~Poverty Statistics

Poverty can be divided into two that are absolute poverty and relative poverty. Absolute poverty is a dynamic concept while relative poverty is a concept of income inequality.

In order to measure the poverty, absolute poverty will calculate the poverty rate that is the percentage of population or households which income below the poverty line. Normally we see it from the gross monthly income that is insufficient to purchase the minimum requirements of household as measured by the level of the minimum expenditure or income poverty line (PGK)

Relative poverty is measured by using income disparity ratios of income groups, ethnic groups and rural and urban residents. Another measure of relative poverty that is often used is the percentage of households with income less that half of such median or average income.

According to poverty eradication foundation of Malaysia, in year 2005, Sabah is the country that high in poverty number followed by the East Cost country, Kelantan and Terengganu. Other ranking is Sarawak, Kedah, Perak, Pahang, Perlis, Selangor, Johor, Negeri Sembilan, Melaka and finally Penang.

~Death Due to Globalization

As previous post, globalization cause poverty to the world. The major effect of that is the number of death due to hunger increase each time. From the statistic, there are about 12 000 people die due to hunger. Most of it are innocent children. They suppose to go to school, study rather that suffer from hunger. They are the future leader. Who else will rule the society to be a develop country. That really such a waste and really sad. Maybe we do not care or know about it. As a responsible person, we must help to decrease the number of the death. It become the responsible of each people in this world. We have to work together to overcome it. Poor the baby and small child, they become the victims of the world crime. As I write this, now there are about 200 number of death at this hour. How come we just see the number increase time by time. Please....Work together to avoid it from increase rapidly. We can sent some food supply to them. Responsible citizens will increase the development of the country.

~Reality~

This is the reality that happen around us now. Maybe we not realize about it. As a responsible citizens, we have to take note about it.

~Open Our Eyes

At first, after take a look at this video, I wondering what is this video want to tell us since at the beginning it show some fast food restaurants. But when the man come to the restaurants with a black dustbin, I wonder he is someone that collect rubbish. But it is totally wrong. He give his family and villagers to eat will all the leftovers. It is very sad. The first minutes show the development of a country, but despite of all that, there still people that really in need. Who can change their life if not us.

~Measuring Poverty and Globalization

   We obviously can see the relationship between poverty and globalization through the trade volume and policy. Poverty may occur to individual or family that have an income about $1 or $2 a day.

     The export activity and foreign investment can help to decrease the poverty a lot. This can be seen when foreign businessmen come to a country and invest in their economic sector. Then this can increase the work opportunity to that country. For an example, in Malaysia, the owner of Sime Darby build a factory here. Then it will need people to work with them in order to run the company here. So that obviously can help the needed to gain job and get income from it. Normally export product will be in a large amount. To pack the product, it need plenty of people and that may come from the needed. So obviously that economic can help to reduce poverty.

     But they still some factor that maybe increase the number of poverty. That is the removal protection or the imported shares. Normally government will make some changes in law in order to attract foreign investor to invest in our country. In fact, the changes will suppress the poor.

~Do Globalization Cause Poverty in a Country?

One major problem that face by many country is poverty among their citizens. Malaysia also not excluded. Normally we think that it is cause by their education background or their family background. But do you ever think that all of that is cause by globalization that occur around us. We cannot accuse them not try to change their life. Of course they have done all their best but activity surrounding effect them a lot. When financial crises occur, it effect the poor so much.

From the book that I have choose, "Globalization and Poverty", I can classify two way that globalization effect poverty. First, the international trade in goods and the second one is the international movements in capital. I will discuss it further time by time.

Based on the first cause, we can see that the poor people normally involve in activities like farming, searching for forest resources and selling goods in small unit. They usually plant something that easy to grow and do not need big budget to start with such as tapioca and vegetables. They will sell it directly or sell it to businessman at market. If they sell it, they will sell it with lower price and their stall not situated strategically. So this will effect their business. If they sell it to the businessman at the market, they do not get much profit. The middle people will suppress them. And of course the goods will not go to commercialize. This much more effect them. We never wonder either this goods will be accepted all around the world or not. To commercialize something, it need much money to be spent.


The second cause of this problem to happen is the international movement in capital. We can say that our country is following the economic movement. But they do not realise that this burden the unfortunate. Their voices normally will be neglected since the aim of the country is to be in the same level with other developing country. The increase in living standard effect them a lot. They have to control their expenditure to prolong living.


But they still ways to prevent all of this from happening. One of the best way is to export growth and incoming foreign investment in a country. When there are many foreign invest in a country, the country will have money that indirectly will help the poor. For an example, when a foreign builds a factory at a country, the people around them can work there. That will confirm them have some money to earn their living and reduce the poverty statistic.

~Book About Globalization

One of my assignment for this subject is to find and read a book related to globalization. We are given freedom to choose any kind of book that related to globalization. After finding about six books related to this topic, then I studies each book by using scanning and scheming technique to find the best book. It really a tough decision to make. I thinks all the books are really interesting to be discussed. Finally I choose a book entitle "Globalization and Poverty" that is written by Ann Harrison. It is actually a report of National Bureau of Economic Research Conference. It has 661 pages.