The scientific basis of sustainable poverty reduction for rural households in Bac Kan province

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1 PREFACE 1. The background of the study The operation of the poverty reduction program on Bac Kan province obtains a lot of results which shows that the rate of poverty reduction decreases quickly (the rate of poverty reduction is 47,47% in 2008, 29,79% in 2009 and 17,6% in 2010); living standard is improved and increased day by day; and, social security becomes more stable. However, the rate of near-poor household is high (more than 16% in 2010); the risk of re-impoverishment is considerable; the stability of poverty reduction has not proved yet, especially in the case of farm and minority ethnic household. The questions are: Why the program of sustainable poverty reduction applying on the agriculture household in Bac Kan province is not sustainable? What is the solution? With the reasons mentioned above, the project “Scientific basis of the sustainable poverty reduction for farm household in Bac Kan province” was chosen. 2. Objectives of the study From the analysis of resources and the assessment of the stable poverty reduction status for rural households in Bac Kan province, the causes of limitation and the experience are pointed out and solutions to implement stable poverty reductions for rural households in Bac Kan are proposed. 3. Subjects and scope of the study 3.1. Subjects of the study All issues related to poverty reduction and stable poverty reduction for rural households in Bac Kan Province. 3.2. Scope of the study 3.2.1. Scope of contents (i) Assess the resources for poverty reduction and the status of stable poverty reduction for rural households in Bac Kan; (ii) Analyze the causes of limitation, the affecting factors and conclude the experience of stable poverty reduction for rural households in Bac Kan; Study and propose the solutions to improve stable poverty reduction for rural households in Bac Kan; 3.2.2. Scope of space: The project is studied in the area of Bac Kan and use the surveyed samples of 3 districts: Ba Be, Na Ri and Cho Moi. 3.2.3. Scope of time: Secondary data were collected during the period of 2008-2012; Primary data was carried out in 2011. 2 Chapter 1: SCIENTIFIC BASIS OF SUSTAINABLE POVERTY REDUCTION 1.1. Definition, criteria and threshold of poverty 1.1.1. Definition of poverty in the world In the official document of Comprehensive Poverty Reduction and Growth Strategy (CPRGS), the definition of poverty was introduced by the Asia – Pacific Conference on Poverty Reduction organised by ESCAP in Bangkok, Thailand in September 1993: [Poverty] “is a situation in which a proportion of the population does not enjoy the satisfaction of basic human needs that have been recognized by the society depending on the level of economic and social development and local customs and practices.” 1.1.2. Definition of poverty in Vietnam: So far, the government of Vietnam accepts the above definition of poverty 1.1.3. Measurement of poverty and poverty lines Poverty lines in Vietnam: Since 1993, Vietnam changes the poverty line in total six times. In the periods 1993-1994, 1995-1997 and 1998-2000, we used the poverty line according to the average income per person which is calculated to the quantity of rice (kg/person/month). In the periods 2001-2005 and 2006-2010, the poverty line according to the average income per person was used but it is calculated to the unit of monetary (dong/person/month). Under Resolution No. 09/2011/QDD-TTg of the Prime Minister on 30th January 2011, the poverty line of the period 2011-2015 was adopted. 1.2. Causes of poverty and the issue of sustainable poverty reduction 1.2.1. Causes of poverty Causes of poverty in the world: (i) Lack of knowledge; (ii) Disease; (iii) Ignorance; (iv) Dishonesty; and (v) Dependence. Causes of poverty in Vietnam: a) Historical reasons; b) Practical reasons. Causes of poverty of farm-household: (i) Occupant; (ii) Labour and job; (iii) Land; (iv) Property; (v) Human resource; (vi) Exterior connection; (vii) Institutional capital; (viii) Society. 1.2.2. Situation and causes of some poverty cases in Vietnam Situation and poverty of overcoming poverty cases: About finance; labour; natural conditions; conception and behaviour; 3 exterior supports; new livelihood, new production method and new races; abilities. Situation and causes of cases in which people are recently classified as the poor: Risk, labour, jobs, changes of occupant, social impacts. 1.2.3. Situation and causes of cases in which people have been classified as the poor: Finance, capital and natural conditions; Labour and jobs; Conception and behaviour. 1.2.4. The issue of sustainable poverty reduction Attitudes toward overcoming poverty, impoverishment, down of poverty, and sustainable overcoming poverty. Some researches relevant to poverty reduction 1.3. Actual situation of poverty reduction in Vietnam 1.3.1. Governmental policies of poverty reduction and sustainable poverty reduction National targeted programs are initial for sustainable poverty reduction National targeted program for poverty reduction determines its scientific basis which is suitable with the actual poverty situation in Vietnam 1.3.2. The outcomes of poverty reduction program in Vietnam before 2011 According to the poverty line in the period 2006 – 2010, the poverty rate in Vietnam is 15,5% in 2006 and decreases about 4,8% in 2010. According to the poverty line in the period 2011 – 2015, the poverty rate in Vietnam is 14,2%. The GINI index of Vietnam is 0,42 (times) in 2002 and increases to 0,43(times) in 2010. The GINI index in urban area is 0,41(times) in 2002 and decreases to 0,402(times) in 2010. Meanwhile, the GINI index in rural area has increased from 0.36 (times) in 2002 to 0.395(times) in 2010. The difference of income between the highest income group (group 5) and lowest income group (group 1) becomes larger and larger. It is determined to be 8,1 (times) in 2002; 8,2 (times) in 2004; 8,4 (times) in 2006; 8,9 (times) in 2008; 9,2 (times) in 2010; and increase to 9,35 (times) in 2012. It is an implicit cause of unsustainable poverty reduction in Vietnam. 4 1.3.3. The outcome of poverty reduction program in Vietnam in the period 2011-2012 Table 1.1: The investigation result of poor and near-poor household in Vietnm 2010 – 2012 No. Issue Unit 2010 2011 2012 Total number Household 21.518.063 21.938.260 22.375.863 1 Poor Household 3.055.565 2.580.885 2.149.110 household - Rate % 14,20 11,76 9,60 2 Near-poor Household 1.612.381 1.530.295 1.469.727 household - Rate % 7,49 6,98 6,57 Source: Ministry of Labour – Invalids and Social Affairs of Vietnam 1.3.4. Assessment of unsustainable poverty reduction in Vietnam Firstly, the fact of unsustainable poverty reduction in Vietnam should be interpreted by the poor household index. This index is quite equal as one of the previous period, and even becomes higher when the poverty line changes in the next period. Secondly, it should be concluded that the rate of poor and near-poor household is pretty high. Thirdly, the difference in income is considered as an expression of unsustainable poverty reduction. Fourthly, the poverty line of Vietnam is not updated in comparison with the poverty line of the world. Meanwhile, the increase of poverty line is slower than the increase of GDI per capita, which leads to the unreality in the announced poverty rate. 1.3.5. The challenges in sustainable poverty reduction in Vietnam (i) The impoverishment and the near-poverty ;(ii) the majority of the poor is concentrated in the mountainous area and among ethnic minority people; (iii) Poverty reduction and social equality; (iv) The possibility of new forms of poverty; (v) the effectiveness of poverty reduction and the reach of the world’s poverty line. 1.4. Experiences of poverty reduction in the world and in Vietnam 1.4.1. Experiences of poverty reduction in the world Experiences of poverty reduction in some countries such as: a) Korea; b) Bangladesh; c) China; d) Japan; e) Indonesia; g) Thailand; h) Malaysia. 5 Comprehensive experiences: Hypothetically, almost ideas of poverty reduction are mainly adopted in the essential part of development strategy and society management plans of the government. Practically, the learned lessons determine the important role of applying poverty reduction program by creating jobs, increasing salary, providing conditions and supports for the poor to overcoming poverty by themselves. Learned lessons of some countries in the world: a, Some comments; b, Some lessons for poverty reduction in Vietnam. 1.4.2. Poverty reduction experience in Vietnam Poverty reduction experience in some localities in Vietnam: a, Lao Cai province; b, Tuyen Quang province; c, Bac Giang province Learned lessons of sustainable poverty reduction of Bac Kan province. 1.5. Scientific basis of sustainable poverty reduction 1.5.1. Theoretical framework of sustainable poverty reduction According the above scientific points of view, the issue of sustainable poverty reduction should be established base on the dialectic relationship between sustainable development and poverty reduction. Sustainable development is the essential target and important part of sustainable poverty reduction program. Poverty reduction is the specific target and key part of sustainable poverty reduction. 1.5.2. Factors of sustainable poverty reduction (1) Government: Government plays an important role in developing and adopting policies, forming management system, creating capital resources, and implementing plans; (2) Communities, enterprises, and social and economic organization: are indispensable factors which express the resource sharing, and poverty reduction support in some aspects such as capital, market, jobs, education and cooperation; (3) Poor farm household: is both of subject and object of poverty reduction process, they should have conception of overcoming poverty. 6 Chapter 2: RESEARCH METHOD 2.1. Issues Firstly, is the poverty reduction for farm household in Bac Kan province is sustainable? Secondly, what are causes and learned lessons of unsustainable poverty reduction for farm household in Ba Kan? Thirdly, what is the solution to reach the sustainable poverty reduction for farm household in Bac Kan? 2.2. Analysis framework of the thesis Basing on the theoretical framework, we determine the factors and create analysis framework of the thesis (Picture 2.1). Objectives of the study Sustainable poverty reduction for rural households in Bac Kan province Rationale Factual basis Sceientific Basis Poverty and sustainable poverty reduction? Causes of poverty in rural households? Resaerch Methods Experience poverty for Bac Kan? Research Methods Access method Research Contents Poverty reduction policies in Vietnam? Evaluation of resources for poverty reduction Collecting data method Current situation of poverty in Bac Kan Analysing method The poverty reduction program in Bac Kan Assessment of poverty reduction in rural households of Bac Kan OVERALL ASSESSMENT OF SUSTAINABILITY OF POVERTY BAC KAN The study results Advantages and disadvantages Limitations and cause Lessons Learned Orientation and solutions for sustainable poverty reduction Diagram 2.1: Analysis framework of sustainable poverty reduction 2.3. Research method 2.3.1. Access method: access system method; access locality method, access private and public economy method; access method along with the participation. 2.3.2. Research method: historical method, case analysis method, quick estimate method; research method along with the participation 7 2.4. Choosing research area and colleting data 2.4.1. Choosing research area method: choosing research district; choosing research village 2.4.2. Collecting data method: collecting ancillary data, collecting primary data 2.5. Processing and data analysing method 2.5.1. Data analysing method: Excel 2.5.2. Analysing method: descriptive statistics method, organization method ; comparative method, egression method 2.6. Research targets 2.6.1. Targets group reflecting the factual investment for poverty reduction 2.6.2. Targets group reflecting the result of investment for poverty reduction 2.6.3. Targets group reflecting the sustainability of poverty reduction 2.6.4. Targets group reflecting the income inequality 2.6.5. Differences between unit percent and score percentage of reduces of poor Chapter 3: THE FACTUAL SITUATION OF SUSTAINABLE POVERTY REDUCTION IN BACKAN PROVINCE 3.1. Assessing the resources of poverty reduction in Bac Kan province 3.1.1. Natural resources: geographic location, terrain, climate, rivers and streams, natural resources. 3.1.2. Economic – social resources of Bac Kan province: the situation of utilizing land; situation of population and labour; the actual state of education and health; infrastructure conditions; human resources. 3.2. Situation of poverty reduction program in Bac Kan province 3.2.1. Overview Program 134: Program 134 is implemented under the Prime Minister’s Decision No. 134/2004/QD – TTg dated 20th July 2004 on a number of policies on support regarding production land, residential land, residential houses and daily-life water for poor ethnic minority households in the period. 8 Program 135, Stage II: Program 135, Stage II is implemented under the Prime Minister’s Decision No. 07/2006/QĐ-TTg on socioeconomic development of especially difficult communes in ethnic and mountainous areas, period 2006 – 2010. Disbursement in this period reached 413,838.836 90 million, accounting for 87% of proposed capital plan. Program 167: After 3 years of implementation, in 2011, Bac Kan has completed the housing program for 2.601 households with 65.277,4 million Vietnam dong of disbursed capital. However, recently some houses of program 134 deteriorated and need amending. Program 30a: Bac Kan province has two poor districts which are Ba Ba and Pac Nam. Program 30a includes four main contents: iSupporting production, creating jobs, increasing income; ii- Policies of education, training, and increasing standard of people; iii- Policies for officers in poor districts; iv- Policies and mechanism of infrastructure investment in villages, districts. 3PAD project: Pro-Poor Partnerships for Agroforestry Development Project (3PAD) is initiated on 27th May 2009, and completed on 30th June 2015, including three sub-projects: iManaging forestry land equally and sustainably; ii- Creating chances of increasing income for the poor; iii- Promoting invention relevant to environment improvement. Outcomes of some other projects (i) Preferential credit policy for poor household; (ii) Medical support policy for poor household; (iii) Education support policy for students who are ethnic minority people, and/or living in poor households; (iv) Project of supplementing young intelligentsia to poor villages; (v) Project of tree planning 611, and some other programs, projects. Some models and investment project in science and technology for sustainable poverty reduction such as: (i) Cultivating elephant grass to breeding bull, and buffalo; (ii) Developing buffalo herds and Mong Cai pigs; (iii) Breeding coats; (iv) Co-operation of three parties in cultivating speciality trees. 3.2.2. Investment situation of the poverty reduction programs of Bac Kan province From 2008 to 2011, the total investment capital for poverty projects and programs in Bac Kan province reaches 807.842 million 9 Vietnam dong, 42,48% of which is capital of program 135 – II, about 342.159 million Vietnam dong. Program 134 finished in 2008, and supplemented by program 1592 under the Prime Minister’s Decision no. 1592/QD-TTg dated 12th October 2009. Since 2009, program 30a and 3PAD project have been implemented. They have good outcome, stimulate the process of quick and sustainable poverty reduction, and increase social security in Bac Kan province. In 2011, the program basically erases temporary houses under the resolution no. 167/2008/NQ-TTg. 3PAD project has been implemented for three year, but there are only 20% fund disbursed. Consequently, in the last two implementing years of the project, we should pay attention on managing to complete project’s proportions. 3.2.3. Production result of agro-forest, fisheries industries of Bac Kan province after implementing poverty reduction programs Table 3.1. Production value of forestry of Bac Kan province Index General production value - Cultivation - Breeding - Agriculture services Value (Million Vietnam dong) Comparison (%) 2010 2011 2012 2011/2010 2012/2011 1.662.836 2.131.263 2.634.671 101,2 116,7 1.196.736 1.609.218 1.889.311 427.159 515.055 734.665 38.941 7.090 10.695 112,6 76,8 17,1 113,5 130,5 102,3 Source: statistical yearbook of Bac Kan province, *according to fixed price in 2010 The production of forestry sector in Bac Kan is illustrated in table 3.2. Table 3.2. Value of the production of forestry sector in Bac Kan Target Total production value 1. Planting 2. Exploitation 4. NTFPs 3. Forestry service Value (m. Vnd) Compared percentage (%) 2010 2011 2012 2011/2010 2012/2011 395.670 560.746 640.315 141,72 114,19 208.742 155.219 250.640 6.059 226.067 299.976 17.959 16.744 227.103 369.319 26.515 17.378 108,30 196,26 70,04 275,89 100,46 123,12 147,64 103,79 Source: Statistical Yearbook of Bac Kan province; * Calculated at constant prices in 2010 10 3.2.4. Outcomes of poverty reduction of Bac Kan province in the period 2006 – 2010 The poverty rate gradually decreases year by year. In period 2006 – 2010, this rate reduces from 41,47% to 17,6%. Annually, the rate declines about 5%. In 2010, four districts having highest poverty rates are Pac Nam (43,42%), Ba Be (331,32%), Ngan Son (20,34%), and Cho Moi (15,88%). Achievements of poverty reduction in previous years are significant. However, the line between the poor households and the overcoming poverty household should be considered carefully. According to the previous poverty line, the poverty rate of Bac Kan in 2010 is 17,6%. According to the new poverty line, the poverty rate is 32,13%, and the near-poverty rate is 16,93%, which is as much as these rates in the previous period. In other hand, beside two districts implemented 30a program are Ba Be and Pac Nam having considerable poverty rate and nearpoverty rate, there are two other districts which should be paid attention with high poverty rate. They are Na Ri district (46,02%), and Ngan Son district (30,21%). The near-poverty rate of Bac Kan is quite significant about 16,93% and as half as the poverty rate. This is a risk of impoverishment of farm household. 3.2.5. Poverty reduction result in Bac Kan province in the period 2011-2012 The results of poverty reduction in Bac Kan between 2006 and 2010 see table 3.3. Table 3.3. The poverty rate of Bac Kan province in 2006-2010 (Unit: %) Index District/ Commune 2006 2008 2010 1 Bắc Kạn commune 15,35 7,74 2,75 2 Ba Bể District 62,39 48,63 31,32 3 Bạch Thông District 34,13 24,03 8,99 4 Chợ Đồn District 35,67 20,94 8,42 5 Chợ Mới District 38,44 27,30 15,88 6 Na Rì District 42,50 29,33 19,35 7 Ngân Sơn District 46,95 34,26 20,34 8 Pác Nặm District 60,45 56,15 43,42 The whole province 41,47 29,79 17,60 Source: Department of Labour, Invalids and Social Affairs Bac Kan, 2010 According to the new threshold of poverty and the reviewed results of poor and near-poor households in 2010, there are two more 11 districts with high rate of poor households, which are Na Ri with 40.02% and Ngan Son with 30.21 %. In terms of near-poor households in Bac Kan, we find the rate of 10.93% is still high, accounting for half as much as that of poor households. This is a potential risk of poverty households. 3.3. Assessing the outcome of implementation of program “Supporting fast and sustainable poverty reduction” in two poor district under program 30a 3.3.1. The process of implementation of program 30a in two poor districts 3.3.2. The situation of implementation of program 30a in two poor districts Firstly, about the capital, the situation of providing capital of program 30a is not as good as expectation of the authorities. In Ba Be district, only 6,6% capital requirement is satisfied in 2010, and this number in 2011 is 19%. In Pac Nam district, 4,3% capital requirement is satisfied in 2010, and this number in 2011 is 9,1%. Secondly, the implementation of supporting poverty reduction policy in two districts is different from each other in both of the content and the form of implementing. Depending on actual need, natural condition, economic – social conditions, the organizing committee of the program “supporting fast and sustainable poverty reduction” gave the direction that each district carries on the program in the way which is suitable with the actual situation of its locality, according strictly to the provided plan. 3.3.3. Some comments, recommendations of implementing program 30a in Bac Kan province Public information and propaganda: The understanding of farm household, especially poor farm household, is under satisfaction; the ideas of dependence and waiting for support are popular; there is lack of initiative among poor farm households. There are a lot of success model in Bac Kan province which proves the pre-eminence of program 30a and other poverty reduction programs. It is the important factors which should be expand the scope, and stimulate the success of poverty reduction program. Advantages and difficulty in the process of implementing * Advantages: Program 30a is applied on a very large scope with the involvement of many people, social – political organization, and 12 all poor household. This scope is the motive for the poor household to learn the way to earn living, and develop their economic situation. * Difficulty: Because the changes of districts’ officers, the members of the program organizing committee often change. This change has considerable affect to the effectiveness of the program such as: (1) the direction and instruction are not continuous; (2) the capital for infrastructure construction is late, consequently that the price of construction material increases leads to many difficulties; (3) the officers of villages is still weak in management ability, and the lack of officers lead to some difficulties during the implementation; (4) the legislature giving direction of implementation is late, unclear; (5) the staff implementing program 30a is mainly young people, and lack of experience. Some insufficiency of program 30a’s implementation policies: * About the mechanism of capital resource combination: the mechanism of capital resource combination is provided and gave direction. However, the implementation is overlapped among the organizing units. * Other mechanisms and policies: there is no continuity in applying the policies which one time support to buy plant varieties, animal breeds, cultivate grass for breeding, build farm for poor household, especially minority ethic people. About the rice supporting policy, the support package should be base on not only the area of assigned forest, but also the number of people in their household. Preferential policies of health, education, and officer training should be specified. The near-poor household should be paid more attention because this is the group having high risk of impoverishing. The quota supporting package of breeding promote is low; the duration of lending is quite short about 2 years, and not enough for the farmer to collect the profits (quay vòng vốn đầu tư), and pay the bank debt. The authorities should amend and supplement the special norms which regulate the investment and bidding activities in order to make them suitable with the capacity of the poor district and increase the effectiveness of using capital. The provincial authority should arrange the financial resource for the activities of organizing committee and other relevant offices to carry on their jobs of organizing, implementing, supervising, preliminary summing, and 13 summing. It will help to ensure the financial resources for the regular activities and increase the active involvement of other parties toward program 30a. 3.4. Assessing the outcome of poverty reduction by investigating farm households 3.4.1. The fundamental situation of the investigated households The fundamental features of poor households are lower intellectual levels, bigger number of occupants, less land in comparison with near-poor households and mediate households. However, the near-poor households have very small amount of saving each year (about 1.475.000 dong/ year). Hence, in case of emergence, hardly can they overcome, and the risk of impoverishing is significantly high. 3.4.2. The causes of poverty of investigated households Lack of land: in Ba Be is 45,95%, in Na Ri is 50,14%, in Cho Moi is 40,12%; Lack of knowledge: in Ba Be is 20,03%, in Na Ri is 30,23%, in Cho Moi is 21,24%; Lack of capital: in Ba Be is 29,22%, in Na Ri is 22,31%, in Cho Moi is 16,63%. Some other reasons are dependent people, sick people, natural disaster, unemployment, and having family members involving in social evil. 3.4.3. Poverty situation of investigated households according to ethic minorities The rate of Tay ethic minority among the investigated poor household is 40,97% in Ba Be district, 39,42% in Na Ri district, and 54,67% in Cho Moi district. The rate of Dao ethic minority among the poor household is 29,22% in Ba Be district, 29,35% in Na Ri district, 22,01% in Cho Moi district. The rate of poor household in H’Mong ethic minority people is 81,15% in Ba Be district, 80,24%in Na Ri district, 70,32% in Cho Moi district. The rate of poor household in San Chi ethic minority people is 61,45 % in Ba Be district, 60,83% in Na Ri district, and 50,23% in Cho Moi district. These numbers are considered to be significant. 3.4.4. Assessing income of surveyed households The income rates among districts are different. Cho Moi district is located on Highway 3; therefore this district has better condition in transport and has the highest per capita income, specifically the total income per household is 32,658,688 dongs, per capita income is 14 6,403,664s. The district with the lowest per capita income with the total income per household is 25,622,160 dongs, per capita income is 5,180,380 dongs. 3.4.5. The expectations of the surveyed households There are 186 households that can borrow additional fund, accounting for 59.05% of the surveyed households. The number of households wishing to have land production support accounts for 45.08% of the surveyed households; production means support is 43.81%; training support is 57.46%; employment support is 46.35%; Earning methods support is 51.43%; labor export support is 53.33% and social pension is 52.38%. 3.4.6. Analyzing the affecting factors of rural households income Coob-Douglas Function(CD): In terms of other factors are constant, when agricultural land increases by 1%, it can make the average income increase by 11.91%, while employment increased by 1%, the average income increased by 11.83 %. However, the demographic factors, educational level, age of household head reduces the per capita income. The decrease in the average income level because of educational level is not accepted. Logit Function: Through the above results, in terms of other factors are constant, when the agricultural land of a household increases by 1 perch, the probability to overcome poverty increases by 0.98%; when the equity capital of a household increases by 1 million dongs, the probability to overcome poverty increases by 4.8%; when they are trained, the probability to overcome poverty increases by 9.2%. The results of the analysis of marginal influence on the probability to overcome poverty of rural households are important consultation for proposed solutions for sustainable poverty reduction for rural households in Bac Kan province in the near future. 3.5. Assessment of the instability in poverty reduction of Bac Kan province Firstly, the rate of poor households in Bac Kan decreases quickly but unstably, specifically, the rate of poor households decreased by 7.04%; in 2007, 4.6% in 2008 and 2009; 7.5% in 2010; 8.6% in 2011 and 3.14% in 2012. The above statistics are the illustration of the income instability of poor communities; therefore, in poverty reduction, the income stabilization for poor communities must be paid attention. 15 Secondly, the rate of near-poor households in Bac Kan is still high, which was 16.93% in 2010, 13.09% in 2011 and 11.25% in 2012, which doubles the average rate of the whole country (the current rate of re-impoverished households is about 7%). On the other hand, the near-poor households are supported by the government; therefore, when the supports are ended, or when the government change the threshold of poverty, they can possibly be ranked as poor again. Thirdly, when considering the relation between expenditure and income of income groups in Bac Kan from 2006 to 2012, which are illustrated in table 3.4, we find that, the households in group 1 and group 2 basically spend more than their annual earnings. Thereby, it can be said that one of their income sources us from their poverty pension. When there is no pension, they cannot overcome the poverty and possibly be ranked in poor group again. Table 3.4. The difference between average income and expenditure per month in terms of income groups in Bac Kan (Unit: thousand dongs) Index Income group 2006 2008 2010 2012* 1 Group 1 -26,15 -26 -56 -189 2 Group 2 -121,14 -121 41 -186 3 Group 3 19,40 19 23 24 4 Group 4 32,36 33 131 182 5 Group 5 305,07 305 757 1.323 Source: Statistical Yearbook of Bac Kan province in 2012 and the result of Living Standards Survey in 2012; * Forecast data Fourthly, the unequality of income among income groups tends to increase. Fifthly, the participation of businesses in poverty reduction in Bac Kan is still limited, the co-ordination among government, peasants, scientist and business are not close enough. 3.6. The causes of limitation and experience of stable poverty reduction for rural households in Bac Kan. 3.6.1. The advantages and disadvantages of poverty reduction in Bac Kan Advantages: Party, government and the locals have a tradition of patriotism, the spirit of solidarity and determination to build and develope their homeland; the area of forest land is large; the climate 16 and land are suitable for many crops of high economic value, which facilitate the development of forestry; The province has many products with high economic value and high quality, which have been brand and geographical recognized, such as: Red seedless, arrowroot vermicelli, Bao Thai rice Quang Thuan tangerine; Ba Be lake is considered one of 20 special freshwater lake in the world, ASEAN Heritage Park, great value for scientific research, ecotourism and other values and are supported with a lot of capital sources by the government and local authorities. Disadvantages: Complex terrain, commuter traffic difficulties results in long construction progress and high price; small, scattered production land without fertility creates difficulties for constructiing and implementing agricultural production; low education level limits the scientific and technical transference of applications for agriculture and forestry; the rate of poverty households in the districts within the province is high, with the need of large capital whereas the investment for poverty reduction programs is still limited; therefore, scattered and ineffective investments are unavoidable. 3.6.2. Limitations and causes Firstly, the capital provision for annual programs is still slow; secondly, community supervision systems for people are not proved all of their responsibility and authority; thirdly, despite of the implementation of decentralized management mechanism for commune investment, the commune does not have sufficient management capacity; fourthly, organizational capacity and ability to implement programs and projects at all levels of the agency are insufficient in quantity and poor in quality; Fifthly, the integration and its levels are unclear and inconsistent. 3.6.3. Experience for stable poverty reduction in Bac Kan Firstly, it is necessary to build a strong mechanism to attract all of the social resources to invest in poverty reduction; Secondly, planning, supervising and checking the investment implementation for poverty reduction programs needs to be better so that the investment is provided in time and suitable for local needs; fourthly, it is essential to enhance investment, complete the systems of canals, pumping stations, dams, lakes and improve the methods of management, exploitation and maintenance. Fifthly, improving administrative decentralization and mechanisms, promoting and 17 enhancing the management and monitoring capacity for local officials, training specialized skills in coordinated planning, implementation and monitoring management for people;Sixthly, it is necessary to increase the maximum loan support to facilitate the producing expansion of the poor households; Seventhly, the need to operate training sessions to detailedly helps the local people approach new advanced technical so that they can apply and practice right on their land; Eighthly, the necessity to plan to ensure opportunism, identify right seedlings to appropriately support each locality and in accordance with the conditions of each household production. Ninethly, the necessity of helping people to associate with businesses, or helping people to develop craft villages, selling agro-forestry products; Tenthly, we should strengthen the propaganda and raise public awareness on the issue of poverty, the people's awareness on poverty reduction. Chapter 4. ORIENTATION AND SUSTAINABLE SOLUTIONS FOR POVERTY REDUCTION FOR THE POOR HOUSEHOLDS IN THE AREA OF BAC KAN PROVINCE 4.1. Orientation and objectives of sustainable poverty reduction 4.1.1. Orientation of sustainable poverty reduction for the poor households in the area of Bac Kan province Firstly: Sustainable poverty reduction have to stick to policies and directional viewpoints of the Party and State, to indentify the leading role of the State in poverty reduction strategies and sustainable poverty reduction; Secondly: Sustainable poverty reduction must be linked to focusing investment in developing and improving the quality of infrastructure, transportation, irrigation, health facilities, schools, the media information centers, the bases of researching and transfering science and technology; Thirdly: Sustainable poverty reduction has to reassure the requirements of porverty reduction and the sustainable economy, society and environment; Fourthly: Sustainable poverty reduction needs to be socialized in order to focus properly on resources to reduce poverty, promote the role of the social organizations, the socio-economic organization and business enterprises as well as individuals within the country and from outsiders; fifthly, sustainable poverty reduction has to be conducted steps by steps and associated with multi-dimensional poverty 18 reduction, strengthening the internal capacity for poor household so that they themselves can escape from poverty and not reporverish.. 4.1.2. Specific objectives *. Objectives to the year of 2015: Economic growth from now and 2015 at an average rate of 13% or more (period from 2008 to 2012 got the rate of 12.19%); to 2015, reducing the poor households rate by 7-8% (average reduction rate of 5%/ year), reducing the nearpoor households rate by 3-5% (average reduction rate of 3%/year); providing jobs for at least 6,000 employees anually; proportion of trained workers of 35%; ensuring that 100% of the urban population and 95% of the rural population to have access to safe water; the average food per capita is 520kg/a person/year; there must be 80% of the villages meet the requirement of national economic standards; there must be 30% of communes getting out of the particularly difficult area; 30% of communes getting full basic criteria of new rural area. *. Objectives to the year of 2020: Maintaining economic growth rate of 13% or more; Reducing poverty rate that is equal to the area; Improving capacities for local people and communities, basically solving unemployment issue, increasing incomes, improve people's lives up to 4-5 times in comparison with the current status; reducing the proportion of agricultural laborers to the rate that is less than 50%; improving the poor's living conditions, especially in health, education, culture, drinking water and housing, the poor have more favorable access to basic social services; socio-economic infrastructure in poor districts and poor communes as well as particular difficult villages are considered focusing to invest in the criteria of the new countryside policy, firstly are the essential infrastructure such as transportation, electricity, clean water. 4.2. Sustainable poverty reduction solution for farmers in Bac Kan province 4.2.1. The general groups of solutions Groups of solutions of policy mechanisms to support and facilitate from state and community; (i) Strengthening the leadership, the leadership of the Party committees, governments at all levels, conducting the complete collaboration with the social unions and the positive response of the society to poverty reduction; (ii) steering Leadership committee and assisting organs of all levels to ensure 19 adequate capacity and competence to effectively implement policies and projects of poverty reduction programs; (iii) implementating the decentralized management and the using of funds for the commune in the form of targeted financial supporting packages, local selfdetermination, taking responsible to the citizens and superior management agencies; (iv) having plans to train the officials, especially local officials to get qualified staff having capacities of leadership, administration and effective use of investment resources for poverty reduction and other integrated programs; (v) developing mechanisms and implementating relationships between the four parties State - Farmers - Scientists - Enterprises. Groups the solutions of socio-economic development in Bac Kan in terms of stable poverty reduction: (i) It is necessary to check, double-check, plans to renew, renovate and upgrade the inter- district, inter-commune, inter-village transport system. Maintain the constant connection among transport systems in the province;(ii) Examining and having plans to renovate and build irrigation systems, canals system, ensuring the irrigation for production and daily needs of the people; (iii) Examining and implementing plans to upgrade and improve the national power grid in the power systems of the province, ensuring that 100% of communes can have adequate electric power; (iv) Investing in the constructing health facilities, schools, information centers, cultural venues, public services, that meet the local needs of learning, health care and entertainment.; (v) Prioritizing investment in the construction of scientific and technical centers, equipping good technical facilities for production and transfer of science and technology, firstly is the centers of crop varieties and livestock breeds serving the agricultural and forestry production; (vi) It is necessary to reassess the situation of natural, social and economic resources of the province to determine the orientation of economic restructuring in Bac Kan province on the scale of the whole economy and in each specific economic sector, to fully exploit the resources and appropriately implement sustainable development objectives of Bac Kan province; (vii) In agricultural and forestry economic transformation we have to achieve the objective of food security and the development of commodity production under the direction of industrialization and modernization; (viii) selecting leading advanced scientific technologies which are suitable for each sector within the 20 agriculture and forestry sector and for each type of production in the area; (ix) spromoting foresty economy development associated with cropping model, livestocking model and building aggregrated models of agroforestry, maximizing the strength of forest land. Group of measures to enhance internal capacity for farmers in Bac Kan province: (i) Organizing disseminational guidelines and policies of the Party and State on poverty reduction, focusing on the combined use of various communication channels to convey complete and accurate modes and policies to people; (ii) Establishing monitoring, synchronous evaluation, comprehensive progress and monitoring results of implementation of poverty reduction systems; (iii) On the view of supporting productive land, we should review the local land resource, if there is still available land resource, we should assign the land to ethnic minority households basing on the production rate. For landless farmers, we should train and create employments to help them transfer to other jobs, create jobs to help them have stable income. Attaching the allocation to extension and credit support to help people use their land effectively; (iv) On the view of supporting the current housing, Bac Kan has basically finished deleting temporary home thanking to the national 167 program. However, because the funding limitation of national 134 programs previously, some cases have been downgraded and need to be reviewed and provided appropriate policies; (v) On the water supplying, The State has been building clean water containers for dense populated areas, supporting partial funding to the poor households living in difficult high mountainous areas that have difficulty in getting clean water. However, this support is too low meanwhile the prices of raw materials and shipping charges are too high, there is not enough funds for the poor to build clean water containers or drill wells; (vi) simultaneously and effectively implementating supporting policies for the poor, the poor household, especially the policy of quick and sustainable poverty reduction programs in 2 poor districts Ba Be and Pac Nam. 4.2.2. The specific groups of solutions for sustainable poverty reduction for poor districts, poor communes, poor and near-poor households in Bac Kan Groups of solution for poor districts, communes and poor communes with special difficulties: (i) increasing investment and making good constructional project in enhancing infrastructure in
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