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.