Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

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Participatory poverty monitoring in rural communities in Viet Nam 120 BOX 8.1 Planning using new approach in Luong Minh and Xy communes Luong Minh commune In 2010 and 2011, Luong Minh Commune (Tuong Duong, Nghe An) applied a new approach in socio-economic development planning. Members of the commune working team received training on the planning process in the district. The heads of villages and secretaries of village Party Cells were also given guidance by district cadres and commune working teams at the commune People’s Committee’s headquarters. The new planning approach is more progressive than the traditional approach because of increased participation and proposals are based on local realities. At the village meeting, villagers made active contributions. The commune planning workshop was highly appreciated by most grassroots cadres because of the participation of leaders and representatives of all branches and organizations in the commune and villages. However, there remain some shortcomings in the planning work in Luong Minh commune. At village meetings to collect information, recommendations are mainly associated with infrastructure projects, without cultural-social-environmental proposals and community-bases solutions (that need no financial resources). Commune branches and organizations do not submit reports on time. For different reasons, the commune submitted its plan for 2012 later than the deadline. Xy commune Since 2011, Xy commune (Huong Hoa, Quang Tri) began reforming its planning with assistance from Plan International. Unlike Luong Minh commune, Xy commune applied the Participatory Rural Assessment (PRA) approach when collecting information from villages. The new planning approach has involved more participation from local residents, particularly vulnerable groups (women and children). However, as it was the first time Xy commune applied the new planning approach, there were a number of issues. Village cadres did not have the capacity to undertake the PRA approach effectively. Commune cadres had to help with funding provided by the project. People made very few proposals as they are not interested and are hesitant to speak up in public, and have no full understanding of the nature of the new planning approach. The information sheets of commune branches and organizations contain many errors, and some were delayed in submission. 8.2. Community Development Fund (CDF) The goal of the Community Development Fund (CDF) is to help communes have a decentralized financial source to implement small projects (infrastructure facilities or support livelihoods), build capacity in socio-economic development planning and financial management. The quality of planning and implementation is higher when financing is decentralized in the form of CDF. In Tuong Duong and Ky Son (Nghe An) and Hai Lang District (Quang Tri) CDFs contributed to better commune planning and implementation. Community development funds are relatively small (60-80 million VND per commune), however, they play a crucial role motivating people to participate in the planning process (Box 8.2). As a result plans are better suited to local conditions and the desires of residents.
Five-year Synthesis Report Part 2: Challenges to Rural Poverty Reduction in Viet Nam Positive social impact is a strong point of CDF compared to other financial sources. CDF can help increase community cohesion and participation of the poor, also facilitate the roles of existing community institutions. 121 BOX 8.2. Decentralized financing in the form of CDF enhances people’s participation In late 2010, Oxfam funded CDFs of 60 million VND in four communes in Tuong Duong District (Nghe An). Local residents were involved in the development and implementation of CDF projects. The most outstanding result was the promotion of counterpart funding and close monitoring by local residents of small infrastructure projects. --- “Such a small fund is a catalyst that helps the plan to be better. The surprising outcome is active and enthusiastic participation by local residents. Never before have villagers contributed more than 100 million VND. In the past, local people only contributed 5% of the total cost, and it was very difficult to mobilize, and everything was done by contractors. This assistance meets the urgent needs of local residents in this type of projects.” (Leader of the Finance-Planning Division of Tuong Duong District). Tam Thai commune was provided with 60 million VND for a CDF. Local residents contributed 84 million VND of labour and locally available materials to build a canal and upgrade a dam. Xa Luong commune was also provided with a 60 million CDF and another 60 million VND was provided by local residents to build transport roads. In general, local contributions are more than 50% of the total cost of a project. Decentralized financing like CDFs help mobilise community resources and encourage people to be less dependent on the Government. Lessons learned from CDF implementation Combining the reform of socio-economic development planning, financial management and community monitoring capacities and decentralized financing in the form of CDF. Experiences show that the relationship between participatory planning, financial management and community-based supervisory capacities is the key to the success of CDFs. Support activities to participatory planning and capacity building in financial management is a prerequisite for the implementation of CDFs. Decentralized financing in the form of CDFs is a “catalyst” for the better implementation of participatory planning and enhancement of community-based supervisory capacities. The advantage of CDFs is they are small-scale and have simple procedures. Although the infrastructure facilities funded by CDFs are small they are of great effect. CDF financial procedures are more straight forward than other programmes and projects. Community-based construction can develop the strength of CDFs, because local residents are themselves involved and the projects are realised by local skills. As CDF projects are developed by local communities there is a strong sense of ownership and responsibility, reducing waste and inefficiency. Implementation of CDF in coordination with community institutions with flexibility to meet local needs. Initiatives funded by CDF can be coordinated with existing community institutions as they can help mobilize more resources effectively.
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PARTICIPATORY POVERTY MONITORING IN
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PREFACE 1 7 In early 2007, Viet Nam
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ABBREVIATIONS AND TERMS 10 ActionAi
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12 EXECUTIVE SUMMARY The last five
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14 and improve monitoring and evalu
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16 TABLE 1. The monitoring points C
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18 transparency, and accountability
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20 TABLE 2. Characteristics of the
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Part 1 Poverty Trends and Key Theme
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Participatory poverty monitoring in
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Part 2 Challenges to Rural Poverty
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Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

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