Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

Participatory poverty monitoring in rural communities in Viet Nam
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2. MULTI-DIMENSIONAL POVERTY ANALYSIS
Multi-dimensional poverty is not only related to income or expenditure. Multi-dimensional
analysis will help policy makers identify target groups and develop policies relevant to
them.
2.1. Multi-dimensional poverty measurements in the world and in Viet Nam
Multi-dimensional poverty
measurements are being
adopted worldwide. The UNDP
Human Development Report
2010 used the “Multi-dimensional
poverty Index” (MPI). The MPI is
based on three dimensions of
poverty: education, health and
living standards, and includes
ten sub-indicators associated
with the Millennium Development
Goals (MDGs) 16 . The indicator of
each dimension has the same
weight, and each dimension is
also attributed the same weight
(Figure 2.1). As of 2011, the MPI
has been used in 109 countries 17 .
FIGURE 2.1. Indicators of the Multidimensional
Poverty Index MPI
In 2008, the General Statistics
Office (GSO) calculated multidimensional
children poverty
indicators based on data from
VHLSS 18 . In 2009, UNDP funded the Project “Support to in-depth urban poverty survey
in Hanoi and Ho Chi Minh City” (UPS-2009). The Project applied a multi-dimensional
poverty measurement approach using eight indicators: income, education, health,
access to social security, housing quality and space, housing services, participation in
social activities and social security 19 .
2.2. Multi-dimensional nature of rural poverty at monitoring points
Multi-dimensional analysis of rural poverty is conducted at the monitoring points in
the following way:
1. Examine multi-dimensional poverty indicators as perceived by local residents
and cadres in ten surveyed communes. For each indicator, identify a “cut-off
point”. Those under this point are regarded by local residents and officials as
“poor” (Table 2.1).
2. Develop a table on poverty dimensions and poverty indicators for each
dimension using data from the interview sample of 600 households in ten
surveyed communes (Table 2.2).
3. Calculate data for each poverty dimension from 2007 to 2011. Poverty
dimensions have the same weights.
16 UNDP, Human Development Report 2010 “Real Wealth of Nations: Road to Human Development “, second
edition Nov. 2010. MPI Index was developed by OPHI and UNDP Human Development Report Agency based
on Alkire and Foster approach (http://www.ophi.org.uk/research/multidimensional-poverty/).
17 http://www.ophi.org.uk/policy/multidimensional-poverty-index/mpi-data-methodology/
18 GSO, “Results of Household Living Standard Survey 2008”, Statistics Publishing House, Hanoi, 2010
19 UNDP, “Urban Poverty Assessment in Hanoi and Ho Chi Minh City”, 2010