WB Calls for “Dynamic” Approach to Poverty Reduction in Vietnam

The World Bank (WB) has called for a “dynamic” approach to poverty reduction in Vietnam as the country is facing tremendous challenges amid economic woes, according to a new WB report released on Jan 24.The 200-page dossier, titled “Well Begun, Not Yet Done: Vietnam’s Remarkable Progress on Poverty Reduction and the Emerging Challenges,” is a collaborative effort between the WB and the Vietnam Academy of Social Sciences (VASS).The report pointed out some key challenges in the next decade such as changing regional patterns of poverty and wealth, high and persistent poverty among ethnic minorities, and rising inequality in outcomes and opportunities.Although Vietnam has 53 ethnic minority groups, which accounts for 15% of the national population, they made up 50% of poor people across the country in 2010. The groups mainly live in rural and remote areas, which have low labor productivity, are vulnerable to natural disasters and suffer numerous socioeconomic difficulties.Nguyen Thang, director of the Center for Analysis and Forecasting at VASS, said that poverty must be approached as a “dynamic” term, which means policies must go beyond targeted programs and address factors that keep households vulnerable to poverty such as job losses or natural disasters.Presenting the report, Dr. Valerie Kozel, senior economic expert at the global bank, said that Vietnam’s record on economic growth and poverty reduction over the last two decades has been remarkable. Poverty rate fell from 58% in the early 1990s to 14.5% by 2008 and to below 10% by 2010.Despite the remarkable progress, the report said poverty reduction is still not complete, and in a number of aspects the task is even more difficult. Although tens of millions of Vietnamese households have risen out of poverty, many may fall back into poverty.By March 2012, up to 2.58 million households were deemed poor and 1.53 million near-poor, as shown in a national survey by the Ministry of Labor, Invalids and Social Affairs (MoLISA).The government spent a total VND8.8 trillion ($419 million) on social security and poverty reduction in 2012, surging by 174% against 2011, according to the government’s General Statistics Office. (Vietnam News Jan 25, Thoi Bao Kinh Te – Economic Times Jan 25 p3, vietnamplus.vn Jan 24)