Impacts on the implementation of social policy: Comparative study in Malaysia and Indonesia

Abstract

Prolonged debate exists concerning the effectiveness of anti-poverty programs through micro-credit to the well-being of the poor. Some studies showed that microcredit have positive impact to the poor people's lives. However, other studies stated that what actually seemed as a remedy is actually just an increase in the business income that does not necessarily bring about to a better well-being of the poor. This paper identifies the impact of the implementation of social interventions brought in through micro-credit schemes of poverty alleviation programs for the welfare being of society in Malaysia and Indonesia. The methodology used was a combination of the quantitative and qualitative methods aimed to get the maximum results based on Standard Model of Social Development. Data analysis performed on the respondents indicated four factors leading to the failure of the welfare of the community. These factors are social networks, community participation, community development and employment opportunities. This research suggests that agencies involved in poverty alleviation through micro-credit schemes must carry out appropriate efforts towards the empowerment and active participation of the respondents in social and economic investment as stated in the Standard Model of Social Development.