Challenges to Rural Poverty Reduction in Viet Nam - Oxfam Blogs

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Participatory poverty monitoring in rural communities in Viet Nam 86 Solidarity Day, customary rituals etc.) and especially to help households who are short of food prior to harvests, visits to households who have sick members or where someone has recently died (Box 3.1). BOX 3.1. Village paddy fund plays the role of community security net in Ban Lien commune - Lao Cai “Village Paddy Fund” is an effective community security form in Doi 1 village, Ban Lien commune (Bac Ha, Lao Cai). The paddy fund was established in 2002 with 35 kg, by 2011 it rose to 870 kg. Under the village convention, a married couple separated into a household (by house roof) contributes 15 kg paddy. The fund is used to lend to households in the village prior to harvests with an interest rate of 20% a year (2kg per 10kg borrowed). Those households who borrow paddy for weddings or funerals do not have to pay interest. Most poor households in the village have borrowed paddy from this fund. In 2011,14 households borrowed between 22kg and 70kg from the fund. The paddy fund is managed by the Village Fatherland Front Committee. Some ethnic minority communities (Xy-Quang Tri, Luong Minh-Nghe An), distribute assistance from programmes and projects equally between households or according to household size. The experiences of some communes suggest that in some cases the poor would benefit if provided with a greater than average share. Religious organizations play an important role in times of hardship. Typical examples are the Sang Khum association of Kh’mer people (in Thuan Hoa-Tra Vinh), Catholicism and Buddhist Pagodas. For example, in 2010, in Cu Hue, Dak Lak, the Buddhist Shanga raised funds to help a household whose house was burnt down. Community based security institutions are in decline in lowland communes. Mechanisation and the availability of surplus labour has caused a reduction in the practise of labour exchange. Poor households are also less dependent on extended family members and relatives because they can borrow from shops and sales agents. More and more people work away from home which also make community security institutions difficult to be maintained. The impacts of natural disasters, epidemics, disease, and inflation are becoming too complex for community institutions alone. 3.5. Vocational training Vocational training in remote mountainous ethnic minority areas is limited. Crucial information about vocational training (providers, policies and possible jobs for those who have received training) is poorly communicated. Most poor people are not interested in vocational training as they need daily works for immediate cash to feed their families, do not have the time or literacy to benefit. A number of courses also have little relevance to the local economy. As they are short (2-3 months), and the level of training is limited, many courses are not very effective. There is no system of monitoring and evaluation and so it is difficult to assess the quality of the courses. Although Resolution 30a on “Support Programme to rapid and sustainable poverty reduction for 61 poor districts” and Decision 1956 on “Support to vocational training for rural labourers by 2010” have strengthened vocational training for rural labourers vocational training for the poor remains a challenge.
Five-year Synthesis Report Part 2: Challenges to Rural Poverty Reduction in Viet Nam 4. COPING WITH PRICE VOLATILITY High inflation rate is a hot issue in Viet Nam since 2007. In particular, in 2008 and 2011 24 , inflation was a great challenge to macroeconomic stabilization as well as people’s lives. This section presents the trend of price volatility in 2011 and its impacts on people’s lives and livelihoods at the monitoring points. 87 4.1. Price volatility and the role of market agents Price volatility in 2011 at monitoring points The correlation between the price of agricultural produce, agricultural supplies and food varies between monitoring sites. In communes with favourable conditions for large-scale commodity production (Thanh Xuong-Dien Bien, Cu Hue-Dak Lak and Thuan Hoa-Tra Vinh), compared to 2010 the average sale price in 2011 of rice and maize increased by 25-30%, coffee 50% and key agricultural supplies by 25-30%. In other communes, the price of agricultural inputs rose faster than outputs. In 2010-2011 in Duc Huong-Ha the price of peanuts, the main product, increased by 5%, while the price of fertilizer increased by more than 30%. In mountainous areas (Luong Minh-Nghe An, Xy-Quang Tri and Phuoc Thanh-Ninh Thuan) where rice from self-production is insufficient, the prices of rice increased by 25-30%. Strong seasonal price volatility is severely affected by natural disasters, epidemics, diseases and world markets. At the monitoring points, the price of rice, maize, and coffee at the end of the harvesting season is at least 20-30% higher than that of the beginning of the season or main crop harvest. The quality of agricultural produce greatly affects its price. A typical example is the price of fresh cassava in Xy-Quang Tri in September 2011 which fluctuated between 900 VND/kg and 2,000 VND/kg depending on the concentration of starch. The “blue-ear” epidemic in pigs in 2010 was the main cause of high price of piglets in the first months of 2011. Changing world markets have rapid and strong impacts on the price at the monitoring points, such as the daily change in price of coffee in Cu Hue-Dak Lak which closely follows the world coffee price. The role of market agents in the wake of price volatility Enterprises cannot help farmers with volatile prices. Enterprises purchase products from farmers (tea processing enterprises in Ban Lien-Lao Cai, cassava processing enterprises in Xy-Quang Tri, and coffee export enterprises in Cu Hue-Dak Lak). Enterprises support the production process (training, technical assistance, provision of seeds and fertilizer), however most enterprises purchase agricultural produce at prevailing market prices. Sale agents reduce the amount of lending agricultural supplies in the wake of price volatility. People in many places (Thanh Xuong-Dien Bien, Duc Huong-Ha Tinh, Cu Hue-Dak Lak, and Thuan Hoa-Tra Vinh) can buy fertilizer, rice, food, sundries from sale agents on credit and pay later at a price that includes interest. Some sale agents lend agricultural supplies and purchase produce at a discount. Price volatility in 2011 meant many sale agents lent less to farmers. The volume of fertilizer sold in 2011 fell in in Duc Huong-Ha Tinh (by 20%) and Cu Hue-Dak Lak (by 30%). Changing prices also affect buyers. In Duc Huong-Ha Tinh, the price of peanuts (25,000 VND/kg) and green beans (24,000 VND/kg) fell by 5,000 VND/kg in 2011. Many agents who had bought and hoarded produce made a significant loss. 24 Average consumer price index in 2008 increased 22.97% against that in 2007. Average consumer price index in 2011 increased 18.58% against that in 2010; in which the price index of agro-forestry produce and aqua products was up by 31.8%; and the price index of inputs and fuel used for production 21.27%; the price index of transportation cost 18.52%. Source: GSO website, http://www.gso.gov.vn/default. aspx?tabid=413&thangtk=12/2008 and http://www.gso.gov.vn/default.aspx?tabid=507&ItemID=12128
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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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Page 36 and 37: Participatory poverty monitoring in
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