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The static and dynamic incidence of Vietnam's public safety net

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  • Van de Walle, Dominique

Abstract

How does Vietnam's public safety net affect outcomes for the poor? Although social welfare programs in Vietnam are centrally mandated, they are locally implemented according to local norms and local poverty standards and often rely heavily on local financing. The author examines the coverage, incidence, and horizontal equity of the programs that can be identified in the data from the Vietnam Living Standards Survey. She looks at the role of location in determining whether the poor are assisted nationally. And she explores dynamic incidence between 1993 and 1998 and the degree to which programs performed a safety net function. The author's analysis shows that coverage and payments to households are low and have had a negligible impact on poverty. In principle, better targeting could improve the impact of current outlays. The analysis also shows that the system was ineffective in protecting households that were vulnerable to shocks. Finally, the results suggest that although there is a greater concentration of poverty-related programs and greater household participation in poorer communes, the system spends more (absolutely and relatively) on the poor in richer communes.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2791.

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Date of creation: 28 Feb 2002
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Handle: RePEc:wbk:wbrwps:2791

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Keywords: Public Health Promotion; Environmental Economics&Policies; Health Economics&Finance; Services&Transfers to Poor; Labor Policies; Poverty Assessment; Safety Nets and Transfers; Rural Poverty Reduction; Services&Transfers to Poor; Environmental Economics&Policies;

References

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  1. Ravallion, Martin, 1999. "Are poorer states worse at targeting their poor?," Economics Letters, Elsevier, vol. 65(3), pages 373-377, December.
  2. Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
  3. Minot, Nicholas & Baulch, Bob, 2002. "The spatial distribution of poverty in Vietnam and the potential for targeting," Policy Research Working Paper Series 2829, The World Bank.
  4. Galasso, Emanuela & Ravallion, Martin, 2000. "Distributional outcomes of a decentralized welfare program," Policy Research Working Paper Series 2316, The World Bank.
  5. Conning, Jonathan & Kevane, Michael, 2002. "Community-Based Targeting Mechanisms for Social Safety Nets: A Critical Review," World Development, Elsevier, vol. 30(3), pages 375-394, March.
  6. Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, World Bank Group, vol. 13(2), pages 211-56, May.
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Citations

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Cited by:
  1. Nguyen Viet, Cuong, 2010. "The Impact of Social Security on Household Welfare: Evidence from a Transition Country," MPRA Paper 40777, University Library of Munich, Germany.
  2. Klump, R. & Prüfer, P., 2006. "Prioritizing Policies for Pro-Poor Growth: Applying Bayesian Model Averaging to Vietnam," Discussion Paper 2006-117, Tilburg University, Center for Economic Research.
  3. Abbott, Philip & Bentzen, Jeanet & Huong, Thi Lan & Tarp, Finn, 2007. "A Critical Review of Studies on the Social and Economic Impacts of Vietnam’s International Economic Integration," MPRA Paper 29789, University Library of Munich, Germany.
  4. Prüfer, P., 2008. "Model Uncertainty in Growth Empirics," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3130601, Tilburg University.
  5. van de Walle, Dominique, 2004. "Testing Vietnam's public safety net," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 661-679, December.
  6. Klump, Rainer & Prüfer, Patricia, 2005. "How to prioritise policies for poverty reduction: Applying Bayesian Model Averaging to Vietnam," Proceedings of the German Development Economics Conference, Kiel 2005 27, Verein für Socialpolitik, Research Committee Development Economics.
  7. Baulch, Bob & Truong Thi Kim Chuyen & Haughton, Dominique & Haughton, Jonathan, 2002. "Ethnic minority development in Vietnam : a socioeconomic perspective," Policy Research Working Paper Series 2836, The World Bank.
  8. Adam Szulc, 2009. "Checking The Efficiency of The Social Assistance System in Poland," Working Papers 43, Institute of Statistics and Demography, Warsaw School of Economics.

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