Understanding a ``development miracle'': Poverty reduction and human development in Malaysia since the 1970s

Document Type

Article

Publication Date

10-2-2021

Abstract

This paper provides a systematic assessment of the alleged exceptionality of Malaysia's development progress and its likely explanations, in comparative perspective. Using cross-country regressions and aggregate indices of education, health, poverty and gender equality outcomes, we produce evidence based on conditional correlations, offering three findings. First, the results support the hypothesis that Malaysia's human development progress has been exceptional compared with that of countries with a similar level of economic development, primarily for the period 1970-1990. Next, we show that such progress is associated with a combination of income-mediated and support-led mechanisms, including Malaysia's early emphasis on education and health inputs and infrastructure development. Finally, we look at long-term roots of its progress, arguing that early advantage in state capacity may be at the origin of Malaysia's successful implementation of poverty reduction and growth-enhancing policies.

Keywords

Malaysia, State capacity, Institutions, Poverty, Human development, Economic growth, Redistribution

Divisions

Faculty_of_Business_and_Accountancy

Publication Title

Journal of Human Development and Capabilities

Volume

22

Issue

4

Publisher

Routledge Journals, Taylor & Francis Ltd

Publisher Location

2-4 PARK SQUARE, MILTON PARK, ABINGDON OX14 4RN, OXON, ENGLAND

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