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Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

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12 EXECUTIVE SUMMARY<br />

The last five years (2007-2011) has been a difficult period for <strong>Viet</strong> <strong>Nam</strong>. High<br />

<strong>in</strong>flation, the global f<strong>in</strong>ancial crisis and economic recession, natural disasters and<br />

epidemics have affected the lives of everybody <strong>in</strong> <strong>Viet</strong> <strong>Nam</strong>, particularly the poor.<br />

Nevertheless, the poverty rate cont<strong>in</strong>ues <strong>to</strong> decl<strong>in</strong>e. Major Government<br />

<strong>in</strong>vestments have provided the poor with improved <strong>in</strong>frastructure, education, health<br />

care, access <strong>to</strong> credit, agro-forestry extension services and hous<strong>in</strong>g improvements.<br />

Improved liv<strong>in</strong>g standards at the moni<strong>to</strong>r<strong>in</strong>g po<strong>in</strong>ts are associated with strategies <strong>to</strong><br />

comb<strong>in</strong>e agriculture (land-based diversification and <strong>in</strong>tensification), non-agriculture<br />

(<strong>in</strong>clud<strong>in</strong>g labour mobility) and <strong>in</strong>vestment <strong>in</strong> children’s education.<br />

The recorded achievements are remarkable, yet rural poverty reduction rema<strong>in</strong>s a<br />

challenge. <strong>Poverty</strong> reduction rates are uneven <strong>in</strong> rural areas. The poverty rate among<br />

ethnic m<strong>in</strong>ority groups rema<strong>in</strong>s stubbornly high, particularly <strong>in</strong> remote mounta<strong>in</strong>ous<br />

areas. In such situations, it is more important <strong>to</strong> close the widen<strong>in</strong>g poverty gap<br />

between regions, ethnic groups and with<strong>in</strong> communities .<br />

A multi-dimensional poverty analysis is essential. Across the moni<strong>to</strong>r<strong>in</strong>g po<strong>in</strong>ts<br />

people’s lives have improved <strong>in</strong> many respects. People own more property (ma<strong>in</strong>ly<br />

hous<strong>in</strong>g, mo<strong>to</strong>rbikes, and lives<strong>to</strong>ck) and have improved access <strong>to</strong> <strong>in</strong>formation (TV,<br />

telephones). However, many people face difficult liv<strong>in</strong>g conditions (lack of safe water,<br />

latr<strong>in</strong>es), have limited access <strong>to</strong> markets, have little opportunity of non-agricultural<br />

employment and struggle <strong>to</strong> manage the many risks they face. The percentage of<br />

households that are predom<strong>in</strong>antly engaged <strong>in</strong> agriculture rema<strong>in</strong>s high, and rema<strong>in</strong>s a<br />

significant <strong>in</strong>dica<strong>to</strong>r of household poverty. Food shortages between harvests or dur<strong>in</strong>g<br />

epidemics and natural disasters rema<strong>in</strong>s a significant challenge. Gender roles rema<strong>in</strong><br />

the same <strong>to</strong>day as <strong>in</strong> 2007, and women still do not play an active role <strong>in</strong> productive<br />

and social activities. The proportion of women <strong>in</strong> adm<strong>in</strong>istration is still low and their<br />

capacities at local adm<strong>in</strong>istrative levels are limited. In communities <strong>in</strong> which different<br />

social groups have specific difficulties, it is important <strong>to</strong> tailor policies <strong>to</strong> each group.<br />

Develop<strong>in</strong>g social security systems is a major challenge. Policy coverage is limited,<br />

the level of assistance is low, target<strong>in</strong>g is imperfect and often <strong>in</strong>adequate and local<br />

capacity <strong>to</strong> implement social policies is weak. Recipient households are identified us<strong>in</strong>g<br />

a list of poor households. However, the different needs of vulnerable households vary<br />

considerably and are not recorded <strong>in</strong> the list, mak<strong>in</strong>g more nuanced policy difficult.<br />

Price volatility has been a serious issue s<strong>in</strong>ce 2007. High <strong>in</strong>flation <strong>in</strong> 2008 and 2011<br />

affected many people. Some commodity producers benefit from price <strong>in</strong>creases of<br />

agricultural produce. However, the poor are sensitive <strong>to</strong> higher <strong>in</strong>put prices and benefit<br />

little from <strong>in</strong>creas<strong>in</strong>g agricultural prices because of small-scale production and weak<br />

market position. Increased prices for food, services and other necessities reduces<br />

purchas<strong>in</strong>g power, and affects the food security of poor households who do not grow<br />

their own food.<br />

Labour mobility has <strong>in</strong>creased over the last five years. Labour mobility is associated<br />

with diversified livelihood strategies and plays an <strong>in</strong>creas<strong>in</strong>gly important role <strong>in</strong> rural<br />

poverty reduction. More men work away from home than women, although at many<br />

moni<strong>to</strong>r<strong>in</strong>g po<strong>in</strong>ts an <strong>in</strong>creas<strong>in</strong>g proportion of women are seek<strong>in</strong>g work further afield.

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