ABOUT THE CENTRE

The Prime Minister of Malaysia , YAB. Dato' Seri Abdullah bin Haji Ahmad Badawi  launched the Royal Professor Ungku Aziz Chair and The Centre for Poverty and Development Studies at the University of Malaya on 9 November 2006.

 The establishment of the Chair and the Centre bears testimony to the  Prime Minister's personal commitment to the eradication of poverty and an improved standard of living for all Malaysians. Malaysia has been very successful in eradicating poverty and this is exemplified by the decline in absolute poverty levels from 49.3 percent in 1970 to 5.1 percent in 2002. Malaysia's unfaltering commitment to the eradiation of poverty has enabled it to attain the majority of the Millennium Development Goals (MDGs) including the first MDG of eradicating extreme poverty and hunger. Malaysia has also performed favorably in terms of development indicators including the Human Development Index where Malaysia is currently ranked as 61 out of 177 countries.

Despite these achievements Malaysia is not content to rest on its laurels and wants to improve further. It is felt that much more needs to be done towards poverty reduction and this includes ensuring that pockets of poverty are eradicated, issues pertaining to income distribution are addressed and the extreme poor and other marginalized groups are not excluded from the development process. Malaysia also feels that with its experience in understanding and addressing poverty it can provide useful lessons for other developing countries. Malaysia's intrinsic strength lies in its ability to manage  development within the context of a multi ethnic and multi religious society. With National Unity as its overriding objective the Malaysian government has been able to bring about development amidst political stability and peaceful coexistence.

BACKGROUND TO ROYAL PROFESSOR UNGKU AZIZ CHAIR THE CENTRE FOR POVERTY AND DEVELOPMENT STUDIES

The Cabinet of the Malaysian government on 12 July 2006 agreed to establish the Royal Professor Ungku Aziz Chair at the Faculty of Economics and Administration, University of Malaya. In conjunction with the establishment of the Chair, a Centre for Poverty and Development Studies was also  to be set up at the Faculty. The establishment of the Royal Professor Ungku Aziz Chair is to honour the contributions of Professor Ungku Aziz in the field of education and economic development especially rural development and poverty.

Professor Ungku Aziz's  seminal contributions to the field of poverty ranges from his computation of the “Sarong” Index to his theory of the M-M system. In his early work on poverty, Professor Ungku  Aziz devised a “sarong” Index of poverty. He postulated that a per capita “sarong” index provides a useful measure of the extent of poverty in Malay villages, the index derived by dividing the total number of “sarongs” in a household by the number of persons above the age of one living in the household. The ratio of “sarongs” per capita thus obtained can be used to measure poverty and the impact of rural development programmes in the particular villages.

Ungku Aziz also hypothesised that the root cause of rural poverty was linked to low productivity which in turn was due to the problem of exploitation. The Colonial government through its various activities facilitated the emergence of a new type of trader for whom a permanent role was created in the economy. These traders attempted to increase their influence by gaining sole control of whole areas in the rural economy and were also able to gain control of the market for rural produce. When same trader has a monopoly and a monopsony where the real weapons for exploitation is ownership and control of the capital it is called M-M system

Ungku Aziz also led a major study commissioned by the Malaysian government on the sub division of rubber estates that followed Independence. This study is a valuable contribution to the understanding of the breakdown of the plantation system in post Colonial Malaysia and the emergence of rubber smallholdings in Malaysia both of which have significant ramifications for poverty in the country.

The establishment of the Chair and the Centre avows Malaysia's continuing commitment to poverty eradication. Malaysia is often showcased as a country that has been successful in attaining its development objectives. Malaysia has through the auspices of the Malaysian Technical Development Programme provided a platform for sharing its development experience with other developing countries. The Malaysian experience can provide useful lessons for other developing countries in policy and programme formulation for poverty alleviation. At the same time the Chair and the Centre will increase accessibility to information and facilitate the  dissemination of this information amongst various stakeholders.

RATIONALE FOR THE CENTRE FOR POVERTY AND DEVELOPMENT STUDIES

The setting up a Centre for Poverty and Development Studies is timely and it is envisaged that the Centre would become a critical reference point for academic work, research and consultancy for poverty and rural development serving the academic community, the general public, policy makers and the international community. The Centre will also help develop new approaches and methodologies in the study of poverty as well provide consultancies and technical assistance in improving the understanding of life in the rural areas and amongst poverty groups.  The Centre will also help increase accessibility to and dissemination of information pertaining to rural communities and poverty groups through the creation of data bases, publications, seminars and conferences as well as through the internet and the media. The Centre will also contribute towards capacity building in the rural areas especially amongst the poor encouraging the incorporation of local and indigenous knowledge in the development process. 

a) It is necessary to promote research in areas of strategic importance and encourage the publication and dissemination of results to the academic and wider communities of interest. It is imperative that active links between research and teaching be promoted.

b) It is necessary to demonstrate an innovative inter-disciplinary response to research on poverty and rural development issues and foster strategic alliances with stakeholders , in the spheres of academic, professional, and community activities.

c) It is necessary to establish a profile of excellence in the development and delivery of postgraduate tuition and research in relation to the broad field of poverty and rural studies Through innovative teaching and research methods and collaboration with other academic and professional partners it will be possible to contribute to the attainment of excellence in teaching and research.

d) It is necessary to strengthen links between government bodies, commercial interests, and the wider community through commitment to knowledge transfer, networking, and pragmatic dissemination of information. The Centre would aim to become the major focal point for information on poverty and rural issues within the country and in the  international  arena..

e) It is necessary to play a formative role in the production of resource materials, including books, reports, and web-based information relating to the wider themes of poverty and rural development.

OBJECTIVES OF THE CENTRE

One of the main objectives in establishing the Centre is to chart new research directions and enhance academic excellence in the area of poverty studies at the University of Malaya and in the broader Malaysian academic community.

The specific objectives of the centre are to:-

1       Organise joint research projects and to undertake comparative studies on poverty and rural development and amongst rural communities and in remote and marginalised areas.

2       To develop new approaches and methodologies that are  suitable for poverty and rural studies.

3       Organise conferences, seminars and workshops and courses and prepare reports related to poverty and rural issues.

4       Provide consultancy services and technical aid to preserve the culture and heritage of rural communities e.g. the aboriginal people and to enhance understanding amongst the general public of the special quality of rural life and its inherent charms.

5       To improve accessibility to information pertaining to  rural communities and poverty groups through publications and written materials , audio, videos and the internet. 

6       To enhance capacity building in the rural areas in obtaining, disseminating and using information resources which encourage endogenous development.

7       Develop research skills and products of high quality which are internationally accepted thereby contributing to sustainable development.

8       Encourage cooperation between the government and the private and educational sectors through the sharing of best practices in integrated development activities.

9       Develop research and development techniques that make use of advanced communication technologies.

10    Utilise Malaysia's success and experience as a developing country undertaking poverty alleviation programmes as lessons for other developing countries in the formulation of  policies and programmes for poverty alleviation in their countries.

      MODUS OPERANDI

The Centre for Economic Development and Ethnic Relations (CEDER) which was established by the University of Malaya in April 1999 to be a multi-disciplinary research centre for ethnic relation and economic development is currently placed at the Faculty of Economic and Administration (FEA). One of the areas covered by the centre includes ethnic relations. Therefore CEDER will be merged with this centre.

Operationally, the Centre and the Chair will be coordinated by the Department of Development Studies, Faculty of Economics and Administration which will report to the faculty. It will act as a referral centre for poverty and development undertaking research, consultancy and the dissemination of information for the development of the rural community in particular and society in general.