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.
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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.
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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
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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
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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
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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
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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
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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
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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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