Poverty Task Force. Quang Tri. Participatory Poverty Assessement

Poverty Task Force Quang Tri Participatory Poverty Assessement 2003

Quang Tri Participatory Poverty Assessment Hanoi, February 2004 i

Quang Tri Participatory Poverty Assessment ii

Foreword by the Poverty Task Force In May 2002, the Government of Vietnam finalized its Comprehensive Poverty Reduction and Growth Strategy (CPRGS) and embarked on a process to make the CPRGS a reality at local levels of Government. Through information campaigns and a series of regional workshops, officials from key national ministries have been explaining to representatives from local authorities how local level planning processes could be made more pro poor, more evidence based, more outcomefocused, better aligned to resource allocation decisions and better monitored. During 2003 the Poverty Task Force (PTF) supported Participatory Poverty Assessments (PPAs) in twelve provinces in Vietnam. These PPAs used a common research framework and methodology to investigate issues around poverty that were not well captured by the available quantitative date. The intention was to produce research which could be used, together with data from the Vietnam Household Living Standards Survey, to inform the CPRGS secretariat on progress to date in implementing the CPRGS. The PPAs were also designed to provide information for new regional and national studies of poverty and these have now been published separately. The regional poverty assessments will, in turn, be used as an instrument in building capacity in pro poor planning processes at subnational levels of Government. Eight donors contributed financial and human resources to support the PPAs underlying the preparation of this report and its complementary RPAs. These are the ADB, AusAID, DFID, GTZ, JICA, SCUK, UNDP and the World Bank. Each of the donors played a leading role in one of the regions of Vietnam. The distribution of regions among donors, summarized in Table A, was based on the donors trajectory in the field. By choosing regions where they are wellimplanted, through projects and technical assistance activities, donors could take full advantage of the insights accumulated while working there. Several teams conducted the PPA work in 43 communes scattered across the entire country. Among them were two international NGOs (Action Aid and SCUK) and various local NGOs and research institutes, including CRP, the Institute of Sociology (IOS), the Long An Primary Health Care Center, the Rural Development Service Center (RDSC) and Vietnam Solutions. In addition, two of the donors carried out the research by setting up teams of local researchers under their direct management. The local knowledge and expertise of these NGOs and research institutes was key to the quality of the exercise. A coordinating mechanism was set up for the PPAs. Members of most of the research teams were involved in drawing up the research framework and establishing a common understanding of what was to be achieved from the field research. The latter was iii

Quang Tri Participatory Poverty Assessment piloted by several of the teams and the research outline was modified to reflect the lessons learned. The final research framework covered the following areas of investigation: Perceptions of and trends in poverty, poverty dynamics and vulnerability; Progress in strengthening democracy at the grassroots level, especially the degree to which poor households can participate in a meaningful way in planning and budgeting processes; Challenges in the delivery of basic services, focusing on how poor households interact with service providers and how poor households can be empowered to claim their rights to basic services more effectively; The current mechanisms for delivery of social assistance (linked to the targeting work above) and how they might be improved; How the reform of the public administration is taking place at local levels of Government; The challenges of migration and the link between household mobility, poverty and access to services; and, Information about the environment of the poor and how it is changing. These PPAs are now being published as a series. A separate report will synthesise the findings across the 43 communes and provide a more aggregated analysis of these themes. Another report summarizes the approach to the research, the methodology use and sets out the detailed research questions. iv

Table A: Partnerships for the Regional Poverty Work Region Provinces included in the region Donor in charge of the RPAs PPAs Province District Communes Team in charge of the PPAs Northeast Uplands Ha Giang, Cao Bang, Lao Cai, Bac Kan, Lang Son, Tuyen Quang, Yen Bai, Thai Nguyen, Phu Tho, Vinh Phuc, Bac Giang, Bac Ninh, Quang Ninh DFID and UNDP Lao Cai Ha Giang Bao Thang Muong Khuong Vi Xuyen Dong Van Ban Cam Phong Nien Pha Long Ta Gia Khau Cao Bo Thuan Hoa Sang Tung Thai Pin Tung Ageless Consultants (funded by DFID) Action Aid (funded by UNDP) Northwest Uplands Lai Chau, Son La, Hoa Binh Red River Delta Ha Noi, Hai Phong, Ha Tay, Hai Duong, Hung Yen, Ha Nam, Nam Dinh, Thai Binh, Ninh Binh WB Hai Duong Nam Sach Nam Sach Nam Trung Ha Tay Dan Phuong My Duc Tho An Lien Ha Te Tieu Phuc Lam RDSC (funded by WB) North Central Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue GTZ and JICA Nghe An Quang Tri Nghi Loc Tuong Duong Hai Lang Gio Linh Nghi Thai Tam Dinh Hai Son Hai An Gio Thanh Linh Thuong IOS (funded by JICA) Team comprising MOLISA, ILSSA and independent researchers (funded by GTZ) Central Coast Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa ADB Quang Ngai Son Ha Tu Nghia Son Ba Son Cao Nghia Tho Nghia An Vietnam Solutions (funded by ADB) v

Quang Tri Participatory Poverty Assessment Table A: Partnerships for the Regional Poverty Work (continued) Region Provinces included in the region Donor in charge of the RPAs PPAs Team in charge of the PPAs Province District Communes Central Highlands Kon Tum, Gia Lai, Dak Lak ADB Dak Lak EaHleo Dacrlap Eaheo Ea Ral Đao Nghia Quang Tan Action Aid (funded by ADB) Buon Ma Thuot city Ea Tam town Southeast HCMC, Lam Dong, Ninh Thuan, Binh Phuoc, Tay Ninh, Binh Duong, Dong Nai, Binh Than, Ba Ria-Vung Tau WB HCMC Binh Chanh District District 8 Ward 4 Ward 5 An Lac Township Tan Tao SCUK (Funded by itself) Ninh Thuan Ninh Phuoc Phuoc Hai Phuoc Dinh CRP (Funded by WB) Ninh Son Luong Son My Son Mekong River Delta Long An, Dong Thap, An Giang, Tien Giang, Vinh Long, Ben Tre, Kien Giang, Can Tho, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau UNDP and AusAid Dong Thap Tam Nong Thap Muoi Phu Hiep Phu Tho Thanh Loi Long An Primary Health Care Centre (Funded by UNDP and AusAid) Ben Tre Thanh Phu My Hung Thoi Thanh Mo Cay Thanh Thoi vi

Acknowledgement This poverty participatory assessment (PPA) is a product of the Vietnamese German Cooperation Program. It has been completed with valuable inputs from a number of specialists working in central agencies/institutions, research institutes, the Department of Labor, Invalids and Social Affairs, non governmental agencies. The following experts and professionals have collaborated under the direct monitoring of the Vietnamese German Cooperation Program: MOLISA GTZ Poverty Project: Dr. Ngo Huy Liem, adviser Institute of Labor Science and Social Affairs: Ms. Nguyen Thi Lan Huong, Deputy Director, Team leader of the research group; Ms. Tran Thi Tuy Hoa and Mr. Nguyen Minh Tuan, both researchers; National Program for Hunger Eradication and Poverty Reduction (HEPR)/ Employment Office: Mr. Thai Phuc Thanh, Ms. Le Minh Giang, both specialists; Vietnamese German Cooperation Program: Ms. Nguyen Thi Nga, senior program officer; Mr. Nguyen Hai Truong and Mr. Nguyen Manh Tuan, both program staff Institute of Sociology: Ms. Dinh Thi Phuong Thao, Ms. Nghiem Thi Thuy, researchers; Yen Bai Department of Labor, Invalids and Social Affairs: Mr. Nguyen Binh Minh, Mr. Phan van The, Mr. Pham xuan Tung, specialists Action AID Hatinh: Ms. Nguyen Thi Huong, Ms. Phan Thi Ha, Ms. TuThi Nga, program officers. Quang Tri Department of Labor Invalids and Social Affairs: Mr. Nguyen Tri Thanh, Mr. Nguyen Tri Dzung, Mr. Nguyen Minh Son, specialists. Gio Linh District People s Committee: Mr. Nguyen Dang Phuc, Ms. Le thi Thuy, officers Hai Lang District People s Committee: Mr. Nguyen Manh Hung, officer vii

Quang Tri Participatory Poverty Assessment viii

Table of Contents Foreword by the Poverty Task Force...iii Acknowledgement...vii Executive Summary...1 Survey Findings...3 Overview...7 I. Profile of Quang Tri Province...7 II. Selection of Survey Sites...8 Chapter I: Inter Relation Between Economic Growth, Poverty and Employment...10 1. Difficulties in HEPR work in Quang Tri Province...10 2. Poverty under both Fiscal and Non Fiscal Aspects...11 3. Causes of Poverty...12 4. Poverty Trend...12 5. List of the Poor: the Procedure...15 6. Opportunity Generation through the Labor Market...17 Chapter II: Basic Social Services for the Poor...21 I. Education...21 1. Various Policies in Support of Education for the Poor are Existing...21 2. Education network, facilities and teachers...24 3. Access to Educational...26 4. Drop outs Rate among Poor children...26 II. Health Care...30 1. Current Status of Health Care Network...30 2. Health care in Support of the Poor...32 3. Difficulties in Delivering Health Care Support Services to the Poor...33 4. Difficulties Faced by the Health Sector in Implementing Decision 139 in Quang Tri Province...37 III. Agriculture Forestry fishery Extension Plants Protection and Vetevinarian Services...37 1. Agriculture forestry fishery Extension Plan Protection and vet 7 Play a Crucial Role in Poverty Reduction Activities in Quang Tri Province..38 2. Role of Social Organizations in Agriculture Extension...40 3. Involvement of the Poor in Agriculture Extension Activities...41 4. Problems, Difficulties Facing Agriculture Extension Activities...42 Chapter III: Quality and Targeting of Social Assistance...42 1. Social Subsidy in Quang Tri Province is Badly Needes...47 2. Regular Subsidy 8...49 3. Emergency Aid...52 4. Exemption from Obligations, a type of Social Subsidy...55 ix

Quang Tri Participatory Poverty Assessment 5. Informal Social Support...57 Chapter IV: Current Patterns of Participation in Local Decision Making...59 1. The Implementation of the Grassroots Democracy...59 2. Understanding of grassroots democracy...59 3. Impact of grassroots democracy on the communication process...60 4. Impact of Grassroots Democracy on the Participatory Decision Making Process and the Supervision of Programs and Policies...63 5. Grassroots democracy reduces the number of petition cases...66 6. GDD and the improvement of relations between organization and the community...67 7. Decentralization and Empowerment...69 Chapter V: Part A Public Administrative Reform (PAR)...71 1. Implementation Process and Administration Reform Model...71 2. One door Policy for Land Allocation and Issuance of Certificates of Land use right...71 3. The Impact of Public Administration Reform (and One door Policy). 72 4. Difficulties/challenges in the Implementation of the Public Administration Reform...76 5. Some Issues...77 Chapter V: Part B Implementation of the Enterprise Law...79 1. Increase of Newly Established Enterprises...79 2. Preferential Policies to Attract new Enterprises...80 3. More Labor in Growing Enterprises...80 4. Some difficulties in job Creation for the poor...81 Chapter VI: Migration...82 1. Status of Migration in the Province...82 2. Migration Goals...85 3. Impact of Migration...85 4. Problems and Difficulties of Migrants...88 Chapter VII: Environment...90 1. Environment Issues Related to Daily Life...90 2. Environment Protection Activities Raise Income...91 3. Scarce Virgin Forest (about 15%), and Depletion of Natural Resources due to Over exploitation...92 4. Environmental Pollution...93 5. Living Environment of the Poor...94 Chapter VIII: Measures for Growth and Poverty Reduction in the years Ahead...97 Annex: Poverty Assessment in Quang Tri Some Survey Findings...106 x

Excutive Summary Excutive Summary The Comprehensive Poverty Reduction and Growth Strategy (CPRGS) was ratified by the Government of Vietnam in May 2002. This document was considered a basic legal framework to enable the integration between growth and economic development objectives, hunger elimination/poverty reduction and social justice. To prepare for the mid term review of the strategy implementation, GTZ has collaborated with other donors to conduct a poverty assessment among 12 selected provinces, covering the most important elements of economic development and HEPR. In Quang Tri Province, chosen as one of the assessment areas, the inter sectoral assessment team conducted site activities from July 12 to 22, 2003 under the technical assistance and direct monitoring of GTZ, after reviewing available data on the poverty status and other related matters pertaining to the province of QuangTri. Methodology: (i) Participatory assessment was used as the key tool in collecting information; (ii) Secondary data were also collected and analyzed, including statistics on poverty and other related matters, information from development strategies and annual reports, bi annual reports submitted by relevant agencies. The assessment covered seven key areas: (i) Poverty and employment; (ii) Basic social services (health care, education and agriculture extension); (iii) Quality and targets of social protection programs; (iv) Participation and empowerment; (v) Administrative reform; (vi) Environment (vii) Migration Chapter I examines the current status of poverty and several HEPR trends existing in QuangTri Province, according to ideas exposed by different respondents including the community and local authorities at various levels. Non physical aspects of poverty were also analyzed in this chapter to correctly identify the poor or poor groups. The correct identification of target groups aims at facilitating policy making and guaranteeing a sustainable monitoring mechanism. The vulnerable characteristics of the poor particularly in the context of a diversified economy and the increasing trend of employment mobility are also analyzed in this chapter, as well as strategies to support the poor in order to reduce their vulnerability. 1

Quang Tri Participatory Poverty Assessment Chapter II reviews the delivery of basic social services to the poor, with focus on health care, education and agricultural extension services. While quantitative data and administrative reports usually refer to tendencies, the results of this survey analyze the quality of the services provided, including an assessment made by the poor of the capability of the service network, the poor s accessibility to the services and their satisfaction levels. Chapter III assesses the quality of the social protection services with focus on both the formal and informal networks. It also analyses the accessibility to social assistance of the poor; policies/schemes adopted by the Government as well as other networks to help households and the community at large avoid, mitigate and eliminate risks. Chapter IV deals with issues of participation and empowerment. It evaluates people s participation particularly of the poor, women and ethnic minorities in the implementation process of Decree 29 regarding democracy at grassroots level in budget planning and other planning schemes. Chapter V engages in a discussion on the administrative reform, the change from administrative units to public services to ensure more transparency and efficiency. The pilot experiment of the one door policy in granting land use rights and its impact are presented in this chapter, as well as its impact on poverty alleviation. Chapter VI and VII focus on migration and the environment in which the population are living. They analyze how those issues impact economic growth and the HEPR program in the community. In order to collect the information needed, the research team discussed with more than 200 staff representing various agencies, institutions and unions as well as interviewed more than 250 people representing among others poor and ethnic minority households. 2

Survey Findings Survey Findings 1. Consultations with local authorities and people in eight villages of two districts, i.e., Gio Linh and Hai Lang, show that economic growth and poverty reduction are closely related. That Quang Tri has maintained a high growth rate (over 9% per annum) over the last years has created a momentum for broad based poverty reduction. The poverty incidence has declined on average by 2% per annum. 2. Poverty reduction achievements, however, are not sustainable. Poverty tends to concentrate in mountainous, coastal areas and plains with inadequate infrastructure. Most households are low income, on the threshold of poverty and thus utterly vulnerable as soon as adverse events occur (drought, crop failure, sickness, accident). 3. The causes of poverty in Quang Tri are diverse. They include: poor economic potential, harsh natural conditions, heavy effects from the war, inadequate infrastructure, sluggish adjustment of policies towards economic development, and limited capabilities of the poor themselves. 4. Typical features of poor households in Quang Tri include: lack of production tools and business experience, vulnerability to sickness, large families, household members with disabilities, single households or beneficiaries of social policies. Most of them are poorly educated and work mainly in agriculture where productivity is low and unstable. Poor resources make the poor vulnerable to calamities, crop failure, epidemics, sickness, etc. 5. Poverty reduction is seen as one of the urgent and long term tasks of the Quang Tri provincial government. The province has declared that the poverty reduction strategy should include: transformation of economic structures, diversification of incomes, and provision of direct support to the poor (individuals, households, areas) through the national poverty reduction program and other supports. But difficulties still abound, due to poor infrastructure and the slow pace of economic development, the undeveloped labor market and high risks faced by key industries. This poses significant challenges to poverty reduction activities and economic growth in the years ahead. 6. As other provinces, Quang Tri has actively implemented policies to support the poor such as health care and education policies. Such policies have contributed to improve the poor s access to the public education system and ensured timely assistance in case of sickness. Nevertheless, consultations with people reveal that there is a great need for subsidization of medical expenses. Most people are not fully aware of the government s support policies. Wide 3

Quang Tri Participatory Poverty Assessment distances, high cost of services, and the low quality of such services are major hurdles to the health care program in support of the poor. Most of the poor do not rely on the health care services within their vicinity (village, commune level). In regard to education, the higher the grade, the higher the percentage of drop outs by students belonging to poor families. The main reasons include high tuition fees (high in relation to the economic conditions of the household), travelling distance and enrollment quota in public schools. Furthermore, a significant percentage of drop outs is attributed to the fact that the children have to assist their families to earn a living. 7. Agriculture forestry fishery extension, plant protection and veterinary activities in the past years have actively contributed to the dissemination of scientific and technical progress in the production process, the prevention of epidemics among plants and livestock, and positively transformed economic structures. Productivity of plants and livestock keeps increasing. Economic sub zone models have been developed and contribute to economic growth. Consultations with the people show however that extension activities are far from meeting existing needs and do not reach the effectiveness level required. The selection of appropriate plants and livestock is a tedious process, the percentage of failed experiments high. The reasons include: poor infrastructure (lack of water, electricity), inadequate network, lack of full time staff at commune level, limited budget, and the community s low educational level. Models that link input and output have not been established. Extension clubs and cooperatives have not played their roles to the tilt within a supposedly market oriented economy. 8. A province heavily damaged by the war and natural disasters, Quang Tri has a significant number of target groups in need of social support. Only a small percentage however is receiving regular or ad hoc subsidies, most of which are extended by the State. The role of social organizations and nongovernmental organizations in providing such support is limited. In addition, the quality of support is not high due to its narrow scope, complicated approval procedures, and slow delivery. Consequently, the significance of such support is low. The reasons include: limited budget (conditional on allocations from the central budget), conservative mentality of local officials, and limited participation of organizations and people in identifying and proposing potential beneficiaries. 9. Along with other provinces nationwide, Quang Tri has actively implemented the Grassroots Democracy Decree down to the commune level as well as the delegation of powers and decentralization. Consultations show that people are getting more information and are allowed to participate in the process of planning economic development policies at village and commune levels. There are however limitations, such as the concentration of information at higher levels, the limited understanding of the concept of democracy by the community, and people s participation merely in the implementation phase 4

Survey Findings and in fulfilling their obligations to the village and commune while participation in the supervisory process is limited and superficial. With regard to participation and empowerment, the decentralization and delegation of powers are not comprehensive, due to the lack of financial and budget decentralization. 10. Quang Tri is also piloting administrative reforms with the establishment of the one door policy for the issuance and transfer of certificates of land use right. The success of the pilot phase has facilitated the expansion of the model to other districts. Difficulties faced by the system include: an inadequate budget for operations, lack of coordination among agencies, incapacity and even lack of desire for change on the part of executive officials. But most of the respondents did not feel the impact of this service, as access to information is limited and the scope of the pilot phase restricted. 11. Organized migration mechanisms have helped re distribute human resources to exploit potential resources of economic sub zones and improve the living standards of migrants. The poor, however, have few opportunities to participate in this program if they fail to fulfill their obligations to the local government. In addition to organized migration, free migrants in search of better pasture and income opportunities are playing an increasingly important role. Many people in Quang Tri have migrated freely to settle in new areas. Mention should be made of the rising trend among the youth to look for jobs elsewhere in other provinces. Free migrants face various difficulties as they are poorly educated and not eligible for support from the local governments of both the departure and destination places. Such free migration, however, contributes largely to poverty reduction. 12. The natural environment in Quang Tri is facing deterioration due to excessive exploitation, pollution as a result of toxic chemicals and industrial development, local perceptions and outdated customs. The living environment of the poor is even more threatened due to dilapidated housing conditions, limited access to clean water, lack of basic infrastructure such as toilet, electricity, road, etc. Measures taken to protect the environment have not been effective despite various efforts. 13. To ensure economic growth and sustainable poverty reduction, the following measures should be implemented in the years ahead: a. Increase expenditures from the provincial budget for economic growth to create a foundation for sustainable poverty reduction (create opportunities to increase incomes and reduce vulnerability, etc.) 5

Quang Tri Participatory Poverty Assessment b. The quality and activities of poverty reduction should be upgraded to include a re definition of the poverty line, identification of beneficiaries and better direct support programs. c. Additional investment should be made in medium and small scale infrastructure (especially road, electricity, and irrigation) to ensure a successful transformation of the economic structures. d. There should be a breakthrough of extension activities. Extension work should be transformed into services, with more effective participation of extension clubs and cooperatives, etc. Best practices should be identified and duplicated; the five stakeholders model should be adopted to mitigate risks for farmers. e. The scope of beneficiaries and issues should be further expanded in the fields of health care and education targeting poor households and individuals. f. The scope of beneficiaries should be expanded and the level of regular social assistance raised. Improve the quality of ad hoc support. Strengthen recovery capacity of poor households through the establishment of communal riskcover funds. g. People s participation should be increased in commune activities, especially in budget planning, construction of infrastructure works, political campaigning, etc. Facilitate and strengthen the voice of the people, to ensure that they can effectively exercise their supervisory role. h. Information about the one door policy should be disseminated effectively in order to accelerate the pace of land allocation and issuance of certificates of land use right. Develop plans to expand this service to other areas such as business registrations, issuance of personal identity cards, marriage/birth certificates, etc. i. Organized migration programs should be made more effective. Provide support to free migrants, both in and out of the province, and to overseas labor. j. Prevent the degradation of the natural environment. Improve the living conditions of the poor. 6

Overview Overview I. Profile of Quang Tri Province A small scale and poor province, Quang Tri is situated in the Northern coastal central area with a total natural area of 4,745 square kilometers. The province counts 608,967 inhabitants as of December 31 st, 2002. The provincial GDP growth rate in 2000, 2001 and 20003 was 9 %, 7.5 % and 8.4 % respectively. Achievements in poverty reduction have been witnessed over the past years due to the commitment and management of local authorities, the cooperation of various sectors and unions as well as the efforts made by the poor themselves. The poverty incidence in 2003 went down to 17.1 %, decreasing so far by 2.5 % per annum. Nevertheless, infrastructure in poor communes and isolated areas has been neglected. To date, only 30 % of agricultural areas have access to an irrigation system and only 50 % of the population have access to clean water. One commune in the province does not have access to electricity. 7

Quang Tri Participatory Poverty Assessment The poverty incidence has decreased significantly by an average of 2.5 % per annum. Poverty incidence Total number of households National poverty line 1996 22,7 % 24.759 1998 18,7 % 21.813 2000 13,2 % 16.123 New national poverty line 2001 24,4 % 29.951 2003 17,1 % 21.616 International poverty line 2001 52 % Source: Department of Labor, Invalids and Social Affairs, Quang Tri Province There are nine administrative units in Quang Tri Province, i.e. two provincial towns: DongHa and QuangTri; seven districts: Vinh Linh, Gio Linh, Cam Lo, Trieu Phong, Hai Lang, Huong Hoa, Dakrong. Or a total of 136 communes, wards and towns. II. Selection of Survey Sites: Two districts were selected for the survey, namely Hai Lang and Gio Linh districts 1. Profile of Hai Lang District Hai Lang District shows many of the typical economic characteristics of Quang Tri Province with four economic areas i.e. potential handicrafts industry, aquaculture, forestry development and husbandry, and shore fishing. Commune selection in Hai Lang District Commune 1: Ah An Coastal area with 100 % of natural area as sandy land and 70 % of households doing shore fishing as livelihood. Non agricultural activities are being developed, as well as industrial husbandry and planting models. High poverty incidence: 24 % Commune 2: Hai Son Situated uphill, land for agriculture is available. 60 % of households are into forestry production. Changes of plant and animal structures A great number of people migrate for work. Transportation difficulties Poverty incidence: 16 % 8

Overview 2. Profile of Gio Linh District The economic growth rate in Gio Linh District is good with 11 % per annum, higher than the provincial average. However the poverty incidence is very high with 18 %. Gio Linh is a mountainous district with Van Kieu as ethnic groups. Commune selection in Gio Linh District: Commune 3: Linh Thuong 100 % of the population are Van kieu ethnics Obsolete production, poor transport, Backward customs and traditions Poverty incidence: 62.7 % Commune 4: Gio Thanh Agriculture production It is possible to develop nonagricultural occupations Poverty incidence: 22,4 % Profiles of villages and communes surveyed (2 villages per commune) Total households Total number of poor households Poverty incidence 1. Linh Thuong Commune 244 153 62,7 - Cu Dinh 39 - Dong Don 40 2. Gio Thanh Commune 638 143 22,4 - Hoang Ha 83 - Tan Minh 75 3. Hai Son Commune 981 155 15,8 - Khe Muong 63 - Tan Dien 83 4. HaiAn Commune 924 228 24,6 - Tan Tay An 158 - Thuan Dau 114 9

Quang Tri Participatory Poverty Assessment Chapter I: Inter-Relation Between Economic Growth, Poverty and Employment... High quality growth is promoted to rapidly reduce poverty. Growth will create more opportunities for the poor and poor communities to escape from their poverty. Economic growth will pave the way for hunger eradication and poverty reduction on a large scale. If reallocation schemes or national solutions for poverty reduction are applied without growing the economy, sustainable poverty reduction can not be assured. With the aim to ensure high and sustainable growth, it is necessary to shift and diversify the agricultural production structure, develop more occupations, promote the development of small and medium enterprises, promote the development of non agricultural activities to generate more jobs and generate more income for the poor... ʺ. (CPRGS, May 2002, page 46) 1. Difficulty in HEPR work in Quang Tri Province 1. HEPR progress in Quang Tri Povince is being impeded by the following factors: slow economic growth, poor infrastructure, complicated geographical conditions and limited education level. Economic growth: The total area of land for cultivation in the province is small and the land is infertile. Markets to consume provincial products are not yet available. Seedlings and small animals for husbandry that can provide high yields are in shortage. Production methods are obsolete and yields are small. Rice is the key type of crop, but the productivity is very small with 0.35 tons per hectare per annum. Other plants provide poor productivity and are being planted on a small scale. Infrastructure: Infrastructure is neither sufficient in terms of quantity nor adequate in terms of quality. The population hardly has access to communication systems. Irrigation systems, kindergartens, health care centers, electricity and clean water are in great shortage. Geographical location: There are plain, coastal as well as mountainous areas in the province. There are two mountainous districts and three other districts have both mountainous and plain areas; Education level: The education level is very low with a lack of business knowledge. Particularly, there are two ethnic minority districts namely Huong Hoa and Dakrong. 10

Chapter I: Inter-Relation Between Economic Growth, Poverty and Employment 2. HEPR is considered as both urgent and long term HEPR was identified by the Provincial People s Committee in Circular 03/CT UB dated March 19, 1996 as one of the urgent tasks/programs to be completed. This program should be regarded as a targeted program; an objective to be achieved during the socio economic development process of the province by each sector, each organization, each community and each household. To date, achievements have been recorded, but there are still untold challenges to be addressed in the future. The HEPR Program in Quang Tri Province for the period 2001-2005 focuses on the following objectives Reducing the poverty incidence to below 12 %. Providing essential infrastructure for poor communes. Providing basic social services for 75 % of the poor. Source: Provincial Steering committee for HEPR program 2. Poverty under both Fiscal and Non-Fiscal Aspects 3. Answers given by the population to questions such as What is poverty? Who are the poor? Why are they poor? are important inputs for policy and mechanism formulation more attuned to the needs of the poor. In general, the respondents believe that they are facing great difficulties in their lives, their incomes are unstable and very close to the poverty line. The majority do not use the terms rich, better off, they prefer using instead the terms better households households with less worries or households with stable economic conditions. We do not have rich households here but we have better households. If some households have a 2 floor house, it does not mean that they are rich. We have to build another floor to save ourselves from the floods. Money to construct the second floor is from the flood prevention program. Respondents from Tan Dien Village, Hai Son Commune, Hai Lang District 4. Many respondents comment that poverty is also seen in terms of resources or assets. The poorest household will be the ones possessing nothing. They have no property, their houses are temporary, they lack means of production (cow or buffalo for cultivation), have a high number of children, disabled, sick members, are elderly or lonely, etc. 11

Quang Tri Participatory Poverty Assessment Figure 1: Poverty characteristics Many children (3 5 children) Sickness (Malaria, tuberculosis,) Risks and disaster Lack of capita/ Deptness Food shortage (From 3-4 months/year) Unsettled dwelling house Lack of living conditions Poverty Lack of production means (No buffalo) Low level of education (Illiteracy adults, school dropped out children) 3. Causes of Poverty 5. The poverty survey conducted by the Department of Labor, Invalids and Social Affairs in 2002 found that the causes of poverty (at household level) are as follows: Poor knowledge and experiences (poor education level): accounting for 34,95 % of total poor households; Lack of capital for production and husbandry (high risks, in debts, no access to source of capital): 19,09 % Lack of labor (a high number of small children, poor health conditions, lonely, disabled): 18,11 % Sickness, disabled (due to the war, mines, toxic substances.. ): 9,44 % Lack of land for agricultural cultivation Natural calamities (flood, drought) 4. Poverty Trend 4.1. Along with economic growth, poverty has been reduced broad-based. 6. In the 1999 2002 period, the average GDP in the province increased by 8 9 % per annum. Shares of forestry agriculture aquaculture, industry, construction services in GDP were 48 %; 11.9 % and 40.1 % in 1996, and 42.9 %; 18.5 % and 38.6 % in 2002, respectively. This structural shift paved the way for poverty reduction activities. 12

Chapter I: Inter-Relation Between Economic Growth, Poverty and Employment 7. Poverty has been reduced sharply in the province, including mountainous and ethnic minority regions. In the period 1 (1996 2000) 1, the poverty incidence was reduced from 22.75 % 2 to 13.25 % by the end of 2000, or 2 % annually. In the period 2 (2001 2005) 3, the poverty incidence was reduced from 24.4 % to 17.1 % (as of end of 2002) and it is expected to fall to 14.0 % by the end of 2003. 4.2. The quality of life, especially in food security, has improved. 8. According to peopleʹs observations, most of them usually had in the past (in the last five years) rice mixed with cassava or sweet potato, even for three to six months, especially during the rainy season. 4 To date, most households can afford undiluted rice, leaving cassava for the livestock. Apart from food security, the quality of life has changed, among others, housing conditions, the quality and quantity of home appliances in both poor and rich household groups. 4.3. The sustainability of poverty reduction activities, however, is not high 9. Quang Tri is a province that has greatly suffered from the war. The rate of policy households is high (about 11 % of poor households). After the war, the ratio was one dead or injured for every five persons. There are currently 6,000 disabled children, more than 600 orphans, about 2,000 elderly without family support. Among the poor, 21 % (more than one fifth) of households are headed by women. 10. The number of households close to the poverty line is still high. In 2002, besides 21,616 poor households, there were 8,000 households close to the poverty line, and about 9,000 households who had escaped poverty but were not yet steady. The income level is low, as people rely solely on agricultural production. It is therefore likely that they will relapse into poverty at the least shock. For those close to the poverty line, being ʺinʺ or ʺoutʺ of poverty is but an infinitesimal step. The poverty incidence usually increases sharply right after a natural calamity, risk or disease occurs. Therefore, the likelihood for most to escape from poverty for good is not high. 1 Target Program for Hunger Eradication and Poverty Reduction in Quang Tri, 1996 2000 Period, 2 according to the poverty line of 1998 2000 Poverty line of 1998 2000 (1751//QD LDTBXH): Rural, mountainous, coastal areas: VND 55,000/person/month Rural areas in plain regions: VND 70,000/person/month Urban areas: VND 90,000/person/month 3 National Target Program for Hunger Eradication, Poverty Reduction and Employment, 2001 2005 Period. 4 In this area, almost all production activities are halted in the rainy season (for about 6 months) 13

Quang Tri Participatory Poverty Assessment 11. Uneven poverty distribution. Poverty mostly exists in mountainous, coastal areas or plain areas where infrastructure is poor. In 2002, the poverty rate was the highest in mountainous areas at 45.5 %. In plains, midland regions, and enclosed coastal regions, it was 19 % and 24.7 %, respectively. Poverty is very acute in mountainous areas which account for one half of the total provincial area, with 13 % of the total provincial population living there. The poor in mountainous areas account for 80 % of the total poor population. The income level is equal to only 40 % of the average income in the province, i.e. nearly 85$/year 5. 12. Poor infrastructure. In the province, there are 36 villages in difficult circumstances and border villages. A proposal is being submitted to the government to acknowledge another 29 poor villages in plain areas. Poor infrastructure in poor regions in 4 villages, there are no roads for cars to access the village center; 15 villages lack small irrigation systems; in 22 villages, less than 50 % of households use clean water; in 21 villages, there are no power lines to the village center; 22 villages do not have a village market or central market. Provincial Hunger Eradication and Poverty Reduction Steering Committee, 2001 4.4. Overall, living standards have improved but improvements are not equally distributed. 13. Consultation results seem to support the finding of other studies that some groups benefit more from economic growth than others. Group with ʺbetter offʺ tendency: This group makes use of its natural advantages such as labour force (grown up children), good health conditions, better educational level, wide social connections. It can also get involved in forestation programs, water surface out sourcing, or animal crop restructuring programs. Besides, parents can send their children to other provinces to earn higher incomes. Households doing exclusively agricultural activities, who are slightly betteroff. Households living in mountainous areas or in poor lowland areas have limited arable land and find it difficult to intensify farming practices because of water, electricity and irrigation shortages. Apart from that, as prices of agricultural products remain stagnant while prices of inputs increase (fertilizer, labour, etc.), their net income is only at subsistence level. While production can be ʺdiversifiedʺ through animal husbandry practices, largescale production (suitable to conditions in mountainous areas) requires capital and know how which are in short supply. 5 Report of the Provincial Planning and Investment Department 14

Chapter I: Inter-Relation Between Economic Growth, Poverty and Employment Group with ʺworse offʺ tendency is comprised of lonely, elderly people (the majority are women). The future of such people does not look promising because the older they get, the weaker and more prone to diseases they become. They have no other means of survival than state subsidies (even subsidies are rare). As a matter of fact, many households will probably never be better off because they either have small children, or their grown up children are also poor and gone to other pastures without the possibility to care for their own parents. 14. This opportunity gap is the reason for the widening income gap among households. Poor households feel that they are disadvantaged in many aspects and it seems increasingly difficult to catch up. Better off households are getting richer. A majority of televisions, motorcycles, permanent houses belong to better off households. While many children from better off families are attending universities, children from poor families cannot afford to attend upper secondary schools. As better off households have capital and do not need to worry about their housing conditions, they can afford to buy power boats and better fishing nets for off shore fishing to improve their production, and thus incomes. Poor households can only ʺstickʺ to farming and planting activities, which are risky and of low income. The income gap between the poor and their betteroff counterparts derives mainly from non farming activities. 15. Gloominess is the common feeling among poor households. Theoretically, household economic development is the usual ʺescape wayʺ, but it is not easy to do so in practice. The poor do not lack self help, but they cannot ʺdo it aloneʺ. They do not rely too much on the State, but they need more support, especially in infrastructure, knowledge in animal husbandry crop restructuring. ʺWe do not see our lives getting better. As long as we do not have electricity, we will remain poor and the older and weaker we get, the poorer we become. People of Hoang Ha village, Gio Thanh, Gio Linh 5. List of the Poor: the Procedure 16. A list of poor households is made twice a year in Quang Tri Province. Consultation meetings at various villages, districts show that ʺthe list of poor householdsʺ is a collective product (including the voice of the poor), the selection procedure is complicated rather than a simple assessment of income levels (the selection procedure is presented in Appendix 2). 15

Quang Tri Participatory Poverty Assessment Figure 2: Process to select poor households in Linh Thuong Village, Gio Linh: Training course on poor household criteria Meeting with village officers, hamlet leader Hamlet reviews the list of households to identify survey sample (Total 188 poor households plus 37 new poor households) Survey of sample households (total 225 households) DOLISA provides Poverty Certificates to 143 households District authority approves the list of village poor households (3) (Only 143 h h ld ) Submit the list to district office of labor, invalids and social affairs Village meeting to draft list of poor households (1) Village authority adjusts list of poor households (2) Public meeting for comments 17. Although this selection procedure produces a ʺlist of the poorʺ, there are still problems. It was found that there was a discrepancy between the list of the poor classified by the village and the list of households receiving poverty certificates. Therefore, not every ʺpoorʺ household as classified by the community is recognized as ʺpoor householdʺ and provided a poverty certificate. 18. There seems to be a ʺquotaʺ imposed on the number of poor households There are some doubts that many localities impose a ʺquotaʺ on the number of poor households and the poverty incidence is pre determined by higher levels. The following opinion of an officer working in poverty reduction shows that ʺquotaʺ imposition is partially due to striving for a given target, and partially because of ʺlimited resourcesʺ. In practice, those who are classified as ʺaverageʺ, are still poor. However, because income levels among households differ just slightly, one should select poorer households to be under policy coverage, otherwise, the whole village will be classified as poor. An officer working in poverty reduction in Gio Thanh village, Gio Linh 19. Some households are recognized as poor but have yet to receive their certificates It is noteworthy that some poor households are yet to receive their poverty certificates because they are still indebted to the village. Since the possession of such a document is a condition to access basic services, most of the poor want to get it. As for the local government, this is a good chance to ʺask the poor to exercise their citizenshipʺ. 16

Chapter I: Inter-Relation Between Economic Growth, Poverty and Employment We provide poverty certificates only to those who are not indebted. Village worker at Tan Minh Village, Gio Thanh, Gio Linh 20. Despite impediments, most people and officers are happy with the current selection procedure that involves people participation. Poor and non poor households can participate in the selection process to protect their rights. Many households were included in the survey sample. As people know each other very well, including each other s income levels, examination and selection were made fairly and equitably. People of Tan Dien Village, Hai Son, Hai Lang 6. Opportunity Generation through the Labor Market 6.1. Economic diversification plays the leading role in economic growth and poverty reduction. In Quang Tri Province, it is not easy to do so 21. Most villages surveyed lack arable land, especially land for rice growing. Apart from that, adverse climate, water and electricity shortages have caused incomes from rice production to decrease. There is a paradox that with over 85 % of the population earning their living from farming, people do not seem to appreciate crops in their economic activities. Even some people think that ʺfarming is the cause of povertyʺ, or in other words, poverty is characterized by farming activities. Only the poor are engaged in farming, not many better off people do farming. The poor rely on farming, but the more they do farming, the poorer they become because their health gets worse (due to lack of plough power), while income is negligibleʺ. People at Hoang Ha village, Gio Thanh, Gio Linh 22. Sloping agriculture along with forestation and farm economy are escape ways, but not easy. There are still many problems in models of industrial crops such as the small rubber farms in Vinh Linh and Gio Linh Districts, the pepper farms of Cam Lo and Huong Hoa Districts, or fruit farms, coffee farms, etc. They include seed research, assistance in product care and marketing. Moreover, these models are not relevant to the poor, since the latter do not have enough capital and know how. Pepper: In recent experiments, unstable. It is not relevant to the poor as it requires water, fertilizer and seed. Peanut: Seeds provided by the PLAN Project, but productivity is low (thick shell, small grains) Officer at Linh Thuong Village, Gio Linh 17

Quang Tri Participatory Poverty Assessment 23. Apart from that, there are forestation projects to increase forest coverage and natural environment protection. However, in the immediate term, income generation for the poor from forestation is very difficult. In the beginning, more labor force is required for ground clearance, hole digging, planting, caring of infant trees. Income, thus, is higher. In subsequent years, (currently) less labor is needed. Therefore, income is reduced. It will be generated from forestation in 6 to 7 years from now (9 year contract), which is a long period of time. Better off households might not have problems, but the poor have to find other sources. People at Tan Dien Village, Hai Son, Hai Lang 24. There are changes in animal husbandry thanks to the provincial animal husbandry incentive policy. In some areas, focus has been laid on animal husbandry (such as Hai An and in some villages in Hai Son, Hai Lang), where the number of households breeding on a large scale is increasing (breeding farms of more than 100 fowls, ducks, or 7 10 pigs, or 3 5 buffalos). However, most households still feel that ʺthe breeding business is vulnerableʺ because of the risks involved, especially epidemics while there is a lack of veterinarian staff. Land is in surplus but it is not easy to develop animal husbandry. As the poor are not knowledgeable, the probability of animals dying from epidemic diseases is high (risk probability up to 40 %). Many borrowed capital to run an animal husbandry business but failed, consequently, they are indebted. Village officer at Linh Thuong Village, Gio Linh 25. Fishing generates the major source of income for people living in coastal areas such as Hai An, Hai Khe (Hai Lang District), this possibility however is contracting for the poor because of increasing risks. Deep sea fishing becomes more difficult In recent years, most fishermen (more than 70 % of households in Hai An Village) using small boats for fishing near the shore have not been able to catch fish as the fish population is getting depleted. They have to do chance fishing, relying on an unstable income ranging from VND 20,000 30,000 per day (including cost of lubricant, ice cube of 7,000 to VND 10,000 per day). They can do fishing 20 to 25 nights per month and 6 to 7 months per year only. Higher incomes from deep sea fishing require bigger boats, better nets for longdistance fishing (over 25km) which the poor cannot afford. People at Hai An Village, Hai Lang 26. To date, labor structure changes are slow. Off farm employment in the province is a golden chance to increase incomes. But for the poor that chance is immaterial as they are the least qualified. 18