Solutions for sustainable poverty reduction in Hanoi

.2. Solution to urban sustainable poverty reduction * Conception: is the process of building and implementing specific activities based on poverty reduction policy documents, on socio-economic development policies related to poverty reduction, from poverty situation in practice, in order to gradually solve the problems of poverty effectively and help poor parts of the population get out of poverty without falling back into poverty. The results that reflect the sustainable poverty reduction solution are tested through poverty reduction rates and the poor's ability to fully access basic socio-economic resources to stabilize their livelihoods and sustainable escape from poverty. External factors -Intergration context (opportunity; challenge... ) - Economic fluctuation (inflation, price, ) - Climate change, - Development of Science,Technology and Information - Development context in Hanoi - Local development context Sustainable poverty reduction in urban area – multidimensional povery reduction - In terms of economy: Income, jobs, housing, clean water, toilets, assets, - In terms of society: Education, health service, information reception, social capital, living environment, ... Internal factors - Capacity of the poor (literacy, skills, occupation, asset capital, social capital ) -Awareness of the poor (responsibility, culture,) - Sustainable poverty elimination method Government policy Chính sách Của nhà nước Local policy Chính sách Của địa phương 10 * Groups of solutions for sustainable poverty reduction: (1) Economic solution; (2) Social solution; (3) Specific solution: * Solution framework for urban sustainable poverty reduction 2.5. Domestic and foreign experiences on urban sustainable poverty reduction and lessons learned * Foreign experiences: (i) Lessons and actions to respond to urban poverty challenges for effective poverty reduction (for developing countries), (DFID (2001)); (ii) Adaptive strategy for the implementation of urban poverty reduction policies: Lesson from Bolivia “Anti-malnutrition program”, (Lesli Hoey, 2011); (iii) Sustainable urban poverty reduction from the adoption of Human Security framework, together with Urban Microcredit for Developing Countries, (Morris, 2011). Policy solution - Government: polocies, programs, resources to support sustainable poverty reduction - Local agencies: implementing poverty reduction programs, local resources, socialization resources. Chính sách Của nhà nước Solution of urban sustainable poverty reduction Economic solution - Increase income and job security, - Housing and living conditions - Public infrastructure system (road, electricity, clean water, waste treatment,..); - Urban services; - Capital support, efficient use of capital; - Credit support; - Economic development models, effective production and business methods; - Tax reduction; - Cash support; - Specific support, Human solution - Support to improve education, skills, jobs and social capital, - Support appropriate vocational training and stable job connection; - Awareness of sustainable poverty reduction of the poor (social and environmental responsibility, culture, awareness) - Sustainable poverty elimination method - Specific support Social solution - Support to the education system, high-quality health service; - Support community integration; contribution of voices; - Legal communication and legal support, human and family security, crime violence, - Support to telecommunications service systems, IT, new technology, ..- Association support, promotion of resources to support socialization (association, civil society organizations,), - Improve staff capacity, - Specific support 11 * Experiences of several cities in the country: (i) Solution of sustainable poverty reduction of Ho Chi Minh City; (ii) Solution of sustainable poverty reduction of Da Nang City. *Lessons learned: (i) Typical problems of urban poverty such as: income, jobs, education, health service, environment, human and social capital, rights and voices in the community, human vulnerability and security,(ii) Poverty reduction policy needs to keep pace with poverty developments. On the basis of the general policies which are set out, the design of specific urban policies is essential to ensure the specificity and broad coverage of the poverty conditions of poor households and particular poor groups; (iii) Applying urban poverty reduction solutions from some countries to Vietnam in aspects such as: anti-malnutrition, integration of human security framework with microfinance, or rights and voices involved in decisions benefiting from the development process, Chapter 3 CURRENT SITUATION AND SOLUTIONS FOR SUSTAINABLE POVERTY REDUCTION IN HANOI (Focusing on urban area) 3.1. Overview of the socio-economic situation in Hanoi in recent years Hanoi continued to achieve decent growth and made a positive contribution to the national growth. GRDP growth rate of Hanoi always increases at an average rate, 1-3 times higher than that of the whole country. Specifically, in the 2006-2010 period, GRDP increased by 10.86%; in the period 2011-2015, GRDP increased 9.23%. The average gross domestic product (GRDP) in 3 years from 2016 to 2018 increased by 7.19%, higher than that of the period 2011 - 2015 (6.74%). GRDP in 2018 (current prices) reached 920,272 billion VND; GRDP/person reached 117.2 million VND, equivalent to 5,134 USD. The average gross domestic product (GRDP) in the period 2016-2020 increased by 7.39%, higher than that of the period 2011-2015 (6.93%); GRDP per capita is estimated to reach USD 5,42, 1.5 times, higher than that in 2015, 1.8 times higher than the amount of national average. The total capital for development investment in 2016-2018 period reached 927.88 trillion VND, equivalent to about 37% of GRDP. Along with the rapid development of economy, the lives of the people in Hanoi have also been enhanced. Science - technology has been identified to play a key role in developing modern production forces. Hanoi's education and training has seen many innovations with high achievements. Many social policies are effectively implemented to ensure social security. Multi-dimensional poverty reduction policies and solutions are being implemented synchronously under the National Target Program on Sustainable Poverty Reduction. In addition, poverty reduction in ethnic minority areas and support to build and repair houses for the poor are also focused. Reviewing and issuing health insurance cards for people with severe and particularly severe disabilities are also emphasized. Health care services for citizens witness many positive changes ... 12 3.2. Situation of sustainable poverty reduction in Hanoi over the past time 3.21. Progress of poverty reduction in income and multi-dimensional poverty in Hanoi in the period 2006 - 2019 Poverty reduction results in Hanoi show remarkable achievements in the period 2006 - 2015. The results of multidimensional poverty reduction also show positive signs. Although ranking at the top of the country in terms of multidimensional poverty, (in 2017 Hanoi ranked 42 th , by 2018 the poverty rate continued to decline rapidly and Hanoi ranked 43 th ), however, Hanoi still ranks far away in terms of poverty reduction compared to some big provinces such as: Da Nang (in 2017 ranked 58 th ; in 2018 ranked 60 th ); Ho Chi Minh (62; 62); Binh Duong (63; 63), By the end of 2018, the poverty rate in Hanoi was only 0.59%, 10/12 districts with poor household rate below 1% and Hanoi no longer have communes and villages subject to socio-economic difficulties. However, compared to Ho Chi Minh and Binh Duong, the multidimensional poverty rate in 2018 of the two provinces is now 0%. (Report of the Ministry of Labor, Invalids and Social Affairs in 2019). By the end of 2019, the poverty rate of Hanoi continues to decline rapidly to only 0.42% and there are 4 more districts with no poor households, including: Hoan Kiem, Hai Ba Trung, Nam Tu Liem and Ha Dong, of which Hai Ba Trung District no longer has a near-poor household. 3.2.2. General assessment of the status of income, expenditure and credit activities of the poor population in urban and rural areas in Hanoi divided by quintiles. The assessment results show that the poor in both rural and urban areas of Hanoi are still facing many difficulties in finding stable jobs. Lack of capacity to promote economic development leads to low quality of life and unstable livelihoods. Income inequality between the low-income and the high-income group makes the poor group not have advantages and lack of opportunities for economic development. 3.2.3. Assessment of access to basic social services according to the multi- dimensional poverty measurement standards of Hanoi. There is a large regional disparity in poverty among poor households. The biggest deficiency for poor rural and urban households are mainly: health insurance (rural area 41.58%, urban area 29.32%), followed by quality housing (rural area 24.49%, urban area 22.13%), hygienic toilet (rural area 21.04%, urban area 4.68%), telecommunications services (rural area 20.17%, urban area 15.79%), housing area (rural area 16.30%, urban area 24.58%), the remaining deficiency are lower. The trend of the deficiency of the near- poor households are also quite similar to that of poor households. In 2018 and 2019, The number of households still lacking in access to 10 basic social service indicators compared to 2016 has decreased from 50% to nearly 60% of households. However, the assessment of the level of deficiency from the highest to the lowest in 2018, 2019 compared to 2016 is still similar. For example, the highest deficiency is still health insurance and the lowest is school attendance of children, ... With these results in 2018 and 2019, it shows that the sustainable poverty reduction of Hanoi urban has many positive results. However, in order to properly address the depths of poverty and to effectively and sustainably reduce poverty Hanoi needs to continue to focus on effective solutions to reduce the deficiency in the lowest possible rate. For example, 100% of the poor and near poor households have health insurance, access to health 13 services (deficiency rate is zero) and Hanoi needs to continue to rapidly decrease remaining indicators. 3.2.4. Analysis of Multi-Dimensional Poverty in Hanoi urban areas through resource gap assessment following DFID livelihood framework approach (multidimensional poverty survey conducted in 4 wards: Doi Can, Van Chuong, Phuong Canh , Dai Mo at the end of 2018) A review of the shortage of basic social services shows that the lives of poor households in the four wards of Hanoi city are facing many difficulties, the quality of life of poor households has not been guaranteed. With major gaps in income and employment, health insurance, housing area and quality of housing, clean water, toilets, information access. * On the economic side: (1) Indicators of “financial capital”. The poor's financial capital is still very limited and facing many difficulties. It is difficult for the poor to have access to stable capital sources, which are capable of helping the poor get out of persistent poverty because they both do not have stable jobs and have the financial inability to develop business activities, services to improve incomes and quality of life for the poor; (2) Indicators of "physical capital". The quality of the house is largely guaranteed, but many poor people have cramped housing areas that do not meet the requirements. The water source is not completely clean due to mud and chemical smell. *On the social side: (1) Indicators of "human capital". With a large population, the ability to escape poverty is low, due to the large number of people who do not have income. Most of the employment and income conditions are difficult and unstable. Vocational training is ineffective to help the poor find suitable jobs with stable incomes. Many poor people are seriously ill and terminally ill, affecting their family finances. (2) Indicators of “social capital”. The poor have relatively full access to information on health care, poverty reduction and socio-economic development in various forms of communication, and associations and unions also play an active role in supporting. However, due to the strong dependence on finding income to take care of daily life, the impact of information sources on the poor is not effective in promoting economic development in many ways to get out of poverty sustainably. The role of associations and mass organizations is also limited in terms of resources and capacity to support sustainable poverty reduction * Probit regression economic model: assessing the probability of impact of factors on poverty and getting out of poverty. Quantitative modeling results have shown the main factors with a high probability of impacting poverty and escaping poverty based on the sample results of the 4 wards, including: (1) Age of head of household / important members of Households, having a strong influence on finding jobs and income, economic development, (2) Household size (number of people), strongly affecting the ability to get out of poverty, if the household has a large number of people, the ability to get out of poverty is very low, (3) Access to capital for production / business, helping poor households to have more opportunities to develop production and business, to increase their income. There is plenty of opportunity of 14 getting out of poverty. (4) Support to reduce some tax rates, help the poor to have production and business activities, reduce costs, and reduce difficulties. 3.2.5. A general assessment of the current urban poverty situation in Hanoi A general assessment of income, expenditure and credit performance by quintile shows a large gap in the rich-poor split. The group of the poor with low quality of life, opportunities and ability to develop their economy still face many difficulties, and their livelihoods are unstable due to reasons: not having a job and not creating a well- off income source because of their jobs. unstable wages, low wages, lack of appropriate and effective economic development models; The financial capital is low, therefore, the ability to invest in production, business and service activities to promote livelihoods is low and therefore the credit capacity of the poor is also very limited; The poverty reduction in income of Hanoi is a great success in the poverty reduction of Hanoi. The Multi-Dimensional Poverty Assessment has identified gaps and even serious gaps among poor households in terms of: employment, income and expenditure, housing, living and health conditions, education and expertise, access to education and health, access to social security, participation in social activities and social security ...; Multi-dimensional poverty shows the happenning of poverty in urban Hanoi is quite complicated due to the large number of poor groups related to rapid urbanization, mass migration, child labor, many elderly people, vulnerable women, job insecurity, and many groups of migrant workers, inequality among population groups in access to social inputs, income and distribution of social benefits, access to public services (health, education,. ..), human security, rights and voices in the community, ...; The problems of the poor migrant group are severely deficient in many dimensions but have not been considered much in the poverty review; The most severe deprivation dimensions for households in urban and rural areas include: access to health insurance, quality housing and adequate housing space, hygienic toilets, access to telecommunications services; The cause and nature of the poverty situations in urban Hanoi are fundamentally well defined; The statistical work to review and support poverty reduction still lacks coherence, objectivity and science; The poor in urban areas still face many difficulties in employment and income, not only lack of human capital, the poor also lack financial capital, so they do not have a appropriate production, business and service model to develop their economy and cause shortages in capital and assets (cramped houses, no valuable assets ...) and social capital (poor community relations, lack of security), ... , are issues such as: age of important family members, large number of followers, illness / accident, elderly people alone, loans and tax subsidies, ..... 3.3. Solutions for implementing poverty reduction in Hanoi in recent years 3.3.1. Solutions for implementing poverty reduction in income period 2010 - 2015 Always giving priority to resource solutions for ensuring social security and implementing poverty reduction solutions; Economic solutions (capital support, seedlings, raw materials, supplies, monthly subsidies, dissemination of some knowledge; Social solutions (tuition exemption and reduction, policy advocacy, poverty reduction model, legal assistance to poverty reduction, capacity building for cadres involved in poverty reduction, monitoring of poverty reduction programs); Specific support solutions such as: 15 raising the standard of monthly social allowance, granting health insurance cards, power lines, Tet gifts, subsidies for the frail elderly, dangerous diseases, tuition fee exemptions and reductions, support for study costs, direct support for poor ethnic minority households in purchasing raw materials, supplies, serving life and production, land support; Promote information, propaganda and dissemination of policies and laws; Free legal help; Promulgating a system of indicators for monitoring, monitoring and evaluating the poverty reduction program at district, commune and ward levels. 3.3.2. Groups of solutions for multidimensional poverty reduction from 2016 to present (*) Policy solutions on resources to support poverty reduction (**) Economic solutions: Housing, Clean water and sanitation, Credit, Economic development model, production and business mode, Cash support, For mountainous communes, ethnic minority areas number; (***) Solution of human resources: Vocational training to create jobs; Support to improve knowledge and skills (****) Social solutions: Healthcare; Information and propaganda; Promote aggregate strength, mobilize aggregate resources; For mountainous communes, areas with ethnic minorities; Capacity building for officials in charge of poverty reduction at all levels; Specific solution. 3.3.3. Some assessments of poverty reduction results and solutions to implement sustainable poverty reduction in Hanoi recently. 3.3.3.1. The advantages of poverty reduction results and solutions to implement sustainable poverty reduction * The advantages of poverty reduction results: (1) The period of poverty reduction by income standards (2011-2015) in the whole of Hanoi reduced 129,092 / 84,700 poor households, reaching 152.4% exceeding the set plan. (2) In the period of multidimensional poverty reduction, Hanoi has quickly applied the Government's multidimensional poverty line to promulgate and built a separate multidimensional poverty line for Hanoi to officially apply in the 2016-2020 period. . The number of poor households reviewed in early 2016 was 65,377 households (the rate of poor households 3.64%). By the beginning of 2018, Hanoi city had 32,619 poor households with 95,570 people, accounting for 1.69% of total households. In which, the rural area accounts for 2, 57% and urban area accounts for 0.42%; Poor ethnic minority households are 1,096 households (accounting for 3.6% compared to the number of households in 14 mountainous ethnic communes), mainly in Ba Vi (644 households) and My Duc (254 households). By the end of 2018, the poverty rate of Hanoi was only 0.59%, there were 10/12 districts with the poverty rate below 1%. And so far, Hanoi has no communes and villages subject to extremely difficult socio-economic conditions under Program 135. By the beginning of 2020, Hanoi has 8,692 poor households, accounting for 0.42% and 41,937 near-poor households. , accounting for 2.01% of the total number of households. The poverty rate according to the standard of Hanoi decreased from 3.64% to 0.42% (a decrease of 52,212 households) and there are 4 more districts with no poor households, including: Hoan Kiem, Hai Ba Trung, Nam Tu Liem and Ha Dong. In which Hai Ba Trung district no longer has near-poor households. In reaching the target of striving to completely eradicate the dilapidated 16 house situation, in 2018, focus on helping 4,046 dilapidated houses. By the end of June 2018, the number of houses that have been started and completed is more than 3,300 households, reaching 76.4%, of which the districts of Phuc Tho, Dan Phuong and Soc Son have basically completed the target. In 2018, Hanoi entrusted the City Social Policy Bank with over 2,000 billion VND. * Advantages in implementing poverty reduction solutions In the period of reducing the poverty rate by income standards (2011 - 2015), Hanoi focuses and effectively implements many important solutions: Promoting preferential credit programs by lending capital, loans for labor export; strengthening industrial and agricultural extension projects; increasing jobs for people in general and the poor in particular; Focus on effective implementation of social policies (investing in essential infrastructure; continue to issue free health insurance cards to achieve the target for 100% of poor households; tuition fee support, exemption and reduction, and loans to cover learning and living expenses for students from poor and near-poor households, supporting poor households to find jobs); Continue to issue and implement a number of specific support policies such as: supporting poor households to borrow capital with a fee of 0.3% / month; funding heart surgery for poor children with congenital heart disease; exemption and reduction of detoxification costs for people from poor and near-poor households; giving gifts on the occasion of the Lunar New Year annually to 100% of poor households,; Legal awareness raising for the poor; Improve the quality of medical examination and treatment covered by health insurance at grassroots health facilities; Having more price stabilization phases, organizing markets to bring Vietnamese goods to the countryside, continuing to promote integrated resources; Mobilizing people to well implement family planning and prevention of social evils (drugs, prostitution, gambling ...); Advocate for the Fund "For the Poor" at all levels; Focusing on providing support to communes with high poverty rates, mountainous communes, communes in the middle of rivers, extremely difficult communes, villages ... 3.3.3.2. The shortcomings and the cause of the shortcomings * Major shortcomings The results of poverty reduction in some areas are not really sustainable, there are still poor households, a gap between the rich and the poor. The coordination of poverty reduction programs and policies related between agencies and units is not really synchronous and the effectiveness is not high; Poverty issues are also more complex in scale and manifest in many dimensions; Labor structure transformation is still slow and incompatible with the restructuring of the economy. The poor and poor households of Hanoi are mainly located in rural areas, but the ability to create new jobs, motivate and promote socio-economic development, industrialization and rapid modernization in this region will face many difficulties; The inspection and supervision of the implementation of poverty reduction, poverty review in some localities have not been regular, have not followed up and fully reflect the real situation of poverty; Propaganda of the implementation of regimes and policies to poor households in some units is not really extensive; The poor in Hanoi still have difficulties in income and stable jobs, low living conditions, lack of access to livelihood resources to escape poverty sustainably, and a lack of solutions for economic methods, effective production, business and service models and scalability; 17 There is a mentality of waiting for and relying on subsidies; Lack of life