Book Review on Urban Poverty Essay Example for Free

Book Review on Urban Poverty Essay Urban poverty is the outcome of urban-bias development projects being predominantly financed by the external capital, either in the form of Foreign Direct Investment (FDI) or Aid. The urban-bias industrialization strategy performed as a pull factor for the rural unemployed. This strategy contributed to the expanding of urban informal sectors where unskilled as well as highly unorganized day labours remain concentrated in the urban and semi-urban areas. It is also debated that the redistribution of capital investment towards the rural based agricultural activities including plantation sectors through the coordinated efforts of both public and private sectors such as civil and non-governmental organizations (NGOs) can go a long way to break the growing negative effects of over urbanization on poverty, moral and social crimes as consequent of unequal economic growth. The author, Pramanik discusses urban poverty in Malaysia cases. He begins with the overview of the poverty scenario followed by research methods and research findings along with summarization policy suggestions. This book contented five chapters including appendices, references and index. In the introductory chapter (pp. 1-5), Pramanik says poverty is a multi-dimensional phenomenon that is hard to come up with a universally acceptable definition of poverty. Most commonly argued issue on poverty is whether poverty should be looked at from absolute or relative perspective. Absolute poverty based on specific income level called poverty line income (PLI) that can be calculated either using the market value of a basket full of goods and services considered essential for reasonably acceptable standard of living. On the contrary, relative poverty arises when we talk about how good or bad one member is doing in relation to another member living in the same society. According to O’Boyle, poverty is a concept that is both absolute and relative because human beings are at the same time individual and social (O’Boyle E.  J, 1990). In chapter two (pp. 7-20), Pramanik talks about poverty scenario in Malaysia. He argues that the income poverty using official poverty line income seems near to the absolute poverty whereas the human poverty based on the degree of human deprivation resembles relative poverty, which is ensuing of unequal access to income earning opportunity. Because of this, the author focuses more on human aspect of poverty in terms of its long term implications of social factors. Micro level study (Pramanik, 2004) do suggest that family size either in urban or rural areas of the four concentrated states namely, Kelantan, Terengganu, Kedah and Perak is quite above the family size used for the national level. Pramanik (1997 2000) examined that rural poverty in the four poverty-concentrated states on multi dimensional aspects of the problem such as, social, economic, demographic, psychological, political, moral, historical, attitudinal, and natural factors. In chapter three (pp. 5-20), the author discusses regarding research methodology. The study is based on the primary data as well as secondary information. The primary data collected through the administration of well-structured questionnaire in the middle of 2006. The sampling technique used is purposive as well as random and based on participatory observation method. Around 3112 households from 8 major cities living in poverty concentrated areas classified by squatters, low-cost buildings, longhouses etc. were selected for data collection. He defined â€Å"household† as an entity of those living under the same roof as well as eating from the same kitchen. In chapter four (pp. 21-97), he talks about the research findings. The author uses purposive and collecting sampling technique to identify the level of poverty suffered by those living in the squatters and in the area/blocks/buildings designed for the lower income groups in the major cities of Malaysia. This is because those who are living in these areas suffer different degrees and types of poverty measured by the level of deprivations. The household having less than RM 398(less than half of the poverty line) is called hardcore poor, household earning equal to RM 398 but less than 663 is called overall poor and more than RM 663 is called non-poor. The best performing state in terms of lowest incidence of overall poverty (0. 9) with no hardcore poor followed by KL (2. 6) and JB (8. 1) inclusive of hardcore and overall poor. While less developed states- KB, KT, and AS, KB experiences the highest incidence of poverty hardcore poor and overall poor of 33. 7 followed by KT (23. 4) and AS (14). On the other hand, Sabah and Sarawak are worst performing states reported in 9MP and his survey data. The author suggests that as far as poverty reduction is concerned Sabah and Sarawak are still the worst among all other regions states in Malaysia in 2007. The poverty is gender bias is a universal when hardcore poverty is concerned. In terms of hardcore and overall poverty, the female –headed households are more likely to be poorer by 50 percent compared the male-headed households. The higher dependency of more members on a few incomes of earners in the households also creates a constraint on resources allocation by the poor households. Approximately 60 percent of poor household’s more than two members depend on the income of one earner. The lower dependency has implication for the ability of the poor households to hold out poverty at times of economic recession or downturn since higher dependency manifest through the lower dependency ratio is positively related to higher unemployment. Pramanik found on the distribution of households based on the dependency ratio and cities seem to suggest that the relatively higher percentages of households (68. 8) from LDS are associated with higher dependency as emerged through the lower coefficients of DR (0. ) as opposed to a lower percentage of households from MDS (53. 3) experiencing lower dependency ratio. Human capital is considered as the most fundamental asset. The presence of economic opportunities created by the growth, an individual with one additional year of education acquires more ability to compete and derive benefits from the market. As for as the illiterac y, the author suggests that the percentage of households having no education in much higher for the three Least Developed States( LDS) as compare to the More Developed States (MDS). If the education level exceeding 6 years but less than 12 year are considered as a measure of better educational standard, the highest percentage of household members (72. 7) come from 3 MDS followed by the lowest (57) from the two LDS. The better quality of life achievable through higher level of education has convinced the younger generation regardless of race or geographical distribution of population to pursue education by all possible means. So that government spends money for education, skills and training. Dr. Muhammad Yunus claims that access to credit should be treated as a part of human rights. The access to credit empowers the poor households to make use of their survival skills thus unleashing their productive potentials. Every human being is imparted with some sorts of surviving skills by the Almighty –the creator. Dr. Yunus has proven that an access to small credit can significantly help the asset less poor to unleash their hidden potentials to earn more and combat poverty. The poor have nobody to talk to and no place to go. Sometimes, they have no work to do and no food to eat and finally none to depend on. They are always by-passed and looked down upon (Narayan, 2000). The poor are not even trusted because of lack of social status. Of the three races the Chinese seem to be more satisfied with their neighbors (69 percent as very helpful) followed by the Indians (46 percent) and Malays take a middle position (64 percent). The criteria of social capital there appear to be a positive relationship between the lower Mean Monthly Household Income (MMHY) of the Indians and the lower level of trustworthiness as a proxy for very helpful neighbors. The relationship between trustworthiness and success in trade seems quite obvious among the Chinese compared to the Malays and the Indians. There are lots of arguments regarding poverty. â€Å"We are so rich, because they are so poor† (Landes, 1998). It means the existence of poor is essential for survival for rich. Yunus believes that the poverty is created by the system (Yunus with Jolis, 1998). The poor in any society are best known for their simplicity, altruism, moderation, complacency, peaceful coexistence, moral, conservative as well as traditional values. The presence of high morality and the future uncertainty, the poverty stricken parents never consider additional babies as a liability. For the poor, children are always considered as assets and blessing of God because they are the ones the poor parents can really depend on in their old age. Old –age pension or insurance for all are hardly found in the developing world, traditional babies are always treated as insurance for the old age. The author found that in general, the respondents from low income urban households give higher priority to good values like the spirit of tolerance reflected through ability to respect other races or religion, ability to maintain one’s own culture, ability to live like a good human being, having good moral standard. The findings clearly suggest that they show least preference for blindly imitating the life style of the better-off. So, the poor who are known for their simple and moderate life are not the victim of the demonstration effects. Concentration of power, lack of transparency and good governance among many others, interact to perpetual corruption in less developed countries (Pramanik, 2003 2007). In last chapter in his book (pp. 97-106), the author summarizes his findings and gives policy suggestions. Firstly, poverty is gender based. As far as poor, inclusive of hardcore and overall poor are concerned the female headed households far outweigh the male headed households. Secondly, there is an inverse relationship between family size and incidence of poverty. Thirdly, higher dependency measured by lower dependency ratio seems to be positively related to the incidence of poverty across the regions. Fourth, the access to human capital in terms of level of education emerges as one of the most important determinants of poverty. Fifth, the access to financial capital in the form of loan made seems to be a good determinant of household income regardless of regional or racial consideration. Finally, based on the perception of the urban poor about development, Pramanik findings suggest that, the human capital such as easy access to education, social overhead capital encompassing good roads, good and owned house, water and electricity deserve the highest priority. The author gives some policy suggestions relevant to the policy-makers, planners and administrators. First, in line with three major strategies such as, enhancing the nation’s competitiveness, strengthening human capital development and ensuring the well-being of all Malaysians within the contexts of elaborate policy strategies under ninth Malaysian plan, that will be to help the primary and secondary level students from broken families, unemployed parents, low income households living in crammed and unhealthy housing conditions. Second, the plan to establish different growth corridors covering the less and the least developed states. Four, having the good record of NGOs in eradicating poverty and enhancing social-economic well-being of the target groups, the existing public level institutions may gradually encourage the NGOs/welfare organization/civil societies supported either publicly or privately to shoulder responsibility in overcoming poverty. Finally, efforts can be made to raise the status of Aim as a full-pledge bank for the poor as like Grameen bank of Bangladesh to deal with poverty eradication. In conclusion it can be said that the author, Pramanik expounded very well regarding the poverty of Malaysia. The urban poverty is indistinguishably linked to rural poverty. In fact, the former is caused by the latter. The Pull and Push factors can significantly explain the prevailing dismal conditions associated with urban poverty. Based on the details findings on the multi-dimensional aspects of urban poverty, it can be suggested that the development should be taken to the people and not the people to the development which is mostly confined to the urban areas.