Proponents of globalisation are of the view that it has benefited everyone and helped to pull millions upon millions out of poverty. However a close analysis of the affects of globalisation tell a very different story. While it is true that globalisation has benefited many, it has had an equally devastating effect on the lives of many others and made ‘true’ development more of a mirage rather than a reality (Dunning, 2003). This essay will critically analyse and discuss the benefits and disadvantages of globalisation and will conclude by either agreeing or disagreeing with the above statement.
Even though globalisation is the buzzword today, it has been in existence in some form or another for over a century. After World War II many regions of the world that were reeling from the devastating effects of the war, came together to create trade agreements that would help each of those regions to grow in the post war era. The European Union is one such trade agreement as is the NAFTA agreement, GATT, APEC, ASEAN and many others. Due to the advances made in technology, especially in the telecommunication industry, globalisation saw a rapid increase in the latter part of the 20th century (Guillen, 2001). The ultimate goal of globalisation was to liberalise formerly closed economies, integrate national economies and create one huge global economy that would not only decrease trade barriers and increase trade and corporation but would also help poorer and developing nations to become ‘industrialised’ – thus uplifting the living standards of billions (Grewal, 2006).
While the goals and objectives of globalisation are noble, such goals and objectives are not very easy to achieve. Even though the above may look good in theory, in reality it is easier said than done and usually causes more damage to economies, the social fabric of nations and the environment as a whole (Suárez-Orozco
Housing Development And Policies In Malaysia Economics Essay
There are many of studies that have been done to study the problems faced by middle income group to own a house in Shah Alam, Selangor. For this study the researcher is focusing more on the middle income group that have encounter difficulties in owning their own house based on several reasons that we have gathered throughout this study. This literature review is focused on understanding of Housing Development and Policies in Malaysia, Affordability issues, Housing Provision by Public and Private sectors, Housing Price, Insufficient Housing Allocations, the act of cheating to buy a house , House Location, and Insufficient Income. All these issues are particularly related with our research study, which is to identify the factor of why middle income group are having difficulties in owning their own house.
2.1 Housing Development and Policies in Malaysia. The housing policy involves a number of complex issues nowadays. Malaysia is a country that has multi-cultural society with 3 basic racial-religious groups. Therefore, the housing industry has to take into consideration all these aspect in the development of national housing and planning. The housing and residential pattern has been noticeable due to their economic activities of these 3 different ethnic groups (Tan, 2011). For example, in the past Chinese has been dominated business industry and they lives in town area. Meanwhile, Malay people were complacent with agriculture activities and living in rural areas while Indian people are doing estate work located in rubber and palm oil estate. In order to get rid of these unbalance in term of economic of these 3 ethnic group, the government has come out with one solution by introducing New Economic Policy (NEP) in year 1970 to change the stereotype. The reason why NEP was introduced to foster national unity and nation-building through the eradication of poverty, irrespective of race, and the restructuring of society to eliminate the identification of race with economic function and geographic location (EPU, 2011). Malaysian government has encouraged Malay people to migrate to urban centres as part of NEP strategy to create a new Malay commercial community in urban area (Tan, 2011). However, due to the increase rate of Malay people migrates to urban areas in 1980’s, the demand for affordable housing also shows a significant demand growth. But a severe shortage in affordable housing has arisen. Generally, there are 2 alternative for the state to assist their citizen in housing provision and one of them is allocating housing specifically to households those are unable to provide themselves in the general market and another one is to intervene in the functioning of the general market in order to make it more likely to fulfil the housing needs of all households (Aziz, et,al, 2010). Thus, in the efforts to reduce housing problem for Malaysian citizen especially those low income groups, the government has formulated housing policies and programs to ensure that all have the access to adequate housing. The main objective of housing policy in most countries was once simply to build more houses. This was response to a lack of market-driven supply on a situation of socially perceived large scale housing need (Tan,2011). A part from that, the introduction and the forming of housing policies for a country have another aims, from another scope, pointed by Ismail Omar (2000) and Harvey (1987), such as:
a. To achieve the optimum used of present resources.
b. To make sure the public can owned a house.
c. Gives guild line on new location.
d. To make sure special group of public can owned home such as elderly citizen.
e. Steering the state and local authorities to provide fair housing distribution.
A National Housing Policy (NHP) is needed to provide the direction and basis for the planning and development of the housing sector by all relevant ministries, departments and agencies at the federal, state and local levels as well as the private sector. Thus, according to Tan, 2011, among the early housing policy made by Malaysian government is to introduce:-
First Malaysian Plan (1966-1970) and Second Malaysian Plan (1971-1975): Variety of programs designs to promote welfare of all Malaysian regardless of ethnic background by providing improved housing, community facilities, welfare and other services.
Third Malaysian Plan (1976-1980): To eradicate poverty and restructure the society
Fourth Malaysian Plan (1981-1985): The continuation of previous policy
Fifth Malaysian Plan (1986-1990): Housing programs are being implemented in the context of human settlement concept. Here, the social facilities is emphasised rather than the provision of basic infrastructural facilities.
Sixth Malaysian Plan (1991-1995): Home owning within various income group is emphasize.
Seventh Malaysian Plan (1996-2000): introduction of low-medium cost housing. According to Residential Property Stock Report, the house price can be categorize into low-cost housing (below RM42,000), low-medium cost housing (RM 42,000-RM 60,000), medium cost housing (RM 60,001-Rm 100,000) and high-cost housing (RM 100,001).
Eight Malaysian Plan: Priority is continue to be given to the development of low-and low-medium cost houses. Private and public sector were cooperating with each other to meet housing demand.
Ninth Malaysian Plan (2006-2010): ensure low and low-medium income group will have the access to adequate, quality and affordable housing.
Tenth Malaysia Plan (2011-2015): the government targeted to build 78,000 units of affordable homes throughout the country to meet the needs of the various groups, and another 38,942 units of PPR will be built particularly the low-income groups and the resettlement of squatters.
If we go back into the previous year, the government’s priority is towards the low-income level group of people. Many programs and project has been launched to help them to sustain living and bring them up to from the poor state. However, no specific policies are stipulated to uphold the need and demand of middle income group. Trapped between the low cost and high cost housing, the middle income group need are not yet being uphold by the government in which they are in a situation that they can afford to buy a house but it is only provided for the low-income group but they are also in a hard situation to compete in high-cost housing According to Housing and Local Government Minister Datuk Seri Chor Chee Heung, he said that the housing needs of the middle-income group made up about 40% of the population of the people and are in need to be addressed urgently.
2.2 Housing Provision by Public and Private sectors. In Malaysia, housing development and activities are subject to approval from higher authority from the relevant state and federal authorities except for individual or group housing (Tan,2011). Land conversion, preparation for layout plan, building and infrastructure plans, planning of infrastructure and assessment on environmental impact with involvement of many government agencies, both at federal and local level are those processes that housing companies must go through before starts doing housing project for the benefit of people at large. Among those government department or agencies that requiring approval before housing project can be successfully implemented and build are Land and Mines department, the land offices, Local Authorities, the Survey department, Telekom Malaysia, Tenaga Nasional, the Water Work department and Town and Country Planning department. In addition to the research made by Tan (2011), all housing development project must follow all instruction stated in the national housing policy that has been regulated to uphold the right and helps people to own a house such as Bumiputera quota, housing control prices, and standard build-up location for low-cost housing, and provision of public amenities for residential housing projects. The public sector plays roles in providing adequate and fulfilling the housing needs by allocating and providing public housing for lower income group and household and has been put as one of the country’s priority since the Five Years National plans and the example can be seen in the establishment of Federal Land Development Authority (FELDA), Federal land Consolidation and Rehabilitation Authority (FELCRA), and Johore Tenggaraa Developemtent Boar (KEJORA). A part from that, they also are responsible in providing public houses in urban areas through the establishment of various government and urban development agencies. However, by depending only on public sector, make it hard for the government to fulfil the higher demand on housing provision for Malaysian citizen. Thus, the government need private sector to help them to provide more housing developments for the public. In order for the private company to engage in the build of housing, they must first obtain the license, sales and advertising permits from the land and Mines Department, District