chapter  11
22 Pages

Poverty eradication and income distribution

ByRAGAYAH HAJI MAT ZIN

At the kernel of the New Economic Policy of 1971-90, the subsequent National Development Policy of 1991-2000 and the National Vision Policy of 2001-2010 is the issue of how the economic pie is shared. The New Economic Policy was introduced in the aftermath of the ethnic riots of 13 May 1969, whose root cause was the inequitable distribution of income and wealth. To remedy this untenable situation and promote national unity, the New Economic Policy proposed a twopronged strategy of eradicating poverty among Malaysians and restructuring the society to reduce and eventually eliminate the identification of race with economic function and geographical location. Both objectives were to be realized through the rapid expansion of the economy over time (Malaysia 1976: 7). This strategy has been referred to as growth with equity.