Impacts on the Implementation of Social Policy: Comparative Study in Malaysia and Indonesia

Mohmad Zahir Zainudin,Mohd Fauzi Kamarudin

doi:10.5539/ass.v11n17p48

Abstract

Prolonged debate exists concerning the effectiveness of anti-poverty programs through micro-credit to thewell-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 businessincome that does not necessarily bring about to a better well-being of the poor. This paper identifies the impactof the implementation of social interventions brought in through micro-credit schemes of poverty alleviationprograms for the welfare being of society in Malaysia and Indonesia. The methodology used was a combinationof the quantitative and qualitative methods aimed to get the maximum results based on Standard Model of SocialDevelopment. Data analysis performed on the respondents indicated four factors leading to the failure of thewelfare of the community. These factors are social networks, community participation, community developmentand employment opportunities. This research suggests that agencies involved in poverty alleviation throughmicro-credit schemes must carry out appropriate efforts towards the empowerment and active participation of therespondents in social and economic investment as stated in the Standard Model of Social Development.

Highlights

A look at the history of the development and progress of Malaysia and Indonesia since the 1950's shows that both countries have gone through several phases of transformation: social, economic, educational, cultural, political and technological (Ahmad Atory, 1990)
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
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

Summary

Introduction

A look at the history of the development and progress of Malaysia and Indonesia since the 1950's shows that both countries have gone through several phases of transformation: social, economic, educational, cultural, political and technological (Ahmad Atory, 1990). In Malaysia, the government launched the New Economic Policy (NEP) in 1971 aiming to eradicate poverty and restructure society. In Indonesia, the government introduced the Presidential Primary School between the years 1973-1974 and 1978-1979, which succeeded in creating greater educational opportunities to the residents of the country (Syahrul, 2009; Musni, 2007). The implementation of these social and economic policy have effectively managed to improve the lives of rural communities. The second phase, from 1970 to 1990, includes the New Economic Policy (NEP) which is aimed to restructure and reduce poverty. This is a critical phase because Malaysia aspires to accelerate itself through sustainable economic growth and becomes a developed nation

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