F

F
r
r ResearchPaperNo. 1
t
I
t Poverty Situation in Southeast Asia
I and NGOResponses
I FernandoAldoba and hla,Josefa petilla
with pauline Rebucasana nnama Ziiueta

I
I
I
T l,larch2002

I
I cilp
I
!iAr!,,i drN!14 ('^!c tui !ryrr

C,athoiic!nstitute fer lnternaiioria!Reiaiiei:-i,

I gdi.Ji;ria;f .Es;j
€ss€er.li snd Adv6t4.! lJ*it
. in partnershiD with
the AteneoCenter poficyandpublicAffairs
lor lociat andtho
rounoationfor SustainableSociety,Inc.

I
T PovertySitu.tion in SoutheartAsiaend NGOResponles ?

T t. The Rationaleand Objectivesof the Study

T Most of Southesst Asia's economies grew at respectableratesduringthe pasttwo decades.

T Economicdevelopment,
loverty has persisted in
however,remainedunequalwithin andacrosscountfies.As a r€sult,
many parts of SoutheastAsia. Income ine4uality has plaguedmost
count.iesand wide regionaldisparitiesin terms of living standardshave existedwithin

T countries,suchas the Philippines,Thailandand Indonesia.Laos, Cambodia,Burma,and

Vietnam havelaggedbehindthe other countriesin the region in terms ofper capita incomes
andaccess to basicsocialservices.The resp€ctivegovemments ofthree ofthesecountries,in

T partnership with multilatenl and bilateral donors, have formulated poverty reduction
stlategiesand programmes'-However, some sectorsof civil society groups have criticised
theseprogrammes in termsof a neoliberaland nafiow growth-focused paradigm,and that

T slrch a.re new mechanismsto mandate elements of structural adjustment programmes.

MalaluanandGuttal,2002)

T The Catholic Institute for IntemationalRelatiofls,a flK basedNGO active in the pursuit of
sustainedhumand€velopmentand socialjustice in the variousregionsof the world, has
undertakenan independentstudy ofthe cunent poverty situation in the region. At the same

I timg it hasassessed the strategies

adoptedby respective governments
andNGOSin orderto
assistcivil societygroups,particularlyNGOSin their advocacywork and programmesin
promotingbroadbasedeconomicdevelopment andrcducepovertyinoidenc€.

! A, Major Objectivesof the Study

I Thestudyhasthefollowingobjectives:

1. To provideandoverviewofthe cunentpovertysituationin the region,specificallyin

t the followingcountries- Cambodia,Laos,Burma,Vietnam,Indonesia,Philippines,
ThailandandEastTimor;

T 2. To assess existingpovertyreductionstrategies
the .egioq and
adoptedby gov€lnments
andNGOSin

T 3. To recommend specificareasfor policy advocacyand programmedevelopment

civil soaietygroups,especially
NGOs,in theirbattleagainstpoverty.
for

T B. hlethodology and Approdch

T The study reviewed existing literature on the poverty situation and government
responses
agencies
in theregion,relyingmostlyon the availabledataofresearchinstitutes,govenment
andmultilateraybilateral institutionsaccessible
throughlibra.iesandthe intemet.It

T also looked at cu.rent civil society responsesand perspectiveson poverty reduction in the
region, found in studies and various NGo publications. Given time and resource

T I The World Bank and

tlle IMF havejoinlly introducedthis lornulation ofPRSPsin Cambodlat,Ino pDR a d Viernrm.

I
I
t- Situationin Southeasi
4sia and NGOReponses
I
t- constramts,the researchdid not conduct.actual
field investigationsand intervlews in the
t :::i1"_r-.:1'"e.""d.,_{ol*":,
orssemmated among NGOS
u_discusionpaper,"rrl;;';;;
andotherkeystakeholders
ih"';es'ejrcr wouldbe
forcoi.rm"nts
to ."f,nilnujo,finaings
l-
I
ll. The Contextof the Study:Today,sGlobalisation
T and SoutheastAsia

I Globalisationtodaycanact.ralrybc viewedftom
dlreeinterreratedtrendsandevenrs:
A Thecontinuedincreasein international
tradebecauseofthe decreasing
protection
I broughtabourby theGATT_WTO
NAFTA5
world,grossdomestic
product
andotte, ,"gi"n"l-b;Lilil." a""C, el'r{
etc.Totalworldmerchandjse tradesuig"Jt"rn
in-1960to
of nominal
p".*"i"i""iiix
i"' tlg'gr.thi, *",
t broughtaboutby adecreas€
andbya rapiddecrease
in effeclive
of transponation
"t*t:l or'u,ouiaio_s'"/"
p.ot."tion
and
"";;;i*il;;;.
' une,wwl

I Table l. TolalMerchandise
Region
Trade
1960
23.1
entof World
1970
2t.2
1980 1991 1999
4L9 38 . 8
I 'rqusurd Lountries
_v5v!rutrxrg Lounrfles
Source. A9ian Dcvelopment
Develonn
t5.7

Outl.tok
7.5
2000-200I
18.7
o.)
28.5
t3.4
23.2
9.3
26.2
12.6

I t
lT^-.:til
increase
in intemational.
privatecapitalflows throughdirect

I ffi if*-f,?i:"T'J:":#1L,:,H"lr;.::,::nl
of theseflows. In Asia, transfers, mostlvcornered
bv china'Singapore.
valavs;a
anailailana'-r""ii'#linljtt 40eo
o"u"rlpi"e orFDIflowswenitothe
*odd,Jii ^ri;;";r* ii;"1?l'rthan
T Table2.. rore'gn
F Di
Drect Investrhr $

T Resion

lndustrial Cor.utries
1980
52.2
1991
154.7
l14 I
1995

204|
1996
363.4
224.0
1991
448.3
271.2
1998
75q l
1999
1,090.1
565 0 87E.0
5.8
! IMF Slauflica
2.5
40.6
19.3
t t3.2
60.9
139.5
71.1
t 7 7|
75.7
194.t
84.6
2t2.1
86.9

I " 3:
,T1 qi"* of informationandcommunication
.0"velop_ment
havegreatly.educed,.distance rechnologies
that
costs,,

! ;:ffi"itll"?'::i# ff.["i"?;"::'rj]1!" !"e"1i9"ofmarkets

due
tomcreasins
costs
Estimaies
oiiil;;; ;ru;?#;i"TTil$;ffi;,*l:Til;Sf"#l
I
I
It PovertySituafion
ln Sor.rttriast
AsEanaHCOnesponses

billion for thefirst five yea.softl

rorced
tocompete
i" d,,;i #:#;o;.::Hl*?,1:fil,:Tjoped ordeveropins
a.e
I ;:f:.".i'*tH"_fi
:$:^T;;
ff,?il"{il*:?:f#igtr[4:
rl r,;ifi,,pistr:;f
Critics assenthat globalisalionh

t pqry;"**g:riil:i.;;xi*:#;s["*:ffi
r#fi,trtrr$rdlr
fr," :'J:1k,.$:"Tltl,jfj,ll;:,n:
# Tll,",r,!fl
atsobeen_
morefavorableto the mo l#*iiltxkf.""H",'ffi
! ililtiffff:ihff$:T#11.$,"#
;:li:l*l*jsl;j:fijd ;jt",:;,*xji
;3Jffif
I debates
'I""',,ffi
ffi,:iff:"n::H';:ffi?1,'l;":::!nuing onthepositive
andnegative
effecrs
I tiq*,1,ffiffiii'Jr;"l#il[##*ft ;";',ru;lll:]]i
-
are a.lsopositivecontributions. on the orr,"-.;;;;'^:'-:'_"^:::': 1'u
rowerconsumerprices

! ilt'""","fr
,t#5|;*i"';rxlr
govemancs iii:i:"j:1,* - ;:ffi,;|:i
;iil"i,:1,:;'
;T
adequate,*;;;;.;;;;;":1"n,fffi"""fiHT1;:i"0"-,u"",,,iuirity,
"r"",iuu
I 'li:?"i:*,1'$ffi':H": proposition
thatasrratesv
ofopenness
f;;f:fi:: t reads
to
I ,rolj'; h'frlrfr,Fj:ill;:,;:"fjffif'.:r::**
"rs:j,*.i,
I il*tr##",T.xy;J#li:?iljl";jg"":L"Js*'T*l'#l
nexus
fl':'l,ft:;,fl;:3,"1"fi:1ti,"",,l::'Tfl\I,th-poverty wasevidenced
bytheNrEs
I :lnXlrf
il:J::Xil1,#i;',Titg";;jtnxi4d",:'"-*;f
;,U{:
I ::."J u",,.""'
isi:7'-"d'r
:.p:.""", ee"f
l":niT,r.1*;:m#.::,U:?:;lhj
I ffifi**"'*iiJr"ils,ff
;g;iN1;;*l;1h,ir:Jlii:,"
:,:.ilr,:;:ff
"r,o,i,"",r,*Joiu,i:il;.;";l'i"H:fi
Iff,x.J:ff
#"r:*i.{T::
The 1997
East Asian financial crisis hr
vadouseconomies,""",;;;;;;".1:,r:!"ii,::iltil?lTiffi
J%f,:".i:"r:-#i;
'"ru';u"tv
ffi'":H:iini"i"ffi:,:f*:,ililf:T,li:'p"'1'" 'o,."l"Ju-nced
counrries.
*!"Jf
:'"''i,'rfi
:tHxlt#;litrililtri,}*$Jil.i,#l:i,_
L
PovertySituationin Southeastlsia and NEOResponses
I

I hav€
_remainedrelatively closed economies,such as Burma2,Lao pD\ and Vietnam and

I fledglingdemocracies, suchas CambodiaandEast Tinor, fluu" U""n porting high poverty

incidenceand low humandevelopmenr indicators.poveny t;"il;;;; ;; ,;;L countnesis
over357oofthe wholepopulation(pleaseseesectionIV beiow)

I lll. A Frameworkfor povertyAnalysisand Responses

I A. Definingpoverty

I Poverty qs SocialExclusion

Thepovertyissuesta.tswith its variousinterpretation

anddefinition.Researchers
andpolicy
I jtre: that a?prop.iateresponses
11!:tj p€rceiveand
people
prerequisite
understand
to the poverrysituationare conungeot
or how
poverty. Thus,thi definitionbecome"an rmponant
for craftingstrategies
to eradicate
poverty.
! Whilethe "economic"
andexpenditures
definitionof poverty,i.e.a situation in whichpeoplehaveincomes
belowa pre_determined.rhreshotd hetdr*"y fo.;;;i;;;;, the emerging
T consensus nowadays

Deprivarion.
is that it is a multi_dimensional in"f,if*"Ll-p-henomenon.
generalview is that it is ,,pronounced
may be economi-c,
deprivationi"""a
*"li t.i"JiW"fid Bank, 2OOO).
poliricaland socio_cultural.
A
Thus-iiis;;t only maredal
! deprivationbutalsoinctudes
All these_forms
sociaiandpoliticale*cl;;; ;i;.g;iiria
of deprivation
"thecapabilities
severely-restrict
,J"to^ orro"i"ty.
whatNoU"fprire'*i"n"iaranya Sencalls
thata personhas,i.e.-thesubstantive fiJ"* ilG;;;
T of life Vhe values,'(WorldBank,2001). rn oth".
entitlementsor the lack of them. Suchentitlements'
goodsand servicesVhe desiresor her/his
;;;";;--s;'i#i't"o'tlese
ditermin" v
bad thekind

ro
as one,s
consume
to engag; """tiUili
in Ji# ,"rf_ntnlting
T 13II1:,_1_l"l:
unoerpmntng
recenttiterature,
povertyin manyregions
"apaOiffy
the concept
oftheworld.
of socialex"cft]sion has-ieenvrewedas

T Socialexclusionrefersto the norms-societalprocessesand

exclud-ecertaingroupsfiom tutt panicipation
life of socieriesi
in the.;;rJ,
institutionalarrangements
and
that
political
. theseoperate it the.household,- """i",ri",'i,lffrrar
I encompass everything
thecommunities
Guevana
fiom differential
allocation
bas€don socialstarus,differential
""r;;ty,-;;i
offood
nliilnur r"u"rr, una
andJucationio discrlminatlon
;; L;;;;;;;
ln
etc.( Racetis,
et al.,2001). ""."r.
! Absoluteand Relativepoverty

! l:"::P
whereai:t."*"
be distingu_ished
section society(in
.of
betwe€nabsoluteandrelative. Theeconomicdefinition,
.termsof individualsor househords) ruttr-i"ro* u
mcomeor expenditurethreshold3,
.efersto absolutepov".ty. n
! l Officiauy
"iuil*
p"r"ny, on the""nuin
other

calted Myarunnd by ASEAN

- some

I rese'rcheB calt rhesethe povery Unes

I
t PovertySituationin Southea!!Aria and NGORe3ponres

F hand,looks at incomeinequalitiesacrossthesesectionsof society. In economics,this is

measured by thegini indexor coemcient,whichrangesfrom 0 to 1, where0 signifiesperfect

F equalityand I p€rf€ctinequality.

TheConceptof Vutnerability

F A new additionto povertydefinitionsis rulnerabilityor the probabilitythat a personwill be

tT
exposedto uncertaintyand risks .elated to income,health,education(drop-outs)and to
disastersand man-madeconflicts (e.g. violence and other peaceand oder problems)_poor
peopledo not havethe ability to reduceor mitigate suchrisks or uncertainty. Low levels of
physical,naturalandfinancialassetsmakepoorpeoplewlnerableto negativeshocks-- those
with more assetsbecofle more resilient and can hurdle such risks as long as they are
temporary(WorldBank,2001). Informal and formalm€chanisms that tendto reducethese
dsksincludethe extendedfamily and communitynetworks,creditassociations, microcr€dit
I and miqofinance institutions,unemploymentinsuranceand other safetynets. The ability of
thepoorto weathersuchriskshasbeenrefered to asresiliency(RacelisandGuevana,2001)

r andis specifiedby variouscopingstrategies

The Conceptol the ChronicPoor

(e.g.sellingofassets,relyingon transfers,
etc.).

I The defining feature of "chronic poverty'' is its extendedduration. (Hulme et al, ZOOZ).
Chronicpovertyis juxtaposedwith the te.m "transient,temporaryor transitorypoverty,'.
Hulmeet al. notes,it is hypothesisedthat dulation,multi-dimensionality,and severitybuild
I on eachotherandthatthe "cluonicallypooi' axelikelyto be experiencing severeard multi-
dimensionalpoverty. Also, they think that the chonically poor are usually inter,
generationallytransmitted. Therefore,researchshouldbe focusedon:
I . Peopl€who arcckonically poor in termsofboth durationandseverityi.e. whose
averageincomesare well below the poverty line for an extendedperiod
I r Peoplewhose incomes(or capabiliriesor multipl€ dimensionjof deprivation)
havebeenbelowa "povertyline" overanextended periodof time

I The Poor based on Geography

Ofien times,the rural poor aredifferentiatedfrom the urbanpoor. An analysisofsurvey data

I for the 1980-1998 period,IFAD assembled, revealsthatin 94%of I l5 "povertyline studies,,
rural poverty was recorded at higher levels than urban pove.ty (Bird, 2002). In many

I developing countries, the rural poor dominate, though increasingly, urban poverty has
becom€a big problemfor aountrieswith mega-cities, such as the philippines(Manila),
Indonesia(Jakarta),andThailand(Bangkok) It is alsopossiblethat peopleare poor because

I thet locationis a remoteregion,where govemmentservicesare unavailableand where

marketsare non-existent.

t
I
I
I
T
I PovertySituationin SoutheastA3iaand NGOResponles

II B. A SimpleFrameworkfor Poverty Analysisand Responses

I The following frameworkspellsout the multi-dimensional (e.g. economigpolitical and
t- socio-cultural)causesand outcomesofpoverty. While the matrix neatly setsout the various
reasonsfor poverty, more often than not, theseoverlap with eachother. Dependingon the
T country,regionor seatorofthe populatior! one causemay be more importantthan the others.
Thematrixalsodividesthe causesandoutcomesbetweenthe macroandthe micro,although
in reality this is probably superlicial. However, upon closer scrutiny, the macro Actors are
I more relatedto nationalpolicies or existing social mechaaismsand systemswhile the miclo
factorsare concemedmore on the individualand householdleve1. The list of causesand
outcomesin the matrix is by no means exhaustive. Additional factoN may be written
I depending on the specificaountrybeinganalysed.

r| Mrcm (Natiodal)
Economici
Ca|rles

. PoorPolicies(fiscal&
monelary)
Economici
O comat

. Ilnsustainable
groirlhand
higherunemplolment

I . BiasedStrategi€s
sectoiaD
. Inadequate
(regionaland

policieson
. Indeasedpovertyincidenc€
. R€gionaldisparilies
. Increasedincomein€qualities
DoDulationmaiasement
! Politi.al:
. Elitist andcent'alizedgles of
Politic{l:
. Maliuctioningdemocracy
gover nce . Unresponsive stateinslitutions
! . Rent-s4ekng/conuption
Socio-culturall
. Patronage System
. Politicallyexcludeds.ouDs
Socio-cultural:
. Dep€ndency on politicalelites
. Breakdown
! . Inad€quacy
of families,rd
socialnetworks
of social
. Peaceandorclerproblems
. Socialexclusionofvarious
seclorsof soci€ty
welfare./investrnenls
in
! Micm (IDdividual
andgousehold)
educationandhealth
Caus€! Outcomes

I Economic:
. Lack ofincome lo attainbasic
n@essl!es
Economic:
. Inseqrrejobsandirregular
rncomes
. VulrErability from adverse . Under-consumptionand
I shockq inability to copewith
suchvulnerabilities
. Lack of financial ard ecorcmic
undemourislwent
aaalhouseholds
of individuals
. Poorhealth/inadequate housinS

t asse$
Political
. Sense olpowerlessness in the
facilities
Political:
. Hopelessness andproneto

t
institutionsof stateandsociety criminality
. Dis€!.fi'anchisement,
sellingof

Sociocullural: Sociccultural:

I ' Lack of dignity ad rcspect

. Inadeqllacyof the farDily and
networkof relativesas sxpport
. Marginalisation
. SocialExclusion
. Fatalisrn
systerL/socialinsura&e
!
I
I
t The typical responsestrategiescorrespondto whether the causeis economic, political or
socio.iultural. they may also be shoft-termor long-te.m, wherein the former are concerned
basically with poverty alleviatiofl strategiesand the latter with poverty eradication The
I long-termstrat,giesrespondto the root causesof poverty, suchas flawed economicpolicies,
inequitable distributionofpower andresources, thepatronage system,etc-

I nse
Short-TermStrategies Lone-Term Strategies

t Economic
Macro ! Job-genoratiotr:micro-
fi nance,public infi"astructur€,
.
.
Growth-orientedpolicies
Asset & Equity Reform
food for worl! €tc. . Labor Int€nsivepolicies
I Micro
'
.
Job facilitation
Food Stamps,Soup
r
.
PromotioDand supportofSMEs
Managing.isksand
lulnerability tlrough social and
t .
Kitchens, Children's shelter
Communitygroupprograrns
o midofinance
unemploymentinsurance

o coopeGtiv€s
I Politicd
Macro lrcal developm€nt
oounoils . StrengtheninggovefiEnce
meohanisms
Participatory in institutions
I policymakingandproject
implementation
. Mainsbeaming paltioipationof
povertygroupsitr decision-
makineDrocasSes
I Micro . CommunityandSectoral
organlzmg
. Empowerment
sustainability
and
of conmunityand
DeoDle's orsanizations

I Sociocultural
Macro . Foodfor SchoolProgrammes . Strengthedhghstitutions
promotinghuman& social
caoital
I Micro . Conmudty healthclirics,
skillstainins Drosramm€s
. familyand
Strengthening
coirmum!es

I
lV. The EightSouthEastAsianCountriesin the
I Study
I A. Geographyand Demogrdphy

I Ofth€ eight countdes,Indonesiais th€ largestisland,with a tota.llarld areaof 1.8 million

km2. S€condto Indonesiais Burma,with a total land areaof657,740 km' . The third is
Thailand,with 513,115km2. EastTimoris thetiniestat 14,8'14 Vrr?. Next to EastTimor is
T Cambodia,with 181,040km'?. The Philippinesand Vietnam are similar both in size and
population.Theyhavea totallandareaof aboul300,000km' anda totalpopulationof close

I
I
t
I to 80 million @leasesee table 3 on the nexl page). Almost all the countrieshave
mountainousand ruggedterrain and are often visited by stormsandtyphoons.
I Exceptfor EastTimor, all the countri€s'total populationare in the millions,rangingfiom 5
to 210million Indonesiaregistercthe mostnumberofinhabitants,with a totalpopulationof
I 2074 million. It is followedby Vietnamand the philippinesat closeto 80 miliion. East
Timorhastheleast,with lessthan900,000,followedby Lao pDR, with 5.22million.

I Exceptfor Indonesia,which is also manufactudng,and the philippines,which is also

industrial,all the countriesare primarily agricultural.But for the phiiippines,whosemain
exponis electronics, the countries'majorexportsrangefrom wood produdsto loodstuffsto
I precrousstonesto apparel.

able 3.
I Co||nlly Totd Populalion Cryitrl f,evnomy trirportt Lrngurge! Religioi
in ktrr

I cambodin l8l,040 12.4

9M
(2001)
Ae.ioultuml Rubber, Khmer,

English
Buddhism

I
I last Timor 14,814 884,000
0998)
Diri ASrioultural Coffee and
Portuguesc,
Christianity

I t,826,440 20'7.4
M
(r99e)
Jokarrt As.iculturol/ Rubb€r,
Mrnufacluring
Bahasa hlarn
Christianity

I l"aoPDR )36,800 5.22M

(2000)
Timber,
rin
Tlera\,ada
Buddhrsm
Burma 657,740 4 2 M RaEgoon Foodsirfs,
I (200D
Buddhis!:r,
Clristianty,
Islam

I Philippines 300,000 7 8 5 Msdla AgriculturaY Filipino Christianity

million Indrl5t'ial hslish
I Thailand 513,115
(200t)
6 2 . 1 M Bangkok
(2000)
Agdcdtural Rice Buddhism,
Clfistianiq,,

I 329.560 79.9M Haroi

(2000)
Agncultwal Rrc€
Frenoh,
Islam
Buddhisq
Hoa,Hao,
ChDese,

I Khmq,
Enslish
Islam,
Hidurm.
Christianity,

!
I
I PovertySituationin SoutheastAslaand NGOResponses

t Ofthe eightcountries,five (e.g.,Cambodia,Lao PDR,Burma,Thailand,andVietnam)have

Buddhismasmajorreligion.Two (PhilippinesandEastTimor) hasChristianityas the major
t religion. Only IndonesiahasIslam as its majorreligio4 althoughthe religionhasrelatively
large followings in Burma, Thailand,and the Philippines. All the countrieshave their
respectivemajor nativelanguages.However,someof them (Cambodia,Philippines,East
t Timor, Lao PDR, Thailandand Vietnam) considerforeign languages,such as English,
French,andPortuguese, astheir secondlanguage.

I B, Poverty Situdtion and Humdn Development

Poverty incidencesin the regionrangefrom l6Yoto 556/o.Ofthe eight countries,East Timor
I haspostedthe highestpovertyincidenceat 55yo,followedby the Philippinesat 400lo.The
third highestis Lao PDR at 38.6,closelyfollowed by Vietnamat 37oloand Cambodiaat
36.1%. Thailandhaspostedthelowestpovertyincidenceat 15.970. Indonesia hasthe second
I lowestat l8.2yo. Thcthird lowestis Burmaat 22.9yo(Please seetable4 on therext pag€).

The countries'HDI .anksrangeliom 66 to 131. Ofthe eightcountries,Thailandhasposted

I the highestHDI rankat 66h while Cambodiahaspostedth€ lowestat 13Id. The HDI ranks
of the other countriesare as follows: Philippines,70s; Lao PDR, 101"; Vietnam, 102nd;
Burma,I l8o; andIndonesia, 121$.There'sno availabledatafor EastTimor.
I Thefollowingarethe facesofpoveny in the differcntcountdesin capsuleform (Full details
ofthe povenysituationin the eightcountriesare discussed
in the individualcountrypapers,
T volume2 ofthis repon).

Burma
I Burmais amongthe world's poorest,with an estimatedGDP ofUS$ 14.2billion. It ranks

I 125uout of 174countdes.In Burma,povertyincidencein urbanareasis greaterthanin rural

areas.Povertyincidencein urbanareasis 23.9%while in ruralareas,22.4yo.

T U$an povertyrate is high due to the higher cost of food, a more skeweddistributionof
income,andthe lack ofaccessto subsistence farming. Ruralpoverty,on the otherhand,is
mainlydueto low agriculturaloutput,sincethe ruralpoorhaveeitherno landor plots.

I Adult literacyis high. Whilep mary schoolenrolmentis high,completion.ateis low dueto

cost of textbooks,uniforms,school supplies,and the like. There is high incidenceof
I HMAIDS in the country. A lot of people,especiallythe poor, sufferfrom malnut.ition,
malaria,leprosy,denguefever,andtuberculosis.Costlypublicfacilitiesareofpoor quality.

t The country facestrade and foreign exchangeconst.aintsbecauseof sanctionsimposedby

certaincountries,suchasthe United States. The US bannedall Americaninvesrmenrs rn
Burma due to negativ€perceptionsabouthumanrights. Othercountries,suchas Canadaand
I Australia, had also passedlegislatior\ enabling local govemmentsto restict trade with
Burma.

I
I
t
I Err
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-64
:Q ;e
F! =al
;<
o9=
."

t 2 r'. : t ! 3 *
Z tr. ll Z tJ. ia

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I Cambodia

I Cambodiais a very poor country,with GDp per capitaestimatedat US $2g0.Thirtv-six

percent(36010)
of the total populationlive below the pove.ty line. Most of the pooi are
concentntedin the rural areas,especiallythose vr'hosepdmary sourceof iniome is
I agriculture.

Statisticsshow a correlationbetweenpoverty and illiteracy _ majority of the poor are

I illiterates. Around 35,000squatterfamiliesor approximatjy tZO,dOO individuaislive in
PhnomPenh. PhnomPenhhashigherliteracyratesfor peopleofboth sexes,with g23yo fot
males,and 78.670for females,than in any otherparts;f tie country On rhe otherhand,
I morepeople(61%)in the rural areasarenot ableto completeprimaryeducation
39.5olo in urbanareas.More peoplefromurbanareas,agid 7-i4, atte;dschool
compa.edto

I Only 15% of employedCambodians are in wageempioyment.The monthlysalaryof wage

earnersis US $43. About 46yoof lhe populationconsid€rthemselvesas unpaid family
wor\e1s, percentage of women,zo.3yoin phnom penh a\d 6i.2yo in ruraj areas,are
I {
unpaidfamily vr'orkers.A greatmajorityofthe populatjonusekerosene
cookingwhile lessthan5002sourcetheirdrinkinqwaterfrom wells.
assourceoffuel for

r EastTimor
EastTimor is considered
T asoneofthe poorestareasin Southeast Asia. Lateststatisticsshow
that its GDP is estimaredat US $344million while its GDp per capitais estimatedat
$344. About 55 percentof the East Timoresefall below rhe povertyline. The poor are
US
identifiedmostly as subsistence
I farmers,producingnontradedgoodsin rural areas. The
GINI coeffcienctis 0.31. The wealthiest20 percenihouseholds-irave
only thr€etimeshigherthanthe poorest20 percent.
cashincomesthat are

t Life expectancy is around50 yearsfor womenand 49 yearsfor men.Infant mortalityrate

(per 1000)is 149 Thereare around15 medicaldoctorsper 100,000people,
and the
I illiteracy.rate
estimated
is 50 percent(in someruraldistrictsthe illiteracyiate is alove i0 percent).An
25 percentofthe populationhaveaccessto electriciiyandrunningwater.

I Indonesia
Indonesiahad achievedremarkableeconomicdevelopmentover the past decade
and had
-T been,until recently,consideredto be amongthe bestperformingEast Asian economies.
Overthe period1985to 1997,the Indonesianeconomygiew at an-annualrateof nearlyg%,
oneofthe fastestandmosteverachievedamongdevelopingcountries.
I However,the Asianfinancialcrisisthat hit Indonesjain the middleof 1997brought
about
setbackin economicperformance. GDp grofih droppeddramaticailyandhigh inflationrate
! w^erefew of thoseadverseimpactsof the crisis thl long droughiand for"estfires
1997,followedby politicalinstabilityin the transitionalpeiriodcirtributed to
during
Ine worsetung
of socio-economic
conditions.Sucheconomicrelatedfaitors as skyrocketing p ces,decline
I
I
I AsiaandNGOResponres
PovertySituationin Southeast

I in agriculturalproductiorgshrinkageofthe formal sector,and a huge pressureon the overall

labor marketare cited as causinga negativesocialimpact,especiallyon the population's
I mostwlnerablegroups.

With massivelayoffsandhigh inflationafterthecrisis,the incidenceofpove.ty in Indonesia

I significantly increased. Forty percent(4lyd) of the people are living below poverty line,
comparedto l1% p.ior to the crisis. lncidenceof poverty at the aggregate level is around
2402.Povertyworsenedin urbanareasfasterthanin rural areas.U6an povertyinqeasedby
I 103percentwhile rural poverty increasedby 78 perceIrt.

Lao PDR
I The country is amongthe wodd's least developed,with per capita of $284. Poverty
incidencein the countryis 38.6%,with 26 9oloin theurbanareasand41oZin th€ ruralareas.
! An estimated70 percentof populationareilliterat€,and life expectancy at birth is 55 years.

t Only 18% of the populationhaveaccess to adequate level of sanitation,and only 32o/ohate

accessto safedrinking water. On the educationaliiont, Lao children undergoan averageof
lessthantkee yearsofschoolingandqualityofeducationis modest.

! In the last five years,the Lao PDR hasachievedaverageeconomicgrowth of about6 percent

per annumandreducedthe incidenceofpoverty ftom 45 Io 39yo.The incidenceof poverty
varies significantlyacrossregionsas well as betweenurban and rural areas.Poverty
! incidenceis highestin the northemregion and lowest in VientianeMunicipality.While
economicgrowthhashelpedreducepoverty,therich havebenefitedmorethanthepoor.

I Philippines
-- morethantwo-thirdsof
! Povertyin thePhilippineshasalwaysbeena ruralphenomenon
poorhouseholds live in ruml areas.Povertyincidence
1997to 40.0in 2000.
by 3.2 percentfrom 36.8in
increased

t in poverty incidenceexist The level of

High interregionaland intra-regionaldi{Ierences
incomeinequalityhaspersistedat high levelsduringthe past30 years.Evenwith reductions

I ln the povertyincidencesduringthe 1985-2000period,the Gini indicesin the Philippines

havehardlychang€dat 0.451.

! PhilippineHDI hasimprovedoverthe pastfofiy years. However,largedispadtiesexist in

the IIDI in differ€nt areasofthe country. Poverlt self-rating surveysindicate that a large
majorityofthe populationconsiderthemselves poor.
t Life exp€ctancyis 69 yea$. Adult literacy mtes and effollment ratios are high. However,
overone-quarterofFilipinos l0 yearsandabovearefunctionallyilliterate
I Malnutritionremainsan importanthealthproblemin the countryas it contributesto child
mortality and morbidity. Infant mortality has not improved in recent years although the
leadingcausesofdeath -- respiratory diseases,
diarrhea,measles arepreventable-
!
I
t PovertySituationin SoutheastAsiaand NGOResponses 14

I Thaildnd

I Povertyand inequalitycontinueto be a characteristic

of Thai society.While the impressive
gror4thratesofthe eaxly1990st€ndedto reduceor transcand concemsaboutinequality,the
crisisof 1997underlineddeep,regional,socialandurban/rural
divides.
I Thailandhad one ofthe highestGDP gron'th ratesin the world in the pastfew decades,
averuEing 7.6 percentper annumfrom 1977to 1996.Between1988and 1996,Thailand's
I povertyincidencedroppedfrom about 33 percentof the populationto about 11 percent,
tpnslatingto morethanI million peoplebeinglifted outofpovertyeachyear.

I The country'seconomicprosperitycameto a suddenhalt when the economiccrisis struck

Thailandin 1997.The incidenceof pove.tydeclinedsteadilyin the two decades up to 1997.

t Sincethe c.isis,therehasbeena reversalofthis trend. The latestfigurcsshowthat 15.9olo

of
the populationare living below a definedpovertyline of 886 Baht per personper month.
The crisis has causedmany economicand socialproblems,includingincreasedrates in
unemployment andinflationaswell asin povertyandinequality.
I Poverty remainsacute in some areas. Recent studiessuggestthat 92 percentof poveny in

I Thailendis rural, with the northeasthavingthe highestincidenceof povertyat 19.4percent

in 1996.This figure roseto 24.0 percentand 30.8 percentin 1998and 1999respectively.
Whilethe increasein povertyincidencein thenortheast dueto the crisiswasquitesevere,the

I situationwasrelativelywors€in the centralandsouthernregions.

Vietnam
I With a GIM cosfficientof .35, the counrryranks I 106out of 174 countries.Its GNP per
capitais US $370.On the otherhand,its cDP per capitais US$400. Thirty-sevenpercent

I (37 %) of its peoplelive belowthe povertyline. Ninety percent(90%) ofthe poor live in
ruralareasandarepredominantly farmers.Majorityofthesepeoplebelongto ethnicgroups.

I Some52% ofchildrcnaremalnourished,
expectancy
l47oofwhom sufer ftom severemalnutrition.Life
js about67 yearsfor malesand 72 yearsfor females.Around 1.5million young
peopleare addedto the labourforceper year.25 million people,acaountingfor 600Zofthe

I labourforce, areunemployedor underemployed.

t V. Major Causesof Povertyin the Region

I Major causesof poverty in the region can be categorizedinto the following. economic,
political,sociocultural,andnaturaldisasters(Pleaseseetable5 below). Underthe economic
causesare biasedpoliciesagainstthe poor or towardsurbandevelopment, uneveneconomlc

I growth, unequaldistributionof wealth, underinvestrnent

crisis,etc. Politicalcausesinclude:repressive
in agriaulture,Asian economic
or highlymilitarizedgovemments, civil war or
strife, armedconllict bgtweennativesaird colonial poweq andthe like. Socio-culturalcauses

I are lack of accessto basic social services,lack of food security,p.evalenceof highly

I
 PovertySituation
in Southeart
AsiaandNGOResponses 1

infectiousdiseases,amongothers-Under naturalcausesare calamities,such as typhoons,

floods,andforestfires.

Of the major causesof poverty, the Asian financial crisis that hit the region in 1997 has
effectedthe biggestimpacton the countries'economies, especiallyon thosethat had posted
high economic $owth prior to the crisis (Indonesia and Thailand). It set back the
considerable economicgains these govemmentshad achieved.Political repressionand
violenaealso accountfor the stuntingof economicgrowth in countries,such as Burma, East
Timor, and Cambodia.The govemments'misprioritisation or misappropriation of public
funds causespoor deliveryof quality basicsocialserviaes,suchas education,health,and
infrastruclure, worsening the already depressing condition of the poor and ultrapoor
(Philippines,Lao PDR,Cambodia, andVietnam).

The following ar€ brief accountson the major causesof poveny in the eight ASEAN
countdes:

Burma
Themainreasons for Burma'spervasive andseemingly hopelesspovertysituationerethe

F flawedpoliciesandpoliticalrepression
Therehasteen large-scale
thegovernment
displacement
worlgandhumanrightsviolations.
continues
to implement andexercise,
of ethnicgroups,forcedlabourfor militarycamp

F Foodscarcity is anotherproblemhoundirgBurma.It existsin bothcivil war andnon-civil

war arca,makingall communitymembers, particularly
womenandchildren,sufferfrom

F hungelmalnutrition,illnesses,
andotherhardships.
wellastnfiickingofgirlsandwomen.
Foodscarcity bringsabourextonronas

I Cambodia
Causesof povertyin Cambodiainclude:uneveneconomicgrowth,lack of accessto basic
services,lack of accessto livelihood,high dependenca
ratio, Iandmineqnaturaldisasters,
|| politicalinsrability,
andtheAsianeconomic crisis.

t Peopleliving in rural areashavelessaccessto basicservicessuchas educationand healttl

capitayincome,and techlology. They have less accessto employmentor livelihood
opportunitiesand are largely in debt. With a high dependence
ratio, more and more people,
including landmine victims, are becomingeconomicallyunproductiveand depindint.
:
Ha.vestsd€pendon weatherconditions,and thus, the occurrenceoffloods and droughtshave
an adverse effect on food security. Tha Asian economic crisis and renewed political
t instabilitysetbackthe modesteconomicgainsthe countryhadobtainedin 1990,s.f; owins
decades ofcivil war.

t
I
;
 PovertySituation
in SoutheistAsiiand NGoResponses

EaEtTimor
Centuriesof armedconflict and unresl under colonial rule or invading
power and the
violenceof 1999have b€en mainly the underlyingreasonsfor;";;;,"
East Timor.
Colonialor invadingpowerdid not sincerelyworked-towards the O"u"topr"nt t,t
merelysucceeded in exploitingandbleedingttrecountryandits pe;fdry.
"olntry.J

The countrywas r€nderedtotally inutileaffer the 1999violence.

The territory,ssocialand
economicdestruclionhas.promptedthe intemalionalcommunity
;; i"i;;;r. and provide
emergency assistance
to the East Timorese. Massivereconstru&ionu"iiuiil"*, pa.tLufa.ii
infrastructure,havebeenundertakenand stateinsJirutiom,;";i;;;;';;;;;.
' govemment,
theUN Transitional AdministrationEastTimor,havebeensetup.

Indonesia
crisis,.long&ought.and forestfires, fo owed by political
IT^.1::.1,I111 ::onomicperiod
thetransitional
11s::lllll gromh.
l" haveput to a haltlndonesia,sdecadesof unintemrpted
economrc Theeconomic crisisthat hit Indonesia
in the middteof feeZ broigiri
aboutsetbackin economicperformarce, more specificallyin irnproverients
development (e.g.,education in human
ind health.;andremarkable reductioninG iluerty in"iOen"".
9?j.n:y!l:*:l lramltic{I1fr939v..: p",""ntperunnurn
ueioriirr"e'crisis
perioa
to
a negauve
economrc
grovtlhof -13.2o/o
in 1998.. Thisiggregateincomeslift significantly
refle€ted
theimpactof currencv devaluation,
whichcreajldilonorni" uii.uu"r, f"uaingto
highinflationrate(Said,2001).

Thelongdroughtandforestfiresin 1997,followedby political

instabilityin thetransitional
periodhaveworsened the socioeconomic conditions.'
su"h
t :|.I":fliq
prices,dectinein.agricuttuml
nugepressur€
production,
on theoveralllabourmarkethavecaused
themostwlnemblegroupsofthepopulation.
"";;;;i;'r;ed
,f,rt"t"e";i-;" r"r."l
fircto.sas
sector
adversisociafi.puct, especially
anda
on

t Lao PDR

t The most.commonlycitedcausesof porr'erty

pay for rice whiie improvements
include: land problems,no cashinvestmentto
ari being made,Ii""rt"& oir""r",-""ii."ul o,rurt"r,
uno
t !:*::.,:nv'lonTentat
drrtrcuttaccess
degradation.tack of water for potentialagricuitu.aipioauctton,
to ruralcredit and

fth:l cause_s
I of pove.ty are: lack of arable land; too many children; poor
insuflicienthearthservices;rack of governmentassistance;
prevatence
of ,hint"g
health and
rack of technical/comm€rcial
rl* pric"sfo,
*:]::rg;-:ulj'r .and .accessibitiry:
t agflcurtur.rl

Se^rious
products:

weakn€sses
opiumaddiclion. ";iri*rio;,
LXO contamination,
andtheft
or gapsin basiceducationand healthservices,and by very poor
rural
I infrastructure
includinginigation, ma.ketaccessroads,and electricitf
,nike'rurur oo.,rertu

I
I
I worse.The country'smountainous terrain,remotesettl€ments, and low populationdensity
serveasbar.iersto access
to andcost-€fficient
delivervofoublic services.
I Philippines

I The following are identified as the main causesof poverty in the countryj slow grolth and
lackofemploymentopponunities; inequalityin incomesandassets;high populationgro*th;
biasedpoliciesand underinvestment in agriculture;inadequateand unequalprovision of
t social services;inadequatetargeting;and lack of participationof the poor in decision-
maKlng.

t There is failure io the long-term, to restructurethe economyto make it extemally more

competitive andallow broadpeopl€participation. Thehighlyunequaldistributionofincomes
hascontributedto th€ sluggishness of povertyincidencefor the past30 to 40 years. High
T incomeinequalityreflectsthe highlevelofassetinequality.

High populationgroMh affectspoor households

t througha smallerdistributionof incomes
amongthem. Biased policiestovr'ardscapital-intensive,
resultedin theincreaseofineflicient protectedindustries.
import-substituting
Undirinvestment
sectorshave
inihe agricultural
sectorhassloweddowncropproduction.
I The quality of social serviceshas beenquite poor, and the rate of improvementof these
serviceshasbeenslow.The poor lack accessto healthservicesbecaus;of inad€quate
I unequalspreadof public health facilities.Lack of potablewater supply sy$em merely
worsensthe conditionofthe poor. The industrialsectorandacademiiieihnocratslargely
and

influence economicpolicymaking.Thus, poJiciesmerely benefit vested interestsani

I rhepoor'sresource,labour
underulilise

I Thailand
ThefinancialcrisisthatattackedAsiancountriesin 1997is considered
to be a majorcauseof
I povedyin the region.The economiccrisis hascausedgreatdamagein the socioeconomic
conditionsof millionsofpeople,in this case,in Thailand.

T
r
Exports,which had beenthe main vehiclebehindrecovery,were hit by an increasein the
cost of importsdue to the rise in oil prices and a depreciationof the baht. Agriculture
suffereddueto an increasein the costof importedseediand fenilizers,while international
pricesof agdculturalproductsfell.

I Vietnam
I
t- A numberof factors causepoverty in Vietnam. Theseinclude: unevendistribulionof
economicgrowth,minimal governmentbudgetfor basicsocial services,large familiesin
T rural areaswith few gainfullyemployedmembers,unfavourable
Vietnamwar, economictransition,andAsianeconomiccrisis.
climaticconditions,1960,s

I
t
I
t Growth is mainly concentratedin urban areas,making Poverty a largely rural phenomenon
Thereis alsoa big discrepancy betweenrural andurbanareas Public
in living standards

I spendingon basicserviceswasa mere8.57ooftotal governmentexpenditures

households in rural areashavelargenumberof childrer but
members.Few,or noneat all, non-farmemploym€ntareavailable
with a few
in 1997 Poor
gainfully employed

t The poor havelittle or no land. They lack savingsand acaessto credit,technology,basic

health and eduaation services, material resourceq and other physical and social
t infrastructures, such as information and markets. Gender ine4uality, severe natural
calamities,long-termeffectsofwar also contributeto the worseningpoverty situation

I Vietnam'stransitionAom a commandeconomyto a marketeoonomyis also seenas one of

the causesof poverty. With the tnnsition, statesubsidiesfor public welfate have been
reduced. The Asian crisis has causedunemploymentand underemployment.Nominal
! incomesof householdandthe purchasingof domesticconsumers
decreased,andagricultural productshavestagflated.
and foreignmarketshave

I Table5.
Cornarv
CausesofPovertvin the Eisht CourL tn€S
EcotroDio
Lackof entrepreneursMilitary
Politicrl SocioCdtuml
l,ack of access
to
Natural
En!1ronmental
Burma

t Relativelyclosed
economy
High miliwy
dictatorchip
Forcedrelocation
of people
basicsoclals€rt,ices degradation
Lackoffood security Natumlandmanmade
disasters
sDendins CorruDuon
I Cambodia Lack of hunDn
caprt,ll
Uneveneconomic
Rebuildingof
Political
lnstitutionsaffer
High iuitemcyrate
Lackofaccess1o
basicsocials€Nic€s

I grcw|n longcon{lict
Existence
lanalmines
of
HIV-AIDS

EastTimor Lackof economic Fledgling Politjcal based

Ethnic/religion
I activities,jobsfor dle institutions
p€oPl€
Dcstroyedkey
conllict

r| Iltdon€sia
inftastructure
FiDancialcrisis of 9?- Politicalinstabiliry
98 Cornrption
Ethnic/religion based Drought
conllicls ForesiFires

r| Lao PDR
Cmnvism
Lack of infi'astructure
Relatively closed
Lack of accessto
basic servic€s
Environmeal
d€gadation
Lackofarableland

r|
economy
Relianceon ODA
Philippines Boom and bustcycles Peaceand Order High population Volcamc cnrptiod
due to flawed polici€s Political inslability gror{n Storms
Financial crisis ol 97- Corruption
I Thailand
98
Finarcial crisis of 97-
98
Political Inslability
CoruDtion
HIV-AIDS Problem

I
I
I
I PovertySituationin SoutheastAsiaand NGORes9onses

I vietnao Tra$ition ftom Lack ofaccessto

t command to market

Lackof inf.astuctur€
social servic€s
High population
oenslly
I Exclusionof
r|
I vt. StrategiesAgainstPoverty
I A. Governments'Responsesto poverty
The governments'rcsponsestowards poverty alleviation.ange from the promotion of
I economicgroMh, implementation of assetrelbrm to provisionand improvementof basic
socialservices,moreparticularlyto sectorsor communiliesin remotearias seldomreached
by suchservices;from employmentgenerationand provisionof livelihoodopportunities
I capacitybuildingto construction
ofinfrastructur€(e.g.,communication,
ir.igation,watersupplysystem,etc.). (Please
seetable6 below).
to
farmtomarket road,

I Som€govemmentsalso cornmittedthemselves to good govemance,promotingprinciples,

such as_transparency,accountability,efficient and effective public service, decisive
leadership,and the like.
I decentralisation,
Others promote key concepts, such as participarion,
and massorganisations in implementingprogrammes. Recognisingthe
valuable_roleNGOs piay in poverty alleviation,govemmenti,which formerly postured

I unfhvorableattitudestowardsthe former,havestartedcollaborating
providefundingsupport.
with NGOS.Someeven

I The foliowing discussionpresentsthe individualgovernment,s

reduction:
responses
towardspoverty

I The government's
Burma
povertyreductionpoliciescentreon rural and agriculturaldevelopment.

I The.governmenthas adoptedmethodsto boost agriculturalproduction,including water

supplyandfarm mechanisation,
andadvanced technological
knowledge.Also, it hasdrafted
and implementedappropriatepoliciesto improvethe country,ssocialindicarors,suchas

I healthandeducation.It hasopenedmoreschools,hospjtals,and h€aithcentresin the rural

areas.

I Cambodia
G.ovemment strategies
againstpovertyinclude:formulationofmacro_policyiiameworkand
I platform,improvement
resources,
ofheaithandeducationservices,
employmentand collaboration
revisionofgreateiaccess to naturar
with NGOs, civil societyand donors. Also, the
government hasimplemented
I programsandprojects,suchasinf.astructure rehabilitation
and

I
I
t PovertySituationin Solthelst Asiaand NGOResponses 2

It- development,rura.l development,triangle strategl (building peacq stability, and security),

andmicro finance.
I East Timor

I As a responsetowards €conomicrccovery, the govemmentestablisheda policy framework

lor macroeconomic stability.The frameworkunderlinesa numberofprinciplesto strengthen
govemance,namely:transparenctaccountability,emcient and effeotivepublic servicg
I integrity,customer-focusedwor\ decisiveleadership,
andresponsiveto localbuslnesses.

Tru$ funds for th€ countrywere establishedfor the country'sreconstructionactivities.

t ThesetrustfundsincludeTINTAETTrustFund,administered by the transitionalgovemment,
and Trust Fund for East Timof (TFET), managedby World Bank in close cooperationwith
ADB.
I UNTAET trust fund financesprojectsin the ar€asof civil serviceandjudiciary capacity
building; and covers the cost of all recurrent expendituresof the East Timorese
I administration. Inoluded in the projects are thc rehabilitationand re-equipmentof
police,andjudiciarybuildings,andfor thetrailing ofcivil servants.
administrative,

I On thc otherhand,programmes andprojectsunderTFET include:communityempowerment

aad local govemance;Dili communityemploymentgeneration;emergencyinfrastructure
rehabilitation;small enterprise;health sector r€habilitationand development;agriculture
I fehabilitationand development;
rehabilitation;
microfinance;
emergencyschoolreadiness;
andeconomiccapacitybuilding
water supply and sanitation

I Indonesia
Duringthe crisis,the Government oflndonesiastrengthened
I socialsafetynetsto respondto
theneedsofthe traditionallypoorandthe newlypoor.Measureswereadoptedto increase the
accessof the poor to food and essentialhealth and educationservices.The policy of
in major part, aimed at addressingregional economicdisparitiesand
decentralization,
I improving poverty targeting.

t ln additionto the decentralisation

scheme,the govemmentestablished a seriesof new and
expandedprograms.Theseprogramswere widely known as the social safetyrlet or JPS
(Jaring PengamanSosial) programs.These programsincludedt l. food security; 2

I employmentgeneration progmmo. labor-intensive

health,family planning,ald socialservices);
implementthese programson a decentralised
projects;3. socialprolection(education,
and4. SMEspromotion.Emphasis wasgivento
and transparertbasis, involving districl

t govemments;municipalitiesand village communitieswere expeatedto contributeto the

govemment's poverty.
eforts to eradicate

r
I
T
I PoverwSituationln SouthealtAsiaand NGOResponses 21

I
Lao PDR
I The Lao PDR's strategic approach is to reduce poverty through human and rural
development,and people'sparticipatioq focusing on: L agricultureand forestry; 2
I 3. health;and4 roadinftastructure.
education;

Panicipation, and massorganisations

decentralisation, arekey conceptsin the govemment's
I systemof plandng for poverty alleviation. The govemment has carried out participatory
planningexercisesin differentprovincesin order to empowerprovincesand districtsto
identifythe dynamicsof development processand to ensurepeople'scloseinvolvementin
I poverty alleviationplans. The decentralisation policy increasinglyguides the nationel
planningcontextas capacitybuilds up. The govemmentis giving its full attentionto the
prcvinces,asthey are now becomingstrategicunits unde(the decentralisationpolicies.
I
I
The national planning for poverty alleviation,both in its participatoryplanning and
implementationdimensions,is supportedall over the country by an extensivenexwork of
I "massorganisations", carryingout most of the participatoryactivitiesat gras$ootslevel,
workingcloselywith the population,and structudngand mobilisingdevelopment eilorts at
the local lev€I. Several massorganisationsand support sfiategies,
identifiedin this study,
I serveas essentialelementsto the govemment's
very crucial in the developmentofthe country
povertyreductionstmtegy.All of theseare
and in the successofthe govemment's goalof
eradicating poverty.
I Philippines
I The responses ofthe governmenttowardspovertyreductionliom 1986to presentinclude
assetreforms,targetedinterventions,and comprehensive povertyaileviationprogrammes,
Programmes underassetreformsarethe Comprehensive AgrarianReformProgram(CARP)
I andComprehensive andIotegratedShelterFinancingAct (CISFA). Comprehensive poveny
alleviation programmesinclude the Social Reform Agenda, National Anti-Poverty
Q.{APC),andKapit-BisigsaKahirapan(KALAHI).
I Commission
Targetedinterv€ntionsincluded employmentgenemtionprogrammes,livelihood, food
subsidyschemes.

r CARP strategiesincludedthe just and speedyredistributionof agriculturalland, and the

provisionof nec€ssarysupportservic€s. CIFA aimed to improve securityof tenurein

I housing.SRA workedtowa.dsthe promotionofefficiencyin the marketplace, advancement

ofsocialequityin termsofassetrefolms,just sharingofthe benefitsofgrowth, andeffective
groupsinto the politicalandeconomicmainstream. NAPC was
integationofdisadvantaged

I anchored orl agricultural modemisation and low cost mass housing. KAIAHI aims at
redistributive in targetedpoor communities,
reformthroughfive corc strategies namely:asset
reforrq provisionof humandevelopmentseryices,employmentgenerationand livelihood,
I participation in govemance and institution building, provision of social protection and
securityliom violence.

I
I
 Thalland
TheGovernment ofThailandprovidedthoseaffectedby the Asiancrisis,the mostwlnerable
sector,with varioussocialwelfareprogrammes.Theseprogrammes include:l. healthcard
systemfor low incomegrcups;2. educationschemesthrougheducationloan programmes
and governmentscholarshipsfor drop-out students;afld 3. social pensionfor elderly.
However,studiesshow that thg programmesw€re rrot ableto reachthe target beneficiariesas
muchastheyshould.

Vietnam
Amongthegovernment's responses
towardspovertyreductionaretth€ implementation ofthe
Doi Moi (ReformationandRenoyation) polioiesand a policy to createo;portunitiesfor the
poor; creation of a GO-Dono.-NGO poverty Working Group; implementationof
programmes,such as the National Target programmefor Hunger Eradication and poverty
Reduction(HEPR),Comprehensive povertyReductionStrategy(CPRS),Socialprotection
Programmes,National EmploymentGenerationprogamme;and the establishmentof
mic.ofinalcinginstitutions.

Table6. Towards Reducrion

Country Gorernment
Burma ' Policies forruralandagrcrr@
. fbrei consewatioo. reforestation.
provisionofpower.corrununicationinfiastruqure
. Emplq.rnenlgenqation.
Cafibodia I Progrurunes to improvehealthandeducation-
. Policies promoling:nucroeconomy,privarc sector& infrastntcturedeveloDment.
expansion of gfety netsand clearance of landmines, deccntralisation.
improvins
rccessto educalio[ water,a.Ddsanilatio[ bencrgovemance. cnabtingenvironmeni
for NGOS,greateraccessto natumlresources, col[borativeparrncrship-s
wirh NGOs,
civil society,anddonors.
. Programm€s:n4iogl progunune to rehabilitateand develop Cambodia, 1,.
socioeconomic developmentalplan 1996-00,..lrianglcsaategy(p€ace,stability.
security)",andmicrofinancing.
EastTimor . Policy for rnacroeconomy
. Timor SeaAgeemcnt
. Trust FundsC|FET, L}{TAET) projects:
- communityempo*ermentalrd lmal govemance
- emplolm€nt

r - infra rehab
- small enlerpdse
- healftrchab ad devt

I
- agri rehaband dev't
- emergencyschoolreadiness
' water supplyand sanitationrehab
- microfinanc€

I Indonesia -
t
.
- economiccaoacitvblds

Decenlr-alisationscheme
Socialsafe0 setprognmmel(foods€curiry.emplo).rnenr.
soctalproleflrorlsrnallard

I medlum enterpnses)

I
 povertySltuationin
lutheast lsia anaXCOTespons-

Decentralisation
Massorganisations:
women,yout\ etlEic/religious,worken
Suppodprogrammes.t'XO demntamination dilg
control,
ullqPrygE4llq-I3qgDal pop n and de\ 'r Doticv-sender
Corpr"h*a"ffi
(-ore fiaffo?olicies_lob€cneraung and equiry;na;ing
Instrtudonatisation
of soci"iir",rrand-J.ir.i1 n",.

i:fj*frff:l;Pi6;d;il;4 e",ffiE;mil
:+rorrgeaappro@,
rcoucuotrot poor's \r.dnemblliD lo unforeseenevents
Sgme.rely,nsiv.ePq€rryRearcrion
Snareey
icpns)
Po\,er9WorkingGroLrp
rmultisectoral)

B. NGOResponses
to poverty Reduction
intemational
andlocal,run-and.implemenr
variousprogmmmes
I3::T:l
rne respectrve
countries andprojecrsin
thevoperateto alleviate
poveny.Theirrespinses
rntothefollowing:
advocacy, canbecategorised
orsanisins,
d"tirJt ;i'b"si;;o"LTiffiill,""o ,,u"rtooa
progammes(pleaseseetable7 below)

ilff';oo'",:ffi,1',:ili,*if:JTg-r,"fentins themarginalised
secto$,
atthenationat,
communities
and. sectoral
groupsto facilirare
,,npt*un,"iioioirt'.-i;;"g#;Jf:it:^
services mote
particularlv
in delivering
basicsocial
andprovidin;tiliffi;;-ooirl"lli,i',,t:ts'
The following djscussionfearuresthe
localNGos imptementin thecountriestil$r:;t".:i:.*t*t"t and projectsintemationaiand

Burma

I::T"r"frl1,,i"T"rTli,:i['-d;:J:'":TI through
1r]11ia1ion prolects
aimed
at,ncreasine
l,i:fl."".."ffj'"J,".J1;.ji,,h*,.'"T"arsoinv
"*"c,r,""r";ii"";il;i;#il:Jft
Localorganisations.
on rheotherhand.dealwith issueson healtlL
T developmenrSomeorganlsations
andregional
people
aresocjeriesa
in theexecution
lhar
".opo""
*i,i
educalion,
g"*,#int
ofrurald"""lop'n;ni;;;;;;;"?""'#ffiii,,
andcommunity
a"pu.,r"nt.

T
T ' Most
wereorgarjzedby themilitrry.

I
 povertysituationin Souiiriast
AsiaanJ Ncoiesponses

Nevertieless, the.concept of NGo in Burma is new and not yet

much understood. No
legislationatsoexistsregardingthem. The.elationship
1if it exiJts)
beJeen NGOSandthe
Myanmargovernmentis srill unclear. AdvocacyNGbs which focus
on humanrights and
democratization operateoutsidethe country becauseof po.rlUt"-in#""ra,an
militaryregime. from the

Cambodia
The st.ategiesof NGOs and othe. sectors against poverty
include: infrastructure
rehabilitation,
provisionof reliefassistance,large_scaleseivicejetiveryusrngmultilateral
andbilateralfunding,servicederiverv^incoop"raion*itr, gou"rnrn"niJ,i.,"iur"., communrty
deveiopment, andthedevelopment of tooali.lCOsanaliv"i"
includestrengthening o,f,erstrategies
of localcapacity,encouraging ".g."i*i.^'
rocarrritijires, anJ creaitandsavings

VDCsalso in rural-dev€lopment. Theyserveaslinksbetween

_aid
rnter€sts. thegovemment andlocal
NGOS regardVDCsasa mechanism by whichcivil soclety
-
andplayanactivepartin decision-nraking liieracteff""tiu"ty
to*"rj, a"u"tprn"nt. "a-i

EastTimor
progErnmes and projectsinternationaland locatNGOsimptementin the
T_.Ojf:"]
counlryarein education andtraininq,health,.watersupplyandsunitation, agriculture
devetopment, and
sov€mance andlaw,c$acity building,;;i;; Education
;;;;;. and
are maintyin the form of teacherandvoca-rionat rraining,
*l1,lg'li"gr"T-":
rmprovement ofcuniculum;scholarships including
for secondaryandterti",l il;"dq upgrading and
expanding_ technicaleducation;
specialinterestcours€s for poorchildren;-
schoolbuildings; construction
of
andprirnary
educationor earlychilddeveiopment.
Healthprogrammes and D.oiectsinclude:community_based healthactivitiescapacity
buildingin managing diseaies.
technicalassistancq
-"fiilnd;';oiis,
T education,
materials
andcommunication campaigns,
onhealth,construction
,uppl"rn"nt"ry
ofiealthcenters
inrormation,
fJ"aing;;ut i1;n, puori"utlon
andacquisitioriofmedi"ailqu,pmen.
of

T Watersupplyandsanitation projects
include:buildingwatersupplyandsaritationfacilities,
strengtheningof water manaaementagencies,

r
*"irr,-'i"pui, or *ut".
"o-ort-"tion'ii
ac. Soml agricultureandrulal devetopmentprog.ammes
lj:Ill:,..:l:ll.*r.
rncruoe vetennary
services, or p.ojects
regional
planningassistance,andecono-Laiu"foorn"n,.
Govemanceand law programmes
t organisation
vrolattons.
development
groupsandorganisers.
or projectsinclude:the establishment

of humanriehrstrainingandeducation
-rno-niori"g
capacitybuildingln prouiaingtegutar.i"ran"e.
'oiof a legal aid

cours-es
l,rrnu" ;g1,,,
lor communjty

t andestablishme'nt
Capacitybuildingfocuses
ofan indJpendent

on imorovingthe performance
includiry developinghumanresources-
media.

of institutions andorgamsations,

t rhroughrraining;;";;;;";";;"tudng work

t
I PovertySituationih SoutheaitAsleahd NGOResponse3

I units and changinglines of communicationand management.Among the livelihood projects

implementedare livestockraising,micro-financeor micro-credit,animalhusbandry,cattle

I larming.haberdashery, andhandicrans.

lndonesia
I work throughthegovemmentsystemandcooperate
NGOs,bothlocalandinternational, with
village-basedor community-based towardspoverty reduction.International
organizations
I NGOs have mountedsupportprograms,particularlyin food relief operations,fundedby
bilateraldonors.

I On the other hand, local NGOs are involved in poverty alleviation though projectsaimed at
increasilg food production,improving health and education,and providing livelihood
opportunities.They areinvolvedin strengthening the capacity(capabilitybuilding)of other
I localorganisations.

In the area of social protection, severalNGOS have initiated activities, direct€d towards
t helping the poor. Activities include assistingstreetchildrenand assistingworkers frnd
altemativeemployment.In additionto govemmentschemes, NGOSrun hundredsof small
micro-credit schemesthrcughoutthe country.
I Philippines
I NGO responses in the Philippinescanbe categorized
deliveryof socialservices,livelihoodprogrammes
by majorareas:advocacy,organising,
andskillstraining. Many NGOs are into

I advocacywork followed by educationand training, capacitybuilding and organizing.

Advocacycan further be subdividedinto economic(e.g. foreign debt, maqo-policy) or
political issues(humanrights,governance and aonuption)and relativelymost NGOs are

t involvedin the latterthanthe fo.mer. Trainingsdeliveredby NGOSarevery muchdiverse.

Organisingwork hasdefinitelygonedownin the lastdecade.A mo.edetaileddescription
therespooses aregivenbelowin table 15.
of

I Thailand

T NGOs' roles in the countryare well recognisedand incorporatedin the nameof people,s
participation.
Approximately10,000localNGOSand30 intemational NGOsare involvedin

r a wide variety of concemsand activitiesin the country.Many of them are engagedin

developmentprogrammes, promotingself-helpand community-st.engthened programmes.
SeveralNGOsparticipaled andtook grealresponsibility
in draftingthe curent economicand
socialdevelopment planofthe countrybasedon the slogan"people-centered development.,'
I Vietnam

I Civil societyin Vietnamis madeup of organisations,

or donor organizations
suchasintemationalresourceagenci€s
and local and internationalNGOs and massorganisations. It is
- involvedin a wide rangeof communitydevelopment eforts eitherwith the govemmentor
I
t
 independertof it.In some instances,govemmentinstitutionssuppo.tthe work of NGOS
rrrougn rne nrobrlrsatlonand tapping of its own personneland material
resourceslbr
oevetopment lntltatlves

someprojectscivil societyimplementsin variouspartsofthe country

are informal social
protectron. schemes(microfinancing). Farmers,othet interest groups, oa even
whole
up these financingschem€s. this scheme,membersmake regutar
:::1li1,l::
conrnDulons 11 canexpect get
and ,In
to insurance
benefitsin timesofemergenciesandold ati.
Summary latrix of NGOResponses
to poverty in the Region
NGo responsesin the variouscountriesmay fall into the different categories
defined in the

ofNGO

hrfluencingPolicy-economii analoirlioa;
participationin polioyprocesses
andothcr
mecharisms;promotinggood govemanceand
campargnhgagainstcorruption:awarencssraising

Influoncinglooalpotioi;"; parri;ifiioffi loc"l

counorls;
awarencss raisingin thc comfiunitv
l.rfluencing
specrfi
c sectoralissues tike[rarian
urbal poor housing,coconutlew, etc
d Conmum4,Organzini Establishirg
communiry based groups;s,slrg
lhemrnstrengtlcninqtheirorcanizations
b) SectoralOrganAing
I Helpingorgarizelaborunloncfa.rn"rs
organrzatiotrs,
urbanpoorqrouDs. etc.
Implemendnghealrhprogrrrnm@; mary
I nealticare.rmmunization
dnves.Hiv-Aids
Conducling
literacycoursesEiseiilii
I lmplementing
programm67 p@iiiEilEii
childJen._the
elderly.battercdwomen.orgarzrnts
I at lncone-generatingt'roVt ts
AssistandfinancosmajlprojocEfo,
I b) Micro-f nancePrcj ects
groupsandirdividuals "ornmuoitv
Cive creditandloansto feasrbhprojectsatrd
smalibusincssesindividuallyor collecdveh

I '
Tfus mamx nas laketrfiom rhe philipphe casestudy. The
diversityofPhilippineNcOs provideth€vanous
I t)?csof N@ responses !o potenl ,edr.uon

r
I povertySituationin Sor.rtneast
lsiilna NCOnesponses

I .t Orgarusng Cooperunves
Assist communitiesand s*tot i,
I 5, SkillsandValucsTraini
coooelaltves "statlis.hi"g

I 6. Reliefand Rehabilitatio;
Pro\,idespecrficskllls
Prolrderalue-oncnted
Pro*de
*ort shopsanaseminars
,cmergcncysi^ rc6sr,-ii asGm-f,iE[,
I sbeltgr,foodrations.etc.afterdisasters
conflicts; Communityorganizationfor
rehabilitation
or

I Vll. Assessments
of GovernmentResponses:
I L Most governmentsstill focus on the role
of maoroeconomic
growth in poveny
this hasbeenchangingrn recenryearsastbe quality groMh
[*i,:.:]!yqi
oeenacceptedas the more crucialfactor (e.g.groMh of has
I rural
:lhampered T:asl:
More recentmacroeconomic-
that genoate,joU.:oi fo"ur"d
giomh p",f"fi;;;;;;;"i'has
by the crisesthat havehit the region,the financialrn"ftaorvn be"n
thepostSeptembe. in iiyz una
I 2.
Y.ll9,Tll8:-.renrs
several cntlquesemerge:
I 1 terroristattacks.
havealreadyformularednationatplansto combatpoveny,

t In the.planningstage,key stakeholders
I .
(especiallylor specificpovenyreduction
5 rhe probremin th€ imprementation
may have beenmissedor excluded
proiram)"
stagi rs reratedto the rackof resources,
tnter-agency
I -
5 Kesource
coordination,collaborationwith p vate a""ro.
groups.capacrtyofgovernmentagencies
andfinancialconstraints
ro deliver services
for povertyprogrammes
una
"iult'.o","ry
areexacerbated by
I -
cornrptionandweakgovemance
5 Suslatned
anan-ges
povenycampaigns
ln programmes
are limited.as
and implementation
changes in regimescarrywith ir
as in the caseof the philipprnes
I andIndonesia
g D€centralised
still Iimited
(i.e via localgovernments) responses lbr povertyreductionare

I f Donor conditionalitiesaffect the strategiesundertaken

countries(Ma.laluan andGuttal.20Ol.l
5 Difficulty of govemmentto establi;h.effectivemonitoring
as in the pRSp

and evaluation
I systems to funherrefinepovenyslrategies
r rne quesrronot equrty and assetreforms
as key policy thrust towardspoveny
j*:lil-i:.".X,1r nampere.d
bytheexisting
political
groupsresrstretbrmsthatwiil tendto redistribute ecoo'o.y *i"rJ ui ,nr.."r,
assetsandiniomesio the"o
poor1e.g.
agrarianreformor evenplain subsidies to th" po;;;;il;
groups.). m-argrnatiseo

rhoushhasirnproved
in thelasrdecade
in manvcountries
except jblvfor
poss
;H:ffi?1#i,*"n

I
Poverty Situation in SoutheastAsia and NGOResponses 8

4. Difficulty of governmentsto maximise ODA for poverty reduction. Absorptive

capacityis low becauseagainof resourceconstraints, weak institutionalcapability
and the difficulty in coordinating various donors in terms of their thrusts and
priorities.
5 . Dilficulty in targetingultra-poor and very poor groups as statisticsare scant,
resources arelimitedandthe possibilitiesofpatronagestrong(i.e.povertyalleviation
funds are diverted to groups supportiveof the regime). When a regtme ls
consolidatingpower (e.g Indonesiaor Philippinesor holding on to power like
CambodiaandBurma),\ulnerabilityfor misallocating resources will behigher.
The informal sectoris oft€n times neglected.Many poor peopleare found in the
informal sector also particularly in countdeswith mega-citieslike Thailand,
PhilippinesandIndonesia..
Budget allocationskewedtowardsmilitary spendingrelativ€to social servic€sin
severalcountriesbecauseof political reasons- stability and peace and order
problems;allocationto agricultureand rural areasarc low as policiesare typiaally
biasedfor the urban (usuallyareassunoundingthe capitaland other key cities),
formal and manufacturingsectorsevenwith the rhetoricfor rural development.

Vlll. Civil SocietyResponses:

Summaryand
Assessment
t . Most NGOSand civil societygroupswork at the communitylevel --. organising
sectors, communities,and associations(especiallyin countries with relative
democraticspace), and delivering social services,such as health, training,
microfinance, andlivelihoodprogrammes (almostall countries).They usuallycover
small parts of the country, and many do not coordinate or collaborate with
govemmentexceptfor those in socialistsettings. Most have iimited resources,
althoughfew managehuge programmesparallelto govemmentservicedelivery
acxluues.
2 . Very few NGOs work at the national and macro-levels. Usually, theseare networks
or federations ofpeople'sorganisations,
doingadvocacywork for their sector.Most
of theseNGOs clamorfor greaterparticipationin the politicalprocesses.A very
limited numberof NGOs are capableof doing economicadvocacyin the senseof
debatinggov€mmelt and the private sector in rnonetary,trade, industrial and fiscal
policies. IntemationalNGOSare very much engagedin global advocacyat the
WTO, IMF and the WB. There is a needto forge linkageswith academeand other
r€searah institutions
to enhance
economicadvocacy ofNGOs.
3 . Intemational developmentNGOs play crucial roles, especiallyin countries where
democraticspacesremain nanow. They becomeconduits of official development
assistance.Theyarealsoableto inqeasecapacityoflocal NGOsandhelpthemattain
govemment recognition. However, in the long ruq the relationship between
implementingintemalionalNGOs and tocal NGOs musrbe clearlv def,nedas the
lattertakeson sreaterroles.
I PovertySitu.tion in SoutheastAsiaand NGOResponsee

I 4. Very few NGOs work with the private sector for pove.ty reduation programmes.
This is an areaof cooperationthat has remaineduntapped. Thjs is becauseof

r di{ferences in perspectives'.

entrcpreneurship promotion.
However,the privatesector'srole shouldnot only be
Iimited to job creation.They also have expertisein resourcemobilizationand

I 5 . Good govemanceand accountabilityof many NGOSare now being demandedby

govemment, communities,donorsandotherstakeholders_ Cronyismandrent-seeking
areaheadybeingusedagainstcertainNGOS. Corruptionin localNGOSis alsonow

I beingdiscussed.At the sametime donorsare alsoaskingwhat the impactof NGOS

areafteralmosttwentyyearsofpoverty work in theregionespecially
Indonesia, Philippines
ard Thailand.
in countrieslike

I Thereis a needfor greatercollaborationamongNGOs (internationaland looal),

govemment(includingmulti-laterals),and the private sector . Multi-stakeholder
collaborationis key towards poverty reduotionefforts. NGOS as irtermediary

I organizsations
at locallev€ls.
mayplay activerolesin promotingthis t]?e ofcooperationespecially

I lX. ProposedActionAgendafor NGOsin the Battle

AgainstPoverty
I
The followingis a rnenuofpossibleactionsby NGOSto assistin the battleagainstpovenyin

I the region. Whil€ someofthese are alreadybeingdone,we still mentionthemto highlighr

theircontinuedimportance.Thosein bold lettersarea-reas
that NGOSneedto enhancetheir

r| activitiesandresponses.

I Networkwith otherNGOsdoing similarwork to maximiseimpact.This is especially

importantfor groupsdeliveringbasic socialservic€s to communitiesor for those

t doingadvocacy work.
2. Expandnetworkingwith other sectorrlike academeand th€ private sector. For
the former to help NGOs in their economicand other advocacyrdork and in

I somecommunitydevelopmentelTortg,tror the latter, to assistNGOSrn resource

mobilisationand in running livelihoodand job facilitationprogrammes.
3, Broadcn relation$hipwith national and local goyernment8especiallyfor NGOS
! delivering social services - greater collaboration \yill prevent wastage of
resourcesand duplicationofwork. NGOSmay push government10specifyroles
to be played by key stakeholdersin pover8 reduction programmes. For
! example,NGOs can elfectivety a$sist in locating ultra-poor groups and in
assessingneeds of such groups for the design and implementatiotr of
piogrammes.
I 4 Enhance capabilities for the experimentation and implementation of
programmes for risk and uncertainty mitigation like social insurance,

I '
NGOStpicatly misfusf profit-orientedorganisations

r| " A caveathereis whengoveru[ent is seenby NGOSas i egitifiate suchas a dictatorship.

!
T
I
PovertySitu.tion in southealtA5iaand NGO 30

II community funds, workfare programmes; etc. Disseminategood practices to

other NGOs and civil societygro[ps.
t 5 . Promotemicrofinance andcreditasthesearemechanisms
mitigationfor communities
andhouseholds.
forjob generationandrisk

6, Build appropriaternechanismsto evaluateand monitor impact of NGO efforts

I toward poverty reductionat regular.intervalsin a sostainedmanner.

Improve transparencyand accountability of NGOS to key constituents. NGO
qedibility is key towardsgleater resourcemobilizationand better effectivity in

T progmmm€implementation.
8 . AdvocacyNGOS(wherethe situationpermitse)mustfocuson thefollowing agenda:

I Political:

a) Participation
in policy-makingprocessespanicularlyin thoseissuesaffecting
T pov€rty reduction.
b) Pushingfor policies to strengthenthe role of people,sand community
organisationsin pov€rty programmeimplementation
I c) Ensuring tnnsparency and accountabilityof key agenciesimplem€nting
poverty reductionstrategiesto stamp out corruption

r! d) Continuefightingfor therightsofmarginalisedgroupsandsectors

Eco omic:

! Pushingfor a comprehensive and integratedpovertyreduationstntegiesthat

are formulated though participatory processesthat include maior

r! stakeholders.
b. Ensuring macroeconomicpolicies affect poverty situation in a positive
te[se.
Pushingfor economicpoliciesthat favor agricultureand rurai develoDment.
t andlhosethatcreatemorejobs.
Advocatingpoliciesthat mitigaterhe negativeeffectsof opentrade policies
andmaximisinggainsfor the majo ty.
! e , Pushingfor equityandassetreformsto promote€quitabledistributionofany
gainsto gowth.
Pushingfor adequatesocialitrsuranceschemesatrd other safetvnetsthat
I minimiseeconomic vuherabilityof pov€rtygroups.
Advocating the donor community to attune their poverty r€duction
elTorts based on national strategy and plans devised through
! participatoryprocesses
that includedkey slakeholder3

I
! ' In tlle
cas€ofBunm for example,advocacyNGOSinetrtably focus on an antidictatorship agenalaandare

! outsidclhe countryi only the servicedeli\)eryNGOS(usually internaGonal)operateinsidethe counny

I
I
r Socio-cullaral:

I a) Pushingfor more responsiveinstitutionsthat promote social and human

capital.
b) Enhancing the family's role in protecting thc householdfor economic

t risks and vulnerabilitythrough awaren€ssand family-basedprogrammes

c) Working with the church and other concernedsocialinstitutions towards
the imbibing of human valles (e.g., fairness' honesty' and integrity)
I through iltensive and massivevalues educatio.rprogrammeswith the
people,especiallythe young,in order to createand sustaina societythat
doesnot discriminateir terms of socioeconomic and politic&lstatus,and

t usei resourcesresponsiblyfor the well beilg of all' including future

generations.
d) (For couttries with population managementand EIV-AIDS concerns
t e.g., Philippines' Indonesia, vietnam, Cambodi& and Thailand)
Conducting intensilied and massive family planning atrd responsibl€
parenthood campaignsand sex educltion campaigoswith the most
T vulnerablc groups,especiallythe out of schoolyouth; at the same time
providing th8m options(e,g,,paid or voluntary communitywork' regular
employment,Itack to school' vocational traitring, etc.) towards a more

t meaningfuland productivelife.

F
I
F
F
F
IT
T
T
T
 SelectedBibliography
^'"'
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outrook
2001.oxrorduniversity
press,
ottun
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Ercrusion
Asta and EuroDe,,
nr^^.
or rn.r,,"i^-.
^
l"l'la**fl;ft f;1,",y,"xff
f''"'H:;n,H*lli'fl
i{j:*1;
Baviera.A and
C. Militanrefed

s:;f
t;Hflefi;1d1]:l xfl1rJ;iy;:ff
iffi""t,;,il:;fl; #
Bird. K , D. fiulme.
K. Moore :
mw:*:*jiuilti[:i:T",#{,",;:i,T:ib
nr:*Hfl
Chavez_Malaluan,

"*.,.il";#;;:,11",.i;t:,i;l*H,:ff
J andS. Guftal

i,?jh{"flilj:1.,f:"d;;i:i
DeotaljsT;-A
,-l Brjuanres.

ilf j
:';li:s'ryy
R cal

",,"Iir::tj:1*"t'":1:"1ryf""
*ux*L:ifu
"#itrit3nl#dff
'""*,f|i;"iii1l,1!1ifl,""L11, :,*a
i'#"*,"x,*#"f
*'""'lIJ;o#o:*f ;"6,::fl
ilililili,,;:i;,1",,:
".,,,","._
j:n:tk*i1fu1;",""#:hffi"
ff*i#p:i:, i"-?::y
Warr. P".Poverty
Reduction ,n.t F-

I i".','.""T!":tlmtm:m":;:#Hl;J::i.;:\:f
"#l;,*"fi:::
**t
I f,"TTf,i;#lLl!rt;- ft 2oo0ko0ltAttackins
pove"ty,
o,ford
I
I
T
!
!

CountryReports
EastTimor
 PoVERTY
IN BURMA
JOI{ANM ZIJLUETA

I. Introduction
This paper is parl of a studv of povertv reduction rnitiatires
b1 govenrrnentand NCOS in eighl
ASEANcountnes- namct\ phitippines.
indonesra.Cambodia_ Vli"lrn--sr*";. Li,r*. TlUr_a,
The study aims to presenta comprohensive view of poverty slruatlonand the
19 F! J--
rcsponses
to povertyby differ€ntsectorsin the eight countrics. etso, it ai.s
.ccornmendations tlo come up wrtn
to dev€lopment NGos regardingireas of intewentiooso;
respeqryegovcmments *tt tlr"l.
towardspovertyreduction.Th€ sfurlymainly usedsecondary
"olliuoiutron
data (\lTitten
documents,books.addintemet)

focuseson Burma.-It is divjded into six parts. The first pan

II fqg presentsthe
ntroduction. The secondpart describes the demograpllcpronteoianaloi,lny ,,tu"t,on in
Burma. Thethird discusses the maincausesofpoveny. fle fourthfeatuiesthe responses
povertyby thegovernment, to
intemational andlocalNGrOs,ir"lJ"g i"d-"ti"""I donors,and
the.church.
_The fifth presentsan assessment by some instituttns and analystson the
multisectoral,
responses.particutarlythegovemment,s,
to p*;y. il; ,il ;;n presentsthe
summaryandconclusion

2. Profile
2.1 ceography and Demography

|;il:{;X'"[ii,H'"""T "hy:"fr,1i:",*n;i"ff
d"'':'"f i"?:i3"fi:;J,;],,""ii;
steep,
russed
hishiards.
rtstotal areaisord,soo
f,nt-*i r tlotar
randareaat
;iT:Xla*Pr

l:""1I
;'JTlffi ff
"'"'q*T;:::;3:."J,:i#,'#,lli;iji',"#l,illii#:'ffiT
'"';"THfi
"iu:!,i"fl#;iq;:ff
;xl""ff 1:
";*"1*,J:l"lrrutl,,,:n'r"",f
;;
ff*'"T*lfff:""ifr
T:'"ii;
i*l"l?ffii:,1"i;,ffi
;,"
l?lf"ilm;f,f#
t9:"l"jry is mainlyagriculrural,
withtheag culturesectoraccounting
for morethan40%
of GDP lrsmainexponsarefoodstuffs
orthepopuration
"i. r,"i","a]"-
s.,ilrl::'fi:1"*Ti %ffi:liil::ffi
,,Hl:Hr(:?#]
Themajo'languase
is Burmeseo,rt". gt rpr,i"."ver, havetheir
:#if,|ffi;Xt "rl"i"
 Table

Population (2001)
4t ,9%,6',t8
Capital Rangoon
!99qo,ny Agricultural
Mail expo4s Foodstuffs,
woodproducts,precrous
ston-i
Major Languages Bumcse
MajorReligion TheravadaBuddhism

2.2 PovertySituation

lT1n1^i1_alngng
(FY) 1998/99,99 theyvo d's poorestcountries, despiteirs 5.8%cDp go1'v1h in fiscalyear
a cDP growthof 10%by Fy 1999/2000. Majorir/(nearty
' 75yo)of the
muntry'spopulation live in rural areas,where|l,yo of thepoorieside.povertyls mainly
poncentrated amongthe non-ethnicBamars,in regionsthat aie rural,sparselypopulated, and
areas.poverryutnongrnounr-uin p"optesis high;;;;;;ed to peoples in
l::l_"d T l,Flt""d
ornerpfis ol the country.

RealGDP groMh in Burmahad declinedbetweenFy tgg5/96 andFy r997l98.

This was
Iargely.dueto theimpactofbad weatheron agfiaultural produdion.Another
-and -foreign
wasthe shortage
of agriculturalinputs, such as fenilizers pesticides,causedUy e*ctrar,le
constraints.Still anotherfactorwas the Asian crisis of 1997,which had likewise
affected
trade,the maxket,andtourism. The country, however,was abie to recover,whenit posted
a
growh of 5.8%in GDp in Fy 1998/99,anda growthoi nearlyrct%Ay
fV isSStZOoo.
The countryhasa substantial amountofnatural resourc€s,
whichcancontributeto economic
growth. It, however,facestradeand foreignexchangeconsrralnts.thls is rnainlydueto the
sanctionsimposedby certaincountries,suchas thJ United States. In April
t bannedall Americaninvestments

Canada
in Burma dueto negativeperceptions

andAustrali4hadpassedlegislatioqenablinglocalgovernments
1997,the US
ab'outtumun rights.
Thesesanctionswerefurtherrenewedin 1999. The iS, u, ,"tf i, otf,.r-"ouotries,
suchas

T 6Urma.
to iestncttradewifh

the.othTdeveloping
Asian countries,whe.ethe incidenceof povertyin rural areas
T l]llit il,
i:]Ig:t^lY
rncroence
area\^in Burmatheopposite
ll i*""areasis 21 9%
In urban
istrue.Latest
statistlcs
showthatpoverty
philippines).
while in rural areas,22 4% (NSCB,

t urban povertyrate is high due to the higher cost of food, a more skewed
income,and lackof accessto subsistence iarming. This rnuy
distributionof
t" J"" ,o ,f,efact thatrhe

I
country'ssocialistpoliciesareorientedtowardsbasicneedsand "fro
is biasedtowardsru.ai areas,
everthougheconomicgrowthis not high.

The urban poor belong to householdsthat tend to be smaller and have

ltt household heads.Also,theytendto be in areasrot closeto available

slightly younger
jobs aJgooo services.
Rural poverty,on the other hand,is mainly due to low agriculturatoutput,.in""-tt
haveeitherno landor plots. Thelimitedavailabilityof;ff_farn work is "
..A poo.
alsoanotherfactor.

F
CountryReports:Povertyin Burma

Adult literacy is high at 90%. Primary school enrolmentis also at 90%. However, not all
enrolledin primaryschoolare ableto finish schooling-- the completionrate in the primary
levelis only 34%. Thegrossenrolmentratioat middleschoollevelis lowerthan40%.

Low elementarycompletion may be due to the fact that, despite free pdmary schooling,
parentsstill face the burden of paying for textbooks, uniforms, school supplies, and other
contributionsneeded,suchas parent-teachefsassociation(PTA). Rural net effolment rate for
primaryschoolis 787owhile urbanrateis 870lo.

The country'suniversitieshave been closedfor a long time due to the December1996

political demonstrations.Many young peoplemigated to other countries,resultingin a
"brain drain", which is detrimentalto the courtry's future development.

The country's expenditureon health is lessthar a fifth ofthe averageaggregateamountspent

elsewherein East Asia. Thus, the coun1ry'shealth indicatorshave fared lower than that of
otherdeveloping countriesin rheregion.

According to the Joint United Nations Program on HIV/AIDS (JNAIDS), almost half a
million peoplehaveHry/AIDS. HMAIDS infections,followingthe wake of the country's
drug explosion, have reachedendemic proportions and may be a threat to the country's
economicand social stability. Other health concemsinclude malnutritior\ malariq leprosy,
denguefever, andtuberculosis.

Despite the above health concems,infant mortality rates have improved and immunisation
rates have increased. Burma has twice as mary privat€ as there are public medical
professionalsand facilities. However,useof privatefacilitiesis low due to high price and
On the other,publicfaciliti$ areofpoor qualityandofhigh costsaswell.
inaccessibility.

Urbanhouseholds arebefteroffin termsof access to basicneedsandservicesthantheir rural

counterparts. Peoplein urban areashave greateraccessto sanitation(65%) than rural areas
(39%). A satisfactory numberof the country'spopulation(666/o) haveaccessto safewater.
However, only 17% of people in urban areasand a measly2P/oin rural areashave accessto
piped drinking water. Also, Myanmar hasone of the lowest personto telephon€ratio in the
world, with 5 phonesper 1,000people. Thesemay be dueto the govemment'slow spending
on basicinfrastructu.e,which could contdbuteto improvedliving standards.
t CountryReports:Povertyin Burma

t Table2. Socioeconomic
GDP
Indicators
US $ 14.2billion (1999)

I GDP per capita

Humande\,elopment
Povertyincidence
tndex(HDl)
us $ 3000999)
(2000)
t25- outof I74 counmes
22.9%(1997)

t Rural
U$an
Annual groqlh rute
22A%
23.9%
0 .60/0(2001)
Lifc cxpectancyat birth years(2001)
I Male
Female
55.16
53.73
56.68
Adult literacy rate 83.6%(tee?t
T Male
Female
lnfantmortalityrate{per l,000live binhs}
89%
78.8%
73.7r (200t\
T Unemplolirnentrate 7.r% (1991
/98\

T 3. Determinantsand Causesof Poverty

I The main reasonsfor Buma's pervasiveand seeminglyhopelesspovertysituationare the

flawedpoliciesandpoliticalrepression
Therehasbeenlarge-scale
the governmentcontinuesto implementandexercise.
displacement of ethnicgroups,forcedlabourfor military camp

t wor( andhumanrightsviolations_Accordingto World Bank's recentsocialand economic

assessment,
the countryis "trappedin abjectpovertydespiteits rich resources
base.Although
therehas beennotablemodente grofih in the economy,the trickle-downeffect of this

t groMh did not reachthe poor. The country's povertyand developmentindicatorshave

iaggedbehindthoseofits neighbours".

I 3.1 Political Repression

and HumanRightsViolations
The continuingviolationof the humanrights of its citizensis a major issue,worseningthe

t country's situation.The government'spolicieslegilimiseforcedlabourin military

_p-overty
campsandforcedr€locationofpeopleto areas,wherefoodis difficult to grow

T Repression of political and civil rights and the lack of dialoguebetweengovemmentand

oppositiongroupsdenythe very essence
the displacement
of demoanticgovemance in the aountry.policieson
of certainethnic groupsas well as arbitraryarrestsand killings furrher
t aggravatethepove.tysituation.

Also, military spendingis high. Budgaary allocationsto basicservices.suchas healthand

T education,
growlh.
axediminishing.Yearsofmilirarism havestunredthe country.sandthe people,s

T
T
It-
 3.2 Food Scorcity
Food scarcityis anotherproblemhoundingBurma. It existsin both civil war and non-civil
war area, makilg all community members,particularly women and children, suffer from
hunger,malnutritioqillnesses,
andotherhardships.

Thefollowingarethe causes offood scarcity:

l Destruation ofstaplecrops
2. Uncompensated conscption ofpeopleto work on stateprojects,whichgivesthem
no time to work on theirfieldsandgrow food
3. Forcedrelocationofpeopleto areaswherericeis difficultto srow
4. Quotasystemon the amountof rice to be suppliedto goveiment, belowmarket
price, which must be suppliedwhetheror not the harvestwas adequate_ this
leavesthe peoplein debtandwithoutanyice to eat.

Food scarcitybringsaboutextortion(alsoa causeof food scarcity).For soldiers,extorting

food, crops,cash,and otherservices,is the solutionto their own iack of food suDDlies.For
the people,this extortionleadsto food insecurity,and eveflually to food scariity. The
trallickingofgirls andwomenis alsooneseriousoutcomeoffood scarcjtv.

4. Responses
TowardsPovertyReduction
4.1 GovernmentResponses
The gov.emment'spovertyreductionpoliciescentreon rural and agriculturaldevelopment.
SuchpotrclesIncludeplansto boosrthe productionof rice and othet crops.The countryis
adopting methodsto boost agriculturalproduction,inaluding water iupply and farm

I mechanization,
and advancedtechnological knowledge. Also, th€ govemm€nthas drafted
and_implementedappropriatepoliciesto improvethe country'ssoiial indicarors,sucn as
healthand eduaation.It hasopenedmoreschools,hospitals,andhealthcentresin the rural

T areas.

Othergovemmentprogrammes
areasfollows:

! 1 Forestconservation andafforestationthroughtre€planting.
2. Provisionof powerfor streetlighting and governmentand religiousbuildingsin

T bordertownsthrcughelectricitysuppliedby smallgenerato$.
3. Imp.ovementof communicationthrough telephoneand teleg.aphsand postal
systemproJects.
T 4. Creationofjobs and incometkough the constructionof departmentstorcsandthe
teachingof traditionalarts, such as weavingand gold and silver embroidery.

t Coope.ativeshopshave beenbuilt to providean outlet for th€ sale of localiy

producedgoods.

T
F
 The govemment, in cooperationwith NGOS, the informal s€ctor, ard other groups
ar€
carryingout the aboveventures. Financialand technicalassistance
from foreiln gioups,
especiallyASEAN member-countries,help in this endeavour.

and Other Sectorsin poverty Alleviation

4.2 RoIeof NGOs
The conceptof NGO in Burma is new and not yet much underutood. No legislation
exists
regardingthem. 'Therelationship(if it existsat all) betweenNGOs and the government
ls
unclear. Nevertheless,NGOS,both local and intemational, work tbrough th-egovemment
systemandcooperate with village-based or community_based organisations
4.2. 1 lnternational NGOS

Only a few intemationalNGOs havebeenoperatingin Burm4 and theseemergedonly in

the
1990s.Most of theseNGOswork on health,especiallyconceiningHIV/AIDS] development,
disastermanagement, andwomen,sissues.Otherswork on naturalresources.

IntemationalNGOs, suchas Savethe Children,Marie StopesIntemational,The Red

Cross,
and tN afliliated organisations,are involved in poveny alleviation tluough
l_d^y-"irlarmedat.rncreasing
lI:Jeqs food productionand improvinghealthand education. Theie
arso rnvotved in strengtheningthe capacity (capability building) of local
lly:: ir,"
olgansatlons.

An NOO/Trust Foundatio4 GrameenTrusl of the GrameenFoundation, USA

stafted a
microcreditprogrilmmein Burma in Augustof 1997 The programmeis cunentty
sewing
18,715women. The programme started_inthe DeltaZoneof the-country,one ofthe pooresi
rcgions,wherewomenconstitute49ploof its population,and 45% of its adult workforce.
The
UN Office for Project Services supports this programme. The programme
orgaruses
borrowersinto groupsof five, trainsiirem on the'req-uirements
oi!.Jrp ?l*oer.r,ipr, anO
givesthemcollateral-fiee
loansrepayable in weeklyinstalments.

|I 4.2.2 Local organimtions

Local organisations
are many,but aremostlyaftiliatedto religiousgroups.Linked with the

I 9-"lTill1
thes€iocal organisations.deal
development.Also, localNGOs include_
with issueson health,education,and community
differentt]?es of cooperativesocieties,working
with govemmentd€partmentsand regionalpeople in the executionof rural development
and
t povertyeedication. It shouldbe noted,however,-thatnot all local organisatrons
NGOs in a strict sense. Other NGOs jrarticularly those advocatiig human
democntisationoperateoutsideBurmaas they are considered
qualify as
nghts and
as subveriivesby the military

I reglme.

I
T
;
t-
F CauotryReports:Povertyin Eurma

F 5. Critique/Assessment
of GovernmentStrategies

F Taking on flom what UN SecretaryGeneralKofi Annan said, "Development cannot thrive

without humanrights", it seemsthat Burma hasa long way to go before real socio-economic
developmentard poverty alleviation take root in the country. The governmentand its so-

F called"flawed' policieshavebeenvery much critiqued.Despitethe administration's

of variouspoverty reductionprogrammesas well as a comprehensive
development,
claims
plan to implement
thegoalofpovertyrcductionis seenby somesectorsto be far behind.

F Thesesectorshaveqiticisedthe govemment'sadoptionof military solutionsto solvevarious

problems,especiallywith oppositiongroups. AsianHumanfughts Commissionstates,the

F
I
policiesthat the Burmesegovemmentcontinuesto implement,"continuesto generatea
pattemofgross andsystematic humanrightsviolations".Unlessthe govemmcnlveersa.way
from its current policies,groeth and developmentwould remainstunted.

The World Bank also mentionsthat in order for Burma to receive support from overseas,it

r| shouldshowa commitment
socio-economic
to a broad-based policythatwouldnot only address the country's
conditions,but also the other concernsof the internationalcommunity,in
particular,the UN resolutionson politicalandcivil rights.Only the Associationof Southeast
AsianNations(ASEAN) seemto showcommitmentto zupportthe cunent regimesthrusts

F towarddevelopmeni.

F 6. SummaryandConclusion

F 6,1 Summary
Burma, capital Rangoon, borders the Andaman Sea and the Bay of Bengal, between

F
I
Bangladesh and Thailand. It has a total land uea,of 657,'140km'?. Mainly composedof
cenfiallowlandssunoundedby steep,ruggedhighlands,it has a total populationof 41.9
million. An agriculturaleconomy,the country's main expons include foodstuff,wood
products,and p.ecious stones. In the past years,the ag cultulal sector accountedfor more
than40% ofthe country'sCDP.

T The country'spopulationg.owth rateis lessthanonepercent,with birth rateof20 13 and a

d€athrute of 12.3per 1,000population.Majority (68%) of the peopleare Burmese.Other
ethnicgoups includeShar\Karen,4% Rakhine,Chinese,Mon andIndian. Majority (89%)
T of the populationare TheravadaBuddhists. The rest are Christians,Muslims, and other
religiousgroups. The majorlanguageis Burmese.Otherethnicgroups,however,havetheir
own languages.
I Burma is amongthe world's poorestcountries.Majority of its peoplelive in rural areas.

r| Poverty amongmountainpeoplesis high comparedto peoplesin other parts of the country.

In Burma, poverty incidencein urbanareasis greaterthan in rural areas_

T
F
 CountryReports:Povertyin Burma

Urban poverty rate is high due to the higher cost of food, a more skewed distribution of
income,and the lack of accessto subsistencefarming. Rural poverty, on the other hand, is
mainly due to low agriculturaloutput, sincethe ruftI poor haveeither no land or plots.

Adult literacyis high. Whiieprimaryschoolemolmentis high, completionrateis low dueto

cost of textbooks,uniforms,school supplies,and the like. There is high incidenceof
HIV/AIDS in the country. A lot of peopl€,especialiythe poor, sufer fiom malnutrition,
malari4leprosy,denguefever,andtuberculosis.Costlypublicfacilitiesareofpoor quality.

T The country faaestrade and foreign exchangeconstraintsbecauseof sanctionsimposedby

certaincountries,suchas the United States. The US bannedall Americaninvestmentsin

T Burrnadue to negativeperceptionsabout humanrights. Other countries,suchas Canadaand

Australia,hadalsopassed legislation,enablinglocalgovemmentsto restricttradewith Burma.

I Themainreasons for thecountry'spervasiveandseemingly

flawedpoliciesandpoliticalrepression
Therehas beenlarge-scale
the
displacement
govemment
hopeless povedysituationarethe
continuesto implementandexercise.
of ethnicgroups,forcedlabour for military camp
I work,andhumanrightsviolations.Foodscarcityis alsoa majorpovertyissuein the country.

The government'spovertyreductionpoliciescentreon rural and agriculturaidevelopment.

T Thegovernm€nt

implemented
hasadoptedmethodsto boostagricultural
production,includingwatersupply
and farm mechanisatiorl and advancedtechnologicalknowledge. Also, it has drafted and
appropriatepoliciesto improvethe country'ssocialindicators,suchas health
I andeduaation.It hasopenedmoreschools,hospitals,andhealthcentresin the ruralareas.

IntemationalNGOs are involvedin povenyalleviationthroughprojectsaimedat increasing

T food productionand improvinghealthand education. TheseNGOs are also involved in
strengtheningthe capacityoflocal organisationsandmicro-creditprojects.

I Localorganisations,
on the otherhand,dealwith issuesort health,education,andcommunity
development. Someorganisationsare societiesthat cooperatewith govemmentdepartmerts
andregionalpeoplein the executiolof ruraldevelopment
andpovertyeradication.
I The govemmentand its so-called"flawed'policieshavebeenvery much critiqued. Despite
theadminisfiation's
claimsofvariouspovertyreductionprognmmesandcomprehensive
T to implementdevelopment,the goalofpovertyreductionis still far behind.
plan

6.2 Conclusion
l! , Abjeatpove.tystill existsin Burma. Thoughthe countrypostedeconomicgro\a{h,

I pove.tycontinues
to b€ an impodantissueiq thecountry'sdevelopment

d Despite Burma's potential for broad-basedeconomicgrowth due to its substantial

I natural resources,it has a long way to go beforeit reachesits goal of full economtc
growth and development and poverty eradication. This is mainly due to the

T
t
!
T govemment'spolicies,stuntingthe country'sgrowth ard development.Countless
humanrights violations also ag$avatethe povefty situatiofl.

! a The Burmesegovemmenttdes to addressthe aboveissues:it has comeup with plans

and policies for developmentand poverty alleviation. One of this is rural

t development,the main tkust of which is agdcultural giowth. Other policies,

meanwhile,focuson improvingsocialindicators,suchas healthand education,job
creation,and accessto power andcommunications.

T , While NGOs are a new entity in Burm4 a number of local and a few intamational
NGOs have been coop€ratingwith the govemmentto addressthe country's poverty

T ,
situation. The relationship,however,betweengovemmentandNGOs, is still unclear'

Burma has a long way to go beforc it reaches its goal of high groMh, real

T development and zero-levelpoverty. Also, it shouldgive utmostpriority to human

rightsviolationsandits ongoingconflictwith oppositiongroups.

T , The govemmentshouldshowa commitmentto a broad-based

only addressthe country's socio-economic
policy that would not
conditionsbut also the international
on politicalandcivil rights in
community'sconcems,particularlythe t]N resolutions

T orderto rec€iveoverseassupport.

T
T
I
I
I
L-
I
I
I
t-
It-
T
I CountryReports:Povertyin Burma

t Sources

I BurmaiTheCountryis fuddledwith Abjectpoverty.

http://www.ahrchk.net/solidarity/200005/vt
05_13.htm

t FoodScarcityin Myanmar http://ww\T.ea.tkights.org/womer/CHR00.doc

Grameen
B.ingsNew Hopeto Myanma.Women,in GrameenConnections,
I newsletteiofthe GrameenFoundation,
http://www.gfu
USA.
sa.org/newsletter/spring00/myanmar.html
official

I Myanmar:Challenges
in HumanResourceDevelopment.
http://www.escap-hrd.orglnews/profi
les/myanmar.
htm

l Myanmar2001-2003:Country plan
Assistance
http://www.adb.org/Documents/CApsMyA,/default.asp

I MyanmarNGOs.http;//www.intemationalngos.org/burma(myanmar).htm

NGOSin theGMS: InvolvementRelatedto povertyAlleviationandWatershed

I Management
- Myanmaqby GunillaRiska.http://www.mekonginfo.orglmrc_en/doclib.nsf

Policies_and
I Strategies
Win, 1998.
of Myanmarfor Rural DevelopmentandpovertyAlleviation,by Ne

Povenyin theHinduKush-Himalayas.
! Pove(yRatioin Myanmar.
http://www.icimod.org.sg,4rkl/poverty.htm

T httpi//www.nscb.
gov.ph/events/asean/papers/country,Myanmar.pdf

TheWorldFactbook- Myanmar,in the CentralIntelligenceAgencywebsite.

I http://www.cia.gov

I.INICEFMyanmarwebsite.http://www.unicef
orglmyanmar

I
I
I
I
I
I
Cambodia
 Povertyin Cambodia
JaHANMZULUETA

1. lntroduction
This paperis pa.rtofa study of poverty reductioninitiatrves by govemmentard NGOg in eight ASEAN
countdes,namelyr Philippines, Indonesia,Cambodia,Vietnam, Burma, Lao, Thailand, and East Timor
The study aims to pr€senta cornprehensiveview of poverty situation and the responsesto povgrty by
diff€rent sectorsin the eight countries. Also, it aims to come up with recomm€ndationsto development
NGOs regarding ar€as of interv€ntionsor collaboration rviti their respectivegovemments towards
povertyrcduction- The studymainly usedsecondarydata (writlen documents,bookN,and intomet).

This paper focuseson Cambodia.It is divided into five pafs. The fiIst part is the introduction.
The secondpart presentsthe demographicprofile and poverty situationin Cambodia. The third
part discussesthe main causesofpoverty. The fourth part featuresthe responsesto poverty by
the govemment, intemational and local NGOq including intemationa.l donors, and the church.
Thefiffh presents
anassessment
by someinstitutionsandanalystson themultisectoral
responses,
panicularlythegovemment's,
to poverty.Thesixthpartpresents
thesummary andconclusion.

2. Profile of Cambodia
2.1 Geographyand Demogrdphy
The Kingdom of Cambodi4capitalPhnomPenh,is locatedin Southeast Asia" borderingthe
Gulf of Thailand,betweenThailand,Metnam,and Laos. Its total areais 181,040kmr, with its
landareaat 176,520km". Cambodiais mostlycomposedof low, flat plains,with mountainous
areasfound in the southwesternandnorthernregions.

Recentestimates(2001)peg the populationof Cambodiaat 12,491,501.Cambodia'sethnic

composition is primalily homogenous,
with 90% of its inhabitants
Khmer. Minoity groupslive
in the uplandand forestedareas. The Vietnamesecomprise50loof the populationwhile the
Chinesecomprise1olo.

Cambodia hasa very youngpopulation, where45% ofthe populationarebelow 15. This could
be att.ibutedro a "babyboom",followingthe fall of the KhmerRougein the 1980's. With the
baby boom came an increase in the labour force. However, with lack of employment
opportunities,this translatedinto an increasein the number of dependentand unproductive
members in a household.

Majodty(95%)ofcambodiansbelongto the Theravada Buddhistsect.This sectwassuppressed

by the KhmerRougein the past,but hasbeenrevivedunderthe cuffentregime. The count.y,s
national languageis Khmer. Other spokenIanguagesare French and English. Russianand
Vietrameseare also taughtin the urbanareas,including the capital.
 Trhle I- Demo
Total ladd area 116-520km'
Popdation (2001)
12.491.501
Capital PhnomPenh
Economv Agricuttural
Mah €xports Rubber,tirnber, resin. maizc- lobacco. rice.
sovbeans.and qaaments.
Maior Laneuase Khmer
Maior Relicion TheravadaBuddhist

2.2 Poverty Situation

Carnbodiais a very poor country. Pove.ty is concentsted in rural areasand tural households,
especiallythosewhoseprimary sourceof incomeis agriculture in 1997,36vr of the total
populationwe.epoot,mostofwhom werefatmers.

In 1998,the country'sGDP per capitawas estimatedat US $280 In 2000, around35,000

squatterfamilies or approximately1?0,000individualslived in Phnom Penh Of the total
individuals,50% were children.Most of thesefamilies,roughly31 5% of the population,were
miglants.Majority of migrantswere ftom within Cambodia,particularlyAom provincesand
rural areas. Only about 670camefrom outside the country. Capital and urban centrc Phnom
Penhhadthe mostnumberof migantsat 733,745.

showa correlstionbetweenpovertyandilliteracy- majorityofthe poor areilliterates

Statistics
In 1999,PhnomP€nhhad higherliteracyratesfor peopleof both sexes,with 92.3%for males,
ard78.6/o for females,thanin any otherpartsofthe country. Higherliteracyrateswerealso
seenlor thoseliving in urbanareasand amongthoseaged 15-24. Majority (both male and
female)reachedprimarylevel. On the otherhand,morepeople(61%)in the rural areaswerenot
abl€to completeprimaryeducation thanthose(39.5%)in urbanareas.More peoplefrom Phnom
Penhwere able to reachsecondarylevels.

In 1999,only l5% ofemployedCambodians werein wageemployment (i e. in the fomal sector),

thoughthe sharewas as high as 537oin PhnomPenhand as low as l lyo in runl areas.(IPRSP,
2OO0). The monthly salaryof wage earnerswas US $43. About 46Yoof the population
consideredthemselvesas unpaidfamily workers. A percentage of womeq 20 3% in Phnom
Penhand68.2%in ruralareas,wereunpaidfamily workers.

Majority (40.3%) of the population sourced their drinkirg water from dug wells. The rest
accessed drinking water from springs,rivers, and streams. In PhnomPenh,44'7o/oof the
populationreliedon pipedwaterasthek source,and34.80/o in the samecity boughttheirwater
(Pleaseseetable6 at the annexfor details).

I Majoilty (79.9%) of the population relied on keroseneas source of light. In Phnom Penh,
however, a good majority (75j%) relied on the city's power source. Ninety percent (90%) of
the peoplein Cambodiausedfirewoodfor cooking(Pleaseseetablesat the annexfor detailed

t oaral

r|
cosntry Reports:Povertyin Cambodia

Indicators
Table2: Socio€conomic
GDP US$3biilion(1999)
GDP Der caDita us $280(1998)
GNP per capita us $ 300(1996)
us $ 260(r999)
GINI coeficient .3'1(1997)
HumandeYelopmentindex (IIDI) (2000)
I36'out ofl74 countries
Povertyincidence 36.1o/"(1997)
Rural 40.lyo
Urban 29.9YoGxrludins.PhnomPenh- I l.l7o)
Annualgrowth rate 2.250/.(2001\
Life expectancyat bi.th 56.82yea$(2001)
Male 54.62yearc
Female 59.12yean
Adultliteruayrate
Male 83% (1999)
Female 6t% (1999)
Infantmortalityrute(per 1,000live births) 65.41(2001]
Labourforceparticipation rate 55.5%(1998)
N{ale s6.5%
Female 54.6yo
rate
Unemployment 5.3%(1998)
Male 4.7%
Female 5.9%

3. Determinantsand Causesof Poverty

3.1 UnevenEconomicGrowth
Therearea numberofreasonswhy povertycontinues to be pervasivein Cambodia.Oneofthese
is the uneveneconomicgroMh postedby th€ countryin thepast years. This gro*th is mainly
concentratedin urbanareas,especiallyin PhnomPenh. Hence,peopleliving in rural areashave
lessaccessto basicservicessuchas educationand healt[ capitaVincome,aodtechnology. They
havelessaccess to employment oppodunitiesandarelargelyin debt.

3.2 Lackof Accessto BasicServices(Health and Education)

A small percentageof rural folk have accessto formal education. Few primary and secondary
schoolsexist in the rural areas. Childrenhaveto walk long distancesto get to school. Other
problemsincludethe costofeducationandthe availabilityofteachers.

Due to the lack ofaccessto education,a high perc€ntage

ofpeople are still illiterate,especially
among women- With this comes
lack of employment opponunities.
andhence,lack of income.
corrotryRepor:s:Povertyin Cambodia

Qrality health servicesare inaccessiblein th€ rural areas. The rural folk have to walk long
db-tancesto rcceivemedicaltreatmentor services.Asidefrom inaccessibility, healthservicesare
erpensive.No mechanism existsto exemptthepoorftom suchexorbitantfees.

3.3 Ldckof Accessto Livelihood

Denyingfisher folk and forest dwellersaccessto the sourceof their livelihoodleadsto low
jncomegeneration,low agriculturalproductivity,andlackofpurchasingpower. Thesefactorsin
rumleadto foodinsecuriryandmalnulrition.

3.4 HighDependencyRatio
hashighdependenay
Ttrecor,rntry ratio (or the higherproportionofdependentsper economically
person
ac,rive has
in the household.Cambodia avery young population,
with 45% (1995)ofthe
totalpopulationaged0-14. The incrcasein the youngpopulationwas mainly due to the high
birthratefollowingthe fall ofthe Khm€rRougeregimein the 80's.

3.5 Landmines
Mostofthe poorpeoplearevictimsof landmines.Theysufferfrom landmine-related disabilities.
Landminesacaountfor the disabilityof I l% ofthe disabledpeopleliving in Cambodia(IPRSP).
Theyhavelosttheiroppomrnityto work aswell astheirproductive.

3,6 NaturalDisasters
are also causesof poverty. Harvestsdependon weatherconditions,and thus,
Naturaldisasters
theoccurrenceoffloods anddroughtshavean adverseeffecton food security.

3.7 Political lnstability and AsianEconomicCrisis

Cambodia stadedto rebuildits economyin the early 1990s,followingmorethantwo decadesof
war. Tradeand investmentflows roseto recordlevels, supportingan annualaveragegro\,,vthof
6% (WorldBank).This recoveryandreconstruction, however,wassetbackby renewedpolitical
instabilityandthe Asianeconomiccrisis. With the assumption of officeof a new govemmentin
1998andthe endofthe KhmerRougein 1999,i1is believedthat economicgroMh andrecovery
wouldagainresume.
 !9!!!ry Reports:Pove'tyin dmbodia

4. Towardspovertv
Responses
4.1 Government
Thegovemment'sprimaryresponse to addressthe povertyissueis economicgrowth,hence,
govemmentmotto: .?overry_reduction though the
high economicgro*th over
- -- the foog t".. ty
ensunngenvironmental
sustainability
andsociil equlty1FRSp,20"00).,,
4.1. 1 lAocro-policyFrameworkl

Thefollowingis thegovemment.s policyresponse:

|. rromoteoppoftunities
throughmacroeconomic growth,p.ivatesectordevelopment,
andinfrastructuedevelopmeru
2. createsecuritythough tie expansion
ofsafetynetsandthecrearance
3. strengthen oflandmines
capabirities
bystren$hening
tr,",i" ortr,"gou"-ilii, a"""nt.uti.ution,
andby improving
people's
access
ro eoucatron,
water,andsanitation
. uenerare
{. empowermentthroughbgttergovernance
andthefostering
envronment ofan enabling
for NGOs
4.1.2 Platformfor poverfy Reduction

Thefollowiagis theCambodian
government
platformfor 1998-2003:
l. Consolidation
of peace,stability,
andorderbyupholding
humanrightsandpromoting
democracy.
2. Investment promotionthroughthe mobilisation
of foreignaid andthe attractionof
foreigndirectinvestment (FdI).
3. Domesticresourcemobilisation graduallycutting defenceand security
-by
expenditures, avoidingdomesticfinancing of "brdgd'1"""r;;r"rg" uuag",
surplusanddomestic savines. "uirr"n
t9,"1,,"tj*:o renr_prioitysectors
andimproving
1 f agriculture
good rkoush
sovemance
I6. &Jlii:il1-:iA"*t-T:ffi'J#;1"ff;;i#enint
IntegrationofCambodianeconomvinto.theAsianregionandtheworid by expanding

-/. !"ru:l'}i]'**:Jlff :..',?#x;*"i ;;;;;;'i'"iiiig"io'p*"'iu"

ila,";::ffe
tluman resourcedeveloDment
8. Consolidation
ofpartn;ship with the donorcommunityandcivil
societv.

r
r T}e rdblesat fte anDexoutline rhepolicresro h
il-"?ff
;1lHri::-J::*g,T:ff
f ffi[3ff.,#"Jff"fu,ff*;3,,",
I ,ll1;;;:ut.l*r;fi
t
 CountryReports:Povertyin Cambodia

4.1.3 lmprovement of Health and Education

OneofCambodia'sresponses to povertyalleviationis to improvehealthand educationtlrough

includesfemale education,safe water and sanitatio4 child immunisation,and the provision of
social safety nets. The govemmenthas also committedto increasingspendingon health atld
education as well as improving sector perfomance and reducing parental contribution to
education duringthe nextfiv€ years.
ftom 50%(curent level)to 189/o

4.1,4 Provisionof greoter accessto Natural Resources,employment ond

colloborotlon with NGOs,civil society ond donors

The govemment has provided greater accessto natural .esources(forest and fisheries), land
policyandlanddistribution,andmicro-creditfor the poor (microfinance).It hasalsoincreased
spendingto c{eatemorejobs,andengagedin collaborative partnerships
with NGOS,civil society,
anddonots.

F
4.1.5 ProgramsI Projects

the Cambodiangovernment
Thefollowingarethe strategies implemented the poverty
to address
problem:

4.1.5.1NationalProgranmeto Rehabilitateand DevelopCambodia- aimed towards

economicstabilisationand structuralreforms, capacitybuilding, rehabilitationand
of physicalinfrastructures
construction ard facilities,the integrationofthe Cambodian
economy into the .egion and the world, rural developmentand environmental
management, andoptimizingthe useofnaturaltesources.

4.1.5.2Filst Social-EconomicDevelopmentPlan for 1996-2000- emphasised

rural
development aswell astheneedto balanceruralandurbandevelopment.

4.1.5.3 "Tdangle Stratesv"(DeveloDe4-iL!99E) - formulatedto materialisethe

government's1998long-termvision of economicprosperityand freedomfrom poverty.
This includedthreeparts:buildingpeace,restoringstability,andmaintainingthe security
of persons;Cambodia'sintegrationinto the Asian region; and th€ promotion of

F
development.

4.1.5.4Miqo finance- a credit schememainly implementedin the nrral areas,where

F 4.2
very few, o. noneat all, commercialbanksexist.

NGOS
and Other Sectors

F
I
The historyof NGOsin Cambodiacanbe tracedbackto the period1954-1970.At the time, a
f€w NGOSexisted,most of which were engagedin religiousactivities. In the 1970s,NGOS
focusedon development by providingaid andrelief to war victims. In the late 70s
assistance
until the early 80s, NGOs' works became diverse, ftom infrastructure rehabilitation to
respondingto andprovidingfor emergency
needs.

I
I
I CountryReports:Povertyin Cambodia

I
Sincetheq NGOs have expandedgeographicallyas well as expandedtheir activities in

I reconstructioneffons. A numberofthese activitiesinclude:large-sialeservicedeliveryusing

muitilateraland bilateralfunding,servicedeliveryin coope.ationwith govemmentstructures,
communitydevelopment, andthe development of localNGOs and civic organisationsNGOs
I havealsofocusedon strengthening localcapacityandencouraginglocalinitiatives.

ThenumberofintemationalNGOS in Cambodiahasremainedat around200 overthe pastfew

I years,up from 25 in the early 1980's. The numberof localNGOs and associations,
continuesto increase. Today, about 800 organisations
however,
ate registeredwith the Cambodian
government.Over 50 NGO s€ctoraland issueworkinggroups,both formaland informal,come
I togetheron issuesof commoninterestin suppo.tof Cambodia,sdevelopment.InformalNGO
networksalsoexistin almosteveryprovince.

I Figure lt NumberofNGOs in Cambodra

400

300

200

100

0
1Sg2 1SS6 2000 2001

C International
NGOsE Cambodian
NGOS
Source:Gercral NGO Inforrnatio( NcO Stal€mentto llrc 2001 Consultalivecroup M€eting on Cambodia.

About90 NCOsengagein creditandsavingsoperations mainlyfor small-scaleloansin the rural

area.With growingdemandfor rural credit,there is a needto expandNGO activitjesin the
medium term. While a number of NGOs are expectedto becomelicensedmicrofinance
institutions(MFIS) to expandtheir credit activitiesand depositbases,other smallerNGOs
requireassistance
in strengthening
their technicalcapabilityfor soundfinancialmanagement and
operations(GlobalDevelopment Research Centre).

Recently, village developmentcommittees(\lDCs) have been created to aid in rural

development. TheseVDCs serveaslinks betweenthegovemmentandlocalinterests.i/DCs are
organised to coordinateplanningandvillage-wideactivities,to mobilisevillageresources,andto
lint to outsideagencies.NGOsregard\DCs asa mechanism by whichcivil societycaninteract
effectivelyandplay an activepartin decision-making
towardsdevelopment.
 CountryReports:povertyin Carnboaia

5, - Critique/Assessment
(Basedon the Assessment
on the
2000t-PRsP)
of increasing.economicgrowth,keepinginJlationlow, and constrairing
9j*:lt:.."_:!f"l*s
exl€malcuffent accountdeficit while strengthening debt m;agement, are key elementsii
promotinga stablemarket-basede"nnolny. Hence,ihe potcy
ofite go;emrnenrto strengthen
themacroeconomic environmentis app.opriate
fo. Carnb;dia,;cir"urnJtun""..
However.rhe InterimpovertyReductionStmtegypaper(2000)
needsto havea more detailed
drscussion
ofthe sectoralsourcesof gro*h exp-e"cted"to
trppoti trr",n"ai.,o-termobJectivesof
the paper. A_more comprehensive assessment
of the links tar""n it"
povertywouldhelpstrenghenthe full pRSp. "'- labour ma.ket ard

The.go_v,emment's
presentstrategyis centredon a substantialreduction
-.!.u,"es.
of military size and
actmrnrstmtive
reform, directedat improving the efrciency of puiiic
governmenthas shown its abilitv to^ reallo_cate -;o flur, tte
'ry its budget ;d.;r pnodty sectors.
thiswasconstrairedc",uJ";, ilil;iid;;dd andlow revenue
:fi:,"1;y,
Thereis alsoa needto tacklepovertlacrosfmultiple
frorts,not limited
solelyto the social
th"':1y." ofpublic
spending.
rrr. prsi;aro i"i"g"ts",
::.j:::,1i-d
comrptron areobstacles
to
cambodia's p-overty ffioo. gou"_un". una
reduction
emori's.e Govirnance Actlonplan
identifies
comprehensiv€
setof actions
to for,". gou"_"*" piir.ily thffiluaiciat, legal,and
administrativ.e
reformHowever,
*rernsr aoei-noi'g;;#il;#ffiiii
govemmenthastaken in this area. to're actions
the
t llll -.-"::qr::: .:nat genderequalityptaysa big role in rhe promotion
lvhile of sustainable
rhe report
t 1:::,op3"*,
economrc
required
menrions
andsocialpaniciparion
for these.
atrategies
of women,
thl
ii should
pro"iO" oppoiuniiJ, for promoring
the
ieporti" ii_" a"i"ii ,r,"keymeasures

T ThePRSPadequatery describesa numberof_areas,

landissues,rural infrastructure,
institutional
criticalto rurardevelopment.
andruralcredtt f";"*.,
.lhese
inciude
i1;"d, tiitJffi"on *," pori"i", una
reformsneeded
T Finally,the problemof HIV/AIDSis a big onein
Cambodia.The countryhasthe highest

t prevalenceof HIV in theAsianresion,*;ti -

Thus,rhe PRSPshouldinclude.ir"
reduction.In this regard.the effective"on"*1"
prevention,
"rti.ut"J
actions
implementation
+X
"f,i" "jJ'0,;pr"ion
on Hry/AIDS andits
infected.
links to poverty
.i rf," N",i""a i'i#gc etan on AIDS

T
tkough publiceducation andout eachto,urut ar"as,;;;il;;;;;,

I
! CountryReports:Povertyin Cambodia 9

! 6. Summary
andConclusion
! 6.1 Summary

! TheKingdom of Cambodia,capitalPhnomPenh,is locatedin Southeast Asia, bordedngthe

Gulf of Thailand,betweenThailand,Vietnam,andLaos. With a total land areaof 176,520km2,
thecourtryhasa totalpopulationofcloseto 12.5million,45 o%ofwhom arebelow 15yearsold.

! Cambodia
(36%0)
is a very poor couotry,with GDP per capitaestimated
at US $280.Thirty-sixpercent
ofthe total populationlive belowthe povertyline. Most ofthe poor are concentrated
in

! theruralareas,especially thosewhoseprimarysourceofincomeis agriculture.

showa corelationbetweenpovertyandilliteracy* majorityofthe poorareillite.ates.

Statistics

! Around 35,000squatterfamiliesor approximately170,000individualslive in Phnom penh.

PhnomPenhhashigherfiteracyratesfo. peopleofboth sexes,with 92.3yofor males,and't8.6o/o
for females,
than in anyotherpartsof the country. On the otherhand,morepeople(61%)in the

I ruralareasare not ableto completeprimaryeducationcompared

peoplefrom urbanareas,aged7-14,attendschool.
to 39.570in urbanareas.More

! Only l5Yo of employedCambodiansare in wage employment.The monthly salaryof wage

earnersis US $43. About46% ofthe populationconsiderthemseives
A percentage
asunpaidfamily workers
of women,20.3% in PhnomPenh and 68.2Voin rural areas,are unpaidfamily

! \rorkers. A greatmajodtyof the populationusekerosene

lessthan507osourcetheirdrinkingwaterfrom wells.
as sourceof fuel for cookingwhile

! Causesof poverty in Cambodiainclude:uneveneconomicgroMh, lack of accessto basic

services,Iack of accessto iivelihood, high dependence
political
instability,
andtheAsianeconomjc
ratio, landmines,naturaldisasters,
crisis
I Governmentstrategiesagainstpoverty include: formulationof macro-policyframeworkand
platform,improvem€ntof healthand educationservices,revisionof greateraccessto natural

I resources,employmentand collaborationwith NGOs, civil societyand donors. Also, the

govemmenthas implementedprogramsand projects,suchas infiastructurerchabilitationand
development,rural development,
trianglestrategy(buitdingpeace,stability,and security),and
T microfinance.

Thestrategies of NGOs and othersecto$againstpovertyinclude:infiastructurerehabilitation,

I provisionof relief assistance,large-scaleservice delivery using multilateraland bilateral
funding, service delivery in cooperationwith govemmentstructureq community development,
and the developmentof local NGOs and civic organisations. Other strategiesinclude
I strengtheningoflocal capacity,encouraging localinitiatives,andcreditandsavingsoperations.

\DCs also aid in mral development.They serveas li.lks betwe€nthe governmentand local
I interests.NGOSregardVDCSasa mechanism
playan activepartin decision-making
by whichcivil soci€tycaninteractefectivelyand
towardsdevelopment.

I
I
 CountryReporg: povertyin Cambodi,

6.2 Conclusion
Povertyis still peNasivein Carnbodiadespltereportedeconomicgowth
the pasr
years.

v r* as,uneveneconomic. growti andrcsourcedistributionespeciallym

:1.ilrl,
rne.ruratareastlack of opportunitiesand acc€ssto basicservices
suchas
- health
-
andeducation,andlandmines, exace.bate Cambodia,s povertysit""il;.
v andexisting.srrategiesfocuson economicgrowth as we
9".:lTl
asequrtaDle,.,::q:"::s
drstnbutiorL especiallyin ruralareas.Thegovemmenialsolists rural
ano,agncutturatdevelopment. as well as increased accessto basiceducationand
nealrnserytces,asamongrtsagendato reachthe country,sgoal
ofintegrationinto
theAsianregionandtheworld economy.

NGOsandothersecrorsofsociety play an importantrole in

the reconstructionof
rne LamDodtan economyand society. At present,a lot of NGOS,both local
rmernaflonat,are active in Cambodia.They undertake and
activities, such as
commurutydevelopment andsmall_scale
creditfinancingsohemes fo.ah";;;;
v nlr still a.long,wayto go to achievecompletepovertyreduction
F_ll!-"oll
ruu economrcgroMh. Howev€r.this shouldnot be impossible ano
if the counlry
continuous
high-level
growrhunairnpi",nenilJ-ttJ;fip";h^ ;d
::l]:,t:d
pollcles. "

t
T
;

I
I countryReports:Povertyin cambodia

I Sources
t ofthe InterimPovertyReductionStrategypaper(2000).
Assessment
PRSPCambodia. http://poverty.woridbank.
org/prsp/index.php

I Cambodia;
NGOsin Transition,by Eva L. Mysliwiec,in the UnitedNationsResearch
for SocialDevelopment
website.http://www_unrisd.org
Institute

t CountryStudies- Cambodia,
in theLibraryofCongresswebsite.http:/,lcweb2.loc.gov

t InterimPovertyReductionStrategypapef(October2000).
PRSPCambodia. http://poverty
worldbank.orglprsp/index.php

t Microfinance- Cambodia,
http://www.
in the GlobalDevelopment
Research
Centrewebsite.
gdrc.orglicm/country/asia-cambodia.html

I NationalInstituteof Statistics,

NGO-Government Partnership
Cambodia.http://www.nis.gov.kh

in Rural Development,CambodiaDevelopmentReview,vol.3,

I issue4, December1999.httpr//www.cdri.org.kh./cdr.htm

NGO Statementto the2001Consuttative

GroupMeetingon Cambodia

t hrtp://www.bigpond.com.kh/users/ngoforun/cg200

PovertyAssessment
Summaries
l

(2000).httpt//wwr.v.worldbank.org

t PovenyReductionin Cambodia, SomeReflections,CambodiaDevelopmentReview,vol.5,

issue2. April-June2000.http://wwwcdri.orgkvcdr htm

I TheDemographicImperative,CambodiaDevelopm€rfReview,vol.2, issue3, September199g.

http://www.
cdri.org.kh/cdrhtm

I TheWorldFactbook- Cambodi4in the CentralIntelligenceAgencywebsite.

http://wwwcia.gov

I UNDPin Cambodia.
http://www.un.org.kh/undp/index.html

I
I
I
I
:
I
 countryRcporti povenyin cimbodia

Annex: Tables
Tables3. Inte.impovertyReduction
StrategyPaper(IPRSP)policy Majjx
2000-2002

T
T
!I
I
!
I
I
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r Povertyin cambodia
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CountryReports:Povertyin cambodia

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F I CountryReporb:Povertyin Cambodia

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I

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I ri'!i r,'l ILr:i!'r. .. Ir,,l..ll.

l, Lit'l'\j ]ll|.
]\;,-

]l\t

I Source:
IPRSP2000.Worldbanlwebsite

I Table4: Educational
Attainmentin Cambodiaby Urban&uralResidence,
1998Figures
Ufuan Rural
I Educalional
Level
Both Eoth

t
Sexes Males Females Sexes Males Females
Total 100 r00 100 100 100 100
None 1.5 1.3 1.5

t PrinaryNot Completed
Pdmary
39.5
27.6
3t . l
29.2
47.8
24.2
61.0
24.0
53.4
28.6
2.3
70.5
18.2

t LorverS:econdary
SecondaryandAbove
r8.2
t3.2
Source:Nalionallnsrituteof Sutisric5.Cambodia
20.7
r7.'1
16.3
to.2
10.I
2.7
12.2
3.6
7.6
1.4

t
I
;
 :

--------r3l
@
T&ble5: EducationalAttainmentin Cambodiaby Age Groups,1998Figures
Eduetional Total
Levet of25+ 25-34 3W 45-54 5t-64 65+
Total 100 100 100 100 100 100
None Both 2.1 1.1 1.8 2.3 4.8 9.2
Sexes
Mal€s 2.0 1.0 r.6 1.9 4.1 8.1
Females 2.2 1.2 2.0 2.7 6.5 13.8
PrimeryNo1 Both 50.4 63.7 57.5 59.0 65.5
Completed Sexes
Males 49.O 40.6 56.4 49.3 55.0 64.3
Females 66.1 61.4 7t.5 6'7.7 69.3 70.1
Primary Both 24.'l 29.9 19.6 23.0 2t.9 16.3
Sexes
Males 28.7 34.4 24.O 27.8 25.2 18.1
Females tg.7 25.0 15.0 t7.o t3.6 8.8
Low€rSecondary Both ll.8 12.5 lt.2 11.1 7.4
Sexes
Males 13,9 L5.4 13.0 14.5 12.2 7.9
remales ot qi
9.1 9.8 8.3 5.6
Secondary
and Both 4.8 6.1 3.7 4.8 3.2 1. 6
Above Sexes
Mdes 6.4 8.6 5.0 6.5 3.5 1.6
Females 2.8 3.3 2.2 2.8
Source:Natio@lInstituteof Statistics.
Cambodia

I
I
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I
I
 Co{rfiy Reports:e;ncrty tnGmUoaia

Table6: Main SourceofDrinking Water,

1998FiAures
gqring,
Cde Piped Tube/ppe Dug
Prouine
River, Bought other

II
water Welt Well
Streametc.
Cambodia 5.8 14.9 40.3 28.2 8.3 2.5
0l BanteayMeanChey l.l tL.4 44.O 6.7
02 Bat Dambang 10.3
4.t 7.8
t
37.8 39.I 9.8 |.4
03 KampongCham 4.4 9.0 64.5 13.9 6.0
04 KampongChhnang 2.2
0.8 t7.4 52.9 24.3 1 .1
T 05
06
KampongSpueu
KampongThum
r.8
1.7
17.2
1.4
33.5
77.5
43.9
t6.2
3.4
05
3.5
0.2
2.7
07 Kampot
I 08
09
Kandal
KaohKong
2.t
4.5
5.I
12.s
43.0
tt.2
43.5 6.0
19.3
0.3
0.3
2.0
I l0
1l
Kracheh
MondolKiri
2.7
1.2
1_3
17.6
57.2
30.5
5.9
36.3
33.1
12.5
0.5
0.4
0.4 ,44 65.9 6.0
t2 PhnomPenh 2.1
44.7 5.9 4.8 9.6
l3 PreahVihear 34.8 0.2
i .3 15.8 31.6 34.4
t4 Prey Veaeng 0.6 16.3
2.0 51.8 275 15.4
t5 Pousat 0.7 2.6
2.9 3.5 53.3 29.0
T6 5.9 5.4
RotanakKiri 1.8 1.8 32.2 6l.l 1.9
t7 SiemReab 1. 2
0.6 12.2 69.7 10.9
18 KrongPreahSihanouk 0.6 6.0
8 .1 3.2 65.8 5.1
t9 StuengTraeng 16.5 1.3
5.5 10.3 t2.3 68.4
20 Svayfueng 3.4 0.I
0.9 47.0 47.3 t.4
zt rAKAev
0.3 3.1
0.5 10.4 35.8 50.2
22 OtdarMear Chey 2.0 1.1
0.3 2.2 23.l
23 Krong Kaeb 0.1 N
2.5 9.7 52.5 34.6
24 Krongpaitin 02 0.5
0.8 2.4 4t 8 44.6
Souce: National Instituteof Statistics. 9.9 0.5
Cambodia
I CountryReports:Povertyin Cambodia 21

I TableT:MainSource
ofLight. ls98 figures
Cily Power
I Cde Provine
cW
Power
Gunu-t* and Kerasene Baltety Other
Generator
I Cambodia 12.5 1.0 1.6 79.9 3.5 1.5

I 0t
BanteayMean
Chey
8.2 1.1 2.7 84.6 2.9 0.5

02 Bat Dambang 10.0 t.4 2.5 83.2 2.7 0.2

I 03 KampongCham 9.2 1.0 t) 82.7 5.3 0.3
Kampong
t 04
05
Chhnang
KampongSpueu 2 . 6
4.6 0.7

0.7
0.7

0.7
89.9

94.9
3.9

1.0
0.2

0.1

I 06
07
KampongThum
Kampot
5.3
4.9
0.5
0.8
1.0
Ll
89.4
92.5
1.4
0.7
2.4
N
08 Kandal 94 1.0 ,4 78.1 8.9
I 09 KaohKong 26.6 4.5 7.8 s9.1 0.8
0.2
t.2
1 0 Kracheh t.7 80.8 4.1 L6
I t2
MondolKiri
PhnomPenh
2.8
75.5
2.1
1.9
3.'1
2.8
47.9
r7.5
r.5
1.5
42.0
0.8
I Preai Vihear
Prey Veaeng
r.7
3.0
t.2
0.4
0.8
0.5
45.8
89.8
0.4
6.2
50.I
0.1

I I5
l6
Pousat
RotanakKiri
8.0
12.8
0.8
0.8
0.8
1.3
88.I
42.1
2.0
0.3
0.3
42.7
t7 '1.6
SiemReab 0.8 1.6
I l8
Krong Preah
Sihanouk
3"t.3
l.l

1.8
88.8

5',1.3 0.5
0.1
0.7

t 19
20
StuengTraeng
SvayRieng
t1.'t
3.5
1.5
0.5
0.9
0.7
60.5
9 13
1.7
3.8
23.7
0.2

I 2l
,,
-'
Takaev
OtdarMean
3.4

1.8
0.5

0.6
o.'7
0.2
92.7

96.2
2.7

1.0
N

0.2
Chey
I 23 Krong Kaeb 4.9 1.9 89.7 Ll N
24 Krong Pailin u.1 8.2 3.8 69.8 2.4
I Sourc€:National Iistitute of Slatistics.Caftbodra

I
t
 CountryReports:Povertyin Cambodia 22

Table8: Main SourceofCookingFuel,1998Figures

Lrquefied
Code Province Firewood Charcoal Kerosene Petroleum
Aas (LPG)
Cambodia 90.0 1.8 1.7 1,2
01 BanteayMeanChey 90.6 '7.6
1.0 0.5 0.3
02 Bat Dambang 92.4 4.4 1.6 0.6 1.0
03 KampongCham 96.'l 1.0 1.6 0.6 0.1
04 KampongChhnang 95.8 1.9 1.8 0.4 0.1
05 KampongSpueu 96.7 l.l I.8 0.3 0.1
06 KampongThum 95.6 1.7 0.3 N
07 Kampot 93.5 4.0 t.9 0.3 0.3
08 Kandal 96.5 t.7 1.0 0.7 0.t
09 KaohKong 71.8 24.2 t.4 2.3 0.3
I0 Kracheh 95.3 3.I 1.2 0.4 N
1l MondolKiri 97.6 0.5 1.5 0.2 0.2
12 PhnomPenh 43.l 34.4 5.0 16.3 r.2
13 PreahVihear 98.4 1.0 0.3 0.2 0.r
14 PreyVeaeng 92.0 1.2 l l 0.4 5.3
15 Pousat 94.9 1.9 2.5 0.6 0.1
l6 RotanakKiri 96.2 L6 0.9 0.3 L0
17 S;emReab 96.I t.4 2.1 0.4 N
l8 Krong PreahSihanouk 68.'t 27.3 1."7 2.1 0.2
19 StuengTraeng 94.1 4.4 0.3 0.5 0.2
20 SvayRieng 89.4 0.6 t.4 0.5 8.1
2l Takaev 96.2 1.0 ").7 o.4 0.7
22 OtdarMeanChey 91.4 1.6 0.8 0.2 N
23 KrongKaeb 96.3 1.4 2.0 0.3 N
24 Kroog Pailin 40.5 56.5 1.6 1.3 0.1
Source:National Institutc of Statistics.Cambodia
 -t
IF
I
II
I
T
T EastTimor

I
I
I
I
I
II
II
I
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+
*

t EasrTmon:A CouNrnv
rNTnaHsmoN
A CASE
STUDY
t *la. Josefa Petilla

t 1. Introduction

t
This paperis partofa studyofpoverty reductioninitiativesby government andNGOSin
eight ASEAN countries,namely:Philippines,Indonesia,Cambodia,Vietnam,Burma,
Lao PDR,Thailand,andEastTimor. The studyaimsto presenta comprehensive view of
poverty situationand the responsesto poverty by different sectorsin the eiqht counrnes.

t Also, it aimsto comeup with recommendarions to development NGOsregaidingareasof

interventionsor collaborationwith their respectivegovemmentstJwards'poveny
reduction. The study mainly used secondarydata (writtan documents,books, and

F lnternet.).

h This paper focuseson East Timor. It is divided into six pans. The first part is the
introduction.
_The.second
part presents
EastTimor. Thethird part discusses
the demographic profile andpovertysituationin
the main causeJofpoveny.Thefourthfeaturesthe

h responsesto poveny by. the gov€rnment,intemationaland local NGOs, inctuding

intemationaldonors, and the church. The fifth presentsan assessment
institrxtions
andanalystson the multi-sectora.l
poverty.Thesixthpart presents
responsel,
by some
particularlythegovernment,s,
the summaryandconcluiion.
to

2, Profileof EastTimor
2.1 Geographyand Demography
East.Timoris an island,lying in the southwestem pacific Ocear,belongingto the Small
SondaIslandsgroup. Occupyinga total landueaof 14.87 4 fun2,EastTlmor is extremely
mountainous, soil erosion, and is prone to d.ought.primarily an agricultural
.exhibits
economy,theisland'smainexpo.tsarecoIleeandmarble.

Recentstatisticsshowthat the countryhasa total populationof 884,000,g5% of whom

live in the ruralareas.Ageat majority(7g%)ofthi populationarenativesto the placeor
EastTimorese. About20!o are Indonesians, arld26/oareChinese.The country,i major
religion isr Christianity while Tetum, portuguese and Indonesianare its thrce malor
languages '

' Slatisticson East

Timor are scarceand limited. Thoseavailabl€arc varying. Mosr of the stat6trcal
informationgiren in the studywastaten from ABD, WB ana ntr countryiepons. :rhe ransruonal
govenrnedofEastTimorhasaskedtechnicalassislance ftom ADB for anuld-atedeconomic repon.

F
 The agriculture sector providesmost of the employmentin East Timor. However, with
the tra$itional administntion, about E000 fi.rll time jobs have been areatedto provlde
employment to the people. A1so, several programs have been providing temporary
employment,includingthosefinancedthroughthe Trust Fund for EastTimor (TFET).
Moreover, a large numberoftemporary positions have beencreatedby constructionand
transportcompa es, aswell asby restaurantsandhotels(Nest,2000).

lable l.
Tota.lland area 14,874sqkm
lqzulation 884000(1998)
Capital Dili
Economy Agdculturqi
Mainexpons Cofee and marble
!Qj91languages Tetum,Portuguese,andIndonesian
![4iqr Religion Christianity
BBCCounEyProfile

2.2 Poverty Situation

EastTimor is considered
asoneof the poorestareasin Southeast
Asia. Thecountryhad
an estimated
cDP of$344 million anda cDp per capitaofUS $344in 1997(ADB).

Povertyincidencein EastTimor is extremelyhigh. In early1999,about55 percentofthe

E"tTiTgt::"_ poverryline. povertyline estimates
Pll-P"low the variedfrom Rp 53,000
to Rp 91,235' The poor are identified mostly as subsistence farmers,pioducing
nontraded in rural areas.povenyis foundto be highlycorrelated with fimily sizi
^goods
andlack ofeducation(IMF).

While.povertyincidenceis high, incomeinequalityappearsto be low. In 1988,the Gini

coeffcienctwas 0.31, In early2OOO, the wealthiest20 percenthouseholds had cash
incomesthat were only threetimes higherthan the poorest2-0percent(IMF).

Most welfare indiaatorsfor East Timor are extremelylow. Recent statisticsshow that
tife e1g11a1c1 aroynd50 yearsfor women and 49 yearsfor men.Infant mortality rare
!
(per 1000)is 149. Thereare around15 medicaldoctorsper 100,000peoplq and the
illiteracyrateis 50 percent(in somerural districtsthe illitericy rateis aboveb0 percent).
I An estimated25 percentofthe populationhaveaccessto elect.icity andrunningwater
-
The health situationin East Timor is poor. Ratesof infectiousdiseases and chronic
T malnutrition
Ie
hig!. The country has little health education,poorly equippedand
stockedhealthfacilities,limited accessto healthproviders,limited demandfor health

r|
services,poorly motivatedhealthproviders,few trainedirdigenous providers,and a high
incidgnceoftrauma.

T ' Indonesian
rupiaft lr"s stil usedduring lhe study.Today the currencyuseis the US dollar.

T
CountryReportsiEastTimor:A Countryin Transition

Table2. Socioeconomic
Indicators
GDP Approx.US$344million(1997)
GDP per capita Approx.US$395(1997)
Gini Coefficient 0 . 3 1( 1 9 8 8 )
AverageAnnual lncome us$320(1999)
Monetarvunit I US dollar= 100cents
PovertyIncidence 55% of total populationbelow poverty line
(2000)
Liie expectancy 50 yearsfor female,49 yearsfor male(2000)
Infant mortality 149per 1000population(2000)
Medicaldoctors 15 per 100,000people(2000)
Illiteracyrate 50%(urban)
60%(rural)(2000)
With access
to electricity 257ooftotal population(2000)

3. Causesof Poverty
AJmedcotrflictandunrestundercolonialmle or invadingpowerandtheviojenceof 1999
havebeenmainlytheunderlyingreasonsfor povertyin EastTimor.

3.1 Centuriesof drmed conflict between East Timor and

colonidll invading power
EastTimor hasa long historyofunrest and conflictdatingbackto the mid-l7rhcentury
whenPortugalbeganto coloniseTimor, which at thattime had not yet beenpartitioned
into East and West. Suchcolonisationhad receivedintenseoppositionfrom Timor,s
ruling kings. ConflictsbetweenPortugaland Timor had beenviolent and bloody for
centuries.
In late 18thcentury,wh€nthe night ofthe Portuguese empirewas waning,Timor was
partitionedinto eastandwest. The westemhalf, exceptthe enclaveof Oecusse,wentto
dreDutch,who at this time hadalreadydominatedmostoflndonesia. The eastemhal(
on the otherhand,hadremainedunderPortuguese ruleuntii 1975 EastTimor's struggle
lor self-determination
andliberationhadcontinuedaswell.
In 1975,Indonesiainvadedand annexedEast Timor and consideredthe latter its 276
province. With Indonesia'sinvasion,EastTimor intensifiedits fight for independence.
Guerilla-likeforcesfoughtin themountainsandjungles(Nest,2000)
The pathto independence startedwhen an overwhelmingmajorityofthe EastTimorese
vot€dto separate from Indonesiaon the 30 August1999L}J-supervised consultation.
In
response,pro-govemmentmilitias wreakedhavoc on the populace,embarkingon a
campaign ofarson-looting. andriolence.
 CountryReports:EastTimoriA Countryih Transition 4

3.2 Socio-economic
destructionfollowing the 1999violence

E EastTimor was renderedtotally inutile afterthe 1999violence.The violencedisplaced

two-thirds ofthe population, destroyed70oZof all infrastructure,ard cost the lives of
hundredsof thousandsof East Timor€se. It disruptedthe agriculturalcycle and
destroyedlocal inventoriesand paymentsystems. Therewas acutesupplyshortageof
manufactured goods,leadingto spkalingprice increases. An ad hoc price survey
indicateda risein the consumerpriceindexfor poorhouseholds in Dili ofmore than200
percentbetweenAugustandOctober1999(ADB). With the destruction of all payment
systems, publicandprivateentitieshadoo meansto pay for salaries, goodsand services
(World Bank). The violence also led to serious deterioration of health services.
Governmentdoctorsand oth€r healthworkers fled andcommunityhealthcentersreduced
operations.Remaininghealthworkerswere unwillingto makehomevisits,and people
wereafraidto travelto healthfacilities(Nest,2000).

The territory's social and economic destructionhas prcmpted the intemational

community,panicularlythe Australianled multinationalforce(INTERFET),to intervene
and provide emergencyassistaneeto the East Timorese.Massive rgconstruction
activities, panicularly infrastruclure, have been undertaken and state institutions,
includingan interimgovernment, the llN TransitionalAdministrationEastTimor, have
oeenserup.

On 30 August2001,trro yearsafter the popularconsultation, the peopleof EastTimor

went backto the pollsto electa ConstituentAssembly.The Assemblyhasbeentasked
with writing andadoptinga new Constitution-and establishingthe frameworkfor future
electionsanda transitionto full independence.'

The ConstituentAssemblyand a new EastTimoreseGovemment,ontirelycomposedof

F locals^ the SecondTransitionalGovernment ard its Councilof Ministers- is aunently

goveming East Timor. It will remain its govemmentuntil East Timor oDtalns
independence asa democraticandsovereignstate,sometimein the first halfof2002
;

h I
4. Responses
4.1 Government
towardsPoverty

I 4.1.1 Poticy Frameworkfor MacroeconomicStobility

t Majority of the UNTA€T cabinethaveendorsedpolicies,establishing a fiameworkfor

macroeconomicsfability. Adhering to prudent fiscal management,the gove.nmenthas

t instituted measu.esto increaserevenuesuchas fair taxationand reductionofthe inflated

civil service. The U. S. dollar hasbeenadoptedasthe omcial currercy for the transition
pedod(Horta).

I The New
; ConstittrtionbasbeetrrccendyapFoved.

t
 i countryReports:EartTimor:A countryin franiilion

The govemmenthascommittedto do the follorving to strengthengovemance:

1. Maintaintramparency,accountability, and an emcient and ellective public

servlce;
2. Continuea processof reforrn,which oallsfor high standardsof conductand
integdty among leadersof govemment,and provides strengthto institutions
thatupholdthepublicinterest;
3. Reformthe budgetprocessto strengthen the link betweenpolicy and action
and to demonstratemore decisiveleadership,commitmentto action and
acaountability;
4. Develop a customer-focusedwork force, which supports a management
philosophy,basedon communication andresponsiveness to needs;and
5. Respondto local businesses to ensurethat they receivethe supportand
feedbackthey needin dealingwith government.

4.1,2 Timor SeaAgreement

East Timor's tra$itional govemmentsignedon 5 July 2001 an agreementwith the

Austruliangovemmentregardingthe exploitationofthe Timor Sea. Revenues from the
Timor Sea,.when properlymanaged,will help East Timor in sustainingthe economic
gainsalreadyobtainedfollowingthe 1999violenceand in reducingpovertyamongthe
people(World Bank), The govemmentindicatedat the CanbenaDonor,smeetingofits
plan to developa medium-termexpenditurefiamework to ensuresustainablJfiscal
management both beforeandafterthe comingon streamof Timor Searev€nu€sat mid_
decade.

4.1.3TrustFunds
Trustfundsfor EastTimorwereestablished
following
theDecember
17,1999Donors,
Meetingin Tokyo. Co-chairedby UNTAET andWorld Bank underthe ausDices ofthe
Japanesegovemment,the m€etingwas panicipatedin by representatives, from over 50
counhiesand intemationalagencies,includingEast Timor's XananaGusmao. Th€
pledge amountedto a total of US$520million for the entire East Timor program
throughoutthetransitionperiod. Of thetotal amount,US$215million wasdesignated for
the World Bank trustfirqdandthe LNTAET trustfund.About US$150million was also
pledgedfor the humanitarianassistance programme usedfor immediaterelief until June
30.2000.

4.'l.3.1UNTAET
TrustFund
TheUNTAETtrustfund(US$32million),administered
by th€ UNTAET,finances
p.ojects in the areasof civil serviceandjudiciary capacitybuilding; and covercthe cost
of all recurent expendituresof the East Timorese administration. Included in the

a projects arc the rehabilitation and re-equipmentof adrninistrative,police, and judiciary

buildings,andfor thetrainingofcivil servanrs.

I
r
I
3rT-t !:lgEiElt Timor:A -ount-ry
in Transition
I
4.1.3.2
TrustFundfor EastTimor
I Ihe lrust.Fund for EastTirnor(TFET) is guidedby threeprinciples:
fimoreseleade.shipandparticipation;
1. MaximizeEast
2. Encourageeffectivedorior*o.jinut,on; unC:.
I Getth€rightbalancebetweentimelinesandquality
Ihe.WorldBanl<manages the TFET in closecooperation
with the ADB. The ADU takes
t :he lead^inrehabilitatingroads,ports,transportatlon,

rJucalron.
agriculture. irrigation.
water, telecommunications,
power On the other hand,the World Bank preparesprojects and
in the aieasof health,
supponto smallandmediumenterprise, andeconomrc
T rapaclrvDurtdtng.tsothlhe World Bank and rhe ADB work
3evelopment projectsa
rogeiher on communilJ

\leanwhile, an East TimoreseerouD

I Timoresecounterparts
.takes. chargeof establishingprioflty programs
linancedby TFET in close coisultar,on with ITNTAET and the Wortd Bank. East
fbr internationalexpertshave 0""" *orti"g iogai"i on wo.fO

t Bankdesignmissions.

!"":l:!:jlt ln1:lgl
,o theTFETprovide
giverechnical
assistance
onprojecr design and
panrcrpate projectsupervision. For instance,portugalprovidestechnicalassrstance
I programming
enterprise
for the educationandhealthseciors,;nr*"i*au.", -o-r,nu
support;Australia,in communitydevelopm""t,
ina *"aru.
in

;n ;,i.,r"rur", uno
socialsectoriJapan,in agricuhu.e;andthe'fu.op"- Union,ln"gr;;.il;;,
I Thefoilowingarethe programmes/projects
t"uf,f, unJlii.ulr."ru."
undertheTFET(WB. 2000):

I 2 Community Empowerment and Local

Govemance proj€ct _ builds
accountable.
and
.participatorylocal inslitutionsrhJoughwhich J..r,,r,,."
I work to rehabilitatebasic infrastructureand restart economicactivities "un
includessp€ciaiwindows for local--civilsoci€tyg.oups, It
cuituraf-ie.itag"ano
wtnerablegroupssuchaswidows(USD2l.s ,iiiioi o""ri. y"urr;.-----
I 2| Dili.Communify EmploymentGen€rationproject _
i

worksto-generate
jobs for the poor in the
I (USD 499,000over5 monrhs)
useslaborintensivepublic
"apitai
city in partne.sfrii\l?irf,fnOO

7 Emergency Infrastructure Rehabilitation.project -

I sectorframework(usD 29 8 miilion over t.s years,
provides emergency
repairs^tokey infrastructure(roads,po.ts, and power)\vittin
u y"a. uno a f,at
wittruso zoh .niriionin tt e
secondgrant agreement)
I
I T*"trffi::
:il5ffir#:Ttr*:,ffi1
:iii+T"H1TiLflfe".iifl* H:;i*:X3g{
I assisranceis lirrutcd ro providing technicalass
lralaitionalgovernmefl
of Ea$Timorwh e
,oeworldBar* sroreis r,*,* ,o u*,'-o".,;il1i#rft€

!
 r

CountryReports:EastTimor:A Countryin Transition

7 SmallEnterpriseProject- providesloansto EastTimoreseente.p.ises

to revive
the localeconomyandcreatejobs(USD 10 million over2 years,USD4.8 million
in first grcnt ageement).

7 Hezlth S€ctor Rehabilitation and l)eveaopmentProgramm€ - provldes

assistancefor the rehabilitationand re-equipmentof healthfacilities (USD 38
miilion over3 years).

7 Agriculture Rehabilitation and Developmcnt Project - rcstores priority

productiv€assets,suchas livestock,irrigation,and rural inliastructure(USD 28
million over3 years).

Z EmergencySchoolReadinessProject - providesfundingfor the renovationof

damagedschoolsand for the building of new ones(The initial grant agreement
amountsto USD 13.9million,to increaseovera 2-3 yearperiod).

z Water Supply and Sanitation RehabilitationProject - providessustainable

water suppliesand sanitationservices,by (i) providingassistanceto restore
damagedand inadequatewater supply and sanitationinfrastructure;(2) re-
establishinghumanand institutionalcapacityto manage,operateand maintain
(USD 4.5million over2 years).
watersupplyandsanitaryinfrastructure

z Microfinance- aimsto rehabilitate,throughADB's microfinance programme, at

least20 ofthe 24 creditunionsthat existedprior to the r€fer€ndum; and setup a
microfinancebank with six strategicbmnchesnationwideto provide financial
servicesto low incomehouseholds CJSD4 million irl the first grantagreem€nt).

Z EconomicCapacityBuilding - providesskillstrainingto EastTimoreseso that

theycancompute,analyseand maintainmacro€conomic aggregates.
In doing so,
it is able to addressthe scarcityof neededskilis in EastTimor constrainingthe
operationof key economicand financialinstitutions- in pa.ticularthe Central
FiscalAuthority,the CentralPaymentO{Iice,andthe Censusand StatisticsUnit
rusD5oo,o00).
4.2 Internationaland Local NGOs
The followingaccounton thevariousprogtammes andprojectsofintemationalandlocal
NGOs in East Timor to address poverty is largely culled from a paperpreparedby
MichaelNestentitled"An Overviewand Assessment ofDevelopmentAssistance to East
Timor". In his papef, Nest provides a comprehensive ass€ssment of development
assistance in EastTimorfrom 1975,whenIndonesiainvadedandannexed EastTimor,up
until the reconstructionand economic recovery aciivitiesafter the 1999violence. He
discusses the sourcesand tlpes of developmentassistance, the amountof development
assistance pouredinto the countryover a 25-year period, runninginto millions,and the
variousNGOsworkingin theterritory,includingtheirprogamsandprojects.
 Co.rttry Reports:EastTimor: A -o-n{in Transition

Ard to East Timor had increasedsubsta.ntiallythroughout the 1990s. However,

the
country remainedextremelylow in per capitaterms,pa.ticularlywhen compared
to
colntnes with similarlevelsof developmentor that haveexperienced similar levelsof
\iolence Development assistanceover the past decadecumuiativelytJis SSt rnittion,
i:rcreasing
from $l million in 1989to morethan$12million in 1999.
Developmentassistance in East Timor has bgen largelydeterminedby the territory,s
poliricalhisto.yand developmentattributes,especialiyduring Indonesian
rule. Miny
organisations in EastTimorhavelinks to the Catholicihurctr ihei.."iigi*, or,"ntut,on
has.allowedthem to negotiateaccess. with the lndonesiangou".rrn"niunO -o.g_irution,
implement
projectsvia local Catholicorganisations.Most of the pio;""t,
it
"r" supply
on.agriculture and rural devetopment,water
lT!1:l-T, lu:"..fo"u.*. and
sanrraltor\_
educatron and training,and health. Ag aultureand developmenrano water
s-rpplyandsanitation havereceivedthe largestportionof funding
4. 2. 1 I nternational Organisations

The govemmentdonorsinvoived in.East Timor include:USAID,

AusAID, CIDA,
NZODd andNORAD. USAID hasth€ Iongestinvolvementin fasi
iimor, p.ouiOtng
assrstance
stnae1977. USAID and AusAID, which beganfundingin 1989,are
the two
lar€estdonors. SignificantNGO donorsinclude:ttre CjtristianCf,itarent
iuna (CCf),
Misereor(Gemany)andMissio(Germany)
AusAID is by far the largestagencyin lerms of projects,although
coDtractorsmanage
andimplementirsprojecls.TheNGOSwilh the longesiexpedencelrnpie."nting
prol.is
li lLI_TiTof are Misereor,Missio, the CatholicFund fo. Ou;;;;; D"u",oprn"n
(CAIOD, cB), the Catholictnstitute lor Intemationaln"tations_tif- anJtn"
Carita.
networ&especialycaritasNorwayandSwedenandtheirpartner
caritasEastrimo..
vost. of. these agencie.swork very crosely with East Timorese
catholic church
orgarusaltons, anclcontrnueto be major implementersof development
and welfare
activities.Duringthe 1990,sCARE Canada(andits partner,CARE
Indonesia;,Christian
Children'sFund(CCF), NationalCooperative Businessasio"latiorrqVCAf, USA), and
World VisionCanadahavealsobeensignificantin termsofvolu;"
oi-n,nar?irUur."ao.
the numberandscaleofprojectsimpl€menred.

Orher intemationa.l
NGOs and donors have focusedon the East Timor branches
Il{"-":l* of
organisations, such as the National Commission for Human
ffrghts
lf_o^Yfts HAM),BinaSwadaya pekerja
TimorTimur,andSerikat i"tuiri rnaon"iru
(SPSI,
Indonesian
WorkersUnion).
4.2.2 LocalNGO|

Eas Timoreseorganisations havealsotreeniovolvedin implementing projects.While it

is difTicultto ascertain
the numberand capacitiesof localNCOs, th-econsensus rs that
::.,:11 is veryweak.Some
agencies
haveresponded
to
rrmrreoii9lg"lllll"sritutionat,capacity
rocarcapacrtyby estabrishing
an East Timor branch,suchas caritasEastrimor
aro rayasan lrmor Ard. CatholicNGOs have also implementedprojects
with the
CatholicChurch.Theselocal churchorganisations
(usuallyorganised'ariunaoio""r"r)
 CrroyGEin.."
Ac",,"t.y in Tra;;,tG

ffi ffi ,.1*.;n,:""1'r1'J.H"'ff.';ff#

*Tlri:',tT';i:il'"*flitfu j,.",,""""ji--glgqhand,very
jr1,!["'f1.lllr,;KH
j::;ffi:;;",iffi #"i;;*"";
;ifl
J::,,..Xiff
ff*T.11 ""T,J,,1Ji.?.i:3#;;.,"#;:i;;: fi:T;1ffi l:;i1
ffi1?i:T:f*,ifi
i';1?Hil:'"+lf
.:., rn,,,:ffi,J.#t11il::t:*llt{i\1,h'#",.
li^,Li
of acrivities
^'ffi,,"jl,,i
herpstrengrren
il;*tr;""iTl", j,:;;
among
diff;;;;'^ffi:" ilj.: ffi ,*"
4.3.3 Differeft programs
and proje,cts of lnternational
llre dirTer""r^-^^-- and LocalNGO:
T:iltl?'.?i"":f
*{#j{,Ii:qJ""fi iff::m,#::_d;;l::;","..,"
#';:?":il:Jj:' *i;r;**H-;ii'r#i:1r;T"'ii*,;
#*.;.l:#';1lililin'?:ffi TfJ'
l{,1t-,:it#:":';:'".#::
*r1*1;pru IrtrrTt,i#if
{#
*xi#,,.#l *1: * $ m:flJ:','*f#
f;i!
T:::T,##i::#
n?:]i#li{!ffi
il?::::iil:H.*
"d; :l:iii,Hi
ffi#ffi::,"ff
il:iT,ii"ili'f ::*fl#A;T#il,f# and
4.3.3.1Education
e Training

ti.fi:f,':fi ",:ff.l
T'#J,1fll.'j,:i.:.rormorteacherandvo
1',"#.lltHfili#,'"fiTrui"fi',"":'d#*
ix#i;.f""*ijff
;;;.d;;-;tX:Tf
,ili*::""T1'#if
5!1ffi
jevel6pmsry
,,-;fl
iT'il,fi r,"'iii;"nffn#"::Xlgl
:*"1
1,"';t";l;#:,,1';']j,:;*n",.f
"?#tn.1j,fr
PtsfosioaalaaO
fssalialel flainin

,6i****N$s[Cmmf
;:;al,y#.,, 'l",#H[il#
rulilifiil,,:""ffi
rt,;,,j;fi
,i"..ff:{iilinF:i*;:,i::l;;,^ff
;ffiT:1JXff .:;:;;,.,..;;3,1"xe*,"l""ce
j:
#""",;A;:';:,:XS:";;*;:::;iijii;:;ii;i
ffilt.$:";'?;:J:.:,0,"T;"I
*agj:,r'tri$i.;*1"
m:ltu*fu*f#
 Cootry Reports:EastTimor:A Countryin Transition

Scholanhios

\ZODA hasfunded34 tertiarylevel studentssince1991to attenduniversitiesin New

Zealand.AusAID has provided11 scholarships since 1994 for graduateeducationin
Australi4 but emphasises that while more funds are available,few undergraduates are
ableto meetacademicentry requirements. CaritasNo.way, working with CaritasEast
fimor, administersthe BishopBelo Fundthat providesscholarships for 641 university
rdents.NORAD is the major donor to this fund. Woddview fughts (No.way), in
cooperation with Timo. Aid, alsocoordinates programfor secondary
a scholarship school
studentsto attendundergraduate institutions.
Construstion
of SchoolBuilding
CaritasSwedenprovidesfinancialassistance for the constructionof a girls, school
supported
by the SalesianMissionof Laga (Baucau).Th€ Diocesesof Dili and Baucau
arekeypartnersin this pfoject.

AucationalMaterials
\{MIETS, sponsoredby the Sistersof St Josephof Australia, is developingTetum
Ianguagematerialsfor primary schoolswith East Timoresewriters and Australian
iinguists(121 schoolshave beeninvolvedin the progam as of 1999).The programme
focuseson revitalisingand strengtheningTetumas a larguagemedium,facilitatingthe
Church'swork in Tetum,andincreasing access
to Tetum,language educationmate als.It
includesthe production of children'sbooksandteachers'manuals,aswell as providing
in-servicetrainingfor teachersto teachthe materials.Also invoivedin this D.oiectis
AustralianPeoplefor HealthEducationandDevelopment Abroad(APIIEDA).
PrimarvEducation

Other agenciesfocus on primary education.CCF initiated the establishment of fifty

preschoolscatedng to 1,850 children, as pan of its Early ChildhoolJEducation dnd
DerelopmentProgramue. It also suppodsmore than 8,500 school age children in
primaryeducation.Oxfam GB also emphasizes primary education,and is considering
what interventionswould be appropriateat this level.Timor Aid and its EastTimorese
affiliate YayasanTimor Aid also implementsmaller-scale educationprojectsthough
Timoresepartnerorganisations.

4 . 3 . 3 . 2H e a t t h

Diff€rentprcgrammes and projectson healthinclude:communitv-basedhealthactivities

capacitybuildingin managingdiseases, technicalassistance.
trainingofhealth workers,
information, education,and communicationcampaigns,supplementaryfeeding or
nut.ition, publication of materialson health, constructionof health centers ard
acquisitionof medicalequipment.
F
F
l

Someofthe healthprogammesimplemented
arethefollowing:

F LimorMalafiaControlProiectin EastandWestTimor.firndedby USAID &om l9E0_87,

focusedon building long-termdiseasemanagement capabilities,
and includedhouse_to_

F
houseapplicationofDDT, drainageimprovements, applicationof larviaidesto standins
water ard th€ introduction oflarvivorous fish.

F
t
sulportedtry AusAID, O)(FAM GB, CAIOD, CaritasNorway, CaritasEasflimor and
Dioceseof Dili The differentdonorsprovidefundingandtechnicalassistance ro support
the Indonesiangovernment'sprogram in East Tiior and Flores.Activities lnclude
training healthworkers.producingand disseminating public informatio4 commurity
outreachandoperationalresearchin tuberculosisdrugiesearch,aommunity_based health

t careacrivities.
,nutrition
areasot speciat
informationprograms,and supponfor supplemeniary feeding
need.CarirasNorwayhasidentifiedHIV/AIDS preventionai an areafor
luture asslstance.
in

I in EastNulllblgga{e-e&LEcsllllqgr - fo"us", onl.orotingiiit"tion

potatlerraier, improving infant nutrition, and inqeasing u;derstanding
uo""r, ,o

T health.Thisprojectinvolvescroseliaisonbetween
govemment agencles.
Aeu!€Respiratgrv prevenrion prograrrune- implemented
of maternal
uNICE-FandIocalcoirmuruties
and

by ccF with a localNGo.

Herdnakr,-lncludes
productionofhealtheduaation

I
materials
in Tetum"ARI workshops for
healthcadres andprojectstafi provision
ofmedicalsupplies
in 13healthcenters.
Health.Management programme - startedin 1999by CaritasAustralia- includes
supporting a coordinated
catholichealthsyster!achieving
-ofsustainable
healthservicein
ruralclinics,establishing
consistentminimumstandards healthcarein att cattroric
*d supporting
the development of a communitybasedhealthcaresystemin
:ltli:::
pautsnes.
4.3.3.3WaterSupply& Sanitation
Programmes include building water supplyand sanitationfaoilities,sfengtheningof
wareJmanagement agencies, constructionofwells,repairofwaterdistribution
nerworKs,
etc.Thefollowingaresomeoftheprojects underwateisupplyandsanitation:
*. srqied - jointly managedby Coffee MpW fty Ltd
P. frlphgla+ro.
(Australia)
andCMpS&FEnvironmental (Austr;!a) andfundedby eusAn, focusedon
strengthenlngwater.management agencies,andrehabilitating
or buildingwatersupply
andsanitation
facilitiesin ruralandurbanareas.
EnYironme4lg!-Hgabh atd SanitationProiect(1999-2004),buildsorl the wo.k ofthe fiIst
proj€ct,andfocuseson the leastadyantaged
communitiesin five districts.
Liqqiq4 ?nd_Etmera Water Proiect. implementedby CCF, provides accessto potable
water for 3,500peoplein two villagesin Liquica and one in Er-e.a. It
is tundedby
I CountryRepo*s:Ea3tTimor:A Countryin Transition

I AusAID, CCF and in-kind contdbutionsfrom local communities.Although nearing

it is suspended
compietion, asofmid-1999.
I Otheractivitiesincludesmalldrinkingwatersupplyprojects,publichealtbprogramwith
a safe water component,focusing on constructingsimple wells, r€paidng water
I distribution networks,andprcviding water to isolatedhamlets.
& RuratDevetopment
4.3.3.4Agricutture
I Someprogrammesin agricultureand rural developmentarethe following:
East€mIslandsVeterinary Servic€sProiect - focusgdon strengtheningextensionservices
I with a focus on poorer farmersand village women, and providing supportfor the
Indonesiangovemment'sbruoellosisprogramme.This projectwas impi€mentgdfrom
ofAgriculture(Australia).
I 1989-1998 andmanaged by theNew Southwales Department

Agricultureand RegionalPlanningAssistanceProgramme- soughtto improve the

capacityof agriculture-relatedagenciesto plan and implement sustainableprojects and
I programmes
Pty Ltd.
for communitydevelopment.This projectwasmanagedby Acil Australia

I BobonaroRuralDevelopment Project(1998-2002) - prepares

a longertenn (12-15year)
rural developmentproject based on investigationand assessments of development
potential, institutional capabilitiesand piloting of community-based participatory
I planningprocesses.
suspended.
This project,also managedby Acil AustraliaPty Ltd., is currently

I EconomicDevelopmentProjest(1995-1999)- providedsupponto 17,000families,or

approximately100,000people.The projecthad two key components: 1. Increasingthe
incomesofsmallholderfarmersby establishing cooperatives(mostlyfor cofee, but also
I vanillaand livestock);and 2. Improvingthe efliciencyof procurement
and promoting
and processing,
exports,of coffee.Implementedby the NationalCooperative Business
Association,the secondcomponentalso included agdcultureextensionactivities,
I planting shadetrees, increasingproductivity, as well as a health componentfor
agricultureworkers.

I Rural DevelopmentProgramme- involves training in panicipatory techniquesfor staff

and the introductionof sustainableagriculturetechniquesfor participants(from three
hamletsin the Comorovalley). This project getsfunding from CaritasAuskalia

I SeveralEast Timoreseorganisations
organisations
have also implementedsmallerprojects.These
includeYayasanBina SwadayaTimor Timur (whichhasreceivedfundsfor

T agricultureprojectsfrom the New Zealandgovernmant),

andETADEP.
the BobonaroCatholicparish,

f, 4.3.3.5Govemance& Law

Progtarnmesand projectsunder govemanceand law include the establishmetrtof a legal

F aid organisatioqcapaaitybuilding in providinglegal assistance,

monitoringof human

F
I
I rishts violations.developmentof human dghts training and educationcoumesfor
cJrmunity groupsard oiganisers, and establishment media'Among
of an ind€pendent
I the organisaiionsinvolved in theseprogrammesare YayasabHAK, The Asia Foundation
(TAK USA), andCommission for PeaceandJustice

t 4.3.3.6CapacityEuitding

Capacitybuilding ptogrammesand projectsfocus on improvingthe performanceof

iosiitutions and organiiations, including developing human resourcesthrough training

Ir prograrnmes,rest;during work units and changinglines of communicationand

rn"n-ug"rn"nt. Capacitybuitdingor strengthening or bl]ilding-of local NGOs includes

I propo'salwriting skilis and improving general organisational

towardsmore eflicient. gffectiveand sustainableprogrammes.
and managementskills

t A project under capacitybuildiflg was the establishmentof ETADEP, a local NGO, in

tstf, fundeCby USAID. TheETADEPhasbeeninvolvedin establishing
for its credit union, drilling wells for drinking water and workng with
rural branches
smallerlocal

F NGOSto prcvide hands-ontraining in micro-enterprisg credit systems,-watercatchment

and family healthsysiems.It hasalso established
centrein bili to teachskillsessential
an institutionaland humanresources
to the institutionaldevelopm€nt oflocal NGOS.

F Another prcject was the creation of an NGO forur4 funded by AusAID, under the
Bobonaro Rural DevelopmentProject This forum facilitates mutual cooperation and
coordinationamong locll NGos, govemmentand donors.A componentof CARE
F -
Cantda's Cqpacit! Buiwing and Community Sef-MqnagementProjecl fonded by
CIDA- strengthins the institutional capacity of local NGOs to deliver development

F servicesto households by the project.

targeted

OtherNGOs who havebeenrecipientsof funding for capacitybuilding fiom various

I
donorsarePikul andPosko.
Generation
4.3.3.7lncome

F Among the livelihood projectsimplementedare livestockraising,micro-financeor

micro-iredit, animal husbandry,cattle farming, haberdashery,and handicrafts These
projectsare implemented by localorganizatioN,suchasthe Salesian Brcthers(Baucau)
-d th" BobonaroCalholic Parisl! or local NGOs (e.g, ETADEP (Dili)' Sadep
Foundation (Suai), YayasanBina SejahteraLestari (Ermer4 Lospalos), and Yayasan
Bina Swadaya).

5. of GovernmentStrategies
Critique/Assessment
Analysts state that East Timor can be expectedto be reliant on outside help for many
years given the destructionfollowing the 1999 violence and it is drought-prone
However, they are optimistic about the future of East Timor - it has geat potential to
recovereconomically. This oil-richcountrycanget neededrevenues from its o{fshoreoil
a.ndgasfields in the Timor Gap dueto be exploited from 2004 (BBC) Earningsfrom
I|
I
 CountryReports:EastTihor: A Countryin Taansition

I cthersuccessful oil andgasexplontionand the resultingconcessions as well as expons

cfmarbleandotherhardrock mineralscansupplement
l incomefrom gasexpo.ts.
.{DB reportsthat EastTimor hasbeenjudiciousin its allocationof Timor Gao receiDts.
for example,an erdowmentfund. "Such a fund could act as a stabilisingfoice,
safeguarding incomefrom resourcesalesthat rightly belongsnot only to EastTirnorese
citizensof today but also to their childrenand grandchildren.',
Also importan ncome
suppiementfor the govemmentare remittancesfrom the 20,000East Timoreselivins
overseas.

IMF notesthatpositivedevelopments in EastTimor duringthetransitionperiodhaveput

the countryback on t.ack. Thesepositivedevelopments includethe rise in domeitic
saving, establishmentof basic economic and institutional frameworh and the
establishment
of fiscal control and foundationsfor the developmentof the financial
sector.

Despitesuch positivedevelopments, however,IMF cautionsthat the sustainabilityof

suchdevelopments ovgrtime remainsto be seen.It explainsthat favorabledevelopments
in output gro[th consumerprices,trade and bank depositflows have not addressed
crucialissugs,suchassizableunemployment, wagedistortions, anda lackoflonger rerm
investment from the private.Also,thereis growingpoiiticaluncertaintyasindep;ndence
approaches, and there is a need to developas soon as possiblecommeriiai legal
framework,land andpropertylaws,a foreigninvestmentlaw, a labor code,bankruptcy
proceedings, anda mecharismfor djsputeresolution.Moreover,to ensuresustainability
of projecrs.it is criticalfor East Timor to build ils capacityin macroeconomic
management_ lt is in dire needofcontinuedcomprehensive technicalassistanceas well
asintensivetrainingandskillsdevelopment.

World Bank lists down six main lessonsfrom the expe.ienceof internatronal
organisations,
bilate.aldonors,and othersin assistingEast Timor. The lessonsare
quotedherein fuiil

z It is helpful to coordiiateassistance effons from the outset,becausethis

facilitatesthe assessmentandp.ioritisationofneeds,andreducesdemandsby
foreignexpertson thetime ofa limitednumberoflocal counterparts.

Z Early adoption of a basic and easily enforceablelegal and regulatory

Iiameworkhelpsto reduceuncertainty.The frameworkmustbe simplebut
sufficiently comprehensiveto minimise the scope for discretionln lts
applicability.

2 Clearlinesof authority,responsibilities,
and obligationswithin and between
decision-makingand consultativebodies expeditethe implementationof
policy.
I CountryReporB:EastTimor:A Countryin Transitioh

I Z Establishmentof k€y institutionsmust receivepriority. and thesemust b e

I allocated
sullicientfiJndsto ensureadequate
localmanagerial
capacity.
sralfingand rhe formationof

I Z A basicmacroeconomic
sound decision-making.
frameworkdoesnot needto be complexto facilitate
Resourceallocationjn the economy should be
efficientlyguided by the market.and. to rhar end, paymentand banking

I facilities must be restored quickly, with due regard to emcrency and

competition;a basicand sustainable
andenlorced al lheoutset.
liscal framewo.kmust also be adooted

I Z EastTimoresenationals'ownershipanddi.ectresponsibilityfor implementing
lne reconstruchonstrategy and for establishingsound macroeconomic

I management are essentialfor successand can be achievedonlv with their

participation
at all levelsofgovemmenr

I 6. Summaryand Conclusion

I 6.1 Summary
pacific Ocean.lt hasa total land areaof 14,874
EastTimor liesin the southwestern km,
with closeto 900,000population. primarily an agriculturaleconomy,the agriculture
sectorprovidesmostofthe employmentin the country.

A greatmajorityof the populationare EastTimorese.The country'smajor religionis

Christianitywhile Tetum,Portuguese and Indonesian
areits threemajor languages.
The
agriculturesectorprovidesmostofthe employmentin EastTimor.

EastTimor is considered as one ofthe poorestareasin Southeast

Asia. Latesr$aus cs
showtharirs GDP is estimatedat US $344millionwhiie irs cDp per capitais esumated
at US $344. About55 percentofthe EastTimores€fallbelow the povertyline.The poor
are identifiedmostlyas subsistence farmers,producingnontradedgood; in rural areas.
The GINI coeffcienctis 0 31 The wealthiest20 percenthouseholdihavecashrncomes
thatareonlythreetimeshigherthanthe poorest20 percent(IMF).

Life expectancy is around50 yearsfor womenand49 yearsfor men.Infant mortalityrate

(pe. 1000)is 149. Thereare around15 medicaldodorsper 100,000people,
ano rne
illiteracyrateis 50 percent(in somerural districtsthe illiteracyrat" i" abon"Lo p"r"ent;.
An estimated 25 percentofthe populationhaveaccess to electricityandrunningwarer.
Centuriesof armedconflict and un_rest undercolonialrule or invadingpower and the
violenceof 1999havebeenmainly the underlyingreasonsfo. poverti in East Timor.
EastTimor_ wasrendered totaliy inutileafterthe 1999violence.Tie teritory,s socialand
economicdestruction haspromptedthe inte.national communityto inteNe; andprovide
eme.gencyasslstanceto the East Timorese. Massive reconstructionactivities,
panicularlyinfrastructure,have been undertakenand state institutions,including
an
 3untry Reports:EastTimor: A Countryin Transition

:n!e m government,the IIN TransitionalAdministrationEast Timor, have beenset up.

A! present,EastTimor is beinggovemedby a SecondTransitionalGove.nmentand its
Council of Ministers, entirely composedof locals, leading its people towards full
rrdependencein 2002
As a respoosetowardseconomicrecovery,the govemmenthas establisheda policy
iiameworkfor macroeconomic stability.It has underlineda numberof principlesto
sir-engthengovemance. Among these pdnciples are transparency,accountability,
ellicieat and effective public service, integrity, customer-iocused
work, decisive
readership,andrespohsive to localbusrnesses.

Bilateralassistance
hascontinu€dto pour into EastTimor. Trust fundsfor tne countrv
have been establishedfor the country'sreconstructionactivities. Thesetrust funds
inciudeUNTAET Trust Fund,to be administeredby the transitionalgovernment,and
TrustFundfor EastTimor (TFET) to be managedby World Bank in c-iosecooperation
with ADB.

UNTAET trustfund financesprojectsin the areasofoivil serviceandjudiciarycapacity

building; and covers the cost of all recurrentexpendituresof the East Timorese
administration.lncluded in the p.ojects are the rehabilitationand re-equipmentof
administrative,
police,andjudiciarybuildings.andfor thetrainingofcivil servanrs.

On the other hand, programmesand prcjects under TFET include: communitv

empowerment andlocaigovernance; Dili community employment
-heaith generation;emergency
infrastructurerehabilitation; small enterprise; sectoi rehabilitatron and
development; agriculturerehabilitationand development; emergencyschoolreadiness;
watersupplyandsanitationrehabilitation; microfinance;
andeconomiicapacitybuilding
International
organisationshavealsoimplemented a numberofprogrammesanoproJecN
in EastTimor. lnternationalorganisations normallycontracttocaiNCos to implement
therrlrogrammesor pro;ects. The governmentdonorsinvolvedin East Timor include
LISAID,AusAtD, CIDA NZODA andNORAD. SignificantNGO donorsinclude
the
ChristianChildren'sFund(CCF),Misereor(Germany)andMissio(Germany).

Local NG_OS or EastTimoreseorganisations havealso beeninvolvedin implementing

projects.TheseNGOSincludethe NationalCommissionfor Humanf.igtrts
lfOWeS
Swadaya Timor Timur, and Serikat pekeda SeluruhIidoneisa (SpSI,
l4MI .Biii
lndonesianWorkersUnion).Thereare alsolocalbranches of intemationalorgantsatrons,
such as CaritasEast Timor and yayasan Timor Aid. CatholicNGOS have also
implemented projectswith the CatholicChurch.

The differentprogrammes andprojectsare in the areasof educationandtraining,health,

watersupplyandsaritatio4 agricultufeand development, govemance and lau, capacrty
building,andincomegeneration. Educationandf;ining p-rogrammes are mainlyin the
form of teacher and vocational training, including i.piou"ment of curriculum;
scholarshipsfor secondaryand tertiary students,upgradingand expandingtechnical
education;specialinterestcou$esfor poor children;constructionof schooibuirdings;
andprimaryeducationor earlychild development.
 coeryRepo%

DiFerenrprogrammes
and proiect
nu.,,
;1f"u"
,"nx,:r11ru.;#"'i:-,3x1.ii:li.i4:1ff:LTu
",,,",
ru;i"*","*;i,"_#il,#i,"Tp*i#;."_:#ff
::,",],,.,f
::,J
':?H*iff
fjfl#fl*#ftrffi :::##:#['J'"#'tr.:#,,jr
JJ;*
XTtlnl
,'""J:"1%T:'ff ':":ffi
,nl[T,1ff :":Tfl#T,i,]"[.T:;*,incrudeveterina
ftIff,ffi,Ti,:ili::iJffiT:;
W,'6*t*:g#mrli*f*';
;:#d'fl,,i:;ffi
**"t+l**,*i*#rurl*r#
:FJ:'#::.Hfi 3,iJ:':ffi
:H:,m*,,:ll#**?l,""i:ffi
ll"';*h:l!
I[:J:,.ifi
,:;:Hix.,^il.i:x'
:ff1
gT:ilJi*
,'"?l;aruf
i:{j*,i!!xi:t"Jf
vuv"*
nein,
"nxp$,'*t*l:"\1"*i*;
iqir,t.1T'.::H',
;:;J " ;;;1,,f ;1f":i :?J
"i";:$l
6.2 Conclusion
Z For centuries.
EastTimor ha

;$.ai1+r,#,lj,:#il';,{*:,',rffi
ifild:iH['nill"t#",",-ux:,i;.li#-h,"fj
j:',*_.*
z The socioeconomic
destucti
country
totally;,;;-'",i,ll,'iil,,'::.-1:T the violence
renth€
^reee
n#"Jd;':iH;:ii,
i::""TS:*''o"*itv' T;Ti':l':,"":frr'lj

--
 C!!!ggE!!:€esf. ninor:A Country
in Transition

I
I
7 EastTimor is expected to be relianton outsidehelpfor manyyears,especially
ln the a.ea of capacity building. Human resourcedevelopmentand
macloeconomtc management arehigh on the list for skillstrainingamongthe

I ,
people,particularlyin govemment.

The transitionalgovernmenthas establishedand adoptedpolitical

and
I socroeconomjc
developmenr.
lrameworkslo guide the country towards genuine
especially
onceir hasobtainedfull independenceor statehood.
However,a lot remainsto be done,especiallyin polishingsuchfiameworks,

I strictly enforcing such frameworks, and in encouragmgprivate sector

tnvolvement

I z A numberof programmes or projectsin education,health,agriculture,water

suppiy and. sanirarion,govemance.and income generar-ionhave
rmpremented by the GO and NGOSto addresspoveny However,thereis a
been

I needfor th€seprogrammes or projectsto be coordinireduna t" o-n.J unJ

panlcrpatedrn by lhe peoplelhemselvesin order to maximise
well asensuresuccess.
resourcesas

I v East.Timor is a.smallcountrywith a smallpopulation.The assistance

recerveo.espectallyatter the 1999 violence. has been tremendous.
it has
Its
I absorption.
assrsrance
capacitymight not be able to matchlhe Lremendous amount;i
lt hasbeenreceiving Carefulstudyshouldbe doneasreqardsEast
Irmors capacity ro absorb
vjs-d_visrheassistance
ir needs
andshou'idreceive
andaccept.
CountryReports:EastTimor:A Countryin Transition

Sources
andhighlights.
AsianDevelopmentOutlook2001:publications
orgt/Documents/BookVADB/2001/Highlights
http://www.adb.

Plan.btpt/huaaa{.gD.glg.
ADBCount.yAssistance
12l
contcapitolHill/Senate/71
A ShortHistoryofEast Timor.htto://www.geocities

bbcco uk.
BBC CountryProfiles:EastTimor.http://news

org.
Plans:EastTimor. http://www.adb
CountryAssistance

EastTimor Country Brief. The world Bank andEast Timor. h[p!4s iryJgddbalkllg

East Timor LINTAET, justice and refug€es one year after the ballot
http://www.\tebamnestyorglai.nsflindex/AsA570042000

EastTimot.

Horta,RamosJoseandEmilia Pires.2001.How Will theMacroeconomy Be Managedin

EastTimor?An EastTimorese
an Indep€ndent View. and
Finance Development
A quarterlymagazinofthe IMF. Vol. 38, No. 1. htto://wwwimf ore

NCOs in EastTimor.http://www.etan.orq
International

NationalNGOSin East Timor. htt0/l aMryjt@-erg

http:/hvww.imforg/exter

Nest,Michael. Overviewand Assessment of DevelopmentAssistanceto East Timor

http://www.aic.n)'u.edu/zubgliualTilqqPlillh@!

NGOFomm. http://www.geocities.contetngoforum.

Pereira, Agio. East Timor - Govemment, NGOs, and Civil society

http://www.aidwatch.org.au/news/20/05/htm

Tenenbaum,Linda. 1999. The UN in East Timor: All the Trappingsof a Colonial

Protectorate.!ftpfl:Uuryj{ly$plg.

The UNTAET httpJ/www.un.org,iDeplv

at DonorMeetings.http/la|.^{jrqlgrg
Vaidivieso,Luis. 2001. IMF Staffstatements
 C.""t.V R"p"rtt' E" I

Valdivieso,Luis, et al. 2000. East

Timor: Establishingthe FoundatiorN
Macroeconomic Managenent. f,ttpyl*wwi,nf.orei?*;ailiiij;? of Sound

WorldBankAdministered
TrustFundfor EastTimor.httplwww.worldbank.org.
WorldBank- Civil SocietyCollaboration.
progessReportfor
Fiscalyears 2000- 20Ol

T
!
I
I
T
!
I
Indonesia
 PoVERTYIN INDONESIA
PAULINEREBUCAS

1. lntroduction
Thispaperis part ofa studyof povertyreductioninitiativesby gov€mment andNGOSin eight
ASEAN countries,namely:Philippines,lndonesia,Cambodia, Vietnam,Myanmar,Lao,
Tlailand.andEastTimor. Thestudyaimsto presenta comprehensive view of povertysituation
andthe rosponses to povertyby aLffercnt
sectoain thc eightcountries. Also, it aimsto comcup
Nith recommendations to developmcDt NGOS regarding areas of inteNentions or collaboration
govcmments
with their respectrve towards povertyreduction. The study mainly usedsecondary
data(writtendocuments, books,andmtemet).

Ihis paperfocuseson Indonesia. It is divided into six parts. The first part presentsthe
introduction.The secondpartdescribes the demographic profileofand povertysituarion
in Indonesia.The third discusses the main causesof poverty. The fourth featuresthe
responses to poveiy by the government, internationaland local NGOs, including
internationaldonors, and the church. The fifth presentsan assessmentby somQ
institutionsandanalystson the muitisectoral responses, panicularlythe govemment's,to
poverty.The sixthpfi presents the summaryandconclusion.

2. Profile
2.1 Geographyand Demography
Republicof Indonesiais an islandrepublicof Southeast Asia, constitutirgmost of the
MalayArchipelago.Locatedsoutheast of mainlandAsiaand northwestof Australia,the
republichas a total land areaof 1,826,440 km'] (705,192sq mi). About half of
nearly 13,700islandsare inhabited;all are locatedin the lndian and Pacific
Indonesia's
oceans. with a total populationof207.4 million (1999statistics),
it is aonsidered asthe
world'sfourth most populouscountryafter China India and United States.More than
halfthepeoplelive in Java,whereJakada,Indonesia's capitalandlargestcity, is located.

An agriculturaland manufacturingeconomy,the country'smain expotts are rubber,

tobacco,andsugar. Althoughthe islaodsare hometo morethan100ethnicgroups,most
lndonesiansareof mixedMalayoriginsandpracticeIslam- Major languagesareBahasa
IndonesiaandJavanese.
 Cqffy Reports:eoveny in tnaonesia-

T$te 1.
T@l land area
Pcpula!on
207 4 million (1999

\lain
Rubbel tobacco.su
\{ai
Bahasalndonesia.Javanise
r Reli

2-.2. Socioeconomic
Situationprior to l gg7 AsidnEconomic
Crisis
Indonesia
had enjoyedtremendous
economicgro\a,thin the
1980sand l99os, partly due
:oitsabundanr narural
resources
andin..*..i;n *l rn.nriu.i"i"g;io'.;,,... ,"o"rr.
{s a result,many lndonesians
hadenrered
themiddleclass
TheGDP groMh during l9g0-90was 6.I percent
per annum;it went up to 7.6 percent
per annumduring 1990-95and 7.8 percent
in 1996.This l",iri"""iiv i'ig;g.o*n.u,
associated
with impressivediversification
of tf," anj'rt._g'tp#_un"" ortl"
manufacturinssectorwhichsrewatarateof i0 ""onornv l
accounted
fora quarter ;;r;;;;";;;;'ti.i*..i',,rr_s,
ofthenation's.cDprnaon"riun ""a
Joiriri"iii" *ia" ,ung" I
of manufacturers,
ircludingtextiles
andapparel,
*ooa "'"poJ,ani'p"iioii"rn,"urr.
prolucts,
gowth of merchandise
exportsavera! rf,"
ii,",."at",.
inird;;e;iil.,f,ffiT durins
1e86-e3,
butdeclined
l"#l"li,o***
Indonesia'sgrossinvestmentmte \rr'entup from 24 percent
pe.centin 1996.Domesticsavinqsarso.grew, ofthe GDp in l9g0 to 32
and Indonesiacontinuedto financeabout

I
90 percentof its investm€ntdo;esti
1996'the domesticsavingsratewas 31
percent
ofthecDp (wo.ra rrru,lf ils$
"unra
t:lg ytjh consistently maintaining high economrcgrowth,rndonesia

I substantial
progressin socialdevelooire.nt
il r".9"-".j1.qopped
f,",!]"
mrllronin
andpovertyer;dication.
liornzomilioniniezojooi"
1996(ltyo). Also, income
The
"ili"'i","r
arso made
number ofpoor
p"p"r"r.O. r,

II dropped
rrom
03riinrtril

not"atr,at'auiinf
:;;l;#?H:l}ff
On the employmentfront, however.th
bvtheGinicoenicient
ffi;*"

ios;;il;il';Tfif;,;ffiH:;,lJ,ilTT::';';rti::""q,T] -"rp[inn"n,
annumcompared ro a labourforceorowh ofJ_l p.rl"t r"a""a
dedined_from 2 8 p..".nt p"r.u-urn-drrrngls85_90ro I g percent gro"dl
I rateo-ropenunemprovment
proorem ot unemployment
jumpedfiom 32 percenr
wasmore.serious
in lgrd ;"
during.
t.a;iJd,l;
| 990_95
1995.
in the urbanu.au,iincr""."a n.ornO.f
The
The
percentrn t990 to 10.9percentin 1995)
I pe.centin leeo to l t.5 percent
andurn."g th";;".u;
in lee5 for th;;;;:r;-;";;;;
(i"".""r"i ti., e.t
ei"i",L,li ^"_,u
"
I ' Dalagesented
in thispamgraph
arefrom worrdBank,Asiar D€velopment
Bark andILo.

I
 Counkt' Reports:Povertyin Indonesia

ihird ofthe total wo*ers suffer from underemployment(measuredas working less than
15 hours per week). Nearly two+hirds of total employmentis still accountedfo. by the
irlormal sector.

2.3 PovertySituationofter the Asian Crisis

With massivelayofls and high inflation following the Asian crisis, the incidenceof
povertyin Indoncsiasignificantlyincreased.1998statistics(Cent.alBureauofstatistics)
showthal the numberofpeople living belowpovertyline had reached80 million, i.e.
40oloofthe population(comparcdto l l% prior to the crisis). Incidenceofpoverty at the
a€gregate leyelwas around24o/o.In urbanareas,the numberofpoor incr€ased by 10.I
millio4 compared to 16.l million in rural areas.

In 1999,povertyincidencereached24.2 percent,llom17.6percentin 1996.The crisis:

inducedsurgein poverty plungedan additional15 million personsinto poverty.The
numberof.poorincreaseddramaticallyandthe conditionofthe poor worsened.poverty
worsenedin urban areas faster than in rural areas. Urban poverty increasedby lOi
percentwt le ruI:a1
poverty inffeasedby 78 percent.

Irbfe 2: SocioeconomicIndicators
GDP biuion(1999)
US$142.5
GDP us$ 760(2000)
GNP a
GIM coeflicient 0.308(1999)
Humandevelopment
index
Poverty
incidence l8.2Yo
Rural
Urban
AnnualsroMh rate
Life expectancyat birth
Male 64 years
Female 68 years
Adult illiteracy.ate
Male 7%
Female 170/o
Infantmortalityrate(per 1,000live births) 43 (1998)

3. Causesof Poverty
3.1 1997AsianEconomicCrisis
Indonesiaexperienc€dan economic shock after around a decadeof unintemrptedhigh
economicgrouth. The economiccrisisthat hit Indonesiain the middleof 1997broueht
aboutsetbackin economicperformance, more specificallyin improvements in humin
development(e.g., education and health) and remarkable reduction in the poverty
F CountryReports:poverty in lnaonesia

F 9?P e.wth
li:l*l::lperiod
droppeddramaticallyflom over 7 percentper annum
before the

T
cfjsrs 10a negariveeconomic arowthof_lj.2oo in lSog. fhi, aggregare
shiftsignificanrly income
reflecred
rheimpaciorcurrency devaruarion.
\.\hichcreared
upheaval,leadingto high inflation;ate(Said,200i). economic

I After aboutone year_ofcisis period,the Indonesian

recovery.Thiswasreflectedin an economicgrowthrate
economyseem€dstill far from
ofonly 03% jn lggtg
I 3.2 Drought, politicat Instability dnd Etnic_Religious
Confticts
l| The long drought and forest fues in 1997, followed
transitionalperiodhaveworsenedthe socloeconomic
by political instabilrtyir the
conditions.Sucheconomlcrelated
factorsasskyrocketing prices,declinein agriculturalproduction,-"uu',J
t sector.and a.hugepressureon the ove-ralllabour
rmpact,especialrv
marketf,"u'"
shrinkageofthe formal
on the most wlnerabreg.oupsofthe popuiation.loiitiJJ
ensuedas the dictarorship
uj""rr" .o"ru,
,n"tuu i y
of Suhartorelt ana t'iretr"nrittn p.*"..
I continuedas the new presidentWahidwas rcmoved
sohartoalsocataiyzedvariousethnicand religious
(e.9.EastTimor,Westpapua,Aceh)
- rr"t"uiri y
only after two "oi"iii"-'
y"u... ff," fufl of
;;;y,;;. of lndonesia

t """fli;i;

4. Towardspoverty Reduction
Responses
4.1 Government
While pov€rtyreductionhadneverbee
durins1970to r994,for thefirst,t.n.iff1T.'il1i*:tified as,adevelopment
objective
*a iotui"ri.i;;,;;; *t"cit tarsets
rorreduction
"i"ntuur ;;;#;rH in?liil;ljrfj
Even beforethe 1997crisis. the Covemment
of Indonesiahad alreadyattempredto
respoDdto the needsof the poor thr(
berow)
rhese
program; prosfams
(seetabre
3
rildffi;#_?:*:;;fJ":",,"#,11-
Table3. P
e J. rover$ AII
AllevtatronPromrmhFc ;h r..j^
Progr{mmc -bjeclt"e
L P+K r Incorne-gcneiEi ru nErease lncomes Dcrcriptions
project of small Joint pro1ect Eiieei- fiJ
for Iandtess
farmcrs) fanners drough setf-help groupsMi stry of Agriadture and BRI
ano 10 orga zc lhem to gain Banlt begiming
in 1979;
acccssto crcdit .l Has incr€ased average
mcome of participating
tarmersup to 40yo;
'l Coverst3 provinccs
witl
finding from ADB and I
2. mT gnpresDesa-@gd) IFAD 1
ru acu.leraE ploverty reductjon Started in
t9gt. Cdsists of;
in less developedvillages across tund Rp 20
million per village.
Attempts to pro\ide assistance
direcdy to the village commllnitv
 Co.ffry Reports: Poverty in Indonesia

obie{rir€ Ire!criDliotrr
Ievel to undefiake gmss-roots
poverty alleviatior activitjes.
3,TAKESRA./KUKESRA To intensify poverty alleviation Assists poor familics to start
efforts savings by providiq them with
i tial depositsup to Rp 2,000 p€r
family. Administeredby the State
Ministrl' for Population
GKKBN)

4. 1.1 SoundMocroeconomicPolicies

Soundpoliciesand initially favorableconditionswere identifiedas the main factors,

cont.ibutingto Indonesia'ssuccessirl poverty alleviation.Householdexpenditureand
incomedistributioflwererelativelyequalat the startofthe New Orderin 1970,as most
Indonesians were poor at that time' and this allowed fleibility in proglafl targeting.
Furthermorc,urban-ruralmigrationwas relativelylow in the 1970s,while rural-urban
incomedisparitiesremainedrelativelysmall.Variouspoliciesandprograms, instrumental
in bringingdownpovertylevels,reinforcedthesesmallrural-urbandisparities.

Otherreoentinterventions to help the poor includeminimumwage polioiestargetedto

urbanareas,acrossall provinces,and specialeffods in the areasof water supplyand
sanitation.Elfortsto alleviatepovenybecamediflicult between1990and 199?.Setiawan
(2000)notes,two reasons underlaythis difficulty,namely:L Targetgrcupswere harder
to identifythanbefore;and2. Government's concemwith povertyalleviationbecameless
thanbefore,sincethe budgetfor alleviatingthe causeswas morerestrictedandthe costs
ofsuchprogramswerebecomingmoreexpensive.

4.1.2 StrengtheningSocialSafety Nets

The govemmentstrengthened socialsafetynetsto respold to the needsofthe poor. It

adoptedmeasures the poor'saccess
to incr€ase to food andessentialhealthandeducation
services.Althoughthe programmes were not immuneto allegationsof corruption,they
seemto havegenerallymettheirgoals.Overthe mediumterm,however,thereis a need
1oshiftthe focusofpubiic policyto addressstructuralpov€rty,while maintaininga much
smaller but better targeted safety net p.ogramme to protect the most vulnerable
Indonesiahasa numberof povertyreductionprogrammes, few ofwhich appearto have
workedwell. A majordrawbackofthe earlierprogramrnes appearsto be their top-down
approach, insistenceon subsidies,
andlack of accountability_
Theseneedto be carefully
reviewedandrestructuredto reducepov€rtymo.e effectively.

4. 1.3 Decentrolisotion Scheme

The policy of decenralisation is in major part aimedat addressing regionaleconomic

disparitiesand improvingpoverty taryeting.The policy enablesthese issuesto be
addressed much more directly and sensilively,especiallywith functioningdemocntic
institutions.Enhancedare the possibilitiesto empowerthe poor, mobilisetheir crcative
energies,and initiatea genuinepartnershipbetwesngoveanment, civil society,and the
 totttry n"po.c, Povertyin Indonesia

:cor to eradicatepoverty. Good govemancealso supportspoverty reduction by

to the poor'
:rcressingcomrptionandinefliciencyin deliveringpublicservices

r.1.4 Social Safety Net Progrommes

:he governmentestablished a seriesof new andexpanded programmes widely known as

-,he'Social Safety Net' ot JPSprogtammeq an acronym of its Indonesiannilrne Jari'E
PengamanSosiil. Suryahadi et. al (1999)state,the progarnmeswere intendedto help
proi""t th" traditionallypoor and newly poor sufferiag-flom the crisis in.three areas,
nameiy: LEnsuring the availabilityof food at affordableprices for the poor; 2
Supplementing purchasingpoweramongpoor households throughernployment creation;
.nd':. Pt"r"*ing ucc"sJof the poor to critical social services,
such as health and
educatlon.

Ihe plan to introducesocialsafetyn€t programmeswas first m€ntionedin the revised

govemmentbudget,draftedin lateJune1998 Basedon the budgetplan,around7 4ol"of
6Dl, or np Z0.itrillion wereallocatedfor socialsafetynetprogrammesOut ofthe total
Rp 70.5trillion budget,around83.50loor Rp 58.8trillion wasallocatedfor varioustypes
oi subsidyprogta.*es. The remainder(16.5%) of the total budget(a'ound Rp 11 7
trillion)was foi employmentgeneration programmes, supportfot educationin the form
ofblock grantsandscholarships, andotherexpenditures services'
for health-related

ln September1998,the NationalPlanningBoard (Bappenas) announcedthat a nation-

wideiociat safetynet programmewas being developedThis programme consistedof
four schemes:L food security,2. employmentgeneration projects;3
or labor-intensive
socialprotection(education,health,family planning,
and social and
servicest 4 SMEs
pro.oiion. The total budgetfor theseprogrammes wastargetedat aroundRp 17 trillion
(6.5%ofthe totalbudget).

4.1.4I Food Securitv- aimsto helpthe poor -- includingthe newly poor becauseof
ihJ crisis -. to fulfilt their needsfor food, which may havebeenhinderedby both
falling real incomeand food price escalation.This schemeis implementedthrough
four activitiesrfood reserves, food assistance for the poor' cashfor food production
intensification, and agticulturalinput subsidies. The governmenthastried to achieve
theseobjectivesby establishing variousprogrammes, one of which is the Operasi
I'asatKhusus(OPK).UndertheOPK programme, oneofthe largestandmostcrucial
schemes underfood security,eacheligiblehouseholdis allowedto purchase 20 kg of
riceper monthat a highlysubsidised price of Rp l,000/kg.'This is comparedto the
marketpricefor mediumqualityrice in Octoberto November1998periodof around
Rp. 2,5b0&g. Originally, only householdsunder the lowest categoryof o{Ilcial
classificationwere eligible to participatein the programme.' But coveragewas
expanded duringthe courseofthe year.

r ' The progrdmmestrtted with l0 kg.

I I The ofiaial classificationis olated by thc NatronalFamih' Plaining Or$nization (BKKBN)

I
 i Co{rntryReportsrPovertyin Indonesia

4.1.4.2EmplorrmentGenerationfPadatKarya) - is in .esponseto the threat of

burgeoningunemployment beaause of economiccontraction,forcing firms to either
lay off part of their workersor shutdowncompletely. Padatkarya is a massivelabor-
intensiveeffort initiated in variousareasin Indonesia.Its two main objectivesare; 1.
Provideincomesupportto the unemployedand the poor; and 2. Createproduction
benefitsin the form of Iastingsocialcapital,includingpeople'sskills and enterprise.
Since1998,PadatKarya hasgrown to include13 sub-programmes, involvingeight
executingagencies,and reachingmore than 300 districts. Theseschemesare funded
primarily through re-allocatedfunds from donor agencies'ongoing loans, other re-
directedresouaes,andfiom other newly designedinitiatives.

4.1.4.3SocialProtection- helpsensurethe supplyof importantpublic healthand

educationservices,particularly for women and children, to protect against further
deteriorationin circumstancefor the future seneration.

4. 1.5 EducotionProgramme

With the assistance

of extemalaid agencies,
e.9.,ADB andthe World Banl, Indonesia
rapidly designedand implementeda scholarships and grantsprogrammecalled SGp
(Pl€aseseebox 2 at the annex).Though SGP,secondaryenrollmentrat€sincreas€d
betweenschool yearc 1997/98and.1999/2000,and primary enrollment stay€drelatively
constafi.

4.1.6 Health Programme

The government, with helpfrom donoragencies, establishedthe JPSprogam in health.

The four activitiesunderthis schemeare: 1. provisionand maintenance of basichealth
servicesin Puskesmas(health centers);2. midwife's servicesfor poor families; 3.
nuldtional improvement;and 4. healthguaratte€schemeat the district level.

4.1.7 Smallandlledium Enterprises

(SlvlEs)
Schemes
Thisprogramme
is administered
by theMinistryof Cooperativ€s
andaimsto helpthe
SMESin the form of credit. To datq th€ govemmenthas allocatedRp 20 trillion in
supportof SMES,but the allocation of this programmeis not reflectedin the budget for
SSNprogramme. Underthis scheme,SMEsare providedwith technicalassisrance ano
acaess
to creditto furtherdeveloptheirbusiness andemployment activities.

4. 1.8 FinancialSupport

The funding to expandthesevarious social safety n€t programmescom6smostly ;n the

form of loansprovidedby the World Bank, ADB, and bilateraldono.s,eitherdirectly
I
though prcject supportor indirectly through programloansthat providebudgel suppon.
I
I
I
 CountryReports:
Povertyin Indonesia

1.2 lnternational and Local NGOS

E NGOs,religiousorganisations,
alleviationprogrammes
andcommunitygroupshaveinitiateda numberofpoverty
to complementthe govemment'sefforts.lntemationalNGOS,
suchas CARE, CRS, World Vision, and ICRC, have mountedsupponprcgrammes,
particularlyin food relief operations.Theseactivitieshave receivedfinanoialsuppo.t
from bilateraldonors(e.9.AusAID, USAID, andCIDA). In addition,a new initiativein
creating civil societyJed mechanismaimed at strengtheningthe capacitiesof the poor,
calledCRP(CommunityRecoveryProgramme), hasbeenformed.

4.2.1 Relief assistanceand food security

An NGO, ParamitaSocial Welfare Foundation(YKSP), initiated a food secu.ity

programme, distributingfood aid to needyhouseholds. Formedin 1995by a group of
religiousleadersand Buddhistentrepreneu$, it deliv€redin Septembe.-October 1998
approximatefy 10,000food parcels (consistingof l0 kg rice, I kg sugaralrd,% kg of
mung beans)to poor communitiesin Nonh takana, Central Jav4 and East Java.
Ahhoughinitiatedby a Buddhistcommunity,thc pfogammedid not discriminate against
religiousaffiliation,ethnicity,race,or gendcr.

4.2.2 SocialDrotection

ln the areaof socialprotection,severalNGOSand CBOShave also initiatedactivities

directedtowardhelpingthe poor,Activitiesincludeassistingstreetchildrenandassisting
work€$ find altemativeemployment.

4,2.3 lAicro-credit schemes

NGOs run hundredsof small miaro-creditschemesthroughoutthe country. One

promisingschemelinks provisionof microfinancewith the building of poor people,s
capacityto helpthemselves.NGOSare forming strategiclinkageswith BRI and Bank
Indonesiafor thispurpose.

5. Critique/Assessment
of GovernmentStrategies
l

E The challengeoverthe mediumto long term for the Indonesiangovemmentis to realise

thepotentialdecentralisation
holdsto reducepoverty.The first steptowardsthis endis to
developa workablestrategyquickly and initiateits implementation,beginningwith the

E worst pocketsofpoverty (ADB, 2000).

The pov€rty-reducing poteotialof decentralisation would only be realisedif the poor

E could make their voices heard. The ADB reiteratesthat in order lor this to happen,two
measuresare necessary:decertralizationand mobilisation.Decentmlisationmust be
deepenedby graduallytakinglocalgovemance to thevillagelevel.The cunentproposals

t for decentralisation
to the district level are a major stepin the right direction,but the

t
 Cd.l1?y Reports:Povertyin Indonesia

rrocesswould needto movefirrfher.The districtis still inaccessible for the majorityof

:herural poor Civil societyo.ganisations, suchasNGOs,havean importantrole to play
:r rhis regard.Until recently,the political climateprevailingin Indonesiahad not been
.onduciveto NGO activities

The SSN^programme wasa key elementin the government,s rcsponsetowardspro@cung

:hepoor from the worst effectsofthe crisis But the programhad had mixedsuocess rn
ieaching.and supp-ortingthe poor. Other coping strategies_ including relianceon
.ommunity and religiousorganisations -- had been more importantthai government
trogrammesto the poor.
The issue of mistargetedand misusedfunds was highly conspicuousin newspaper
coverage;.the €ovemmentacknowledged such shortcomings. Bappenas,for example,
admitredthataboutRp. 8.6trillion our of the total Rp. 17.9;llion ;i SSNfundsin fiical

I and used to fund ',supplementary,,

\.ear 1998/1999,were misbudgeted, programmes
rSetiawan, 2000).

I In addition,Setiawannotes,anecdotal_ evidenceindicatesthat, unfortunately,in many

casesthe progftrnmeslargely missedthe target groups.It should be emphasised,
however,that effectiveness.of the programmesvariedaciossprcgrammesand regions.

I )ome programmeshad high coverageamongthe poor and showedsom€reasonable

11"*i:
and :f]irg"lng.
lrttle or
while someprogrammesin somedistrictsshowedlow coverage
no targeting

I In spiteof its weaknesses,

the SSN.programmes
crisisto a certainextent.The subsldrsed
hadhelpedpeoplein dealingwirh rhe
rice scheme(OPK) was one of rhe effective

I lifelines. Launchedin 1998,the programmehad reachedl0 million households

January1999.
bv

I The schoiarshipprogrammewas relativelvsuccessfulas well. Foundto be

rmpressive
households
of the SSN programmes,
the most
it displaveda positive bias towards poorer
and gave !ery tangibleassisrance ro a relatively large numbgr of

I Deneltclanes.

The PadatKarya public works prograrnmewas a loose collectionof programmes

in
I vaious ministries,aimingat providingemployment.In its detailedassirs,i.,ent
programlne,AusAID (1998) identifiessix weaknesses,
of this
namely: L failu.e to reach
women: 2. minimalcommunityconsultatioq3. no NGO involvement;4. no
tmnsparent
I mechanism;5. no long+€rmpositiveimpacts;and6. no capa"itybuildingcompon"nt.

The factthatpovertyclimb€devenwhenSSNprogrammes werebeingimplemented does

not_meanthat theseprogrammes were a failure.Relatjveto the oui*h"lrning pou".ry
problemcausedby Indonesia'ssimultaneous crises,theseprogrammes werequrtesmall.
::i,:i.Tll:. jF o:'etopmenr budset inly l geel2000
for sSNprogrammei wasRp.5.6
rflrrlon, ressthan halt a percent
of GDp. AIso, the allocationsfor some of these
programmeswere not even disbursedduring the fiscal year,
as administration
mechanisms
werestill beingput in place.
 6,rntry neport, eo"erq in tnO"neti"

1998has
Basedon an IMF study,thepovertydeclineby morethanhalf sinceDecamber
fr;" ofstability,somerecoveryin economic
testoration activitv' anda
#;i;J;
i*ii*'i" lrt" oii"" of rice dueto plentifutsuppliesin the marketand not from the
government's SSNProgrcmmes

6. andConclusion
SummarY
6.1 SummarY
ln an increasinglyglobalisingworld, management ecolomiesare confrontedwith new
;"ii;;;;;. ihi; it ;.ply deionstratedbv Lhefinanci"l andeconomiccrisis' facedbv a
numbeiofAsian countries,oneolwhichis theRepublrc ol Indonesla

is localedsoutheast
Republicof Indonesia,constitutingmostofthe Malay Archipelago,
-area
;;';"i;iil ;;; ;J oonr,*.tt o"reutt.utlu it t'ut tot"t land of l'826'440km'?'
"
of 207.4milliorLit is considered-as tl" Yt]91: fourthmost
Wii-fr .iA population
ooputou," china.India.andthe United States'Morethanhalfthe peoplelive
"ount,y
in iava, where "R"r Indonesia's
Jakana. capitalandlargestcity, is located

Althoushtheislandsarehometomorethanl00ethnicgroups,mostlndonesiansarcof
;i;J'Lt"l"y origins and practicelslam. Major languagesare BahasaIndonesiaand
are
l"uunar". ,C" agri-culturaland manufacturingeconomy,the country's main exports
rubber,tobacco,and sugaJ.

Indonesiahadachievedremarkableeconomicdevelopmentoverthepastdecadeandhad
U".n, until t"""ntty, considered to be amongthe bestperformingEastAsianeconomies
of nearly
ot"i tfr" p"rioa tgis to tgsz, the tndonesianeconomygrew at an annualrate
iy", the fastestaod most ever achievedamong developing countries This
"""'"f wasmainlydrivenby the manufactudng sector,whichgrewby more than 10yo
e*pansion
p"i -""* overthe ;eriod. At the sametime, exports(particularlyfrom the non-oil and
gtew around107o,alsobecam€an importantsourceofgromh other
gut t."totg,-irrlicators
lol-d '""onoti"
rn""ro performedsimilarly: the cunent account balancewas
Indonesia
."i"Li""a on averageunder3% of GDP; gross foreign reservesof Bank
to increaselreaching$288 billion in June 1997;and inflation averaged802
overthe period, while real capiiaincomegrew &t an annualrate ofnearly 6910
"ontinu"a

t Th€Asianfinancialcrisisthathitlndonesiainthemiddleofl99Tbroughtaboutsetback
in economicperformance. GDPgrowthdroppeddramaticallyandligh inflationtatewere

I few of those'adverse impactsofihe crisis The long droughtandforestfir€s during1997'

iollowedby politicalin;tabilityin the transitionalperiodcontributed
,o.io.""o''o'1" ions'Suahecolomicrclatedfactorsasskyrocketing
to the worseringof
prices,decline

I "ona
in agricultural productior\ shrinlage of the formal sector, and a huge pressureon the
ou"."ulttuUot;arket are cited asiausing a negativesocial impact,especiallyon the
Dooulation'smost wlnerable groups.

I
r|
I
T
I After aboutoneyearofcrisis period,theIndonesian economywasstill far from.ecovery.
Thiswasreflectedin an economicgroll,thrateofonly 0.3%in 1999. At its peakin eariy
I 1999,poverty incidencereached24.2 percett, from 17.6 pe.centin 1996.Although
oficial estimates hadbeenupdatedandrefinedseveraltimessincethe crisis,and several
studieshadprovidedalternativeestimates,
I thereis a consensus on two majorfindings--
at its peakpovenyincidenceduringthe crisissurgedabout7-10percentage pointsfrom
its low in 1996,and that a large segmentof the populationwas in a r,ulnerableand
depletedstate.In absolutetems the adsis-inducedsu.ge in poverty had piungedan
I additionalI5 million perso.ns into poverty.During this time rhe pove.tygap indexaand
lhe povertyseverityindex' deteriorated, indicatingthat the numberof poor inc.eased
dramaticallyand the conditionof the poor worsened.pove.tyworsenedin urban areas
I somerrhat fasterthan in rural areas.Note that urbanpovertyincreased
whileruralpov€rty,78 percent.
by 103 percent

I Durjngthe crisis,the Govemmentoflndonesiastrengthened socialsafetynetsto respond

to the needsof the traditionallypoor and the newly poor. Measureswere adoptid to

I increasethe accessof the poor to food andessentialhealthand educalionservices.The

poliay of decentnlization,in major part, aimed at addressingregional economic
disparities
andimprovingpovedytargeting.

I In additionto the decentralisation

i4 :Iplnd{
scheme,the govemmantestablished a seriesof new
programs.Theseprogramswere widely known as the socialsafetynet or

I JPS(JaringPengamanSosial)programs.Theseprogramsincluded:1. food securitv:2.

employmentgenerationprogram or labor-intensiveprojects; 3. social prote;tion
(education,health, family planning,and social services);and 4. SMEs Dromotion.

I Emphasiswas given to implementtheseprogramson a deoentralised and iransparent

basis,involving district govemments;municipalitiesand village communltleswere
expectedto contributeto thegovemmenttselfortsto €ladicatepov€rty.

I The socialsafetynet programwas a key elementin the government,s response

towards
protectingthe poor from the worst effectsof the crisis.But the programhad mixed

I successin reachingandsupportingthepoor.

NGOs.havetrelpedin reducingpovertyin the country. In the areaofsocial protection,

I severalNGOShave initiatad activities,directedtowardshelpingthe poor Activities

includeassistingstreetchildrenand assistingworkersfind aliernativeemployment.In
additionto governmentschemes,NGOSrun hundredsof small micro-credirsonemes

I throughoutthe country.

6.2 Conclusion
I 7 The Governmentof Indonesiahad alreadyimpiementedpovertyalleviation
programmeseven before the 1997 Asian economic crisis. Sound
I '
indicatesthe aveGgeamountthe incomeof re poor mustbe increasedto crossthe poverly line.

I ' Indicates
the income distribution ofhouseholdsbelow the Dovertvlinc.

I
r CountryRepors:Povertyin Indonesia
-t
2I

I macroeconomic poliaiesplusfavorableconditionscontributedto the success

of povertyalleviation.
I V "fhe 199'1Asian economiccrisiswas a serioussetbackto the considerable
gainsthe countryhad enjoyedin povertyreduction.However,this setback
I did flot deterthe gov€mmentfrom intensifyingits campaignagainstpoverty.
It st.engthened social safetynetsto respondto the needsof the poor. It
adoptedmeasuresto increasethe accessof the poor to food and essential
I healthandeducationservices.

v SSNprogrammes havenot beenableto achieveas muchasit shouldbecause

I ofsome flaws in programmeimplementation.
implementation
that programme
It is necessary
be improvedto bettertargetthosein mostneed.

I v ImprovingSSN programmeimplementation
informationdissemination
can be donethroughextensive
campaignand intensivemonitoring.Particularly
on the monitoringissue,the .ole of civil societyorganisations
I consideredseriously;a participatory
SSNprogrammes
shouldbe
monitoringsystemwouldensurethat the
reachthetargetgroupsasplanned.

I v Thereis a needfor the Govemmentof Indonesiato look beyondtheseSSN

programmesand start to think about long term and broadersocialpolicy
programmes.
I Attentionmust be focusedon the effectivedesignof a social
welfarepolicy for lndonesiaas it movesftom what might bi a prolonged
eaonomiccrisisto a hesitantrecovery.

I v Thegovernmenthasund€rtaken stapsto helpSMEs,suchas initiatingmajor

reformsto improvethe policy environm€ntfor SMEs.Morc stepscan be
takento address
the constraints
on SMES.Recentregulationsandrestrictions
imposedby localgovernments area concernaswell aschangesin the policy
environmentresultingfrom decentralisation

v NGOsandcivil societyplay a crucialrole in povertyalleviationin Indonesia.

They have initiatedand implementedactivitiesto complementand support
the variousgove.nm€ntprogralnmes. As manyNGOs showtheir capabilitv
in planninganddelivering SSNprogramme. moresyslematic effoni should
bemadeto involveNGOSin theseprogrammes.
 Co{'ltry Reports: in lndonesia

I Sources

I Ehtishamalld Lue Leruth; "Indonesia:ImplementingNational Policies in a

-A.}|mad,
Context- SpecialPu.poseProgramsto Protectthe Poof'; Inte.national
Decentralizgd

I MofletaryFund,June2000

Bank;"AsianDevelopmentOutlook2001";2001
AsianDevelopment

AsianDevelopmentBank; "CountryAssista[cePlan (2000-2002):Ifldonesia",January

2000

I AsianDevelopmentBank; "Country AssistanaePlaq (2001-2003)iIndonesia",August

2000

I AsianDevelopment
Bank;"CountryOperatiooalStrategy:Indonesia",
March2001

I AsianDevelopment CountryEconomicReview",April 2000

Bank;"Iodonesiar

Asra,Abuzar;"Povefiyandlnequalityin Indonesia- Estimates,

Decomposition,
andKey

I Issues";AsianDevelopment
Bank

Asra,Abuzar;"Urban-RuralDifferencesin Costsofliving andtheir Impacton Poverty

I Measures";AsianDevelopm€nt Bar*

Chaudhuri,Shubham,et. al. "AssessingHouseholdVulnerability to Poverty: A

I MethodologyandEstimates

Feridhanusetyawaq
for Indonesit';World Bank,June2001

Tubagus;"Globalization,PovertyandEquity in Indonesia";Center

I for Strategies
andIntemationalStudies,Jakarta;November2000

Grootaert,Christiaan;"Social Capital,HouseholdWelfareand Povertyin Indonesia";

I WorldBank

Haryedi,Emmanuel,"Microfinanceand the Poor: SomeRealityChecksin Indonesia";

I ManilaSocialForum:AsianDevelopment BankandWorldBank,November1999

Islam,Rizwanul;"Indonesia:Ecoromic Crisis,Adjustment,EmploymentandPoverty";
! Intemational
LabourOrganization,
1998

lslam, Rizwanul;"PovertyAlleviation,Employm€nt,and the Labor Market: Lessons

I fiom the AsianExperience";Asia andPacificForumon Povert],:ReformingPolicies
andInstitutionsfor PovertyReduction:AsianDevelopment
Bank.February2001

I Pdtchett, La et. al. "Quantifying Vulnerability 10 Poverty: A Prcposed Measure

Appliedro Indonesia",
World Bank,undated

I
I
Co.'tEy Reports: Poverty ih Indoneria

Radelet,Steven;"Indonesia:Long Road to Recovery";DevelopmentDiscussionPaper

\o. 722, HarvardInstilutefor lntemationalDevelopment,
HarvardUnive.sity;June
1999

Raviez, R. Marisol, "Searchingfor SustainableMicrofinance:A Review of Five

lndonesianInitiatives",Development
ResearchEconomicsGroup,undated

Robilliard,Aane-Sophie,
et. al. "Crisis andIncomeDist.ibution:A Micro-MacroModel
for Indonesia";WorldBank,June2001

Said,Ali, et. al."The ImpactofEconomicCrisison PovertyandInequalityin tndonesia,';

Symposium on PovertvAnalysisandData Initiative(PADD: PhilippineInstitutefor
Development StudiesandTheWorldBank Institute,April-May2001

Balti; "The Poor at Risk: Survivingthe EconomicCrisisin Southeast

Setiawan, Asia";
FinalReportofthe Project- SocialSafetvNet Progamsin SelectedSoutheast Asian
Countries.1997-2000:Centr€ for SoutheastAsian Research,Institute of Asian
Research,
Universilyof BritishColumbia.

Sjaifudian,Hetifah; "Increasingthe Transparencyof Govemment-Sponsored poverty

Projectsin Indonesia throughCommunity-BasedInformation";ManilaSocialForum:
AsianDevelopment BankandWorld Bank,November1999

Sumarto,Sudarnoet. al. SafetyNets and Safetv Ropes:Who Benefitedfrom Two

Indonesian
CrisisPrograms - The "Poor" orthe "Shocked"?:WorldBank,undated

Sumarto,Sudarno,et. al. "Safety Nets and Safety Ropes:Comparingthe Dynamic

Benefit Incidenceof SubsidizedRice and Public Works Programsin Indonesia,';
Third AsianDevelooment Forum:World Bank,June2001

Surbakti,Soedarti,et. al. "CountryPaper:Indonesia(PovertyDatapolicy, Management

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PhilippineInstitutefor DevelopmentStudiesand The World Bank Instjtute.ADril-
May 2001

Suryahadi,Asepet. al. "The EvolutionofPoverty duringthe C sis in Indonesia,1996to

lq99-':WorldBanl,undaled

Suryahadi,Asep, et. al. "Coverageand Targetingin the IndonesianSocialSafetyNet

Programs";Manila Social Forum: Asian DevelopmentBank and World Bank,
November1999

Warr. Peter:"Poveny Reductionand EconomicCrowlh: The Aslan Experience";A sla

ard Insti
t ' Coqrtay Reports: Poverty in Indonesia

t World Ban( "Memorandum of the president of the International Bank for

t ReconstructionandDevelopment, the International

Dev€lopment Associationandthe
IntemationalFinanceCorporationto the Executive Diteclor on a Country Assistance
Strategyofthe World BankGroupfor Indonesia',;February8. 2001

I
t
t
T
I
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 Co{htryleports:eove*y ln tnaonesG

Annex:Tables
Table 4. Percentage
andNumberofpopulationBelow thepoverty Line(1g76_tgg6)
Percentage oipdp-u-ii?i6iTEiifr Ntrmberof PoputationEEi6i
lhe Poverty Line the Povertw I i^a aMilti^-r
Urba.r Rural Total urban Ru.al
1976 Total
38.8 40.4 40.1 10.0 14.2
1978 30.8
54.2
33.4 8.3 38 . 9 47.2
1980 2S.0 28.4
1981
32.8 42.3
2A.1 26.9 9.3
1984 40.6
21.2 25.7 35.0
1987 20.1 16.1 17.1 9.7 30.0
1990 16.8 14.3 15.1 9.4 17.4
1993 r 3.6 13.7
'|996 8.7 17.2 25.9
9.7 11.3 7.2 15 . 3
yu rce,sps,statisttAtAtb;;EAid;;;-iifr
.

Table5. A ofSSNP s in Indonesia

Govemment Quasi-gov'i NGOs Incd Comties
securlty Foodsubsidies; Markelopemtion; CRP(communify Dapurumum;
OPK(markcr DannaWadla recoveryprograrn); l'KSM
opcnuon) Suaralbu;

I
Peduli/StriYKSM
cmproyment Padatkarya Padatkarya;
generation CRP;PPSW-ICA; Wanu€Koboi
(PKPS-PU;P3DT;Ltr.YUIMS YSM;PLSP
PKH;P3T;

I PDKMK);PDM-
DKE; KDP
(kecamaundcv.
Prognm)PPK

I socralFotection Schola$hips;
J
i(subsidyfor
I schoots);
DBO DarnaWanita

school
CRP;UPC;
PPSW;cIRLll
PKBI
RT,RW;Bunga
SerojaKop€rasi
K5

I
grailq health
I
] scnlces:
I nutritional
I seMces;gmntsfor

I hospital;PMTAS
I Guonlenentary
] feedinglor school

I SMEs
I children)
KDP;
PDM.DKE
tia an, 2001: Compitect
CRP;PEKAPEK;
YAKKTM crafr
KSI{/CBOs

sources
I
fon;;ious

I
I
 CountryReports:Poyertyin Indonesla

Table6. FundinsAllocation
on for SSNPro for the 1999/2000 fiscal
TyPe Agencig R€sponsible GOI Donot Total
(millionRo.) (tr|illionRp.) (millionRp.)
FoodSocurity tt7,603
'I OPK Dept.ofsocial AIfair
'! Fanning Dept.of Agriculture
subsidy
t Fisheries Dept.of Agriculture
subsidy
SocialProtection
t Education Dept. of Education 654,880
I Hcalth DeDt.of He3lth 880.900
JobCreation Dept. of Udan ard 1,000,000 1,000,000
ReaionalDcvelooment
SMEs Bapennas/D€pt.of 792,009 792,009
Intorior
Total Fundins 3.996.489 t.647.536 5,644.025
So rce: Setiavan,2001

F
I
F
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rl
rl
rl
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 CountryReports:Povertyin Indonesia

Program
Box 1. MainFeaturesof the Decentralization
Administratlve a5Dects: Law 22 of 1999 devotves m6t functions of governrnent to
lndonesias regions-- 28 tt ovincesand over 350districts andcities. The key exceptionsare
national defense, internationaLretations, justice, potice, rYFnetary,devetoprnentptanning,
retigjon, and finance. The dist.icts must pedorm important functions, inctuding heatth,
education,environnEntaland infrastructureservices.The Provincehasonly a minor rote,
rnainty in coordination, and baclstopping districts and cities that cannot yet perform their
functions - which ntay be an opening for an expandedprovinciat role. The Province r\ill
also continue to perJormdeconcentratedcentrat task lmplernentingregulations further
spcjry the remaining roles of the central and provinciatgovernrY€nts,including settjng
standards for seMce deti\r'ery.The central governtrEnt can annul regional bylaws and
regutationsthat conflict with national laws and regulations,but the regionscan appeat to
the SlprefiE Couri againstthe cente/s decision. The intergovemmentalregjonal autonorry
advisory board with representativesfrom the center and the regions is to advise the
Presidenton issuesconcerningdecentralization.

Flsc.t aspects:The legatfrdrn€work(Laws22 and 25 of'1999)MLIdrasticatLy increasethe

regional shate of general governhent spending. Preliminaryestimates suggestthat when
decentralization is fulty impLenrented,the regionsMtl spendsonE 8 to 9 percent of gross
don€stic product (GDP),or wetl over .lO percent of generalgovernltEnt sPnding, and over
doubtewhat they spendnow.The bulk of this witt be controlLed by the districtsand cities.
The center will share sorne of the resource revenu€s with the regions -_ for 2001
arnountingto some'1.3percentof GOP-- but this witl only benefita few regionswith

For rnost regions,the generalgrant M{t be the ftlain sourceof rev€hues.This grant wilL be
a minirrum of 25 percent of centrat govehn€nt revenues-- sonle 4 percent of GDPfor
2001. The generalghnt Mtl be distributed by a fonruLa that has sofi€ equatizing
etefiEnts, but guaranteesa glant at least eguaLto the recurrent and developnEnt grdnts
received in the p6st -" irrespective of other lncorne. The equatization forruta does not
adequately consider expenditure needs for minjtnal seMce provision and thus, Poorer
reglonscoutdbe shortchanged. Furtherrnore, the centeraangrant speciatgrantsbut the
arnounts are smalt gi\€n the current budget eN4ronrnentand lheir attocatlon has been
given tittl€ attention so far.

Regionalgovernnpnh will al5o be allowed to borrow, but borroMng will be tinfted by a

I fornnrLafor total debt, by individual Ministry of Finance(l'loF) approvalfor foreiEn loans,

but Mthout the guaranteeof central governrnent.The GovernrEnt can Pt|t further limits
on regional bofiowing, and plans to prohiblt reglonal borrowingfor FY 2001, except from
the central government.Bankand other donor lending to the re€ionsMtl for now be abte
to makeuseofan existingonLendjng

f
mechanism.

covernment has issuedregutatlonson financial management and procurernentof the

regions.Theseregulationswoutd atlow the regionsto largely determine their own financiat

t nEnagefilent, accounting, and procurement system within (broad) guidelines from the
central government.This arangen€nt nsls a weak€ningof the countrys fiduciary
enironment, and a fragnEntation of the rnarket for governn€nt ptodlrefiEnt, as local
procurenEnt regulatlonscould favor tocal suppLiers.

! To strengthenlocalown revenuesourcesthe Governrnent hasrevisedthe law 18 of 1997

on regional taxes and levies, The revis€d law atlows regionsto estabtish taxes as tong as
they obey certain principtes. while these principles are sound,the weak rnonitoring and

I enforcenEnt capacityof the center rlsls a return to the pre-1997daysin which local taxes
becarnea seriousbarrierfor internaltrade.
Source:World Bonk, 2001

!
I
I
 Coont! Reports: eoverty inl nO-nesla

Box2. The Scholarships

and crantsEogram (SCp)
Tm.ffi:i;Jl:.Tl,"l"1"fi_..*lTjiry,!*,.thg ry9.FJ. .-. particurady
snrdents iunior
=ilfl ;; ffi:",ijTl,.
llll:;
ffi,,?,fml,l:*t::, ;*l*1s:!":E!-ry,1
*:,::,.j::lllj::ngg"i:,-,:-iil;,
clBnrFling resourcesto pupts ana scmob. The) SGp
i;;qd;j-;ieil;,
i,#'i;#:'efi$# iJHg,?l#i:irect svstem rof
introdxed monitoing systernsand schoolconrnittees
ro sareeuardrran.Er.h^,
i:#lT,#H'n."ly;"lf*g;-:= :::."rj##-;;#';J:11iffi ;d;;iilft ;:ffil;?,"';i 1H'.1."frlil,"Tj
ffi1"*"';ff*:,'"- :* f r::':5'-sd il:i?ilHilt1:
:ff*tl.*:Hil."
directly to ::L::r.::",:lrsi
chann€led recipients ttrrougi;the ;st sFiisi-,ffi;iiT;THl,,ilTi*,:Hffij
offi.", mort tnnouutiu" ,*""ur.l
"
R$ults: Through.theSGp,each year about 4milhon
sclElaBhrpcand 130,m0block gran6 nave been
ffiRfi':f;::"1: :'lf#";L:.'"'lf t*itt'noe
r,inains
ri ;,;t r.-,in
iG,"e.ap",."nt
p",11t eo iJ".Tf'"*'Y
cerc.*
"im;tilil;1"#;'.,?1111i,",i:::il*j#tr
nbmronngsystemsug8ests iH;![l[:H:i;":N:ffH
few probtenEwirh.misdirecbonor improperuseof
fu-nii ina.gr.o ,r...o ,n
. targetin', Lessonslearned include the need to develop *nu. iror,""ir* i.-i""otiu"n?,-go*rnrr=n,
orlamzatiomand strengthenlocal caDacv to
n|anage.thrs type of project.
, channeringprocedurehassince beenadaptedand exten&o uy thJbovemrieri;;;; The SGp drrect tunds
;;;#;h."f,
burce: AsldnDevelopmentBo/1k,2Ao1
Lao People'sDemocraticRepublic
 -------

I
I PovERTy
tNLAoPEopLE's
DEMocMTtc
RepuaLrc

I PAUUNEREBUCAS

I
.t
t. Introduction
*:ydv-:l,poy""y
*: ff'^l.-l: Plutrppjnes,Tq*ion initiativesby govemment
andNcos in oisht
::r,rfl. Indonesia,
Cambodia, Vieham,Burma,
Lao,Tha aia,
ano Easr"_"I11".f"":ty:
I tmor. I he_study alms to presenta comprehensiveview of poverty situation and the
responsesto poverty by different sectorsin the eight countries. Also,
it aim; to comc up wth
recommondations to developmentNGOS regardingareasof ilterventions or collaboratlon
with
t9':^Tents lowads povefty red;ion. The study mainiy rrseJ.ecoooaryOat"
lir-l"rq*]*"
{wnttendocuments, books.andintemet)

on LaoPeople,s_Democraric
Republic.
Ir is dividedinrosix pans.
Il:
rne L:-t"l-!"yr::
rrrsrpan ls the tntroduction The secondpresents the demographic profileand
povertysituationin Lao PDR. Thethird discusses tt" rnaiocau.i Ji poverty. The
part.featuresthe responses
to povertyby the goverffnent,im#aiiJ,iar uno tocut
3,:1h
:\rn-rs.Incluolng
tntemattonaldonors.andthechurch.Thefifth presents an assessmenl
oy somerDstltuhons and analystson the multisectotal respons€s,particuiarlythe
govemment's, to poyerty.Thesixthpartpresents thesummary andconclusior,.

2. Profileof LaopDR
2.1 Geographyand Demography
l-aos,
.ofticiallyLao People's
Democratic Republic(LaopDR),is an independent state
c€ntrallylocatedin Southeast Asia.Considiredas Sourheasi esia.sonii ianatoctea
mtion,LaoPDRis bordered by Vietnamin theEast,Chinain theNorth,Mianmarrn ttre
\onhwest,Thailand in rheWest,ard Cambodia in tireSor.rth.
Tf," uiJ farg"rt
ofLaosis Vientiane. "upiiil "iry
Tlr:,colnr)'.9s rotalareaof 236,800kmz(gj,429mir). Its roralpopulation
_a rs 5.22
anannuar srowthofabour z mirrion.
ruorliJ#ioinn l rza;or
3,:"^ill^oll'.1t'r:,yith
.Depeoptellve In the mountainous
resions;.
the remainder live alongthe Mekongfuver
aodits branches.Morethan80 percenilivein ruralhamlets

A lery mountainous are4 Lao hasa rich andvariednaturalresource base.It is the coreof
Se economiccorridor,,connecting the subregionaleconomies.Irirna.iiy ag.icufturat,
count y hastimber, coffee, andtin as its maln exports. tt
"

\lajor languages
spokenby the popurace
areLao andFrench. The rnajorrerigionin the
csrnny is Theravada
Buddhism
I Co{rntryReporB:Pove.tyin Lao Peopte'sDemosraticRePublic

l Table 1. Demo
Total area 9l,429 sqmi

I Populalion

Econo

I Ma'or
Timber, coffge,andtin

MaiorReli

I
2.2 Poverty situation
I l,ateststatisticsshowthat the country'sGDP is US$ 1.4 B. Its GDP per capita,on the
otherhand,is US$ 330.5.With a Gini coefficiefltof44.4 (1998),it ranksl21s out of 162

I countries.Povertyincidencein the couotryis at 38.6%,with 26.9y"in the urbanareas

and4loz in the ru.al areas.

I Life expectancy at birth is 55 yearswhile infantmortalityrate(per 1000livebirths)is 75.

Male adult illiteracyis l8% while femaleadult illiteracy is 40o/o. Only 18% of the
populationhaveaccessto adequate levelof sanitation,andonly 32%o ha'reaaaess

I
to safe
drinkingwater.On the educational front, Lao childrenundergoan averageof lessthan
rhreeyea$ ofschoolingandqualityofeducationis modest.

I Table2: Socioeconomic
GDP
Indicators
u s $ 1 . 4B ( 1
us$ 330.5 (2000

I
GDP
GIM coefficient
Human index l2l"' outof 162(2000

I Pove.tyincidence
Urban
Rural
Life expectancy
Male
at birth
38.60/"
26.9
41.0
55 years(2000)

Female
-{duhIlliteracyrate
Male 18%
Female 40yo
lnfant mortali e r l 000live births

.ADB Country and StrategyPrcgramme2002-2004reports,the poverty incidencevaried

significantlyacrossregionsand provinces,as well as betweenurbaa and rural areas
Please seeTable3 for poveftyincidenceacrossregionsand provincesat the annex).
The incidenceof poor and ultrapoor(thosepeopleat 80 percentor less of the food
pove.tyline) is highestin the northerflprovincesand lowestin Vientianemunicipality.
ln the period1992-93the incidenceofpoverty in the northwas58.4. It declinedslightly
t
t
GountryReports:Pove.tyin Lao eeopte-ioem.raUc nepOtic

t
in 1997-98 The-southern regionhadthe seoondhighestproportionofpopulation
::25 rn poverty
-i\'1ng with 45.9percentin 1992_93 and 38.4in 1997_9g.The centralregion
iad rhethird highest,with 39.5in I9g2-93and34.9percentin 1997_98.

i {s theabovestatistics
indicate,the reductionin povenyacrossregionsandprovrnces
rot uniform. For instance,in the Vi€ntianeMunicipality,rhe-percentage
was
of the poor
lecreaseclat an annual rate of 13.9 pe.cent,whereasin the northem region,
the

il re.centagedeclinedat an annualrate of 2.1 percent.In the centralandsouthemr€gions,

fie percentage
ofthe poordiminishedat annu;lratesof2.5 and3.6percent,respecrrvely.

+
il
Icross provinces, HouaPhanhin the northwasthepoorestprovince,with 74.6percentof
is population.living
in povertyin 1998. Othe.pro;incesthat exceeied50 percentofthe
Doverty incidencewere Special Zone Saysomboon,phongsaly,Louang
Oudomxay,and Houa phanh. (See Table i for percentage'ot
Drovincesat the annex)
iooi ty
Namtha,
."g,on" uno

t Not only did the povenyincidencevary in the regionsand provinces,

but alsobetween
urbanand rurai a.eas. The urban-ruraldisproponionin termsofpoverty
large(W^orldBank, pRSp 2O0l). In tgtT_i9g8, the incidence'ofpoveny
incidence.was

t
was zO.S
areas,and 40.9 percentfor rural areas.Althouih .urar po\,erty,
f:::ii^l:1,:r,b,1
panlcuralyrn the northemarea,is extremelyhigh, rural poverty
hasbeenreducedmoie

n
drastically. comparedto urbanpovertyduring the 1997_i99gperiod.Ho**"r, ,n"orn"
0rspropontons havewrdened.TheGini Indexestimated percapitaconsumption \rasJ5 7
percenr in thisperiod,compared
to 28 6 percenr
in 1992_i9qJ.

t T'herewas.clearevidenceof wide gapsin accessand quality of

rlcnestand the pooresl(ADB. I999) An estimated three_lold
,ervrcesprovisionexistedbetweenthe rjchesrandpoorest
servicesberweenthe
qualitygap in social

I For education,net schoolenrolmentsfor the ricbest/poorest

28.percent/4
percent
were ?g percent/44percent
for secondary
I :::^:T
percentlll"?
or T!:ots..nnd
Inepoorest
lamtliesmadeit
schoots.
to thepost_secondary
schools
Onryone

liom rh€ poorestfamiliescompretedprimaryschootcompared

I ::.fl:":r: :: :!1,q1""
wirn one-natt tor tl]e nchest lamilies There was shortageof textbooks
qualifiedt€ach€rs in the rural areas.Studentperformance
ano Detter_
r"L, *"r" lo*a, in in" poor"rt

t
provrnces, alongsidehigherconsumptiolralesand iower enrolmentcharge.
As a result,
childrenfiom poorer families had little accessto skills training
,nJ'Jrnpi.ry_"n, o.
income-generation opportunities.

I Pahems ber\aeenlhericheslandlhepooresr lor qualiryhealthservices

eoucaronservrcesunry E percenlof the poorestusedmodem
arequitesrmilarlo
healthcare
comparedto 22 percentof the richest.About 90 percentof the poorest
services,

I nedicatiofl Lack of safewaterandsanitationservicesin a.a u."u,

prevalenceofwater-bomediseases amonsthe Door
used selt__
J*t ituted to high

I I

I
3. Determinantsand Causesof Poverty
The following are determinantsandcausesofpoverty (Lao PDR I-PRSP,2001)

3.1Theprimarydeterminant ofpovedy is the degreeofdce self-suficiencyThe primary

indicatorof wealthis livestock.

3.2The secondaryconditionsof povertyincludelack of arableland; livestockdisease;

Doorhealthihirins out oflabor; lackoftechnicalklowledge,skills andaccessibility;
insufficientclothingandpoor housing;prevalenceofshifting cultivation

3.3The most commonlycited causesof povertyinclude(in order of prioriry): a) land

Droblems. b) no cashinvestm€nt to payfor rice while improvements arebeingmade,
i,1liu"sto"k disea.",d) naturaldisaJtersandpests,e) environmental degradation, and
q lack of*ater fot potentialagricultuml productioq g) difficult accessto rural credit

3.4Other causosinclude: lack of village leadership,relocation,insufficient health

too manychildrcn,lackofcommercialskills,lack ofgovernmentassistance,
services,
andtheft'
low pricesfor agriculturalproducts,opiumaddiction,IIXO contamination,

3.5Seriousweaknesses or gapsin basiceducationandhealthservices,andby v€ry poor

rural intastructure including inigation, market accessroads, and electricity make
rufal poveny worse.

3.6The country'smountainous tenain, temotesettlements, and low populationdensity

serveasbarriersto accessto andcost-efiicientdelivery ofpublic services'

4. TowardsPovertyReduction
Responses
4.1 Government
4.1.1 Macroeconomic Policy Framework

TheLao PDR govemmentfocuseson stabilisinganddeveloping their economicstalethat

augments the interestsandbenefitsofthe Lao PDRpeople.To accomplish this objeative,
thJ govemmenthas accentuat€d the substanceand value of macroeconomic policy:
maintaininga low inflation rate andpromotingdomesticand foreign investments

Policiesto improveproductivityand gowth in poor regionsshouldbe directedtowards

the componentsof the underdevelopmenttrap Measures that improve educational
attainmentand humancapital formation shouldreceiveffst priority not only becauseof
their direct effect on labor efflciericy, but also becauseofthe role they play in improving
the effectivenessof inv€stments in infrastructue. The govemment emphasisesthat
padicipation and inlluence of beneficiariesare necessaryto imptove the provision and
oualitv ofeducation andinAa$nrcture seryices
 Cor,rntryneports:pove@Gopiopte,-ioelnocratiinepuOtic

4,1.2 Socioeconomicplans

Ihe gove.nmentconsiderssocioecono,mic
plansand their accompanying
budgetas the

$i+:iilJffi:i':TJj.:iil1'fJ'""".T*xffi::i:li:::"":
planning
for povertyalleviation il*,T:[n5
4.1-2.1 participation

five-year-deveropmenl ar: rheresultof lenethy,

:5"i::^ l?I!
rnreracrrve
p.ocesses l]11r. sincepolicy_making
ofdialosueandassessments,
but hishly
pDR
i"ntie Lao is
tundamentaly
basedon coisensus
tuitdi"s i; ;;;;;;;,,i""i",ii"*li"o
processin buildingenhancedinstitutionalcapacityat or"r",
if," prouin"iuiuni list.ict levels,
thegovemrnent car ed our an in_deDth
pant"li_*".y pt""ri,ig
(Bolikhamxay).lt is now extendi;g it in-u i,to, p.ouin""
to Houa phanh province
"^"r;i" and Lter to
other
provinces.

A potentinstrumentfo. rural develo

9*"1o11
farms "no^n," ..;"*;;
;;;":fi ft j:,T,:3:,"i"JJ[T",j:il"l,:"lll,il:
ff, l1
to identifythedynamics
of rhedevelopment
process
andto coherently provinces
andiistri"t, fauo.,
plan adequate,".ponses
io tf," p"opl","u.piruiiori"i"""*pr"rr"aty
lherrcloseinvolvement
in rheplanning
process.
4-1.2.2 Decentratisation

I *'t":' piannins
ffJ":ilTii'ilT,Hi:T';ffi l',Y*i9::,ln:
u""o,i,,g .t,"r"'j.',;ii;
conrexr
ascapacirv
"r:U:;JJ"#ft
ilii;;i.,:'#',;:,"#f fi il"il:l:X:
I villages
arethenewimplementing
sc.urrnrse
thedevetopr"n,
unil
o,un,,n",
arerequi'ed
jiljlJtJ to setup evaluatioi
systems
to

I At the villageievel,thesevillaeescollect
lamilyin orderto categorise rh-em
dataandobservethe iiving conditionsof
intowealthy.self_sufflcient
making.orlonnulaling.apran The resuhing andioor lamrles
each
before

r| ::r::il: li:":,Xffi':f;Tji:tlX"".13
asullagesseethem,mustbe understoo:l
pr";,r,h"" jr."id; ?u"ni""r'orl"
thisefficientiv,
i' ..a".'i"ia*rv "p*"ny.
"
*,,r n *r,i.n
prioritiesaccordingly'the causesofpoverty,

I Thegovemment is thusconsciouslv Dr(

"uono^-up'pru*inf ;;;;;;;;i"l$:trns?n
institutionalised
p'ocessto ensurethat

I fsllt{.tr,"tt1"d;;;;il;;",",7#T:lil,T*.fi
r"n . ,O"cial€mphasis
bl;;lX,j""
on pranrung,
:,:'",hiff
rmptementation,
l5l:'ilili;
monitoring
an<r
capacuy

I
I
I
+
+
CountryReports:Povertyin LaoPeople,sDemocratic tc

4.1.2.3 Mass
Organisations
I Ihe nationalplanningfor poverty alleviation,both h its participatoryplanning and
E- implementation dimensions, is supportedall overthe countryby an extensivenetworkof
"massorganisations". Theseorganisations carryout mostofthe panicipatoryactivitiesat
-
grassroots level, work closely with the populatiorL and structure and mobilise
development eforts at the local level.(Note: it is not mentionedin the reDortwhethet
theseorganisationsweregovemmenr initiatedor independenrofgovemmenlJ.

T The Lao PDR's massorganisations,asthe coulrtry's main participationfiamework, have a

strategicresponsibilityin the achievementof the identifiedsocial goals.Institutional
strengthening,the improvement ofthe individualcapacities within the organisations,
the achievementof a wider social outreachwith the view to lessenpov€rty through
and

rl participatorycommunitydevelopment
massorganisations, especially
mastertheir own socioeconomic
arethe mainrequirements
in therural areasandto empowering
developm€nt
neededto st.engthen

in view of pgrmanent
thegrassroots
the
levelto
povertyreduction.

I 4.1.2.3.1
LaoWomen's
UnionoWU)

I The LWU concentrates on heaith and educationactivitiesat the grassrootslevel to

promot€incomegeneratingactivitiesand all economicactivitiesin which women are
involved,especiallyin the productivesectorssuchas livestock,fishponds,and cottage
industries.
-
The LWU ActionPlan(1998-2003) hasfour mainthemes,namely: L policyguidelines

F
t
lq_lvomen andgenderequity;2. capacitybuilding andhumanresourcedevelopment;
childrenand womenrights;and 4. povertyalleviation.A humanresourcedevilopment
(HRD) prograrnmeformulatedfor the L\Vu should yield the following poverty
3.

alleviationimpact:50oZofwomen in rural areashavingcompletedbasicliteraryilassei;

morethan 5070of womenin rural aJeashavingbasicprimaryhealthcare training; and
2000 wom€n having incomegeneratingactivitiesthough vocationalskills tr;ining

I counes,

4.1.2.32 TheLao YouthOrganization

(LYO)

I The LYO aimedto developyouth leadershipat all levels.The immediatetargerwas ro

have50 percentofthe youthcommittees at provincial,district,andvillagelevelsin place

t andoperationalby 2001.The mainpurposewasto enhancqtkough skillsdevelopment,

informatiooandparticipatoryinvolvementin all levels,the role oithe Lao youth in the
shapirgofthe country'sdevelopmentprocessandfuture

I Froma povertyimprov€ment
capabilities,the govemment's
perspective,
in tems ofinstitutionalcapacityandimproved

I
programmefor the youth included2,500 youth leaders
trainedat.all levels,morethan4,000youth possessingskills to makeall kindsofliving.
This would contributeto decreasingyouth unemploymentand qeating wealth for the

I
DeoDie.

I
 Co6try Reports:Po\€rty ln LaoPeople'i DemocGticRepubliq

{ I 2 3.3 The Lao F.ont for NationalReconstruction(LNFR)

I Thel-ao Frontenjoysin all partsofthe countrythe highestrespectfor its genuineimpact

on localdevelopment,for the prestigious
.ole it playsin increasingsolidaritywithin Lao

I
PDRS multi-ethnicand pluralisticreligious societyand for its active involvementin
definingandimplementing codesofethical conductin majorprofessional sectors.

I
TheLao Frontaimsto improveits management andtechnicalcapacities
to respondto the
aspimtionsofthe ethnicminorities.At the sametime,througl its trainingand capacity
building activities, the Lao Front contributesdecisively,especiallythrough rural

I development programmes, to increasingthe knowledgeandthe ability to dealwith rhe

ethnicminorities,fo. foreignpartnersandnationalactorsalike.

I ofTradeUnions(LFTU)
4.L2.3.4TheLao Federation

The aim of LFTU is to reg.oupthe trade unionsfrom the public as well as from the

I pnvatesector.Abouton€quarterofits members(76,000)arefrom thepdvatesector. In

the Lao PDR'S planningcontext for poverty reduction,the LFTU is involved in
promotinga nationallaborforcecapableof negotiatingwageand socialbenefitsissues,

I aadof responding to the growingneedsin mattersofmanagementandknowledgeofall

rulesregulatinglaborrelations.Also"the LFTU aspiresto improveeducational
laborersandemployees
levelsof
in all provincesin orderto increaseemploymentchances.

I
:
4. 1.3 Support Strategies

Support strategiesare the strategicprogrammesand projectsthat the govemment

considers from a povertyalleviationperspective
essential andwhicharethe integralpans
of its approachtowardsuplifting the poverty situationin the country.The following

I prognmmesarethe governm€nt's

4 1.3.I TheIIXO Decontamination

tacticalagenda:

Progamme

T Underthis programme, thegovernment aimsto decontaminate

25 yearsafter the war, the severeUXO contamination
-A.Jler
regionsaffectedby tXO.
still affects15 ofthe 18

I provincesin Lao PDR.Thesel5 provinces,involvedup to nou are50 percentofthe Lao

lenitory. The UXO contamination hashadnegativeimpactson humandevelopment and
thecountryaswell, it hasbeencausinggreathumansufreringthroughkilling at a steady

I rate.

4.L3.2 TheDrue ControlProgramme

I Becauseof the rampantpovertyin the Northemregions,opiumproductionhasbecome

both a symptomald causeof povertyin the country_In this area,it is impossibleto

I eradicatepovertywithouteffectivelyaddressing
oprumrssues.
andfocusingon the problemsregardirg

I
I
 :Arr?yReeo.ts:@

of opiumasa basicrequ,rement
*;;:X.:,:*".::".I:l1l_l? "lo.lr," o,".atlction
intr,"l'o,iri*iiil
;#ffi ,"ri, ff li:H:itrij: to
315:::r,";;'.1:,lou"nv ";."r" u*lii,"ij;ffi;;;;;;i,;,ii
rryobkined
:.r,1*T:-froml":
the :l::,1y:T"r:*
elimination :"".""o*,i"
oioplrm cuttivatl
ion and f.om the reductionof drug
abus€in the courltry.

In 1996,the govemm€ntrevisedits drug

cn DrugTrafiickingor possession)_ ^controllaw (Arricle ll5 of the CriminalCode
and'for
rhen^, ii.", tii, i"" .riiiiir,pron,un"a
of opium Thescalesfor penalties.h"r. /a,spositions
*^:.lt:91"':l u""" 1""r""*j'",i0
for precursorcontrol. The
:l-"j- 9_:"",introduced_
effiffi"altemaliv" development, d;;;";;;;; lr"" rnu,n
community_based fi;;;;;;;#oi], ana raw

4.1.4 Other Supportprogrammes

N?tignalPtpg!4!iala4=dDeveloonrent
sorvins*
issues
rink"d ';.,ion'r*'iii''i1##.H:
;-"pfi;;#?"";,fl
HMAIDS/STDControlprogramme er
to preventrhetu.h". ;;;;i;il;';f"ilP-nasrses theresponse
to bepurin place

""",rp"dit#*i#iT#ft
Uitr".:iffi
inrormation.
.au"u,io"
:ifiltiff rii::Tll
provision
orbasic
p,oe,".i;, ;;l;:,ifli.f;}::il,the
* major issues
eenaer such
asgender
ffi?ffiffiffi,11d;:sses equalitv,
I t +: -
#:*E^aq=jtla!€gy .emefisl::s.lhe tink betweensustainable
dev€lopments
i:i;::T'::: thoush or
"fi H::lif"'*::i::"ient
Rregtesot the "'orosi"ui''lnus"'"n'
govemment
are underpreparation
asofnow.

5. Critique/Assessment
of GovernmentStrategies
Pove.tyis linkedto limitedaccess
to n

ii*#i:: fitlfi ;!;:ll':l

ffiffiff::i",H
;fr L"#:ff1':[: ;
"TTil
ff 1"
T,"::;.:1,'
i'J*lril;
prioriry,
siven u"'
i{"",'til?T
!:r{f ff
frl"i:::l;:u*:t'
*
'i"r;
"!"i*,i"",i;i ::ti:ilT"[:.iT ;:::i"ff"ff"#J*i
r humandevelopmenr hasbeenslow Despitesubstantial
,tjigl:::
rmprovement, supportro ruman
its key indicators
aream(
;tx#::iffi
J:"f :H"f:1il::fj"i,'rix,,,f
":;"i:::lil1rTj{+l:,?J.T'f
,",Tifi T
."*i"esr'"sJrenei,,;;ffi
;:dJffiff :':l*Xl,;::1Ht*;,*f
 Countryneports:povenyin LaopeopleliOemocratic
Repubtic

is insufficie to.payterchersand healrhworkers Targeringrhe poorest

:!:^:-l-"l1lli1:
areas nasnot-beensuccessfully done.thus.therehasbeenno increasedenhancemenl of
rneseareas.Unsustalnabie expansionof_physicalassetsat the expenseof adequate
-be
operations andmaintenance budgetsshould avoided.

i 1:*:.::r_*_]^11i"
in managingand enforcing environmentalsafeguards.Rapid
popuratrongrowth and resource_based progressincreasethe need for sustatnable

t
management of naturalresources

Privateinvestmentsand economicintegrationcan help reducepoverty.

The greatest

T
ej:nomicopponuniries
hasoccurred
in theMekoniriver comdor,
nfl^"::]"^:Tg:i,lq
wnere tne pnvatesectorhasdeveloped
dueto accessto domesticurbanand intemationai
marKersrjalrrersto pnvareinvestment
and economicinteg.ration
must be dismantledto

T
r€ducepovefiyandachievedevelopment goals.

Thegovernment'sdevelopmentgoal is to eradicate
absolutepovertyby 2010. Threekey

t components
of its po-venyreductionstrategyare rural development,human
:::,:Pf.::1,,-T1.ry9]!
panicipation.
Mostpoverty
agflculurar productrviry poverty reduction
is ruraruasdJ,
resource
ieflectio!in panro*
through the enhancemeit of rural
productivity complementssustainableeconomic gro*th
I :fl?:]:i:illlSjlo*iry
anolavor theemergence
is a majorwayto increase
anddevelopment
in Lao pDR. Improved
rialincome., I ro"ur,urt"t,
"r"ut"
ofnonfarmactivitiesin thepoorprovinces.

I An. improvementof labor productivityin agriculturecan

also free labor tbr nonfarm
activities.The expansionof nonfarmactiviti;-in rural areas
if,o"fa ,"rg", p.irurify ,f,"

T smalland micro enterprises

development
wherethe scopetbr economiesof scareis rimited.such
is a conditionfor the transitiontom subsistence
sectorandfor a morebalanceddevelopment.
tol ,oj"rn
"g.i"uttu."
a

T Importantpolicy implicationsfrom the analysisinclude:

role in reducins
poverryin LaopDR;2. n*;;;;
L EconomicgroMh hasplayed
;,?;ilas a morc
T l,*llTl1
aovantageouslmpacton poornearthepovertylinethanlhosefar belJw
ard 3. Theproportionalbenefitsofeconomi.g.o"tt ."""iu;J
thoseofthepoor. on theaverage,
ar9as.
economiciise benefit"a
thepovertyline;
by ,i" ii"rr"i"tg."u*. ,nun
tr," irriun,no."ir,'""tl," ..ur

I 6. Summaryand Conclusion
6,1 Summary
I TheLao PDR considered
a landlocked
natioq is borderedby Vietnam
inihe north,Burmain thenorthwest,
Thailand
with atotallandand\laterareaof234,800
in th€ east,China
r" ir," *"rt, LJ C"iiolu'in',n" ,ou*,.
km,, ir,
"upnuriJi".!!r,-iiv*i, v,.n iun".
 I CountryReports:Po\rertyin Lao le's DemocEticReDublic

The countryhas a total populationof 5.22 million, with an annual$owth of about 2

million. Majo.ity of its peoplelive in rural hamletswherethey engagein subsistence
agriculture. The rest live in the mountainousregion and along the Mekong fuver and its
branches.Major languagesspoken by the populace are Lao and French. The major
religionin the countryis Theravada Buddhism.

The Lao PDR has a rich and varied natural resourcebase and is also the hub of the

F economic cofiidor linking the subregional economies. However, the country's

mountainouste.rain, remote settlements,and low population density are barriers to
ac€€ss
to andcost-efficient
deliveryofpublic services.

F An estimated70 percent of population is illiterate, and life expectancyat birth is 55

years.Only 18%ofthe populationhaveaccessto adequate level of sanitation,and only

F
3202have accessto safedrinking water. On the educalionalfront, Lao children undergo
anaverageoflessthantbreeyearsofschoolingandqualityofeducationis modest.

ln the last five years, the Lao PDR has achievedaverageeconomicgrowth of about 6

F percentper annumandreducedthe incidenceofpoverty Aom 45 to 39olo.The incidence

of povertyvariessignificantlyacrossregionsas well as bet\y€enurbanand rural areas.

F
Povertyincid€nceis highestin the northem region and lowest in Vientiane Municipality.
WhileeconomicgroMh hashelpedreducepoverty,thedch havebenefitedmorethanthe
poor.

t Sustainingpoverty reduction through equitable economic groMh would bc a malor

challenge. The govemment's ambitiousdevelopment goal is to reducepovertyby half by
2005.Aiso, it aimsto eradicatepovertyin orderfor the La6 pDR to graduateftom the
rtatusof leastdevelopedcountry by 2020. It ta.rgetsbroad-basedeconomicgrowth of 6-7
percentper annumover the n€xt five years. The strategicapproachis to reducepoverty
throrgh human and rural development,and people'spanicipation,focusing on: l.
agricultureandforestry;2.education;3. health;and4 roadinfrastructurc. To achieveits
ambitiousobjectiveswith limited financialand humanresources, the govemmenr needs
to priodtise and phasein its poverty reductionprogramme.

Participation, decenkalisation, and mass organisatiossplay an important role in the

govemment's systemofplanningfor povertyalleviation.Thegovemmenthascarriedout
pafticipatory planningexercises in differentprovincesin orderto empowerprovincesand
districtsto identirythe dynamicsof developmentprocessand to ensurepeople,sclose

F involvementin povertyalleviationplans.The decentralisation policy increasingly

guides
rhe nationalplanningcontextas capacitybuilds up. The govemmentis giving its full
attention to the prcvinces, as they are now becoming strategic units under the

T decentralisation policies

The national planning for pove.ty alleviatiorL both in its participatory planning and

I implemgntationdimensions,is supportedall over the countryby an extensivenetwork of

"massorganisations",carrying out most ofthe participatoryactivities at grassrootslevel,
working closely with the populatio4 and sfucturing ard mobilising developm€ntefforts

T
I
T Co{rntryReports:Povertyin Lao People,sDemocreticRepublic

It at the local level. Severalmassorganisations and supportstrategies,

study,serveas essentialelemeltstg the government,s
identifiedin this
povertyreductiol strategy.All of
these are very crucial in the development of the country and in the successof the
govemment's goalof €radicating
poverty.

I It is_.noted.
that in order to stengthenand expandsocialprotectioq some oapaclty_
building initiativeswill be required.This would includeinstitutionalstrengtheningby
encouraging_better coordination

T
amonggovernmentagencies, civil societyorlanisationi
NGOSand donoragencies, as well as public participationin all governmenteffons to
reducepoverty.

t 6.2 Conclusion

I
Z Lao PDR hasa rich and varied naturalresourcebase.It hasbecomethe hub of
the economiccorridor,linking the subregionaleconomies.However.almosr
halfofits prople.livebelowthe povenyline because ofa numberoffacton,

I
foremostof which is unevendistributionof wealthbetweenrural and urban
areas.

I Z Givenwidespread povertyand low per capitaincome,the economicgrowth

should.begiven priority, but assistance
shouldhelpachievereasonable
from the internationalcofiurury
deveropmenr.

Z The_main solutionsto poleny, in order of priority. include: resolverice

cultivation-related-issues,
in panicularincreasetheamountofproductiol land;
increaselivestock.holdings;
solvelivestockdisease
problems; providefunding
mechanismsfor increasinglivestock holdingsas well as microfinancern
general,more reliable cash croppingwith appropriateenension sewices,
lncruotngroadsandaccessto markets,betterschools(buildingandteachers),
improvedhealth,cleanwatersupply,andelectricity.

7 The solutions to poverfy affecting women specifically include skills

_
for
9eve.lopnent income generatingactiviti€sand markeiingof producrs,
family planningandbinh spacing,andrice mills to reducewomen,slabor in
poundingrice.

2 Participatior\ decentralisatiorland the Lao pDR's massorganisationsplay

an
importantrolein the government,s systemofplanningfor povertyalleviation.

Z Private investmentsand economic integmtioncan help reduce povelly.

Baniersto privateinvestment
andeaonomicintegration
muit be dismantled
ro
reducepovertyandachievedevelopment goals.

2 Policy and administmtivereform must be accelerated,and institutionsand

humanresourcesmustbe developed to realisethecountry'spotential.
 CosntryReports:Povertyin Lao People'sDemocruticRepublic

N Sources

T AsianDevelopment
Bank;"AsianDevelopmentOutlook2001";2001

Asian DevelopmentBank; "Country Assistanc€Plao (2000-2002):Lao People's

I Democratic
Republic;December1999

Asian DevelopmentBank; "Country AssistancePlan (2001 - 2003): Lao People's

I Democratic
Republic;December2000

Asian DevelopmentBank; "Country Economic Reviewt Lao People's Democratic

I Republic",August2001

Asian DevelopmentBank; "Country Strategl, and Program (2002-2004): Lao PDR';

I August2001

I Freeman,Nick J.; "The Challenges

Posedby Globalizationfor EconomiaLiberalization
in Two Asian TransitionalCountries:Laos and Vietnam";DiscussionPaperNo
2001/40:World Institutefor DevelopmentEconomicsResearch(WIDER), United
NationsUniversity,July2001
l lntemational Mon€tary Fund and the lntemational Developm€nt Association;

I "Assessment
2001
ofthe InterimPovertyReductionStrategyPapenLao pDR'; April 6,

I IntemationalMonetaryFund; "Lao People'sDemocraticRepublic:RecentEconomic

Developments",
January2000

I Kakwad, N. et. al. "Povertyin Lao PDR"; Asia and PacificForumon povertv:Asian
Development Bank,February2001

I Bounthavy;"The BasicMMAP PovertyProfileoflao pDR'; Lao

Sisouphanthong,
MMAP Project,IDRC;August2000

I Sisouphanthong,Bountha\,y;"WBI-PIDS Workshopon Strengthening

-
poveny Data
CollectionandAnalysis Vientiane,Lao PDR'; PhilippineInstitutefor Development
StudiesandTheWorldBan&Institute;April-May2001

I AnnualReport1999- Lao pDR ,; January2000

UnitedNations;"ResidentCoordinator

I World Bank; "Interim Pove.tyReductionStrategypaper- Lao pDR,, March 2001

WorldBark; "Lao PDR SocialDevelopmertAssessment

I
andStrategy,';
August15, 1995

WorldBank; "Lao PDR:PublicExpenditureReview- ImprovingEfficiencyandEquity

in SpeodingPriorities",February28, 1997

I
I
CountryReports:Povertyin LaoPeop{e'sDemocraticRepublic 13

Annex:Tables
Table3. lncidencein Lao PDR

Table4. e ofPoor ionsandProvinces

RegiodYProvincer 1992-1993 1991-$9a Annual rale ln d€crcNse
ol

VientianeMunicipaliw 24.4 t2.2 -l-r.9

Northern R€gion 58.4 52,5 -2.1
OudorILxay 51.I 13.2 7.2
Luangnamtba 60.3 -1.0
Phongsaly 68.7 64.2 -1.3
Huaphanl 78.4 14.6 -l.0
Luangphrabang 62.7 49.4 -:t.8
Bokeo 63.5 37.4 -10.6
Xavabourv 30.1 2t.2 :7.0
CenhalRegioD 39.5 34.9 :2,5
BoriloaftL\ay 10.6 25.8 17.8
Vienlianeprovince 28.1 -2.9
Savannaliet 45.1 31.1
Khamnuan€ 43.7 4t.6 -1.0
Xiengkhuang 5',t.3 34.9 -9.9
Xavsomboom-SR
Soulhem Region 45.9 38.4 -3,6
Saravane 39.6 l.)
Champasack 43.6 35.6 -4.1
S€kong 65.9 45.'1
AtlaDeu 72.2 45.3 -9.3
LAOS 45.0 38.6 -3.1
Philippines
I
I

t-
T
I PovrnrySrulrroNrNrHEPHtlrpprxes,
T
I
1. lntroduction

T This paperis part of a studyof povertyreductioninitiativesby governmentand NGOs in

eightASEAN countdes,namely:Philippines,Indonesia,Cambodia,Vietnam,Burma, Lao,
Ihailand, and East Timor. The study aims to presenta comprehensive view of poverty
I situationand the responsesto povenyby differentsectorsin the eight countries_Also, it
aims to come up with recommendations to developmentNGOS regarding areas of
interventions
or collaborationwith their respectivegoverffnentstowardspovertyreduction.
T Thestudyrnainlyusedsecofldary data(writtendocuments, books,andintemet).

This paperfiocuseson the Philippines.It is dividedinto six parts. The first part presentsthe
T rntroduction.The secondpart describes the demographic
situationfrom the 1980's. The fourth discusses
profile andthe third, the poverty
the main causesof poverty. The fifth
teaturcsthe responses
to povertyby th€ govemment, international andlocalNGOs.The sixth
T presentsan assessment by someinstitutionsand analystson the multisectoralresponses,
panicularlyth€ govemment's,to poverty. The last part prcsentsthe summary and

t concluston.

2. Profile of the Philippines

T ,7 Geographyand Demography
T ThePhilippinesis an archipelago,composed ofmore than 7,100islands.lts total land and
waterareais 300,000km' with a coastlineof 36, 289 km. The capitalis Manila and the
T threelargestislandsincludeLuzon,Visayas,andMindanao. It hasa populationof around
E0million,with an annualgroMh rateof2 2 o/o.More rhana third of thepopulationis young,
below l5 yearsof age. Workingpopulationis only 60% of rhe total. Aimost 54Zoofthe
T peoplelive in the urbanareas. With regardto ethnicgroups,the breakdownis as follows:
ChristianMalay 91.5%,Muslim Malay4%, Chinese1.5%, orhers,3olo.83oZa.e Catholics.
9yoProtestant, 5% Muslirn,Buddhistandothers,3oZ. The offrciailanguageis Filipino but
T mostpeoplespeakandunderstatrd English.

lable 1. Demo
T Total area
Population
300,000lxn'
76.5milion (2001)
CapiLd Manila

T Economy
MainElpon
Major Larguages
AgnculturaLfudNtrial
ElecEonics,
Garmenls
Filipino, Tagalog,Visavan

T MajorRelLgion Romrn Caftolic

T I This casestxdy dlaws hcavily liom Aldabaand Tuano(2001)

r
T Couitry Report5:Povelty Situationin the Philippines

It 2.2 Poverty Situation

Povefy in thePhilippineshasalwaysbeena rural phenomenon, althoughthe contributionof
urbanpoverty to total poverty is increasing.More than two-thirds ofpoor householdsin the

I Philippineslive in ruralareas.

The Family IncomeandExpenditureSurvey(FIES)repo.ts,basedon official povertylines,

I povertyincidencein the countryhasdroppedIlom 49.3 perceftin 1985to 36.8 percentin

1997',a declineofa totalof 12.5percentage
increased
pointsin 12years.However,povertyilcidence
by 3.2 percantfrom 36.8 in 1997to 40.0in 2000(Pleaseseetable4 at the annex

I for details).

High interregionaldifferencesin poverty incidencesexist. Among the sixteenrcgional areas

I of the Philippines,the NationalCapitalRegion(or NCR, the administrativeregion of the

Philippines,comprisingMetropolitanManila) usuallyhasthe lowest poverty incidencein
variousyears.The gap betweenthe regionwith the lowestincidence(NCR) and one ofthe

I highest(Biaol) was 37.5 percentin 1985,41.2 p€rcentin 1991and 47.9 percentin 1997.
Recentprovinciallevel data on poveny also prove the exist€nceof widening disparities;
UNDP (1997) showsthat the gap betwe€nNCR (Metrc-Madla)and the poorestprovince

I Eomblon) increased tom 48.7percentlo72.8percent(Pl€ase seetable6 at the ar|nex).

While interegional disparitiesof poverty incidenceare high, greater intra-regional

t differencesin incomeinequalityexist.The differences

-
arevery slightfrom the gini figuiesof
the regionsin 1997andfrom the year2000 high inequalitywithin regionspersist,with the

I
inequalityof someprovinaesevenworseningsuchasthe gini in Bicol which, from 0.4362,
became0.4478(Please seetable7 at the annex).

The level of incomeinequalityhaspersistedat high levelsduringthe past30 yeaxs.Even

with reductionsin the povenyincidencesduringthe 1985-2000period,the Gini indicesin
the Philippineshavehardlychanged.From 0.447in 1985,the l€velof inequalityhashardly
|' changedat 0.451in 2000.

II PhilippineHDi hasimprovedover the pastfony years;from 0.419in 1960,the country's

indexhasincreased to 0.749in 2000(Lt'lDp, 2001). Howev€r,largedisparitiesexistin ihe
I-IDI in dillercnt areasofthe country. Among regionsin 1994,the NCR hadthe highestHDI
(0.819),while Easten Visayashad the lowest (0.493).Among provinces,Cavite (0.840),
Rizal (0.813) and Laguna(0.774)had the highestindicators,while the lowesrprovinces,

I including Sulu (0.3'12)Md Tawi-tawi (0.384),had lessthan half thesenumbers(Collas-

MonsodandMonsod,1998).

t Poverty self-rating surveys indicate that a la.ge majority of the population consider
themselvespoo..Mangahas (1993)notesthatthetrendin changesin individualsconsidering

I ' The NSCB publishes poverty

two incidencesbasedon ecoromic tmit: a ,orserold poverty incide&e and a
population (or i\diidnal) poveny incidence.Obviously,the figur€sfor thesetwo incidencesare difercnt with
lh€ latter i[cidence ,s $c higherfigure as poor householdsgen€rallyhavea highernumberof members

I mmparedto non-poorhousehoLls.

I
I CountryReports:PovertySituationin the PhitipPines

I themselvespoor mayreflectthe changesin the levelofpoverty ofFilipinos. From a high of

74percentin 1985,surveyrespondentswho ratedthemselves
'poor' droppedto 66 percentin
'71 percentin 1991, and 68-70 percentifl 1994. Recent suweys by

I 1988,then to 62-
Vangahas(1997) show a drop to 58 percentin 1997.On the other hand, self-reported
povertytrendsshowthatpovertyhadincreased to 66 percentby September 2000.

T Life expectancy
high at 95.1
is 69 years.On the otherhand,adult literacyratesand€nrollmentratiosar€
percent and 82 peraent,respectively.DesPitethe high literacyrate, however,

I over one-quarter of Filipinos 10 yearsand aboveare functionallyilliterate.While school

pa.ticipationratesarehigh,cohortsurvivalrates'arelow. Ofthosewho enroll for grade1,
33 percentare expectedto drop out before reachinggrade6, and 22 percentdrop out before

I grade4 (Monsod,1997;Wodd Ban\ 2001). Arnongthese,three-fourthscome fiom poor

households.Manasanet al. (1996) notesthat th€ low survivaland completionratesprcve
thatthe qualityof educationis not high. In the 1999IntemationalMathematicsand Science

I Iest, thePhilippinesraflked37'nout of38 countries.

Govemment is the mainprovider(90 percent)of primaryeducation.In 1995-97government

spendingfor publiceducationhad increasedto 15.7of total expenditurefrom 11.2percent
fiom 1985-87(LNDP, 2001).However,the qualityofeducationin the publicschoolsystem
is still inferiorandlagsbehindprivateinstitutions.

Malnutritionremainsan importanthealthproblemin the countryas it contributesto child

mortality and morbidity. Estimatesshow that reducingthe prevalenceof underweight
Filipinochildrenby halfby the year2000couldresultin 20 percentfewerinfantdeaths.

Indicators
Table2. Socioeconomic
RealGDP US$19210.7
million
GDP
GNP us$1.020.0
GINI coefliciont
Huma[ dovol
Povertyincidence (% of Population) 40.o(2000)
Rural 541%
Urbar 25.0%
Annuar lation
Life expectancyat birth 69years(2001)
Male 66.63
Female 7l
Functional

Enrollmentratio

tCohortsurvivalrale refersto the ratio of the total numberof pupilswho enrol in the first
I'ear to the total numberof studentswho enrol in their last or graduatingyear.
 Cg4.y l:p9rts.I9y!4y Situationin the philippines

It 3. Determinantsand Causesof poverty

Thefollowing factorsareoftenspecifiedfor the unsatisfactory
performance
in the reduction
ol Dovealv:

r 3.1 Slowcrowth and Lackof EmploymentOpportunities

T Whilethe Philippinesgrew by an averageof five pe.centfrom the 1950sto the 1970s,the

debtcrisisandthe subsequent economicdepression causeda declinein GDp in the eariy to

r|
mid 1980s.While there was some recoveryin the mid to late 1980s,this growth was
insuflicientto increaseper capitaincomeshigherthanthe eady 19g0levels.Furtherboom
andbustcyclesofthe economywereexperienced thereafter.Unsustainedgrowthhasbeena
majorlactorfor.theper€nniallyhighpovertyincidenceofthe country.ThJfailure ofgrowth

I rsclueto.the"tailue. in the long-term,to resttucture

competitiveandallow broadparticipation
theeconomyto makeit externall!more
by the people(deDios, 1993).,,

I 3.2 lnequolity in lncomesdnd Assets

The highly unequaldistributionof incomeshas to the sluggishness
I incidencefor the past30 to 40 years. The high -contributed

in 1990.Limited land reform programmes

of poverty
incomeinequalityreflits the higfrievel of
assetinequality.The Gini incidenceollandholdingshasircriasedfrom 0.Sl in 1960
ro 0.57

t from the l93os to the presenthavefailed due to

rnerargenumberot loopholgsandthe levelofpolitical oppositionto theseprogrammes

T 3.3 HighPopulationGrowth
De Dios notes that high population€rowth affectspoor householdsthrough
a smaller

F
disnibutionofincomesamongthem.The countryhasrecordedoneofthe highestpopulation
groMh latesin theregion,at 2.6percentfrom I960 ro 1994;rhisrareis highei
thanIndonesia
and.Singapore (at 2.I-percent)andThailand(at 2.3 percent).De Guzmai (1994)notes
rhat
crudebinh datesaredecliningsince1975,bui this dicline hasbeensioq :s.: in tS73 to
32.8in 1983.De Guzmanalsonotesthat contraceptive prevalence "i (30_40%),and
is quitelow
an rncreaslngproportionof femalesare gettingmarried__factorswhich may mitigaie
the
Philippinepopulationis projeaedto onty havea 1.99pe.aentgroMh tiom
!::ti* -Iry
2000to 2005.

3.1 BiasedPoliciesand llnderinvestmentin Agriculture

Totalfactorproductivity,an eoonomicmeasurefor productivity,haddeclinedin
the 70,sand
t, y". to biasedpolicies,i.e grantingefiectiveprotectionro caprtal-
19 Il,. mport-substttuhng
rnrensrve, Tuilfr..9r.:
sectors)resulting in the increaseof ineflicient protected
indust.ies.Crop p.oductionhasalso sloweddowr! prirnarilydueto underinvestment
in the
agriculturalsector By the late 1980sand.earlyli90s, the total facto. productl\4ty
(TFp)
in .I.Fp
th: Tongmy improvedto positivenumbers.Austda (2000) reportsthat became
positivein the 1986to 1996periodto 0.93percent,compared to negative2.89percentin the
 Coulty Rcpo.ts: Poverty Situation in the Philippiner

1980to 1986pe.iod. However,the Philippineslaggedcomparedto its SoutheastAsian

leighbo$ whose productivity gro\r1h was greate. than 1.2 to 2.2 p€rcentagepoints
thisperiod.
throughout

3.5 lnodequateand UnequalProvisionof SocialServices

Social indicators in the country are companble to those in SoutheastAsia_ However, the
qualityof socialsewiceshasbeenquilepoor, andthe rate ofimprovementofthese se.vices
hasbeenslow.

In termsof health inadequacy in government healthfacilitieshasbeenan issue.Twenty(20)

percentof poor households havebeenforcedto go to costlyprivateh€althfacilities.Along
*ith inadequacy comestheunequalspreadofgovemmenthealthfacilities.For instance,only
25 percentofall barangayshad healthstationsin 1990.Each healthcenterserved14,200
personsin the NationalCapitalRegion(NCR) but between21,000to 44,000peoplein other
regions.Most governm€nthospitalsare locatedin urbanareas,and half of the physicians
andtwo-thirds ofthe dentistsin the country are in M€tro Manila.

In termsof water supply,only 64 pelcentof the populationare gettingtheir water from

formal sourceswhile 34 percentrely on self-provisioning(e.g., welts, hand pumps,and
rainwatercollectors).Metro Manila hasthe greatestaccessfrom formalsourcel,especiallv
from privateproviders,while Mindanaohasthe lowest.The qualityofthe water in t-heruril
areasis worsethan that of urbanareassincewater treatmentcostsare higherin the rural
areas.WHO reportsthat waterfrom anywater supplysystemin the philippinesis unsuitable
for drinking.

3.6 lnodequateTargeting
WorldBank (1996)notesthe limitedsuccess of safetynet programmesto improvethe living
standards ofthe poor. Subbarao,
AhmedandTeklu (1995)statethattherearJ conceptual and
designdiffrcultiesamongsocialsafetynet programmes, includingthe difficulty oftargeting
rheir intendedbeneficiaries,
which needto be addressed. Thus,insteadof benefitintfro;
fiesepublicprogrammes, the poordevelopwaysofcopingwith theirsituation.

3.7 Lackol Participationof the poor in Decision-laking

Balisacan(1994a)roles that the pooq especiallythe large but geographicallydispersed
sectors(e.g.,smallfarmers,landlessrural workersandunskilledulbanworkers).havelittle
influencein economicpolicy making.The interactionof industrialinterestsand academic
techrocratsintrcducedpoliciesthat placedcontrolson trade and finance,benefitingthe
gowth of vestedinterestsin the economyand leadingto the underutilisation
of the poor's
majorresource- labor

At present,the marginalisedsocial sectorsare represortedin Congessthrough the partylist

svstem-- 2-3 seatseach.Whetherthis will improvethecontentofpolicy in the oomlngyears
remainsto be seen.
 h'tt y Reports:PovertySituationin the Philipplnes

4, Responses
TowardsPovertyReduction

I 4.1 Overviewof GovernmentPolicieson Poverty Reduction

I 4.1.1 AssetReforn5

4.L 1.1Comprehensive AgrarianReformProgram(CARP)

I TheCARP,signedinto RA 6657or Comprehensive AgrarianReformLaw in 1988,aimedto

mhanceagriculturaland rural developmentby promotingsocial stability and increasing
p.oductivity.Its strategies
includethejust andspeedyredistribution of agdculturalland,and

I the provision ofnecessarysupportservices.Supportservicesincludeprovisionofcredit and

marketingassistance, agriculturalextgnsior\andrural infrastructures
roadsandpostharvestfacilities).
(e.g.,irrigation,feeder

I By the end of 1996,the CARP had dist.ibuted53o/oor 4.3 million hectaresof its orisinal
rarget(Gono,1997;FRIEjJD, 1997).An additionat3 percentof the targetwasdistributidin

I i997 (Adriano, 1999).. This figure does not inoludethe 1.4 million heqaresunqer a
leaseholdcontract,in which tenantspay a fixed leaserentalto the landowner,and 9,000
hectaresdistributedasa resultoftenantstockoptions.TheCARPshouldhavebeenendedby

! June 1998. The wholeprogramwas not completedas expecteddue to numerousdelaysi;

implementation.

I L l . L2 Comprehensive
andIntegatedShelterFinancingAct (CISFA)
In 1995,the governmentstartedimplementingthe CISFA, aimedat improvingsecurityof
renurein housingas increasingland priceswere consumingmuch of the poor's income.

I Underthis act,the govemmentallocatedmorethanp8 billion annuallyfor housingoverthe

1995-1999 periodprimarilyfor urbanpoor households.

I 1. 1.2 Targeted lnteryentions

The Phi|ppine govemmenthas providedtargetedprcgammesin order to suppor poor

I individuals and communitiesduring '.low-income periods", e.g., intervals between

€riculture productharvests.Theseincludeemploymentgeneration
programmes, livelihood,

I
andfood subsidyschemes.

Thegovernment hashadmorethantweotyyearsof experience in publicworksschemes. Its

last major scheme,the CommunityEmploymentDevelopmentprog.amme(1986_88)was
designedto spurimprovements in rural incomesthroughthe useofunderemployed labor,and
focusedon roadandirrigationconstruction.While it wasp.ograrnmed to utilise 12.8million
persondays,it wasableto employonly 8 million persondaysasdisbursements fell by halfof
theP2.2billion committedfund.(CollegeofEconomicsandManagement 1995,World Bank
1996).

'
The Departuentof Agrariat Reform reportedtut an additional215.9?9hcctareswere distributed.only 54
percetrlo[ largct lor rhe]ear.
I CountryReports:PovertySituationin the Phil
I
t 4-1.3Comprehensive
PovertyAlleviationProgrammes

I { I I I SocialReform Agenda
In the history of Philippinepoverty-alleviationeffofls, the Ramos government'sSocial
Reform Agenda(SRA) had beenthe only comprehensive public programmeto integrate

I programmes involvingsocialequity. Aimedto "bridgelhe gapbetweenthe few who arerich

and the many who are poor", it worked towardsthe promotion of efrciency in the
marketplace, advancement of social equity in termsof assetreforms,just sharingof the
I benefits.of growth,and effectiveintegrationof disadvantaged
economtcmatnsueam
groupsinto the political and

I Launchedin June 1994,SRA had social reform packagesor flagship programmes,each

managedby aflagship championor a speclfrcgovemmentagencyresponsiblefor carrying it
through. Under the SRA the governmentcommitteditself in implementingaround95

I executivebranchmeasures, includingthe signingof ordersand implementingrules,more

\igorous implementatiorof previouslyenactedmeasures, basic sector representation
govemmentbodies,andthe reviewand studyof morespecificbasicsectorissues.Twelve
in

I majorsocialreformbills werealsolobbiedfor passage

The governmentestablished
in the legislature

the following to facilitatethe implementationof the flagship

I proglammes:

7 PovertyAlleviationFund' (PAF) - amountingto P 7 billion over the 1996to 1998

period,for scholarship potablewarer,urbandevelopment,
assistance, basicchild care
andothersocialservices to primaJilyassistthe5u'and6rr'classmunicipalities
7 Local Government Empowerment Fund- assistsinfrastructure development in these
low-incomefacilities.
2 Comprehensive and IntegratedDeliveryof SocialServices(CIDSS) - providesfor
direct delivery of basic welfare and social prog.ammes to margjnaiised
communlues.
Z A SocialReformCouncil- headedby the Presid€nt andwith memberscomingliom
thegovernment andsocialsectors,monitorsthedevelopment ofthe SRA.
.l 1.32 NationalAnti-PovertvCommission (NAPC)
Duringthe Estradaadministration (1998-2000),
the SocialReformCouncilwasreplacedby
ihe NAPC, by virtue of a law passedin the waningdaysof the Ramosgovernment.The
\APC includeda'Ten Point AationProgramm€',anchoredon'agriculturalmodernisation,
and 'iow cost masshousing'.The Estradagovemmenttargeteda reductionin pove.ty
incidenceliom 32 percentto 20 percent

-11.3.3KapilBjsiglaban saKahiraoan(&\LAHI)
In 2000, as JosephEstradawas oustedfrom the presidency,then Vice presidentGloria
\facapagal-Afoyo took over his post. Renewingthe fight againstpoverty, president
\lacapagal-ArroyoinstructedNAPC to formulatea new povertyreductionstfategy(pRS),

'PresidentFidelRamos,
SociaiReformAgenda,Junel?, 1994.
- qn institutional
evaluafionofthe CIDSS cim be found in Bautista11999).
Co{Itry Reports:PovertySituationin the Philippines

tating into consideration

theweaknessesandcriticismsofthe pastprogrammes.
In mid 2001,
iheKapit-Bisig IAba sa Kahirpan, popularlyknown asKAIAHI, was launched.

KALAHI's thrustis to placea p.iority emphasison redistributive

reform throughfive core
$rategiesin targetedpoorcommunities.Theseare:

I Assetreform, which includesagrarian,aquaticresources, and urban land reform,

togetherwith the affirmationofancestraldomains.
2. Full provision of the requirementsof human developmentservicesespecially
education,health,andflutrition,waterandshelter,andelectricity;
3. Generation of employment andlivelihoodfor urbanandruralpoor;
4 Participationin gov€rnance and institution-building
by appointmentin key national,
economic,andpoliticalpositions,andsectoralbodies,and
5. Providing basic sectorssocial prctection and security from violence through
legislationagainstdomesticviolence,securityof workplac€of the informal sector,
etc.

4.2 NGOResponses
1.2.1 Sectorsand Areos of Work of NGOsin the Philippines

Ihe Philippinesis known to haveone ofthe most dynamicNGO communityin the world.
More than 40,000NGOSexist in the Philippines(Racelisand cuevana, 2001). They
include various types of organisations,such as social developmentagencies,civic
orgarisations,community based groups, church related associations,
professionaland
businessfederations,etc. The so-calleddevelopmentNGOS,that directly work with
marginalisedgroups,are€stimatedto be 4-5,000.

Frominfluencingpublicpolicyandimplementingsocialprogrammes, PhilippineNGOs have

createdsignifiaantimpact in variousareasof the political and socio-economic spheres.
Nationalpoliciesrelatingto agrarianreform,environment,housingand urbanland reform,
decentralisationand local governanc€!cooperatives,health reform (i.e_ generics law,
HIV/AIDS),genderandwomen'srights,and indigenouspeople'sconcernsare someof the
importantissueswhereNGOShave successfullymadetheir mark.PhilippineNGOS have
also beenrecognisedin their networkingactivitiesat the local,nationaland intemational
levels. In recentyears,afterthe peoplepower revolutionof 1986calledEDSA I7, NGOS
havealso beenpioleering in forging i[ter-sectoralpartnershipsin variousissues. These
includethe implementation of agrarianreform, disasterpreparednessand relief operations,
communitybasedprimary healthcare,HMAIDS responses, microfinanceand livelihood
programmes.

BeforeEDSA I, manyNGOSwe.e eitheranti-govemment or did not relateto govemmentat

all. Also, quite few had collaboratioo
rvith the businesssector.Howeveqas many NGOs

EDSA is a najor highway itr Metso-ManilawherBmillions of peopleIlocked to dernandtlrc ousterof Marcos

rn 1986. This peoplepower revolt was rcpealedin January200I toppling iurothcrconupt pEsiden! and tlus the
iabels,EDSA I and II.
 c9!!t.y !9p94{9f91lj ! 9n tn the ftrilippines

maturedin the more democraticenvironment(post_EDSA I), they becamemore open ln

relatingwith the govemmentandthe p vate sector. This wai morepronounced

T levels,especiallyafte.thepassage ofthe l99l Local Govemment

and.privatesectorparticipationin development
at the local
Code,mandatingthe NGO
councils.fn" nutu.eoift itippine NGOSas

T
intermediaryorganisations
hasgiven themcomparativeadvantagein
l_"*]:; ,lld1!,
un9"lTlng :1::t promotjng
actlvrtres. coordinalionand even collaboration among various
stakeholders.

t ThenatureofNGo work in thephilippinesprimarilyinvolveseducation,

resourcedevelopment,andcommunitydevelopment.
tlainlng andhuman
OtheractivitiesNilOs are mvolvedin

t
includesustainable
developmettand'the
.environment,h€althand nuidiioa
livelihood development,gender and development, "n,".pr,"" "oo
,ociat ,"*l"es,- m]cro_creOit and
microfinance,andcoop€rative
development.

I nerworrcng.
"":::g::t:l*livitiess,.majority
of NGOSareinro education andtraimng,advocacy,
communrtyorganising,and capability and institutionbuilding. Other
coii
competenciesinclude livelihood, project management,research, pubttcation
I oocumental|on
rntegrated
resource
mobiljsation.
areadevelopment,
medicaland healthservices,
consultingservices,
and
counsiiing,sustainable
andlending,finaniingandgrants.

I Majorityof the NGOsare involvedwith women,youth,andchildren.

oerngservedarepeasants,
urbanpoor,indigenouscommunities,
Othersectorsthat are
andfisherfolk.

I to the poverty Situation

4.2.2 NGO Responses

NGO responses againstpovertycan be categorisedinto majorareas:advocacy,organrsrng,

deliveryofsocial services.
Iivelihoodorogrammes,
|I rhis can furtherbe subdividedinto eionomic
andskillstrainin!. ini"irn, ofuauo"""y,
1e.g.foreigna"U,,rn7"--pofily; or political

T
(e g-, humanrights,govemance, andcomrption.l.Most Nbos areinvotuJJin ti,e tuu". tr,un
Trainingsdetiveredby.NCOsire very much aiverse.-Organising
:1ll:.lTl work tras
detrnrtetygone down in the last decade. A more detaileddescription
oi the responsesis
givenbelowin table3.

Table 3. NGO

Innuencing
Potrcy<conomic
anapol;rrcal:
pan;cip-tonin-
por'cy,processcs
ando0rcrmechanismg,
a$arenes,
Iaisingfor
Intuenciig local policies; participationE locai councils
a*arencssraising in lhe communitv.
c. Seclolal Influencing
specifi
c se.offi i--fr iiTgzri-diffi urtfi
pgornousrng,coconuliew, etc.
nalised
Establislingcommudtybaseagroups,asslOnethemili
strengthcdng theirorsanizatiorls

I In
the survey,theseare refe ed 10as,,corecompelencies,,by NGOS(Tuano.200t)
 Countryneports:poverty-Situationin theFhilippines

I Activities

F
b. S€cloralOrgadsing tttlpingorganiselaboiuniorqtarm=fi
o@saffi urti
poor grouDs.etc.
of SocialServices
a Health rmpremcnurs heJlrrr
proFffiGElriidlfficale,

I b Education
c. Social wclfare
1r'u!!!3!q!4l:! I:V'AIDs pre\enriorl
cours€sfor sclected
1l,1t"r""u"gp-grro.t--r"*".;dprole
crc,.

iG

II
".toi*b."l-dffi
3Iqefll. baltercdl|omel! ard orsaniTrne<d,,nr.i,"A--" -,^
J. Livelibood
a lncorne-generatingl@G a_ssisungana,f
rnan-ingsrnaUpro6cr-sf
oiconun-un\groups
anductviduals
b lv,lcroRnarce
projEE Ciulngcredr@

commrl-oitiesand scctorin
5. Skills Trainitr

I 6. R€licf and Rchihirif;t; pto"iae

skils traini
se-icess fiis ti-po"a[ stretrer,Ed

I "me.gcncy_
ratons,etc.alRetdigstetsor conficts;

t 5. CRtTteuE/AssEssi,rENToFpovERTyREspoNsEs

I Various individuals and institutior

sovemmentprogrammesr
'ls provide
the following crititque/assessments
re

I CARP
A worid Bank report(1996)notesthat the progress
of agrarianreform in the countryhas
i".".r,"'iili"a';";il dent
T iii,l'l"{1""13,#?,i"1!'r"1i1""fiiJ;1ryry'i
r:::d:',*
w-rtnout
programme's
necessarilycontributing
delayed
to agricuttuial
implementation,,there
"
l*;u; ;';#'#iijT:"i#,"fi1"'.:'."'lTi?:ifl:
inrurar
.m",_"y
". f.*il"
hasU""n*ia".p."u-a
;:.Tlfl
:i:i"'+ili#::tr
eEsa resultof tle
unin"iui""onu".rron
landsinronon-agricukurat fro,
liil:itllll uses.M.oreover, redistriburion has lagged
rargepnvateestates wherelandholding most for
i,
.inequality " ,t *o^r. in
l-i.uLiu r,",*,,ugur"un.,
:o:onutand.othe. treecrops,andnont;dirional.export
t" canp
rsrtsresrriction oftenancy forms.Tenancy prohibitio_ns"r-"0;:;."#;;;;"
poorro moveupthe,,agricultural ,fr" tr
tadder,,
and "1"J" "pp"a""Lry thelandless
h; r;;lriJirJ#i,,*o.ro,
"sp"ciaily
UrbanLandReform
tlot-l"* beenftly a]rocatedto theprogramme.
l:!1'-:
L ommuniry ""t program Forinsrance, resources rb. the
Mongage lCMp)-a scneme in vitrictrpoorho"."rr"oial
urbanlandwiththeassistance ii.".,ry pr."rlur"
ofa soveanment agency, have
I lqqT)nores lhallessthana tenthoifunO.fo, rf,"Cwp taa Offenston"oi.targetXu.aos
hrsttwo yearsof implementation. U"* u.,""il, ,li"u*o orr,"gir,
Socialhousing laws.had f"i,r"il,
strategy^ of govemment.s housing programmes ".O'f*i" ,o.ifii*,,ng,heover_ail
rf," aiu, UrriJ"'"1
naoarsobeenregressjve Llanto(1q97)po;ntsout thatgovernment o.n.lt,
tuJ p[u,O"Oer"ur".
 countryReports:FovertysrtuaiionG phiGpines
tG

financialassistance
per unit ofhou
;ncome
r,ou.er'orJl
lutti;'ffi1i#f:,Ir:Tffsproolrcrffnes fortheupper
seared andmiddle
Education
P.ima.y schoolcompletionrates
I

:
ffi11i;r*rr$i:##f.,r,T:jf#*:*ill;;:H#
tocomefom poorfamiliesanapooii".;..i :;r;;'-;:':Tl:',.,'l'
"ycte
aremuchmorelikely

:r'""xi*rni:i""'"',"::l-i'"x*:::':;Fff!tf':'ili"ilf
;fjtrfifif
educarion :4,,11,".l*il:ff
(worrd ["j:,:ff::l*fffi.",,,":":1?"1:j, Hn* ;"**l
Baili;6;il'i""il,::*:'l
;il,:..1,*i","ff
ff'ffiil"*ffi#g:ff ",$;i.ilil3ilr"T-jffi
ffil'',
T11'&""i,
i";",,iry,r,"
f ;ff.:?:fr:'#;",i#;
Credit

I and controlled ,'';jiii",:$t:,J::,f:"iiiil::l

Govemment-owned

;,",",:f;J:;';1j,&mhi.J,,fi service,nsuranc
*:Iii::m*l##m**:*:,:#:h,,bt";f::#f
s,T.".,"i.{
;[*4ffi;**:ii';[:tr$r:,Tii:Tn"",ff
;:'uri;f#F#d:':ffi
SocialServices
Vonsod0997) andLlt\Dp(1997)
nc
}: x;#ij***;*T{"{::iilii:1!u!ilTrji:r"#i
*;#
frj,iffil*fIhrruff ffsq::hrd#rif;:,"ff ,#
flff?#:*,,H"$1flil;T:,'J;1"#i',:.$.h;;;#;,%.li,oJo'il
o.ooon,on " ".
Public spendingon health nutrition
r hasbeenin theransetrom0.5ro
p.'..nt br coF. iorfu;',i;"l"fld^tip.'lation 0.7

SRA
":;^:.*:"::rj*:
;y;'11,,?rhidll"*,",'HJtr
i:#rf:**T'fr*i,J:ff
],hj,1'1i:l"t"Tilxil.H,?ifo-i"^':t*:-"^Try.intuse,or^rearocate
nnancjar
resources
::5ii['J;
l;::1""1iffi
:1.'"""?
'ff:l
+:H"# :i;7,:"3iL1H:","1
lj::i'::"i;';'"fi
it,"iX;'fl fiHn:: to

i:J: l: 13"fi;T":*"1J":","-iil'",11'."1;"f
{"",l"gT::,'t:i,i:',8,# [:'ry?f.il'"H:
ffi:;:lJ".,:JT:I"*"ili::#:','iJ'#:
use
(Reyes
anddel
vatr", T",",::T:'
rqsst'A
;"_"i";#:?ffi: ffi: i'.HTf;:fifft:ff:
||

I remained
iiiiili#'l"i"f"T:1fr'll*";:l::,:':Tl"-99'::i'fr""'' not.
done'
':r;:iJ,';:*iH"fi 11'vp6'
I :n:ffi".jfj;l[ djiti;;ffiil;f :"t:;ffi::l#fi:,ifil
t TbeSRAalwsufferedfromtt fo(ol,r'inn,

'M
"

I i.:,#ff iJt"_ff *.ra-"."i

l;.v,or "oufi
iffi ffi i
covernment
li:il
officiars
:;ffi
dat*'',ii"p.i"r,vJ:u"'l.1ffi1;1lffi:;ll[ ll
""".*;, pi#:'i;!;]
puta
ji:i
ffi:fJJ:?;fr,*'"n
I
Monsod,1998).
Public officials may
ffji;ff*:"J
;?I"ffi ;'d ;Hilli:1;[#l
"ui:1''
i# tffi
I il3Ji'iffJ"nl".:liJTl#
'j"Tl.J:#ii::,:,,^":.*"vicu.rfr
iT.J
:,",yi,l:::"*l,ffi
p.::&' "i"i,.;Gfi
rniv",
:?".,T*,1'"".".::-,:"
"#';J;;,::i#;l
-;;;H'-
fi1,x1il,3fifl'i#f
liiIn runntng
""" "'' valre,rved)

I
7| Lack of pubricawarenes's,
progammesof the sRo ,-*" *- jTl,^lio a-p{or methodof communicatngthe
i::f;iff
gf :""*:1".:l*"'tiX' j:*i"''*itT
:1:::'*a iiX',1#:','J,','i;
ffi
isgTh"a :."";;[::Hl*$g;,:i:i1:i!r? inApril
"ilH:ff orrespondents

I NAPC
"'"i;""";iil"sili;f;j$lffi;11fi:i9"*
Thefollowingarethe failuresNPC

I v
(t999) andde Dios (1999)pointout re: the programmer

I
The poveny
tar.g-ets. wrnout.any.corresponding
anti-poveny
a*"i"p"i"i"'ii.'sfl.i
NAPC.like .rhose
hasinsr"adcon"enrraili ot beinga coordinative
bodvthe
financed 1;r"'a*:lllt-"io on implementingprograms

I
bva speciar;;;""r ^,i,Jij,ri,t"ffintrating)

;l,xl::l;m:;"ffi3#1
I fir"ll"l"
",,","-
l.^I::yrl inI mpr
rrretnoootogv
emenr
of meeti
in!asiJ,"f#,,
-r,cor".iii",'"".i""r''il;;"::;:,T:il:ii'i:1.;"[,:TJ;j:i,'.1."j"]:l'
govemment has promised,
as its I While the
1",',
rs unclearwhetherwhichcombinarions

z
r.tseXf::#*'"f"il#'i;;";;ffi'ff;#;:T;#;:.ffi
:l"1"Jfrffi
toluJfilJits commitment, :iTi:li
cove.nment
ffi:il:iff::J:
%.
representatives
to theNApC.
hasfaired
to
n electing

Meaowhile.BalisacarLet al (2000)
sta the,govemnent s programmes
rrom lhe.tbllowing inadequare havesuffered
,o."'j3 resourcesto
inappropriate
targeiinga""ii", i"""or$"l'i.and achiev€ many objectives,
uon ol jnappropriate
proxy indicarors:inapirop.iul
'Tlus
ihe goverrunent
hadto de\elopa comnun
Lvv/ underthe auspicesof,rr" mfttpr" programfor fte sRA beginning
I1lio.r,,XToorlns in rhe third quarterof
 I
C..r|try Reports: Poverty Situation in the Philippines 13

I performanceindicators;na.rrowset of menusvis-ii-vis needsof poor communitiesand

households;
andabsence ofbeneficiaryimpactandmonitoring.

l 6, Summaryand Conclusion
I 6,1 Summdry

I Ihe Philippinesis an archipelago,

composed ofmore than7,100islands,with a total landand
waterareaof300,000km'. Thecapitalis Manilaandthe tkee largestislandsincludeLuzon,

l Visayasand Mindanao. The countryhasa populationof around80 million, almost54yoof

whomlive in the urbanareas.Morc thana third ofthe populationis youngwhile 607oofthe
populationare in the labor force. Majority are Christiansand most speakand understand

I English.

Povertyin the Philippineshasalwaysbeena rural phenomenon -- morethan two-thirdsof

I poorhouseholds live in rural areas.Povertyincidenceincreased

1997to 40.0in 2000.
by 3.2 percentfrom 36.8in

I High intenegionaland intra-regional

incomeinequalityhaspersisted
diflerencesin povertyincidencesexist. The level of
at high levelsduringthe past30 years.Evenwith reductions
in the povertyincidencesduringthe 1985-2000 period,the cini indicesin the Philippines

I havehardlychanged.

PhilippineHDI hasimprovedover the past forty years. However,largedisparitiesexist in

fte IIDI in differentareasof th€ country. Povertyself-ratingsurveysindicatethat a large
: majorityof the populationconsiderthemselvespoor. Life expectancyis 69 years.Adult
literacyratesandenrollm€ntratiosarehigh. However,overone-quaner ofFilipinos l0 years

I andabovearefunctionallyilliterate.

Malnutritionremainsan importanthealthproblemin the countryas it cont.ibutesto chjld

I mortalityand morbidity. Infant mortalityhas not improvedin recentyearsalthoughthe

leadingcausesof death - respiratory
diseases,
diarrhea,
measles arepreventable.

I The followingare identifiedasthe main causesof povertyin the country:slow grora,thand

lackofemploymentopportunities; inequalityin incomesandassets,highpopulationgrowrh;
biasedpolicies and underinvestment in agriculture;inadequateand unequalprovision of
I socialservices;inadequate

The responses
taryeting;andlack ofpanicipationofthe poorin decision-making

ofthe govemmenttowardspovertyreductionfrom 1986to pfesentinclude

I assetreforms,targetedinterventions, povertyalleviationprogrammes.
and comprehensive
Programmesunder assetreforms are the CARP and CISFA. Comprehensivcprogrammes
includethe SRA NAPC, andKAIAHI

: On the other hand,NGO responses againstpovertycan be categorisedinto major areas:

I
advocacy,organising,deliveryof socials€rvic€s,livelihoodprogrammes!
skills training,and

I
 PovertySituationinthe PhitiPpines
CountryReports:

.eliefandrehabilitation.In te.msof advocacy,this canfurthe.b€ subdividedinto economic

{,e.g.foreigndebt,macro-policy)or political(e.g.,humanrighls,govemance,
andcoruption)
\{ost NGOsareinvolvedin the latterthan in the former. Trainingsdeliveredby NGOs are
very muchdiversewhile organisingwork hasgonedownin the lastdecade

Thefollowingarerhemainproblemsor issuescriticsandanalystsraisedre: the

govemment's pove(y reductionprogrammes:

1. Problemswith mado€conomicandpoliticalstabilityin variousepisodes ofthe

country'secoflomichistory.
2. Comprehensiveapprcachto poverty reductionis very recent- stadedduring the
socialreformageodaofthe Ramosadministration.
3. Diffrcultiesin implementing assetreformsasthecurent politicaleconomyis still
dominated by landedinterests
4. Inter-agency coordination problemsespeciallyin implementation ofpovedy
prognmmes.The only exceptionis the CIDSSprogramme led by theDepartmentof
SocialWelfareandDevelopment.
5. Inevitabilityofpolitical influenoein designingpovertyprogrammes, especiallyin
allocatingbudgetfor programmes.
6. Difnculty in locatingandtargetingultn-poorgrcupsasstatisticsareinsufficientfor
identificationof suchgroups.
7. Resource constraintsin povertymonitoringandimplementing key prognmmes
especiallyduringtimesoffiscal deficits.

6.2 Conclusion
Povertyincidencein the Philippineshasremainedrelativelyhigh mainly because
ofthe slowprogressin reducingit in the pasttwo decades.This hasbeenmainly
dueto the boom and bust cycle of the Philippineeconomyand the perennially
high populationgroMh rates.

ThePhilippinegovernmenthasjust recentlyernbarked
on a comprehensive
anti-
povertyprogramme(which startedin the Ramosregime,1992-1998)and most
often,programmesandprcjectshavebeendisparateandpiece-meal.

v Currently,the administration hascontinuedto approach the povertyproblemon a

mo.e comprehensiveperspectivebut results of its thrusts cannot still be
determined However,governmentis confronted
astheseare still in initial stages.
with the typicalconstraints:lack ofresources, difficultiesin agencycoordination,
weaknesses in locatingthe ultra-poor(statisticsusuallydo not capturethem),
politicalpatronage,etc.

NGOs,on the other hand,have beeninvolvedin povertyreductionefforts for

morethan threedecades.Their intewentionsrangefrorn pure advocacyto th€
implementationof concrete livelihood ptogrammes. However, these are
 CountryReportsiPowrty Situationin the Phitippines 15

and ofteo very micro-oriented. There are relativelyfew large

uncoordinated
Nco-govemmentjoint programmes ofl povertyalleviation''.

I , NGOShave been tapp€dby governmentto participatein the formulationof

strategiesand thrusts of gov€rnmentagainst povedy. However, in the

t implementatiolstage,partne(ships
remainto be seen.
amongsectorsir high impactprogrammes
still

I , While governmenttkough the assistanceof civil sooiety has formulated

comprehensive strategiesagainstpove.ty,what is needednext is to agreeon how
specificallythe various s€ctorc and stakeholderswould contribute in the
T v
implementation of the povertythrust.

Thefight againstpovertyis not of govemmentalonebut with tle othersectolsof

I society.Noteworthyalso is the capacityof the civil societysector,particularly
theNCO5andPos,to assistgovernment
and marginalised
in id€ntiryingand locatingthe ult.a poor
groups. In addition,their help in gatheringdataon the actual
I needsanddesiresofth€ poor will be highlyimportant.Their inputsto the design
ofspecificprojectsandprogrammes will alsobe crucial.

T In termsof advocacy,NGOSmust be activemore in the macroeconomic

debatesas theseare crucial in determiningwhether economic groMh
policy
in the
countrywill be sustainable
or not. Lack ofgrowth hasbeenthe key factorfor the
t continuedhighpovertyratesin the countrytoday.

!
T
I
T
T
!
I '" Moresowilh the privatesector,
excsf,tprobablythosewith the PBSPor rhe Lcagueof CorporateFo$datiors

! which areNGOSestablishedbv the secloritself

I
 cDuntryReports:PovertySituationin the Philippines 16 i

SelectedBibliography
Aldaba,F. andP. Tuano(2001)." Reviewofliterature on PovertyandEquityin the
manuscript.
Philippines,

A. (1994a).Poverty,Urbanizationand DevelopmentPolicy.QuezonCity:
Balisacan,
Universityof the Philippines
Press.

A. (1994b)."UrbanPovertyin the Philippines:Nature,Causes

Balisacan, andPolicy
Measures," Revietr12(l), pp. 117-152.
in l.tl4, Development

I A. (1999).CausesofPoverty: Myths' Factsand Policies.A Philippine Study.

Balisacan,
QuezonCity: Universityofthe PhilippinesPress.

I Balisacan,A. andE. Pernia.(2001)."ProbingBeneathCross-National

Inequality,andGrowlh."Presented
Avemges:Poverty,
on Poverty,GroMh, andtheRole
at the Conference

I oflnstitutions,heldat AsianDevelopmentBank.

Bautista,R. andM. Lamb€rte(1996)."The Philippines:EconomicDevelopments

and

I Prospects,"

De Dios andAssociates
EconornicLilerqlurelO (2), pp. 16-31.
in ,4.riar-Paci|ic

(1993).Poverty,Growth and the FiscalCrisis.Makati,Metro-

E ManilaiPhilippineInstitutefor Development
ResearchCenter.
StudiesandInternational
Development

t Gono,C. (1997)."The StateofCARP Implementation

Social lssues,
monograph.
in 1997" lnstituteon Churchand

F Iftal, P. (1994)."StateofPovertyin thePhilippines:An Overview,in Intal andM. C. S.

Bantilan(eds.).UnderstandingPovertyand Inequity in the Philippines.Makati,
Philippines:NationalEconomicandDevelopment AulhorityandUnitedNatrons

t Development Program.

MIMAP (1995).'GoodSignsMead: PhilippireStructuralAdjustmentMeasures, 1986-

t 1994,"Micrc Inpacts ofMacroecononic Adju,ttmentPoliciesProject UpdelesIl (2).

Mangahas,M. (1993).'SelfRatedPovertyin thePhilippines,1981-92", in Balisacan,

A., et.

t al.,Perspectives
on PhilippinePoverty.QuezonCity, Philippines:Universityofthe
PhilippinesPress.

t Monsod,T. (1997) "SocialReform:Do-Ablebut Not Done."Actionfor EconomicReforms,

unpublishedmanuscript.

t (1997).SocialReform or SocialRegression?:
NationalPeaceConference An Evaluation
ofthe Governm€ntlsSocialReform Agenda.QuezonCity: GastonZ. OnigasPeace
Institute.

T
T
T Country PovertySltuationin the Phitippinet

I \ational StatisticalCoodinatingBoard(1996)."PhilippinepoverryStatistics.,'
mimeograph.
NSCB,

I \ational StatisticsOffice.(2001)."PreliminaryResultsofthe 2000FamilyIncomeand

ExpenditureSurvey."Manila,Philippines

I Reyes,C. M. et al. (1996)."UsingMinimumBasicIndicatorsfor povertyMonitoring,"

Micro Impactsof Macroeconomic AdjustmentPolicies(MIMAP), unpublished
I manuscript.

Progam(1997).1997philippine Human Development

LnitedNationsDevelopment
I Report.MakatirHumanDevelopment
Program.
NetworkandUrited NationsDev€loDment

I LrnitedNationsDevelopment
Program(2001).2001Human DevelopmentReport.

lVorld Bank (1993). Ihe EastAsiqnMiacle: EconomicGrorvthdnd public policy. New

I York.OxfordUniversity Press.

T
WorldBank (1996).,4 Strcteg):foFight Po|e y: philippines.Washington,
D. C.: EastAsia
andthe PacificRegionCountryOperations Division.

I WorldBank(2001) Filipinolleport Cad on pro-poor Serviees.

AsiaandPacificRegionCountryOperations Division.
Washington,
D C.iEast

I
I
@s

Annex:Tables
dP lndi i985-2000
Yet Depth sewtU

Inlirid at Househod
49.3 l'7.o 7.9 24.+
1985
49.5 15.0 6.7 20.3
1988 '7.O
45.3 15.4 20.4
1991
40.6 t3.2 6.0 18.1
t994
36.8 n, a. n. a. t6.2
t991
40.0 n . a n.a 16.8
2000
Iource NSCBttg96, 1997.and200r)

Ginilndi
Table5. Grnr 1985-2000
Yedr Gini Index
1 9 8 5 0.447
1988 0.445
t 99l 0.414
1994 0.451
199'/ 0.487
2000 0 . 4 r5
source:lt.scg(icge, tqsg.zoot)
CountryReports:PovertySituationin the Philippines

r ible 6. PovenyandSubsistence
Incidences, 2000
Region Subsistence
Incidence
HousehoQ
NarionalCaoitalRecion 12.7 9.7 1.6
Ilocos 43.5 37.2 16.I
CagayanValley 36.3 30 . 6 12."1
CentralLuzon ))9 t 8.6
SouthemTagaloe 31.7 26.0 10.3
Bicol Region 62.8 563 34.6
Western Visavas 51.2 43.4
CentralVisayas 43.9 38 . 9 22.6
EasterflVisayas 50.5 43.0 23.4
WestemMindanao 53.0 46.5
NorthemMindanao 52.2 45.7 26.5
Southe.nMindanao 46.3 4t.2 20.4
CentralMindanao s7.9 50.9 27.7
CordilleraAdministrative 43.9 3 69 l/ )
ReEion
Autonomous Regionof 73_9 68.8 38.I
Muslim Mindanao
SourcerNational SlatisticalCoordinalingBoard (July 2001).

Table 7. Gini Inci Resion.1997and2 )00

Regioo 1997 2000 Changc
NCR 0.4662 0.451l 0.01I
IIocos 0.4251 0 4069 0.0188
CagavanVallev 0.4130 0.4241 -00lll
CentralLuzon 0.3638 0.1594 0.0044
SouthernLuzon 0.4247 0.4292 -0.0045
Bicol 0.4362 0.4478 -0.0116
WestemVisayas o 4412 0.4654 -0.0242
CentralVisavas 0.4"t
50 0.4696 0.0054
EasternVisayas 0.4457 0 4901 -0.0444
WestemMindanao 0.4684 0.4589 0.0095
Northern Mindanao 0.4944 0.4752 0.0192
SouthemMindanao 0 4495 0.4573 -0.0078
CentralMindanao o 4491 0.4394 0.0097
CAR 0.4640 0.4508 0.0132
ARMM 0.3406 0.3278 0.0128
CARAGA o.4387 0.4t31 0.0256
NSO(2001)
Source:
Thailand
 PoVERTYIN THAILAND
PauuNEREBU.AS

1. lntroduction
Thispaperis part ofa studyof pove.tyreductioninitiativesby gove.nmentandNGOs in
eightASEANcountries,namely:Philippines,Indonesia, Cambodia,vietnam,Burma,Lao
PD& Thailand, and East Timor. The study aims to present a comprehensive view of
pove.ty situation and the responsesto poverty by different sectorsin the eight countdes.
Also,it aimsto comeup with recommendations to development NGOsregardingareasof
interventionsor collaborationwith their respectivegovernmentstowards poverty
reduction.Thestudymainlyusedsecondary data(writtendocuments, books,andintemet).

This paperfocuseson Thailand.It is divided into six parts. The first part p.esentsthe
introduction.The secondpan describes the demographic profile of and povertysituation
jn Thailand. The third discussesthe main causesof poverty. The fourth featurcsthe
responsesto poverty by the government,intemationaland local NGOs, including
donors,andthe church.The fifth presents
international an assessment by someinstitutions
andanalystson the multisectoral
responses, particularlythegovernment's, to pove.ty. The
sixthpartpresents
the summaryandconclusion.

2. Profile of Thailand
2.1 Geography and Demogr aphy
Thailand,formerlySiamandofficially calledKingdomofThailand,is boundedby Burma
on the north and west, by Lao PDR on the northeast,by Cambodiaand the Gulf of
Thailandon the southeast, by Malaysiaon the south,andby the AndamanSeaandBurma
onthesouthwest. ThetotalareaofThailandis 513,1l5km'(198,1l5mi'). Bangkokisthe
capitalard largestcity. The countryis predominantly
mountainouswith a seriesofparallel
rangesin the northemandwesternregions.

Lateststatisticsshowthat Thailandhasa total populationof 62.3 million, with an annual

populationgrowth of 0.8%. The populationis unevenlydistributed,however,with the
greatest
concentrationofpeoplein thecentralregion.It is about75yorurai

About 75 percentof the inhabitantsof Thailandare Thai. The largestminority group

consistsofthe Chinese,who makeup about 14 percentofthe total population,ard most
are Thai nationals.Other minority groupsincludethe Malay-speakingMuslims in the
south,the hill tribesin the north andCambodian refugees
andVi€tnamese in the east.
 C!.Jntry Reports: Poverty in Thailand

Trble l. Demo
Totalarea 5 1 3 , 1 l 5L m ' , ( 1 9 8 , 1s1q5m i )

I PoDulatron 62.3million(2000)
Bangkok

I
ECOnOm Ag.icultural
Main expo.t fuae
Malor Languages Thai,Lao, Bumese
Major Religion Buddhism

2.2 Poverty Sltuatlon

Priorto the 1997Asian crisis,Thailandhadoftenbeencitedasa countrywith impressive

I economicgrolth and virtually full employment.Its grossdomesticp-duc, gr"*

annualrate of8 percentbetwe€n1980and 1990and continuedto grow dunng 1990s.
at ao
Despiteincreasinginequality,the benefirsof economicgrowthtricklei dow to the poor.

I Theincidenceof povertydrasticallydecreased.

Thisencouragingtrendtook a downturnwith the onsetofthe Asianeconomiccrisis.The

II
TnaiBahtrapidlydepreciated,following.the.end
ofthe fixed exchange rateregimeon July
i997 The unemployment rateincreasedsubstantially
andth€ real iarningsofthose who
*'ereemployeddeclined.Aiso,therewassignificantincr€ascin povertyanJinequality.

In 199E, worsenedparticularlyin the agrioulturalandconstruction

seotors.There
_poverty
*as declinein agriculturalcommoditypricesand massivelay-offsof construction
or off-

I rarn taborsrestimatedat 1.2million. Most ofthose affectedmigratedbackto their

tillages.
rural

I L\DP reportsthat the crisisundoubtedlynegatedthe imprcssive

poverty.-
The percentage
gain on the fight against
of peopleliving underthe povirty line,ieduced ftom 32.6yoto
ll 4% during 1988-1996,surgedto 15.9olo in 1999,affecting9-8 rnillion people(out of
61.5million).The abovefigureexcludesthe 3 4 million ,,almoirpoor,,,livingprecanousty
I on theedge.

I
and.l996.Thailand,spovertyincidencedroppedliom about33 percentof
-?etYeen,1:88
ue F,opulatlonto aboutI I percent,translatingto more than 1 million peoplebeing lifted
o't ofpoverty eachyear.But with the onsetofthe financialcfisisin ld97 an aaditional
3

I
millionpeoplebecamepoor,with the ircidenceof poverryalimbingto 16 in 1999
(.ADB.2001). t;;cent

I
the-incidenceof povertyfell acrossthe boardbetween1988and 1996.The
l,-t l€o1
\onleast hasalways.been poorestregionofthg countrywith 19.4percentofits population
In rn povertyrn 1996.This figure roseto 24.0 percentand 30.gpercentin l99g
-g and

I
1999 respectively,as a result of the economiccrisis. While the increasein poverty
icidence in the northeastdueto the crisiswas quite severe,the situationwas relatively
E 5ern the centraland southemregions(pleaseseetablesat the annex).
 Co.r|tayReports:Povertyin Thailand

fhe povertyincidencein Bangkokand vicinitiesand centralregiondecreased in 1999.

Possibly,the crisishascausedunemployedlaborto migratebackto theirhometown.They
couldnot affordto live in the capitalcity, Bangkok,aad its vicinities.Thus,the poverty
rrcidencehas sharplyincreasedin other regions,especiallyin the northeast,south and
ronh.

Rural areashave been inhabited with the highest poverty incidence. Natenoj (undated)
rotesthatvillageshadexperienced muchlargerreductions in povertyovertime,in relation
rJ otheraressfrom 40.3 percentof rulal peoplein 1988to 14.9in 1996beforethe crisis
.ubreak. However,this situationchangedduringthe crisisperiod.The crisiscontributed
ic a sharpincreasein the incidenceof povertyboth in villagesand sanitarydistricts.In
rillages,the crisis highly increasedthe povertyby 48.5 and 109.2percentin 1998 and
I999.Povertyincidencein villageareasstoodashigh as21.5percentoftotal populationin
:-aralareas(Pleaseseetablesat the annex).

Socialindicatorsaremixed.While consumerspendingmight be up, incomeinequalityis

*ill a concemfor Thailand.The 1999householdsurveyrecordedthat the top 20% of
€amerspossessed 58.5olo of incomewhile the bottom20o)/oeaned.otLly3.8%of the total.
Overalfinequalityappearsto haveincreasedftom 5l.lyo in 1998(measured by the Gini
Coefiicient)to 53.3%in 1999,reflectinga steadyinqeasein inequalitysincethe crisis.
Unemployment (aso/oof laborforce)inff€asedslightlyfrom 4.2% inMay 1999to 4.4yoin
\!ay 2000.

Povertyandinequalitycontinueto be a characteristic
ofThai society.Whilethe impressive
lrorth rates ofthe early 1990stended to reduceor transcendconcernsaboutinequalitv.
tu crisisof 1997underlineddeep,regional,socialandurban/ruraldivides.

The Gini indexrevealsthat incomeinequalityin Thailandis very high The incomeshare

ofthe bottom2070in 1999was3.870,muchworsethan4.27oin 1998.

Today',the Thai economyis graduallyrecovering. The GDP groMh rate hadbeenrestored

from -10.8%in 1998to 4.2yoir 1999and4.3/o ]n 2000. It was€xpectedto be 4-4.5yoin
:Ol I Exports(in US$) haveshowna healthygrowth.The inflationrate is low and the
crcbangerate hasstabilised.

De+ite theseimprovements, however,the adverseimpactofth€ cdsiscontinuesto exlst.

fbe p.oblemofnon-performingloanshasnot beenresolved.The high unemployment .ate
.ominuesto exist.The decliningagricultureproductpricesmay causehardshipto farmers,
tirti@iarly thosewith smallfarms(Natenuj,undated).

I'bile expo(s andprivateconsumption growlh are slowly pulling the countryout ofthe
rEc6sio.L the agriculturalsector continuesto be iII the doldrums,despiteextensive
lo\€mmenl asslstance.
fh slow paceof economicrecoveryis not goodfor the poor. The poor are unlikelyto
Lrr€ enoughsaving or self-insurance to go through extremelylong bad times. The
 (qrrfy Reports: Poverty in Thailand

iformal safetynet existing in the rural areasis under stress.The migrantsretuning to the
nE-alareasareunableto find work.

Thereare hopeful signs,however.Job creation in all sectorshasbeenhigh mainly due to

f€ $ccess of the export and tourism sectors. Expo.t-manufacturintindustrieshave
$sorbedthejob lossesin agriculture.

O!'erall,therehasbeena gradualimprovementin th€ healthof the economydriven by

sron_qexportsand an accommodatingfiscal policy Tourismhasatsocontinuedto be an
Dportantelementin promotingeconomicrecovery,accountingfor 5% ofcDp ln 2000.

Trble 2. Socioeconomic Indicators

GDP 124.4B11999
GDP
G\?
GI\II coefficient 53 3 (1999
Humaa ent index
Po!€rtyincidence
Rural
Urban
Iate
Life expectancy at birth 68.6years(1999)
Male
Female
-{dultillitemcylate
Male 2.8%
Female 6.1Yo
Infantmortalityrate(perl,000livebirths)

3. Determinantsand Causesof poverty

3.1 1997AsianEconomicCrisis
The Asian FinancialCrisis that attackedAsian countriesin 1997is considered
to be a
najor causeofpoverty in the region.The economiccrisishascausedgreatJamagern
the
iccioeconomicconditionsof millionsofpeople,in this case,in Thailani.

-{fter the economycontractedby over loyo in 1998,rea.lGDp grewby 4.2yo

in lggg.
\loreover,the prospectsfor 2001were somewhat weaker.pubriciebt was stifl at a high
ievelof55% ofGDP.
CountryReporBi Povertyin Thailand

Emorts,which hadbeenthe mainvehiclebehindrecovery,were hit by an ircreasein the

costof impo(s due to the rise in oil pricesand a depreciationof the Baht. Agriculture
srffereddueto an inqeasein the costofimoort€d seedsandfertilizers,while intemational
pricesof agdculturalproductsfell.

Thesteadyd€preoiationofthe Baht throughout2000,however,ensuredthat manufactuing

erportsremainedcompetitiveon the internationalmarket,while it hit poorer sectorsof
societyharderasthe priceofbasicgoodsrosecomparatively.

Theincidenceofpoverty declinedsteadilyin the two decades up to 1997.Sincethe crisis,

therehasbeena reversalofthis trefld. Ln7999,159VoofthQ populationwereliving below
poverty
a defin€d line -- a national
ave.age of886 Baht perperson p€rmonth.

4, TowardsPovertyReduction
Responses
4,1 Government Responses
4.1,1 Provisionof Socia[ Services
In responseto the economiccrisis, the Govemmentof Thailand has expeditedthe
of varioussocialwelfa.eprogrammes
provisionof socialservicesand implementation to
people.
assist!,ulnerable Healthcare,educationandpension for elderlyaremainfocus.

Socialprotectionaims mainlyto assistthoseaffecledby the Asian crisisand othertarget

groupswho are either poor. disadvantag€d,wlnerable or suffering from naturalor human-
madedisasters.Themain programmes consistofsocial assistanceincluding:l. healthcard
systemfor low incomegroups;2. eduaation schemestluougheducationloan plogrammes
andgovernmentscholarships and3. socialpensionfor elderly.
for drop-outstudents;

4 . 1 . 1 .HI e a l t h

Ill healthis the mostFequenttriggerof slideinto deeperpoverty.Thus,basichealthcare

hasbeenprovidedftee of chargethroughhealthfacilitiesavailableat the sub-distdctlevel.
In additionto basichealthcare,low-incomemedicalcardhasbeenissuedfor childrenaged
0-12years,the poor agedbetween13-59yeaxs,andthe elderlyagedover60 yearsfree of
charge.Voluntaryhealthinsurance cardhasbeenintroducedfor nearpoorgroupsaswell.

Voluntaryhealth insurancecard costsonly 500 Baht per year for a householdwith 5

rnembers andgovernmentsubsidised 500 Baht.Whencrisishit, govemmenthasextended
voluntaryhealthinsurancecardfor absorbingwlnerablepeopleaffectedby the crisisby
allocating1,200million bahtAom ADB loanto Ministry ofPublic Health.The extension
of social securitycoveragefor laid-of workers coveredmedicalcare, and maternity,
disabiiitv. and deathbenefitsfor at leastsix monthsaffer retrenchment.
_--y Reports:Povertyin Thailand

{l I 2 Education

h 1998,the Ministry of Education.equested supportfor scholarship

for drop out students
rhose parentswere affectedby the crisis.The amountof 1,000million baht from social
Ecr6 programloan was allocated.However, becauseof targelirg problems and .equired
f$.rsement procedure, the funddisbursed835 millionbaht.

h orderto encourage childrento attendschools,the govemmentintroduceda studentloan

deme for studentsat secondaryand tetiary levels. The governmentincreasedits budget
6r $udentloansto preventdeclinein retentionandcompletiolratesAom existinglevelof
htrt 9,000millionto baht 17,000million in FY 1998.Thegovernment ensu.esthat female
sde s benefitequitablyftom the prcgrammeand an appropriate urban-runlbalanceis
dieved.

.l.l l3 ElderlvSuoport

Socialpensionfor elderly has beenenhancedto supportpoor elderlyto cope with the

poblemsduringcrisisperiod.The governmentallocatedmorefundsto the Departmentof
SocialWelfareto provide300bahteachpersonper month,which incrcased from 200 baht
beforethe crisis.

1.1.2 Emphasison community porticipation

Foilowing the Asian crisis, the governmentstartedplacing more emphasison the

imponanceof communities,social capital, and grass-rcotorganisations.This new
@roach hasled to moredecentralisationand higherde$ee of stakehoiders,
participation
ard autonomythanin the past.

1.2 Internationdl qnd Local NGOS

Beforethe 1980s,thetermNGO waspracticallyunhea.dofin Thailand.A few NGOsrhat
carneto assistin welfare and developmentprcgmmmeswere mostly religiousgroups.
However,peopleorganisations haveexistedin the countrysince1973.They haveevolved
iom studentand professionalmov€ments.Theseorganisations include various labor
Theysharea similarideology- socialism.
r-rionsandfarmers'organisations.

Iit 1973-1976,many organisationswere under violent threat from right-wingedand

nilitary-relatedgroups. After the 1976coup,mostof theseorganisationswere forcedto
.ease their activiti€sand many fled iffo rhe jungle to join the Communistparty of
Thailand.

.{ie. the Vietram and Indochinawars, refugeesflooded into Thailand.Foreign funds and
€\'eral NGOSalso floodedin, thus the beginningof the rise of NGOs in the country.
\@s beganto grow in numbemandtheir objectivesbecamemorediverse.SomeNGOs
*ere stili led by peopleliom previousmovements that clangon to the belief that the root
-- -
cf mostproblems esp€ciallypoverty is unequalresourceandpoliticalpower sharing.
 Cdr|E!' Reports: Poverty in Thailand
I
Ilorerer, many NGOS put mo.e emphasison developmentprogrammeslmost of which
ilo€d to promoteself-helpandcommunity-strengthened
programmes.

I! the 1980sand early 1990s,most NGOs were dependentsolely on funding from

ifiernationalNGOS.Theywere thereforeheavilyinfluencedby agendasofthe latter.The
fhai govemmentbeganto providefundingfor certainNGOSin the l99os.However.to
dae. mostNGOsstill rely on foreignfunding

The sovemment'sattitudestowardsNGOs had changedsubstantiallyin the pa$ two

decades.In the beginning,the govemmentacceptedcharitableNGOs only ind was
eEpicious of other types of NGOS. It viewed NGO9 as an obstacleto the state's
d6elopmentprogrammes. Later,somegovemmental agenciestriedto makeuseofNCOs'
tnowledgeandfirst handexperience
in workingwith localpeople.

4i pres€nt,NGOS'rol€s are well recognisedand incorporatedin the nameof people's

participation.The government recognisesthe importanceof NGOs, which have
parricipatedin developmentactivitiesin Thailandfor some 30 years. Approxmarely
10.000local and 30 internationalNGOs are involvedin a widg varietyof concernsand
-tiriries (Racelisand Guevar4 2001), Sevenl NGOS participatedand rooK great
responsibilityin draffingthe currenteconomicandsocialdevelopmintplanofthe cou-ntry,
based on. the slogan "people-centered development..NGOs' recognitionhas been
bightenedsincethe economiccrisis,panly becausethe crisis appearslohavea linkage
rirb world integration,which manyNGOshaveopposedfor a longtime.

5. Critique/Assessment
of Government'sResponses
To arulysewhetherthe govemmentsocialwelfareprognmm€swere able to reachthe
IEople worseaffectedby the crisis, the Socio-Economic
Surveyrdid a 1999 study on
brsehold accessibility
ro socialwellareservices

Tbe surveyrevealsthat 13 percentofhouseholdswereidentifiedas poor by povertyline.

Tbesehouseholds were eligible to obtainlow-incomemedicalcards,aimedto provide
blrh servicesto nearpoor households with smallco-payment.Only 9.9 percentof rhe
Eel eligible households obtainedlow-incomemedicalcards. Of the 9.0 percent,5.8
Fc€Dr with low-incomemedicalcardswere norr-poorhouseholds and 1.3 Dercenrwere
an poor Only I 6 and 1 3 percentofultra poor andpoor households obtainedthe cards
(Table6 at theannexshowsthe percentage ofthe poorhouseholdswho wereableto access
tb govemment'ssocialwelfare programmes).

:t total of34.7 percenthouseholds

ownedhealthinsurancecard.Ultra poor andmarginal
por holding this card constitutedabout 3.8 and 2.? percent,respectively.These
hrseholds shouldnot havepaid fof healthservices.
Theyshouldhold low_income
medical
.rds for Aee.

T> SciGEcorcmicSurvelis theonlynationwidesourceof datafor measuring

th€pove.tyin Thailand.
I cd.ErtryReports:Povertyin Thaitand

I Of the 59.5percentofhouseholds
obaain
cltildren,oniy 2 3 perc'ertwereableto
with school-aged
governmentscholarship.Of the2.3 percentonly 0 2 ofultra poor and0.1 percent

II ofpooi households
rouseholds

Ofthe 31.4 households

The benefitwent to nearpoor afld non-poor
obtainedthe scholarship.
by L9 and0.2 percent.

with elderly,or y 3.2 percenthad accessed the socialpensionfor

elderly.The other 29.2 peraentdid not have accessto this socialwelfareprogramme.
Delineatirgthese3.2 percentofthe total households into 4 $oups: 2.2 percentnon-poo.

I households hadaccess,0.3 and0-4 percentultra poor andpoor households,

0 4 percentnearpoo. householdshadaccessed the benefit.
while merely

Giventhe abovestatistics,it canbe saidthatthe govemment'ssocialwelfareprogtammes,

*hile meantto mitigatethe impactofthe 1997cdsison the poor,werenot ableto reach
the mostlulnerablegroups,the poor andthe ultra poor, as expected.Propertargetingof
rhemostrllnerable groupis crucialtoensurethe succ€ssofsocial welfareprogrammes

6. Summaryand Conclusion
6.1 Summary
TheKingdomof Thailand,capitalBangkok,is boundedby Burmaon the northandwest,
bJ-Lao PDR on the northeast, by Cambodiaandthe Gulfof Thailandon the southeast, by
llalaysia on the south, and by the Atdaman Sea and Bunna on the southwest
Predominantly mountainous, it has a total areaof513,115 km2 The country'stotal
populationis 62.3 million, with an annualpopulationgrowth of 0 8%. Majority of the
habitantsareThaiwhile the largestmino.itygroupis Chinese

ofThai societywhile the impressive

Povertyandinequalitycontinueto be a characteristic
gowth ratesofthe early 1990stendedto reduceor transcendconcernsaboutinequality,
drecrisisof 199?underlineddeep,regional.socialandurban/ruraldivides.

Thailandhad one of the highestGDP growthmtesin the world in the pastfew decades,
averaging7.6 percentper annumfrom 197'tto 1996.Between1988and 1996,Thailand's
povertyincidencedroppedfrom about33 percentofthe populationto aboutI I percent,
to morethan 1 rnillionpeoplebeinglifted out ofpoverty eachyear'
n-anslating

The country's€conomicprosperitycameto a suddenhalt whenthe economiccrisisstmck

Tlailand in 1997.The incidenceof povertydeclinedsteadilyin the two decades up to
-997 Sincethe crisis,therehasbeena reve$alofthis trend. The latestfiguresshowthat
:i 9e%ofthe populationareliving belowa definedpovertyline of886 Bahtperpersonper
roonth.Thecrisiscausedmanyeconomicandsocialproblems,includingincreased ratesin
u!€mploymentand inflation aswell as in poverty and inequality.

Povertyremainsacutein someareas.Recentstudiessuggestthat 92 percentofpovertyin

havingthe highestincidenceofpovertyat 19.4percent
Tbailandis rural,with the northeast
C.qfiry Reportsr Poverty in Thaitand

ir 1996.This figure roseto 24.0percentand30.8 percentin 1998and 1999respectively

*bile the inc.easein povertyincidencein the northeastdueto the crisiswas quite severe'
se situationwasrelativelyworsein thecentralandsourhemregions

The Governmentof Thailandprovidedthose affectedby the Asian crisis, the most

rllnerable sector,with varioussocialwelfareprogrammes. Theseprogrammes include:l.
iElth cardsystemfor low income groups;2. educationschemes tkough education loan
programsand govemmentscholarships for drop-outstudents;and 3. socialpension for
eiderly. Howevet studies show that the programmeswere not able to reach the target
asmuchasthey should.
beneficiaries

The participationof severalNGOs and their roles in poverty alleviationin Thailandis

significantand well recognisedby the gove.nment.Emphasishas beenplacedon the
importanca ofcommunities,socialcapitalandgrasvootsorganisations. This newapproach
anda higherdegreeof stakeholders'
leadsto moredecentralisation participation

6.2 Conclusion
7 The economic crisis has affected the whole economy, covering all
anddemographic
socioeconomic groups.However,the impacthasbeenhighly
uneven.Somepeopleh&vesufferedmorethanothers.

2 The main objectivesof future social protectionshould aim for continued

poveny reduction,improvementof the quality of life and self"reliance,
promotionof productiveand freely chosenforms of employmentas well as
decentwork opportunitiesfor men and women,and proteclionof wlnerable
groupsth.rough
properrisk managemant. In orderto achievetheseobjectives,it
would be necessaryto funher extendthe social protectionsystemand to
promote community-based social protection.This could be achievedby
existingprogrammes.
strengthening

Z An efficient allocationof limited resourcesis absolutelyessential.Well-

targetedsocial welfare or safety net programmesare imponant meansto
alleviate poverty. The comprehensive links of proper poverty all€viation
programmosshouldbe developedby thoseresponsibleagencies.An efficient
andeffectiveimprovement ofpovertyreductionis ofgreatimportance.
CountryReports:Povertyin Thailand

)ources
AsianDevelopment
Bank,AsianDevelopment
Outlook2001

Plan (2001 - 2003) Thailand;December

.{sianDevelopmentBank, CountryAssistance
2000

Bank; CountryStrategyandProg.amUpdate(2002- 2004)Thailand;

AsianDevelopment
July2001

\atenuj, Sunantha;"Povertyand Inequalityduring Crisis Period in Thailand";World

Bank,undated

PJapongsakom,
N. et. al.; "The Processof FormulatingPovertyReductionStategiesin
Thailand';ThailandDevelopment Research
Institute,2000

Racelis,Mary and M. Guevara;"Socio-CulturalFactorsAJrectingPovertyand Pov€rty

Reductionih Asia;AsianDevelopmentBank,October2001

The NationalStatisticalOflice; "CountryPaperon Pov€rtyMeasurcmentin Thailand";

Paper preparedfor the Seminaron Poveny Statistics,Economic and Social
Commission for Asiaandthe Pacificin Bangkok,Thailand;June1999

Lnired Nations DevelopmentProgrammes;"A Glance at Poverty in Thailand,';

http://w\wvurldp.or.th/focu
sarea"/Dovert
v/sIancepovthalbtnt
a5untryReport3:Povertyin Thailand 1l

Annex:Tables
Table3. AveragePovertyLine ofThailand
Unit: Baht
Years
1988 473
1990 522
1992 600
t994 636
1996 737
1998 878
1999 886
OfEccofThailand;(Natenuj.undated)
Survey,NationalSlatisucal
Sourcc:Socio-Economic

able4. lncldenceln lhalland(ln oercent

Yeals Municipal Sanitary Rural Areas Whole
Areas Districts Kinedom
l98l I3.5 27.3 23.0
r986 5.9 18.6 25.8 29.5
1988 8.0 2t.8 40.3
1990 6.9 t8.2 33.8 2'7.2
1992 3.6 t2.7 29.'/ 23.2
t994 9.6 2t.2 16.3
1996 1.6 5.8 149 114
'1.5 173
1998 1.4 t3.0
1999 l3 8.8 21.5 15.9
\.rtce: Socio-l;ronontic Sun,ey,National StatisticalOltrceolThoiland: (Natenuj, ndated)

Table5. Per of Poorbv Areas

Municioal Areas
1988
1990
1992
t994
1996
r998
1999
S'urte. Sacio L"co omic Sufley, National StatisticalOllice oJThailand; NatenuJ, utldated)
l.
F Table6. of Yer ( aDltaHr)useholdIncome

F
Period Gini Qrintile Quintile Quintile Quintile Quintile
i|ld€x I 4 5
1988 48.5 4.6 8.I 12.5 20.7 54.2

t 1990
t992
1994
52.4
53.6
52.7
3.9
4.0
7.3
7.0
7.2
I 1.5
l1.l
11.6
19.2
19.0
19.9
57.8
59.0

r|
56.7
r996 51.5 7.5 I 1.8 19.9 56.7
1998 5 1 .I 4.2 7.6 11 . 9 19.8 56.5
1999 5ll 3.8 7.1. ll.l 19.3 )6)

I source s^GLcononr sunev.uanon@a1

I Table7. ofPoor Re

r|
r|
I Source:socio-F,conomicSuney,Nitiino-Sn*ncar o.fThaiIand; (Narenuj.undated)

t Table8, Percentage
Household's
of UltraPool Marginalpoor,Nearpoor andNon-poor
Accessto VariousSocialWelfareprogramsprovidedby the Government

t t999

low
Sociol
Wdfare
income
medicalca-rd
Ultra Poor Mrrginal

1.6
Poor
1.3
NearPoor Non Poor

1.3 ia
Atl
Households
9.9
Health 3.8 2.7 6.5 2l.7 34.7
insurancecard
SocialPension 0.2 0.4 0.4 2.2 3.2
for Elderlv
Govemment 0.2 0.1 o.2 1.9 2.3
Scholarship
Solttce: Socio-Econonic Suney, Na@
Vietnam
I
I Povertyin Vietnam
JOHANNAZULUETA

1. lntroduction
Iiris paperis part of a studyof povertyreductioninitiativesby govemmentandNGOSin eight
{SEAN countries,namely:Philippines,Indonesia,Cambodia,Vietnam,Burma, Lao PDR
iirailand,andEastTimor. The studyaims10presenta comprehensive view ofpove.ty situation
:itd the responses
to poverty by differentsectorsin the eightcountries.Also, it ajmsto comeup
'iiih recommendations to development NGOs regardingareasof interventions or collaboration
:rrb their.espectivegovernments towardspovertyreduction.The studymainlyusedsecondary
!:a (witten documents, books,andintemet)

l-:is paper focuseson Vietnam.It is divided into six parts. The first part presentsthe
:.i:oduction. The secondpart describes the demographicprofile of and poverty situationin
'. nam The the maincausesof poverty. The fourthfeatu.esthe responseg
: third discusses to
:c\eny by the govemment,intemationaland local NGOs, includingintemationaldonors,and
::e church. The fifth presentsan assessment by som€ institutionsand analystson the
r.r.risectoralresponses,particularlythe government's,to poverty. The sixth part presentsthe
.;mmaryandconclusion.

2. Profile
2.1 Geographyand Demography
::. SociaiistRepublicof Vietnam,capitalHanoi, is locatedil Southeast Asia, borderingthe
3:f of Thaiiand,Gulf of Tonkin, and South China Se4 alongsideChina, Lao PD\ and
--:jrbodia lts total areais 329,560km2, with its land arcaat 325,360km?. Vietnam is
:;rlosed of low, flat deltain the southand north andhilly, mountainous
areasin the far north
::. :lorthwestregionsof the country. An agriculturaleconomy,the country'sexportsare fice,
:'::ee. te4 rubber,crudeoil, garments,andseaproducts.

i...ent estimates pegthepopulationof Vietnamat 79,939,014, with a g.oMh rat€of 1.45%.The

:,:,=rry''sbirth tute rs 2123, while its deathrale,6.22 pet 1,000population. Vietnamhas a
:,-rg population,with halfofits populationbeingchildren.
-.-e'ram's
ethniccompositionis primarilyVietnamese(about90%). Fifty-three(53) minority
a::'jps accountfor the remainder:
Hoa, Tay, Thai,Hmong,Khmer,Nung,Muong,Cham,and
r-s nountaingrcups.Chinese comprise1.87o.

world -- 96.570for males

.- :ountryhasoneofthe highestadultliteracyratesin the developing
![c tl 29lofor females.Households
with well-educated headsarebefterableto takeadvantage
:f i-remam'seconomicboomthanhouseholds whoseheadshavelittle or no education.Urban
r| CountryReports:
novenyin Vietnaln

I households and householdsheadedby someoneof white_collaroccupation

significantly
have benefit€d
from the country'seconomtcgrofih.
I Vietnam'sofficial languageis Vietnamese.Otherlanguages
dialects,
spokenareFrencl;variousChinese
Khmer,andothertribal andmountainareali=ngu:ages.
I asa secondlanguage.
fngtish ls increasingty
favourea

Amongthereligionspresentin thecountry_are
Mahayana
I Buddhism,Theravada
Hao, Cao Dai, Istam, Hinduism, and Christianity(p*d..il;il;"R;;;
Protestant).
Buddhism,Hoa,
catholic, some

I Table1.
Totallandarea 325,360
km

t
PopuJation
79.939.014
CsDital
Eaonom
\larn exports
Rice.coffee.tea.rubber.seaprodrras,cn de
\lirrf
\l3ror Rcligions
Mahayana Buddhism.-tenvada
Buddhism,Hoa,Hao,CaoDai, Islam,
Hinduism,andChristianitv

2.2 Poverty Situation

a:1"iT:!,1 remainsasoneofthe world,spoorestnations.
With a Gini coefficrentof.35, it has
:-<ed It0- countries(1998). Latest statistics
9y! -of 174 ,f,"rll ti"i i#'""""r.y,s cNP per
=--]a is US $370 whiie its GDp Dercapitais US$ 400. ffrny-r"re""per"e"t
(j7 %) of jts
:E:cle li'e belowthe povertyline. Ninetypercent(90olo) ofthe poor live in ruralareasandare
:r..:i: nantlyfarmers.Majorityofthesepeoplebelongto ethnici.orp,

- -:-'r povertyis alsoprevarent

in vietnam- It is not, howevgr,so pervasive
li:i ci tlte poorin theseareasarenew migrants, asrn the rurarareas.
usuailyunregistered, un"rpfoy"a, or haveno
rriejobs Theyhavedifficultyaccessing basiciocial service""
i:e ilco of childrenare malnourished,-
l4oZof whom suffer from severemalnut tion. Life
1rc-r.cv rs about67 yearsfor malesand72 yearsfor females.

llr-=c. i 5^millionyoung peopleare addedto the labour

force per year.25 million people,
errc-.e for 60%of thelabourforce,areunemployed or underemoloved.
 CountryReports:Povertyin VietnEm

Table2: Socioeconomic Indicatorsof

GDPpercapita us $400(2000)
GNP per capita us $370(1999)
GINI coeflicient .35(1998)
Humandevelopment index(HDI) I I 0"' out of I 74 countries
Povertyincidence 37% (1998)
Rural 45yo
Urban 9Yo
Annual growth .ate | 45o/o(2001)
Life expectarcyat birth 69.56years(2001)
Male 67.12years
Female 12.19yearc
Adult literacy mte 93.'7%(1995)
Male 96.5yo
Female 9l.2%
Infantmoflalityrate(perl,0OO
Iivebinns, 30.24(2OOt\
Unemployment rate 7A%(reee)
6.syo(2000)

3. Determinantsand Causesof Poverty

A numberof factorscausepovertyin Vietnam.Theseinclude:unevendistributionofeconomic
groMh, minimalgovernm€ntbudgetfor basicsocialservices,largefamiliesin rural areaswith
few gainfully employedmembers,unfavourableclimatic conditions,l960,s Vietnam war,
economictransition,andAsianeconomiccrisis.

I 3.1 Unevendistribution of economicgrowth.

Uneven_distribution ofeconomicgrowth in which grov,this mainlyconcentrated in urbanareas,

I hasmadepovertyin the countryas a largelyrural phenomenoqwith 45% of rural population

Jivingbelowthe povenyiine. Povertyincidencein urbanareaswasreducedto lessthar loz in
1998. Therewasalsoan increasein educational enrolmentfor both boysandgirls. Accessto

I inflastructurealsoincreased aswell asownershipofconsumervariables.However,armost40oz

ofthe populationstill lived belowthe povertyline in 199g. Hence,rural povertyalJeviation
left behindand the ruralpoor'saccess to basicservices,
is
suchaseducationandhealth is still not

I readilyavailable.The gap betweenthe rich and poor remainslargq with the gap betweenthe
poorestand.ichestquintilesincreasingfrom 7.3 timesin 1996to 8.9 timesin 1999. There
alsoa big discrepancy in living standardsbetweenruralandurbanareas.
is

Il 3.2 lvlinimolgovernmentbudget on basic services

r| G-overnmentspendingon basicserviceswas a mere9.5% of total govemmentexpenditures

1997,up from 6.1% in 1980@acelisand Guevar420Ol). The Vietnamese
in
govemm€nrspent

r| around12-14%ofits totalbudgetfor socialprotectiondu.ingthe yearsl99o,ld97

r|
 I Corhtry Rcports: Poverty in Vietnam

3.3 Ldrge families with few employedmembers

Poorhouseholdsin rural areashavelarge numberof children but with a few gainfully employed
members.Few, or none at all, non-farm employmentare available. Thus, more memberswere
dependentratherthan productive.

3.4 Lackof dccessto ldnd and basic social sewices

Thepoor havelittle or no land; they lack accessto cultivat€dland. They lack savingsand access
to credit, techtology, basic services(e.g., health and education),material resources,and other
physicaland social infrastructures (e.g., informationand markets). Also, genderinequality
existsdamongthem.

3.5 Severeclimatic conditions

Peopleliving in the oentralregionexperienceseyer€naturalcalamities,suchas tlphoons and
floods,accounting lor theirimpoverished
situation.

3,6 Vietnamwor, economictransitiondnd Asiancrisis

Th€ long-termefects of the war (1960'sVietnamWar) continueto contributeto the poverty
situation
in thecountry.Vietnam's transition
froma command economyto a marketeconomy is
alsoseenasoneofthe causes of poverty.Withthetransition,
statesubsidiesfor publicweliare
havebeenreduced.

The 1997 Asian crisis createdan economicslowdowr! causingunemployment and

underemployment, hencethelossof income.Unemployment hascausedthenominalincomes of
householdsto d€crease,
hence thedeoease in thepurchasing
powerofbothdomestic consumers
andforeignmarkets. With this hascomethe stagnationof agdculturalproductsand a large
percentage
lostto agdculture.

4. Responses
TowardsPovertyReduction
4.1 Government
4.1.1 Doi Moi Policies(Reformation and Renovation)

I Povertyreductionhasbeenthe centralgoalofthe vietnamese govemmentsincethe reunification

of North and South Vietnam in 1976. The gover nent believes that economic growh is
fundamentallyneededto increaseincome for everybodyand that it plays ar important role in
I eradicatinghunger and poverty. The number of poor people increaseswith a stagnantand
unstableecoflomy, hence maifiaining a high rate of economicgrowth is the key to poverty
reduction.
I
I
Co.r|try Reports: Poverty in Vietnam

With the implementation

ofthe couqtry's"doi moi" policies(reformationandrenovation),aimed
at transformingthe economyfrom a centrallyplannedto a market-based economyin 1986,
povertywasreducedfrom 70% in the mid-1980sto around500/0 irr 1992. ln 1998,povertyaiso
declinedto 37Yofrom 58%oin 1993. Povertyreductionduringthis time, howevel resultedfrom
stfong economicgro*th rather thaa improved distribution(Racelis and Guevar4 2001).
Economicgrowth wasunevenlydistributed,hencepovertyis mainly concentratedin rural areas.

Nevertheless,Vietoam'spolicy of"doi moi" (renovation)in the 1980's$adually lifted farmers

out of pov€rty. Under this policy, the gover nent replacedcollectivefarms by a systemin
which land is allocatedto individualhouseholds.lt legalis€dprivateeconomicaativity and
removedcontrol on prices.Also, it legalisedForeignDirect Investments and eliminatedtrade
During
barriers. this period,
Vietnambecamethe world'ssecondIargestriceexponer.

In 199l-2000,Vietnam'saverageannualgrowth ftte was 7.5yo.the country experienceda

considerableincreasein living standards. Vietnam becameself-sufficientin food and
transformedinto a major food expo.ter. The country'stotal investment,including foreign
alsorcseduringthisperiod.
investm€nt,

Figure l: IncidenceofPovertvin 1993and 1998

Owftll lorsty

tr19!3 6tSS8

Source:Socio-EconomicDeveloDmena
CenEewcbsite

Figure2: PovertyRatesAccofdingto MOLISA* Assessment

* Mnistry oflabour, Ilvalids, and SocialAiahs

GE*ry Reportsi Poverty in Vietnem

Sr.!: SocicEconomic Centsewebsite

Development
1-l-2 NationalTarget Programmefor Hunger Erodication and Poverty Reduction
(TEPR)

,4.majorgovemmentprogrammeresponseto alleviatepoverty was-theHEPR! a consolidationof

rhe vdious government prognmmes to addressthe problem of poverty in Vietnam This
ptogrunme intendedto provide an integratedpolicy and planning fiamework and coordinate
ifr'Jns acrossdifferentsictorsand minist es. The prograrnme alsoaimedto eliminateckonic
hungerandreducsthe percentage ofpoor households in the aountryto 10%by the year2000

Tle followingweresomeofthe HEPR-smainaxes:

l. Investmentin basicinfrastructure
2. Provisionofcredit for poorhouseholds
3. Readjustment of landdistribution
4. Provisionofhealthservicesfor the poor
5. Expansion of vocationaltraining
6. Assistancefor ethnicgroups
7. Fundraisingfor povertyalleviationprcgrammes

Underthisprogramme,th€ govemmentwasableto implementmorethan4,000projectsin 1,870

communities.The amountof creditallocatedfor the poorhasbeenincreasing ln
disadvantaged
1996,theBankofthe Poorwasalsoestablishedto provideconcessional creditfor the poor.

4.1.3 SocialfuotectionProgrammes

Thegovemment alsodeveloped formalsocialproteotionprogrammesfor the poor' Theseconsist

of thi Social GuaranteeFund for Regular Relief and the ContingencyFund for pre-Harvest
StarvationandDisaster. However,the benefitsof the Fund for RegularRelief reachedonly a
24 percentof orphans,15 percentofdisabled,
minorityofthose qualifiedto receiveassistance:
and46 percentofsolitaryelderly(RacelisandGuevara,2001)

4.1.4 Policy of creating opportunities for the poor

Anotherpolicy responseby the govemmentis to createopponunitiesfor the poor and support

throughthe following;
thesepeopleaswell. This creationofopportunitiesis manifested

1. Increasingaccess to basicservices,suchashealthandeducalion,
2. Developinginfrastructure, both physicalandsocial;
3. Increasingproductivityin agriculturc;
4. Inqeasingthe incomeofthe poorin urbanareasthroughjobcreation;
5. Protectingtheenvironment;
6. Stengtheningthe abitity of the poor to accesscredit tkough programmes'such as
microfinancing;
7. Raisingthe living standards ofthe minorities;
8. Developiog safety netsfor th€ poor andvictims ofnatuml disasters.
9. Developingthe eaonomy;
 CountryRepofts:
Povertyin Vietnam

10.Ensuringsocialjustice;

E 11.Encouraging

4.1.5 GO-Donor-NGO
family andpopulationplanning,and
12. Encouraging
foreigndirectinvestment

Poverty WorkirE Group

or FDL

A joint govemment-donor-NGo Pove.tyWorking Group was createdin 1999to undertakea

comprehensive analysisof poverty issues. The goup produceda rcport enti ed Vietuam:
Attacki g Pover\t, combininganalysisof quantitativedatafrom the Vietnamliving standards
surveysand qualitativedata fiom four (4) panicipatorypoverty assessmentsfor an in-depth
analysisofthe povertysituatiooin Vietnam.

Thereportlaysout a three-pronged
approach
to attackingpoverty(LrNdata):

L Createopportunitiesfor employmentand producinggrowth through promoting

broad-basedgrowth and economic opportunities,and by investing in human
development andphysicalinfrastruature
2. Ensureequity through increasingpeople(especiallythe poor) empowermentand
participation
3. Reducethe rulnerability of the poor to unforeseenevents(e.g. sickness,poor
harvests)
throughthe strengthening
andsupportingofformal andinformalsafetynets

4.1,6 ComqehensivePoverty ReductionStrategy (CqRS)

The govemmentalso developedthe CPRS,servingas a documentthat effectivelyincorporates

poverty reduction efforts between sectorsacrosstho country, and that guid€s, enforc;s, and
monitorstheactivities,involv€ment,andperformance ofall developedpartGs.

The following arc maoro mechanisms

and policies,promotingeconomicgrowh and create
resourcesfor povertyalleviation:

r| 1) Createa fai. andcompetitivebusiness

2) Maintainmacroeconomic
environm€nt
stabilitythough improvingtradeandfiscalpolicies
3) Mobiliseand use effrcientlyresources for the poor throughincreasinginvestmentfrom

I statebudgetfor socialdevelopment
4) Administrative reform

I (Thetablesat the amex outlineth€ policiesto be implemented

years2001-2003.The tablesgive a comprehensive
in the2000IPRSPwith regardto the macromechanisms
by the governmentdu.ingthe
outlineofpolicies andmeasures
mentionedabove).
mentioned

I 4.1.7 Nationol Employment Generationprogromme (NEGp)

I The NEGP includ€semploymentpromotioncentres,vocationaltraining,careeradvising,and

trainingcentres.On the average,
jobs for 1.2to 1.3million peoplearecreatedperyear.(lpRsp,

I
I
_-.!fc-r Reports:Povertyin Vietnam

l:'-'- I:e private,collective,a.ndcoope.ative

economicsectorsabsorbabout9070ofthese new
qr: -.r::.:. intothe labourforce.

' ' a astablishment

of microfinancinginstitutions

:,:.r- De!elopment Resea.ch Centre reports that the govemmeht established several
1_r: :::1rce institutions. Theseare as follows:

. \'ietnameseBank of the Poor (VBP) set up in January1996by the communist

sovernment to eliminatehungerandalleviatepoverty
: \'ietnamese Bankof Agriculture(\BA)
-i PeopleCreditFund(PCF)- is underthe directmanagement ofthe CentralBank.The
projectis fundedby ADB andCIDA with technicalassistance
liom SDID Desjardin
As of September1998, there were 983 casesserving625,000clients and with
consolidated assetsofUS$ 128million.
I \ticrofinanceResource Centre(MRC).

1.2 NGOSand Other Sectors

: . i:riei! in Vietnamis makingits presence felt in key cities,suchasHanoiandHo Chi Minh.

\',!:: :: oi organisations,
suchas intemationalresourceagenciesor donororganisations and
.:,:-Lr:: irtemationalNGOsand massorganisations, in
civil society Vietnamis involvedin a
r_r-i ::::e ofcommunitydevelopment effortseitherwith the government or independent
of it.

-:r:-:;::,.ial \GOs startedto emergeafterthe 1986"doi moi" policy. In 1992,atotai of 110

-::!.:r--:. agencies,mostly Westem,were listed as operatingin Vietnam. Majority of these
i::_:-.:::-.rioiked along children,health,and educationissues. Only a few of theseagencies
,<r--:s: !:iroaericulture andruraldevelopment.At present,over200intemational NGOs arein
, €;:-- ::10stl!in ruralareas.

i ' i:::er1. morespecificallylocal NGOsand massorganisations, are recognizedas making

:,:s: .: .arrriburionsto tlle taskofpoverty alleviation.With its goal ofhungereradicationand
:.:..:i:_' ile\iaIion, the govemmentposturesan open attitudetowardsthe NGOS. In some
:s-i::es so\emmentinstitutionssupportthe work of NGOs throughthe mobilisationand
:E t:_.; r::r i own personnel andmaterialresources for dev€lopment initiatives.
-:r.
::. also NGOs and NPOs registeredunder a governmentagency. They are loosely
:ct::::; andseldomget financialsupportfrom govemment.Many ofthe NGOSin Vietnam
!=: :s:--rlishedby universitiesand researchinstitutes. Theseare, however,quasi-Ncos
L.* .:.rJ Guevara,2001)becausedespitestronglinks with the governmentand familiarity
cc =e -::er's policies,theyoftenhaveweaknetworksat the grassroots
level.

:.;rlE:::'e.is civil societyimplementedin variouspartsofthe countryare informal social

rr're---:r- \..hemes(microfinancing).
Farm€rs.otherinterestgroups,or evenwholgcommunities
€ .c '-:e:e financingschemes Under this scheme,membersmaLeregularcontributionsand
r :r:E: :o ge! insurance benefitsduringemergenciesandold age.
 -- --
Cdlr n gdts: Po\rerty ln Vietnam

5. (Basedon the Assessment

Critique/Assessment on the
2mo IPRSP)
Despite\-etnam's ongoingpoverty situatiorLthe govemmenthas had significant achievements
in poverty reductionover the pastyearsand hasbeenregardedby the intemationalcommunity to
be adotrg the countries with strong performarce in poverty reduction. (Ioterim poverty
RedrctionStrategyPapei,2000). Vietnamhasbeensuccessful in implementingpoliciesthat
give p.iority to agriculturaland rural development,contdbutingto hunge.eradicationand
po\ertyreduction,incomegrofih, andthe improvement of living standardsin rural areas. Also,
ii has adoptedvarious mechanismsto create jobs and opportunitieswith help from th€
qolemfl ent and community.

Tb€perc€ntage ofhungryandpoorhouseholds in Vietnamdeclinedfrom nearly30oZin the early

l99)s to zoyo in 1995, and to an estimatedll% in the year 2000. The percentageof
coftmunitiesthathasno or little basicinfrastructurehasbeendeclining.

h Lie 1990s,growthwasdrivenby the rulal sector,whereagriculturalland,literateandhealthy

lahlr were relativelyand evenlydistdbuted. Thus,growth was accompanied by remarkable
.Eduoionsin poverty. Growthwould have beenmorc favourableif policiespromotedmore
hbNr-using industrialgrouth. Meanwhile,structuralreformsintendedto promoteemployment,
erpons, and broad-basedeconomic groMh were set out in the Interim povertv Reduction
So-aegyPaper(IPRSP)for the year2000.

However,the PRSPdid not ad€quately describethe analyicalwork andconsensusbuildingthat

6e govemmenthas carriedout fof designinga socialsafetynet for workersin state-owned
derprises that may be adverselyaflectedby structuralreforms. It wouldbe importantifthe
PRJPwouldpromoteequityandrecognisesomeprovincesandvulnerable groups.Remoteareas
i ne country may not benefit from faster employment creation, expect€dfrom the reform
po3ramme, as what happenedin the 1990s Hence, there is a need for regular and accurate
po\erty monitoringthat can identify emerginginequalityand higl ight the importanceof
oees:resappropriate the povenyissuein theseremoteareas.
to address

so{,]rd sectoral strategies,promoting the delivery of high quality seftices to the poor rural
lo.cmunitiesmoreequitably,wouldbe crucialfor povertyreduction.Therefore, the gov€mment
orgirt to pursuegovemanceand administrativereform to ensuresuccessofits Dovefi reduction
gB-s

TbePRSPshouldlikewiseconsiderthe needto tackleissues,suchas alienationAom decision-

ralitrg processes,the lack of meaningfuldialogue betweenlocal authoritiesand poor
iGlunities, and accessto legal systemfor the poor, as thesearc centralto the govemment's
@. of promotinggrassroots democracy.

kriermore, the proposalto develop local ethnic minority developmentplans should be

&rated in the PRSP. Expedencein Vietnam and elsewheresuggeststhat strongcommunity
Flicipation in the design,implementation, ard monitoringof theseplans are importantin
r5eling relevant,realistic,andefective development
Dlans.
CountryReports:Povertyin Vietnam 10

Genderissuesard attemptsto addresssuch issuesare seenin th€ PRSP. However, the PRSP
shouldemphasise the importanceofwomen participationin particularactivities. It shouldalso
usemorc recentanalltical work on the situationof womenin the country.

Summingup, the main critiques on the govemment'spolicy agendaon poverty reduction focus
on the needfo. structuralrcfo.ms, es well as the needto promoteequity in the distribution of
resourcesa.nd,/or
opportunitiesto wlnerable goups. The needto addressinequality, panicularly
genderand ethric issues,are also essentialto achievethe full poverty reduction strategy the
goverrunenthaslaid out.

6. Summaryand Conclusion
6,1 Summary
The SocialistRepublicof Vianam bordersthe Gulf of Thailand,Gulf of Tonki4 and South
ChinaSea,alongsideChina,Laos,and Cambodia.With Hanoi as its capital,the republichasa
totallandaxeaof325,360km'. An agriculturaleconomy,the country'sexpois arerice, coffee,
tea,rubbel crudeoil, garments,
andseaproducts.

Lateststatisticsshow that Vietnam has a total populationof '79,939,014,half of whom are

children. Around 90% of the total populationare Vietnamese. The colntry has one of the
highestadultliteraayratesin the dev€lopingworld,with 96.5%for malesand91.2olofor females.

Vietnam'sofficial languageis Vietnamese.Englishis considered

as a secondlanguage.Among
the religionspresentin the countryare MahayanaBuddhism,TheravadaBuddhism,Hoa" Hao,
CaoDai,Islam,Hinduism,andChistianity.

With a GINI coefficientof .35,the countryhasrar*ed I lorhout of 174countries.Its GNp per

capitais US$ 370while its GDP per capitais US$ 400. Thirty-seyen (37 %) of its peoplelive
below the povefty line. Ninety percent (90olo)of the poor live in rural areas and are
pfedominantlyfarmers. Majority of thesepeoplebelongto ethnicgroups.

Some52% of childrel are malnourished, 14% ofwhom sufferfrom severemalnutrition.Life

expectancy is about67 yearsfor malesMd 72 yearcfor females. Aiound 1.5 million young
peopleare addedto the labour force per year. Twenty-fiv€ (25) million people,accountingfo.
60%ofthe labourforce,areunemployed or underemployed.

Factorsthat determinepoverty in the country include: unevendistribution of economicgrowth,

minimal govemmentbudget fof basic social services,large families in rural areaswith few
gainfullyemployedmembers, unfavourable climaticconditions,1960'sVietnamwar, economic
transition,andAsianeconomiccrisis.

Amongthe govemment'srespons€stowardspovertyreductionare:the impl€mentationofthe doi

rnoi (Reformationand Renovation)policies and a policy to createopportunitiesfor the poor;
creationof a GO-Donor-NGOPoverty Working Group; implemenlationof p.ogrammes,suchas
 .d.t Raports:Poverty in Vietnam

ft liaiooal Target P.ogamme for Hunger Endication and Poverty Reduction (HEPR),
Cqrehensive Pove.tyReductionStrategy(CPRS),SocialProtectionProgrammes, National
E4lotment Generation Progamme; ofmicrofinancinginstitutions.
andthe establishment

Cn:l society,composed of NGOSand othersectors,alsoplaysa crucialin povertyalleviation.

-ftq
maketheirpresencefelt in key cities,suchas Hanoi and Ho Chi Minh. Civil societyis
;rrolred in a widerangeofcommunitydevelopment effons.

The government recognisesthe valueof NGOs in povertyalleviation. It supportsNGO works

ri:rougl the mobilisationand tapping of its own personneland material .esou.cesfor
:€1elopmentinitiatives.

Someprojectscivil societyimplementsin various pans of the country are informal social

lrorection schemes (microfinancing). Farmers, other illterest groups, or gven whole
,-ommunities set up thesefinancingschemes.Under theseschemes,membersmake regular
andcan€xpectto get insurance
conrributions benefitsin timesofemergenciesandold age.

Tle maincritiqueson the govemment'spolicy agendaon povertyreductionfocuson the need

tbr structuralreforms;the need for equitabledistributionof resources;and the need for

I to wlnerable groups. The needto addressinequality,panicularlygenderand

opportunities
to achievethe full poverfyreductionstrategythe governmenthas
erhnicissues,is alsoessential
iaidout.

I 6.2 Conclusion

tt , Vietnam'seconomicgro*th in the past years has alleviatedthe country's poverty

situationandin fact,it is oneofthe countriesin Asiathat hassuccessfully
issue.Nevertheless,
uneveneconomic
access
povertystill pervades
groMh unequalaccess
to basicservicesandresources
to resourcesof
ofthosein ruralarcas.
lack
addressed
in the country. This is mainlybecause
people. of capital
this
ofthe
and

I , Govemmentresponses to povertyfocuson moreequitableeconomicgroMh asrrell as

even distributionof resources.Among the govemmentagendaagainstpoverty are:
creation of jobs development of agiculture; and provision of credit systems and

r| ,
microfinancingschemes.

Civil societyandNGOs,intemationalalrdlocal,play a crucialpart in poverty.eduction.

t ,
Theycollaborate moreparticuladyin achievingshort-term
with govemment, goals.

An important factor, contributing to Vietnam's progress in hunger eradication and

t povertyreduction,is the supportthe countryreceivesfrom othercountries,intemational

a:rdNGOs through€xperiencesharing,and the provisionof technical
organisations,
andfunds.
assistance

t
r|
I
(-y R€ports: Poverty in Vietnam

, \ietram hasstill a longway to go to achievezerolevel poverty. Nevertheless,

its plans
od policiesstatedin the IPRSP,if successfullyimplemented,would pave way for
funhereconomicgrowthandcontinueddeclinein the povenyincidelcein the coumry.
 t
Annex:Tables
.E X: IEterim PovertyReductionStrategyPaper(IPRSP)PolicyMatrir 2001-2003

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 h't fapaaE: Povertyin Vietnam

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i . l r t , ! l f l c r t rl r r J L r L l , ! r , ( - . r l :
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L \ r r , r a i . , i r ' t ) i L l : r|tl r r i n r r\ r i r r l * 1 r nr , r l r t r , r r \ $ r l r | : r i ' r rr , 1

r : o i , r r , ' r r i \ i s : , 1! ' - ' ' ! n : !

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i ) \ ' r r l Lt . I l r , - 1 , . r { r r l , r ! i i , r ! r \ , T 1 i ' nL. I l ' i t l ; i '
:'l.r' r'u rit! rrlr{'r r"(,a r'r
l I r ' i \ l o . ! l l ( \ ; t l r f \ ! l ' r . r r r : r i i i r r i nr r r | l r j , ' t , i r . ( ' i \ { ' ! i , , r ( ! i i I
r r : i , a l r n . r h , , D i i , ] i r . i i , ) \ 1 1 1 f r ! r l , r : i . , n . , r J t . .J ! f r : 1 , , 1 . n 1 l tl l , i
I r L . r ' ; , s ! , , r s . l L : i : , r t\ . , ! ! : n i c I .
-i | . l i , : , ! l J t l 1 l r - t r ,, . ! ! r , . r r r l \ : , ' 1 ' r .| l . l ! l ' 1 . r ' t r i ! r l " ! r t l . t . l ! r . i ' 1 r r ! r ! 1 1 ,i l l l . , . r ' d r 1 1 , r , !
r" ri., .ll\ r'., 1.rr l. !.
r ' . ( l L ( l n r ! f l : r i1 ! ! f r x ' , L tl n i ' r t t ! ! r , { , l ! 1 d ' .
, 'n,f,!,1f (n ,ar rr, '.n,, Jrrl J!:r i \ 'ilIi:\ i\!.r ir ll!: l\li lr1\r1r'ri'irlI \rrl.,l
!r.,tiri.. S r , , i ! : i , , r r t ! r - n l r , . r , , , r l r Jr t f i . r r , . r e r l h 3 , .

It. sfrrrrnltxrltricsroirnprol.a(cr\{r4r.s{rr..\lirllr!r'rrt,rrrtl'!llcr.rtnn}.xrrl r1\lut.

. i u L ; i c , . r r r. r r , l . l i ' j . ' r r , t r , , I ( ! r t r ( . ! ! l r . . r i i l l r r ! , jI r t : l l r ; i ' r ^ f l t r r r r r r l r ! I i i r t l { i r . t t :lrirL;

n \ d . 1 . r . i , , ' : ' r i . . , 1 r , ,q' .. r , r '

Source:IPRSP2000. Worl(hank w€bsite

 in Vietnam

vi{-lnami lntrrirt} Po}cr|r_Iirdxrtion Slrdaegl Pnpsr

I'oli..r }l lrir l0$l-Z {L}
|iolici$.tnrl llr:lrnrs Lltr.irl$ lillrl":0al.l
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Lleul,lrnsn hr lifiirl,rLr '1,! t!:n6ji1,th'itr',il r!,\lLrri !, nn,.rn'r
lir.Frll irti ctlli i.nli!
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N 1 i . i r ,ql i : h r n i i a r r ' , I i i , I 1 i 1 r n ! r i l l , N f i r lt l - j . r l . , t ! ' ( n 1 r ' ! 1 i

i .!,ru$::r'lli firn,!nir (r1rir\ i,r lrlr l).n iI rl-ddirir:

t Jri\\urr $,ri rn,l.rrnJ li,l irli:$xr,1!r.nn(l rr$tiri, n{\.i,lr,

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{ |.rrrr thr n"}l.'\rna r.nii1iinr5 r,: tlnrlic rrl Dr.'rFhff\ .|. I l!1.,rh.^
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( t * r ( r , r 1 { { r e h ' l , c h j r l , ct : r ! " ! i , , r l a r I n ' : ' tinu . I ' r l \ n r r h l , x r r

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i&!{,t:!r!'a,uri i.!' L , r \ i r i , , l i r \ r r ! r r u , qs } | , i ! ! s I n c , N u r i l r r r r x l h l i l i r r , , t
. r'J . \r. tri,l,fn, in i ' n h n 1 r ! ( , I N i r rt r ) n , , r r d r r t l . r N r '
L ! i i r u d t r \ r r l , l i ^ !. l l l ( i { r ' r r r t r ! ! { t r x l t r \ ' , r \ i r r r n l s | l c r ! : . $ r r e r i ' { x l
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l r : ! r ' r . ) r (r ! , r a i * L . t r i r ] .a . l r I , ( r r ! : l | t | - J i r r r L , p : i r n r rr, 'ol r ] , 4 .$r n l l

l r r ! ' N r l n ! ! r l { ! , ! r x n r i i r ' f \ r r r L ! ' r , r r r r L r i r L ' , r ,t r ' r r \l a - , u l i r l t r r ,

! 1 1 1 r l h I 1 r i , , n r rN , r L r i : , ( r , i, r { \ t r I J r , ! ! , \ ( | t a , ? : \ l i a . r . l 1 . r n r t . r , : , i
t N , r ! i n r l l ' l l i L t t t n r i r i t l J l r r r l ( N r $ f r l r ' r h ! r : r1 , rr l l i ! n i r . l i ' r
( ( r ' 1 ' r n i r ( 1 1 '(rl , l t i h r ! r { ; t ! i t ! L + , .
l r n ' \ , i i 1 r \ ( i t , i ! n ! l \ t r i , ! " l L , l i r i rr l , l f r n r j i i r l \ 1 . rt l t l i i r n r i I
l , r u ' r + r . f r d i L : - l | i , f ' . I r l t 1 i ! . r \ f , 1 1 , !r' i , N l
lfiln1r.,hL la.i.F. turr.rr nr .:]cl a1{t! \.rir(" lk'iir]]Nf.i,,
1 ) , ) . \ r 1 l r , . i fi 1 ! \ r ! l $ l f . , n 1 l t . i r r ' : . d l r l i l . l \ r i , i n h : i r . r t i ! . \ .
lrt;r.r.! llE ri\ '-x ir!l;r11'rrtr!a:r\jtn: l,u'$run Lai:l !,'\!r:rirrnl

lrrri!"i'anr li.ilr rl'.lliy!r.',r liL.,,!ri!' irrrlfl;rr!n':'rs | +!cl.

I L l c c i ' r ( r , j i , , : i l r t , , i . :! , r 1 i r i n , j k i r l i . t n ' r ' h ' u { i r , 1 i . . r . : i r , - . . l , j r r
!,, lff r1r.,!!,{ri! ,lLlfl,trr+n i l1r.

FRSP 2000-Worldbank website

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