Figure 2 Methodology of the Research

The issue of peace is an important topic around the world. War over the world seems to show no sign of ending. War gives negative impact on population’s environment and their economic development. Therefore, it isour responsibility to maintain the peace of this country in order to guarantee the welfare of the population and economic development and political stability. The main objective of this research is to study the factorsdetermining peace in economies, the role of peace towards economic and political stability in selected countries and the program being implemented by the Malaysian government to preserve peace. The data for thisresearch will be collected through document issued by the Institute for Economics and Peace and also the economic report of selected countries. The research found that under the Global Peace Indexed, Malaysia hasbeing indexed as the most peaceful country among OIC countries.

1. Prof. Dato’ Dr. Ahmad Hidayat Buang - BSh (UM), LLM, Ph.D (London)

2. Prof. Madya Datin Dr. Sabitha Marican – BSc, MPA (Pittsburgh), Ph.D (USM)

3. Dr. Amer Saifude Ghazali – BA (UM), MA (UKM), Ph.D (UM)

4. Prof. Dr. Masudul Alam Choudhury – BSc (Dhaka), MSc, M.Phil (Islamabad), Ph.D (Toronto)

Dr. Asmak Ab Rahman

BSh, MSh, Ph.D (UM)

THE ROLE OF PEACE TOWARDS ECONOMIC AND

POLITICAL STABILITY

(GC001D-15HNE)

Institute for Economics and Peace (IEP) (2015) reported that the economic impact of violent onthe global economy in 2014 was substantial and is estimated at US$ 14.3 trillion or 13.4 per centof world GDP. This is equivalent to combined economies of Brazil, Canada, France, Germany, Spainand the United Kingdom. Large increases in cost are due to the increases in deaths from internalconflict, and it effect for IDP and refugee support then GDP losses from conflict, with the latteraccounting for 38 per cent of the increase since 2008. the major expenditure categories aremilitary spending at 43 per cent, While the cost of UN peacekeeping has more than doubled since2008, it still only accounts for less than 0.17 per cent of violence containment expenditure.

Currently, the Global Peace Index of Malaysia is 1.561 which is ranked 28 out of 162. Malaysia hasscored low where some of the indicators listed for the GPI covering from involvement of Womenin parliament, higher education enrolment rate, terrorist activity, violent demonstrations,corruption perception, gender inequality and etc.

It is very significant to study that how peacefulness can be maintained and enhanced in order tohave flourish economics and political stability in Malaysia.

Figure 1: Economic Impact Of Violent Containment Compared To The Global Size Of Selected Industries

2 INTRODUCTION

1 ABSTRACT

Figure 3: Global Peace Index 2015

Global Peace Index 2015 reported Malaysia in 28th peaceful country over 162 countries over the world.

Table 2: Malaysia In ASEAN Rankings In Peace Country

Figure 3: Factors Contribute To The Peace Of Economies

1. Factors Of Positive Peace

2. Factors Of Negative Peace

Table 3: World Development Indicator 2014, (ASEAN COUNTRY)

The table below provides the outline of the literature reviewed.

Table 1 Outline of Literature Review

4 LITERATURE REVIEW

6 FINDINGS AND ANALYSIS

Abu Yusuf, Taxation in Islam : Abu Yusuf Kitab Al-Kharaj, A. Ben Shemesh, (Trans.) (Leiden: E.J. Brill,1969).

Abdurrouf Al-Munawi, Faidhul Qodir Syarah Al-Jami' Ash-Shoghir, Darul Ma'rifah, (Beirut – Lebanon,1972), 2/22.

Alex Mintz and Randolph T. Stevenson, “Defense Expenditures, Economic Growth, and the ‘PeaceDividend’: A Longitudinal Analysis,” The Journal of Conflict Resolution 39, no. 2 (1990), 283–305.

Brauer, Jurgen and Raul Caruso, “Economists and Peacebuilding,” dalam Handbook on Peacebuilding(London: Routledge, 2012).

Hugh Mosley, The Arms Race: Economic and Social Consequences (Lexington, MA: Lexington Books,1985), 65.

Humphreys, Macartan. "Economics and violent conflict." Program on Humanitarian Policy and ConflictResearch, Harvard University, February (2003),

Huseyin Algul, “Islam Is a Religion of Love and Peace,” The Fountain on Life, Knowledge and Belief, no.70 (2009).

Ibrahim Kalin, “Islam and Peace: A Survey of the Sources of Peace in the Islamic Tradition,” in War andPeace In Islam: The Uses and Abuses of Jihad (Jordan: National Press, 2013), 217–49.

Institute of Economic and Peace, Global Peace Index, (2015).

Institute of Economic and Peace, The Economic Cost of Violence Containment. A ComprehensiveAssessement of Global Cost of Violence (2013).

JAKIM, dicapai 5 Januari 2016, http://www.e-fatwa.gov.my/fatwa-kebangsaan/isu-umat-islam-malaysia-yang-berjuang-atas-nama-isis-0.

Jasser Muda Maqasid Syariah as Philosophy of Islamic Law: A system approach. (London: TheInternational Intitute of Islamic Thought, 2008/1429H), h.2.

Karim Douglas Crow, “The Concept of Peace/Security (Salm) in Islam,” in War and Peace In Islam: TheUses and Abuses of Jihad (Jordan: National Press, 2013), 250–68.

Keynes, John M., The Economic Consequences of the Peace (London: Macmillan, 1920).

Malcolm Knight et al., “The Peace Dividend-Military Spending Cuts and Economic Growth,” Staff Papers- International Monetary Fund 43, no. 1 (1996), 1–37.

Raul Caruso, “Beyond Deterrence and Decline. Towards A General Understanding of Peace Economics,”Rivista Internazionale di Scienze Sociali 128, no. 1, (2015), 57-74.

Raul Caruso, “Nature on Peace Economics,” Peace Economics, Peace Science and Public Policy 16, no.2, (2010), 1-13.

Sanjeev Gupta, Luiz de Mello dan Raju Sharan, “Corruption and Military Spending,” European Journal ofPolitical Economy 17 (2001): 749–77.

Suzanna Maria Paleologou, “A Dynamic Panel Data Model For Analyzing The Relationship BetweenMilitary Expenditure And Government Debt In The EU,” Defence and Peace Economics 24, no. 5 (2013):419–28.

Tilman Bruck, “An Economic Analysis of Security Policies,” Defense and Peace Economics 16, no. 5,(2005), 375-389.

Todd Sandler and Keith Hartley, The Economics of Defense (New York: Cambridge University Press,1995).

Youssef Mezrigui, “Principles of Mercy and Peace in Islam,” Mediterranean Journal of Social Sciences 6,no. 4 (2015): 547–54.

5 METHODOLODGY

HEAD OF THE PROJECT RESEARCHERS

Global Peace Index of Malaysia is 1.561 which is ranked 28 out of 162 over the world and 2nd place

among ASEAN country. It is shown that Malaysia is a peace and safe country. However, there are also

some issues and conditions that are threatening peace and security in Malaysia. The results shown that

the Malaysian government is optimistic in maintaining peace and security, whether from internal or

external threats. That is why government increased allocation to the activities for maintaining peace

and security in Malaysia. Therefore, in order to maintain and increase the level of security in this

country, every citizen must play a key role together with the government to reduce the crime and the

elements that disturb the peace of this country.

9 REFERENCES

8 CONCLUSION

The researchers would like to express their deepest gratitude to University of Malaya to sponsor thisresearch. The warmest thanks are extended to all assistance for this research.

THEME SOURCES

Peace Economic Brauer, Jurgen and Raul Caruso (2012), Keynes, JohnM (1920), Boulding, Kenneth E (1978), Isard, Walter(1992), Todd Sandler and Keith Hartley (1995), JackHirshleifer (2001), Tilman Bruck (2005), Raul Caruso(2010; 2015), Anderton, Charles H. and John R. Carter(2007), Isard Walter, (1994).

Peace in Islam Huseyin Algul (2015), Ibrahim Kalin (2013), Iftikhar, A.(2014), Youssef Mezrigui (2015).

Effect of Military Spending Malcolm Knight et al (1996), Alex Mintz dan RandolphT. Stevenson (1990), Hugh Mosley (1985), Kosuke Imaidan Jeremy Weinstein (2000), Raul Caruso 2015),Sanjeev Gupta, Luiz de Mello dan Raju Sharan (2001),Suzanna Maria Paleologou (2013).

Methodology of the Research

Data Collection

Secondary Data

Document Analysis

Library Research

Data Analysis

Thematic Comparative

3 OBJECTIVE OF THE RESEARCH

RESEARCH ASSISTANT

Positive Peace

Well

functioning

government Equitable

distribution

of resources

Free flow

of information

Good relations

with neighboursHigh levels of

human capital

Acceptance

of the rights

of others

Low levels

of corruption

Sound business

environment

1. Military • Military expenditure

2. Crime and interpersonal violence• Homicide• Violent and sexual crime• Incarceration• Fear from violence• Small arms industry

3. Conflict• GDP losses from conflict• Losses from IDPs and refugees• Deaths from internal conflict• Terrorism• UN and peacekeeping operations

4. Internal security• Deaths from external conflict• Police services• Private security services• National security agency costs

To study the factors of contribution to the peace of economies.

To study the effect of peace towards economic and political stability.

To examine program that implemented by the Malaysian government to ensure peace and achieve economic and political stability.

1

2

3

ASEAN OVERALLRANK

OVERALLSCORE

REGIONALRANK

Singapore 24 1.490 1

Malaysia 28 1.561 2

Laos 41 1.700 3

Indonesia 46 1.768 4

Vietnam 56 1.848 5

Timor-Leste 58 1.869 6

Cambodia 111 2.179 7

Thailand 16 2.303 8

Myanmar 130 2.323 9

Philippines 141 2.462 10

Singapore Malaysia Laos Indonesia VietnamTimor-Leste

Cambodia Thailand Myanmar Philippines

Population, total 5,469,724.029,901,997.

06,689,300

.099,138,690.

0254,454,77

8.01,212,10

7.015,328,136.

067,725,97

9.053,437,15

9.0254,454,77

8.0

Population growth (annual %) 1.3 1.5 1.6 1.6 1.3 2.7 1.6 0.4 0.9 1.3

GNI per capita, PPP (currentinternational $)

80,270.0 24,770.0 5,060.0 8,450.0 10,190.0 5,080.0 3,080.0 14,870.0 .. 10,190.0

Fertility rate, total (births per woman)

1.3 1.9 3.0 3.0 2.5 5.1 2.6 1.5 2.2 2.5

Mortality rate, under-5 (per 1,000)

2.8 7.2 69.1 28.8 28.2 54.5 30.6 12.6 51.7 28.2

Immunization, measles (% of children ages 12-23 months)

95.0 94.0 87.0 88.0 77.0 74.0 94.0 99.0 86.0 77.0

Primary completion rate, both sexes (%)

.. .. 100.3 .. .. 98.4 96.3 .. 85.1 ..

Gross enrollment ratio, primary, both sexes (%)

.. .. 116.3 .. .. 136.8 116.4 .. 99.7 ..

Gross enrolment ratio, secondary, both sexes (%)

.. .. 57.2 .. .. 73.1 .. .. 51.3 ..

Terrestrial and marine protected areas (% of total

territorial area)

3.4 8.0 16.7 2.4 6.0 2.1 20.6 12.5 4.1 6.0

Annual freshwater withdrawals, total (% of internal resources)

.. 1.9 1.8 17.0 5.6 14.3 1.8 25.5 3.3 5.6

GDP growth (annual %) 2.9 6.0 7.5 6.1 5.0 7.0 7.1 0.9 8.5 5.0

Inflation, GDP deflator (annual %)

0.2 2.5 -0.3 3.2 5.4 0.4 1.7 1.0 6.6 5.4

Gross capital formation (% of GDP)

27.6 25.0 30.1 20.9 34.7 .. 22.0 24.1 .. 34.7

Domestic credit provided by financial sector (% of GDP)

126.3 140.5 .. 55.8 43.5 -1.1 47.2 168.6 .. 43.5

Military expenditure (% of GDP)

3.1 1.5 .. 1.1 0.8 2.1 1.7 1.4 3.7 0.8

Foreign direct investment, net inflows (BoP, current US$)

67,522,986,464.6

10,608,698,827.1

720,840,000.0

6,202,380,555.7

26,349,225,591.0

33,905,491.5

1,730,355,930.1

3,718,726,246.7

1,398,232,002.0

26,349,225,591.0

Global Peace Index1.490 1.561 1.700 1.768 1.848 1.869 2.179 2.303 2.323 2.462

In order to ensure peace on economic achievement and political stability, Malaysian governmenthave provided a large number of allocations for peace and security.

Malaysia government allocated RM17.7 billion to the ATM (Angkatan Tentera Malaysia) while RM9.1billion, to the PDRM to increase the level of safety and public order as well as national security. Asum of RM804 million is also allocated to Maritime Enforcement Agency Malaysia to strengthenmaritime enforcement.

The Government is committed to reduce the crime rate in the country, one of the NKRAs, TheGovernment increase the intake of policemen by 11,757 personnel, build 14 Police Headquarters(IPK) and Police Stations including a new block for IPK Perlis as well as strengthen the PDRM policepatrol through the purchase of 1,000 units of motorcycles. The Government also allocate RM121million for PDRM to implement various programs under NKRA.

Malaysia government also allocated RM7 billion to purchase and maintain the defence asset as wellas increase the readiness of ATM’s personnel and assets, Apart from this, the welfare of armedforces personnel also be improved, including health services and housing.

Meanwhile, APMM allocated RM393 million to improve maritime safety. This is for improvingoperational efficiency and the purchase of seven new patrol vessels.

Jabatan Sukarelawan Malaysia or RELA under the Ministry of Home Affairs continue to be avoluntary agency to assist the security forces for maintaining peace and security of the nation. Asum of RM117 million allocated to strengthen the role of RELA, particularly for training and capacitybuilding.

These allocations shown that government pays more attention to making peace and security inMalaysia.

The effect can be seen at country development index where Malaysia has many indicators ofeconomic development increased as well as shown in Table 2.

One of the factor increasing of economic development index in Malaysia is because of the level ofpeace and security which allocated by government to the security unit. The purpose of theseallocation to make this country in peace and save. The more peace of country is the more stableeconomic development and also political aspect.

7 DISCUSSION

10 ACKNOWLEDGEMENT

Faezy Adenan- BSh (UM), M.Econ (UKM)

Jabatan Syariah dan Ekonomi, Akademi Pengajian Islam Universiti Malaya, 50603 Kuala Lumpur. E-mail: asmak@um.edu.my. Tel: (03) 7967 6042 Faks: (03) 7967 6147