Patterns of Persistent Poverty in Post- Doi MoiVietnam

Scott R. Sanders, Cornell University

In 1985, 75% of the Vietnamese population lived below the poverty level. In the late 1980’s the Vietnamese government, as part of its effort to combat persistent poverty and stimulate the economy, introduced Đổi mới (renovation) polices and reforms. These reforms led to rapid economic growth and reduced poverty levels in Vietnam to 20% in 2005 (Dollar, 2006). Recent studies show that while some areas reduced the poverty rates and benefited from new economic growth under Đổi mới, others continue to report high levels of persistent poverty (Minot and Baulch, 2004). This research examines the factors that account for interprovincial variance in poverty rates and reduction of poverty rates between 1999 and 2006. In particular, what role did ethnic diversity, migration and geospatial characteristics account for levels of persistent poverty and variation in poverty reduction between provinces.