vihear, he wouldn’t have been able to survive.

The traditional midwife had difficulty assisting the birth at her home, and other hospitals were far away.

Baby Lucky is a symbol of Cambodia’s development success in the last decade: the country has gone a long way in improving economic and social conditions for its people, especially the poorest.

Reflections from the field: On the road with communities in Myanmar and Laos (Part 1)

Susan Wong's picture

So I just returned from a terrific mission to Myanmar and Laos, two countries experiencing strong annual growth rates, and both facing challenges of making rapid growth inclusive and just for all its citizens.

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