WB sheds light on socioeconomic development drivers of ethnic groups

At a launching workshop in Hanoi on May 21, the World Bank in Vietnam and the Committee for Ethnic Minority Affairs released their joint research report, titled “Drivers of socioeconomic development among ethnic minority groups in Vietnam.”

The study pointed out various other factors as well, including the endowment of productive assets, access to education and healthcare, use of traditional institutions and local governance, varied gender roles, perception of ethnicity and access to external support.

By shedding light on this intricate set of drivers behind the top- and bottom-performing ethnic groups, the study is expected to inform the ongoing revision of development policies and programs for ethnic minorities, which are estimated to account for 84% of the population remaining poor by 2020.

Minister-Chairman of the Committee for Ethnic Minority Affairs Do Van Chien praised the timely support from the World Bank and the Australian Government in sponsoring this study through the “Australia-World Bank Group Strategic Partnership in Vietnam – Phase 2” program.

“We find this research a valuable source of reference for our policy formulation process, especially as we are now working with the relevant ministries and provinces to draw up a master proposal on a comprehensive investment plan for socioeconomic development among the ethnic minorities, mountainous regions and the most challenged areas for the post-2020 period,” he said.

The poverty rate among Vietnamese ethnic minority groups was 23% in 2016, three times higher than the national average.

According to the study, the pathway out of poverty for top-performing ethnic groups, which in this case are the Muong and San Diu groups, depends partly on the strong connection between where they live and basic infrastructure and economic clusters.

These groups are generally subject to better access to and the endowment of resources, enabling them to diversify their livelihood strategies. In particular, these groups produce cash crops in addition to rice, actively seek employment in factories and find ways to interact with key stakeholders who determine resource allocation.

Another component of the study involves a policy-mapping exercise to assess the extent to which existing policies promote these drivers. The mapping results indicate that the current system places emphasis mainly on physical connectivity and access to public services as well as credit while leaving other areas untouched.

The study suggests a number of policy recommendations, including refocusing future ethnic minority development agendas and enhancing the existing policies and systems.

Future policies should focus on soft investment in production support and capacity development, access to the labor market and women’s economic empowerment, while addressing misperceptions and social stigmas.

Meanwhile, current systems should go beyond physical connectivity improvements toward strengthening market institutions and actors to support businesses in ethnic minority areas.

“From the study, we see tremendous opportunities to further advance the inclusion agenda by consciously adopting a differentiated approach toward development in ethnic minority areas,” said World Bank Country Director for Vietnam Ousmane Dione.

He added that Vietnam can count on the World Bank’s support in mainstreaming this agenda through investments in transport and infrastructure in rural and mountainous areas, agricultural diversification and support for National Targeted Programs.