Poverty eradication strategies for OIC

Poverty eradication strategies for OIC

Hardev Kaur, New Straits Times, Kuala Lumpur

Malaysia, as chairman of the Organization of the Islamic
Conference (OIC), is determined to make a difference to the
economic welfare of its member states. It has set out a plan to
improve the economic well-being of the 1.8 billion citizens and
to tackle poverty.

This is among the priorities Malaysia has set itself during
its three-year leadership of the 57-member organization. It is a
task that deserves the support of all parties and nations,
including the rich who see the Muslim world through a narrow
prism and blame all acts of terrorism on their religion.

Thus, tackling poverty, and indeed eradicating it, has gained
importance and urgency. And Malaysia, a moderate and progressive
Muslim nation as OIC chairman has the unenviable task of not only
correcting the misconceptions of the Muslim world but also to
improve the economic standing of fellow Muslims.

The percentage of population in OIC countries living below the
poverty line is high. According to the World Bank Human
Development Index, between 1990 and 2001, the figure of those
living below the national poverty line was as high as 70 percent
in some OIC countries. This, despite the fact that many members
are leading oil producers and exporters.

OIC is the custodian of more than two-thirds of the world's
oil reserves. There are about 200 financial Islamic institutions
in the world. There are also more than 100 multi-national
corporations originating from Islamic countries with a combined
asset of more than US$200 billion (RM760 billion).

Tackling poverty is not an impossible task but neither is it
easy. Malaysia's success and experience show that it can be done,
provided the right policies are in place and the leadership is
committed and enlightened.

The efforts must be coordinated and all aspects of the problem
considered and tackled. Availability of funds is just one aspect
in dealing with poverty. Proper planning and careful execution of
the plans is equally important.

Prime Minister Abdullah Ahmad Badawi said the plan was being
cobbled together with inputs from other OIC members. Funds would
likely come from members and be used to improve the skills for a
sustained program of eradicating poverty.

The Middle East is just one case in point. The region is home
to a large Muslim population and OIC member nations. While the
region is rich in natural resources -- oil and gas -- its
economic progress and development leaves much to be desired.

A recent study by the Geneva-based World Economic Forum showed
that the growth performance of the Arab world over the last 20
years has been disappointing. Researchers Xavier Sala-i-Martin
and Elsa V. Artadi pointed out that gross domestic product (GDP)
per capita in the region as a whole was lower in 2000 than in
1980.

The reasons for the decline are many. Chief among them are
continued instability and conflicts. The World Bank notes that
although intra-state violent conflicts have touched both rich and
poor societies, the effect on low-income countries and their
populations, particularly women and children, has been
devastating.

Fifteen of the 20 poorest countries have had major armed
conflicts during the past 15 years. Conflicts have spilled across
borders into neighboring states. Nearly every low-income country
is adjacent to a country that has experienced breakdown and war.

There is thus a shared urgency in dealing with the challenges
of creating the conditions for peace and stability. These are
essential pre-conditions for dealing with poverty and nation-
building.

Many of the countries have a long way to go, but there are
many examples of successful Muslim nations for them to follow.
Malaysia is one such fine example of a moderate, democratic,
progressive and developed Muslim nation. And it has many lessons
for other countries, Muslim and non-Muslim nations. Poverty in
the country has been reduced to a low single digit.

Malaysia's success in tackling the issue in a multi-racial,
multi-cultural and multi-religious environment shows that a
poverty reduction strategy must involve coordinating efforts and
forming alliances.

Similarly, tackling the problem in OIC means that efforts must
be coordinated across geographic and ideological boundaries.
Poverty needs to be tackled on various fronts. Economic
development, employment, improvement of education facilities,
health and the provision of other basic amenities. The policies,
too, must be sustainable.