Good Governance for Poverty Alleviation: The Case of Malaysia

Abstract

This paper addresses the issue of good governance for poverty alleviation, citing Malaysia as a case study. Malaysia has experienced sustainable growth along with impressive record of poverty reduction. This has been made possible through good governance and pragmatic pro-growth and distribution policies, strategies and programs for poverty alleviation which was implemented since the era of the New Economic Policy (NEP, 1971–1990), National Development Plan (1991–2000) and will be carried over to National Vision Plan (NVP, 2001–2010). The good governance incorporates an enabling policy framework for poverty alleviation which includes the supportive role of the state, effective delivery system embodying an efficient planning and implementation machinery, incorporating top-down and bottom-up processes of strategic planning, targeting and participation, effective implementation coordination, monitoring and evaluation. The public sector has to shoulder good governance by efforts to improve the public service delivery system to make it more efficient, transparent and accountable. Direct targeting of beneficiaries results from identification of the poor and hardcore poor by rural and urban strata and states, supported by a specialized delivery system of a microcredit program, minimizes leakages of poverty alleviation program's allocations and benefits. Pragmatic pro-growth and distribution policies and strategies in 5-year development plans ensures effective poverty alleviation.