Question

International investment and economic development

Part B.  Short Answer Questions                                                                                                          (Total:  15 marks)

1. The number of families living in poverty in Malaysia and other neighbouring countries tend to live in the rural areas.  What are the possible reasons for poverty in the rural areas?  Give three possible reasons.                                                                                                                                                                                                  

Answer 1

As food , transport and accommodation are more costly, the cost of living usually appears to be higher in urban areas. Urban households, however, need higher wages than rural households in order to escape poverty and have access to medical services, health insurance , healthcare and schooling for children. There are many households that, while they earn incomes above the PLI, do not have access to basic facilities. These families suffer from poverty-associated conditions. Urban dwellers, mostly low-income earners, have been forced to take on new jobs for extra income or to work overtime because of the higher housing costs in the cities.

In addition to impacting the quality of employment, participation in two or three occupations often raises the level of tension for human employees , which in turn influences the state of health. The quality of family life is also adversely affected, arising from a lack of parental control, and this can lead to numerous social issues among young people.

The higher dependency on cash income leaves urban households more vulnerable to shifts in sales and costs. While the rate of urban poverty has decreased from 3.3 percent in 1999 to 2.5 percent in 2004, there are still many concerns and problems. Political intervention is often demanded by households identified as "near low" since they are the most disadvantaged communities and more likely to fall into poverty.

The poor are particularly vulnerable to the effects of globalisation's financial and economic crisis. The phenomenon of globalisation is transforming markets, landscapes, communities and populations that are negatively impacted by the urban poor.