Changes in Provincial Poverty and Inequality in Post-ĐổI mớI Vietnam

Scott R. Sanders, Cornell University

In 1985, according to the World Bank, 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 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). However there is limited research at the provincial level. Using the Vietnamese Household Living Standards Surveys and spatial statistics, this research explores how Đổi mới polices have influences the changing patterns of provincial poverty and inequity.