Poverty Alleviation in Economic Globalization: The Role of Microfinance Projects in Malaysia's Experience

This paper examines the role of micro finance projects in eradicating poverty in Malaysia. It aims at analysing the effectiveness and efficiency programs of AIM in eradicating poverty. The paper highlights some issues about economic globalisation and poverty. It argues whether globalisation would lead to economic growth that in turn brings about poverty reduction. Over the last three decades, Malaysia has made overall a very impressive progress in poverty reduction. The reduction in the incidence of poverty was due to the implementation of the AIM programs among others, towards increasing the productivity and improving the living standards of the poor. Although overall a very important progress has made in fighting poverty, still have major challenges to deal with specially that issues of health and education and basic serves. Poverty based on economic indicators alone is not an adequate measure to explain poverty. Poor people are also poor due to lack of skills, illiteracy, adequate investment, good management, and weak institutions. Based on the finding, a number of policy implications can be recommended and suggested to upgrade the experience of AIM as well as to replicate it in many developing countries.