JBICs Approach to Poverty Issue

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Title: JBICs Approach to Poverty Issue

1
JBICs Approach to Poverty Issue

2
Handbook on Social Dimensions
(1999)

3
Poverty Profile (Since 2001)

Available for 20 Countries, of which 15 Countries
are on JBIC web-site (Azerbaijan, Bangladesh,
Cambodia, Indonesia, Lao PDR, Macedonia,
Malaysia, Mongolia, Nepal, Peru, Philippines, Sri
Lanka, Thailand, Tunisia and Vietnam)
Compilation of Existing Data
Typical Items in Profile
(1) Statistical Data Poverty Line, Trends
of Poverty Incidence and
Inequality, Regional Disparities in
Poverty, Depth and Severity of
Poverty, Profiles of the Poor
(2) Government Policy and Actions for
Poverty Reduction Policy, Plans
and Programs for the Poor,Government
Departments Involved, Social
Safety Net Programs, Budget and
Expenditures for Social Services etc.
(3) Partnerships for Poverty Reduction
Donor Coordination, NGOs, CSOs

4
Example of Latest Study in Vietnam

Commanded to International Food Policy Research
Institute (IFPRI, Washington) in 2002
Objective is to study the patterns of income
diversifi-
cation and its contribution to poverty
reduction in the
North Mountain region where the poverty issue
is most critical in Vietnam.
The study is to be finalized soon. Some
preliminary results are as follows.
(1) GDP per capita at constant prices has
increased 7 per year over 1995-2000. Share of
crop and livestock production in total GDP has
fallen from 54 to 47 , whereas that of
industry and services has increased from 33 to
44 .

5
3. Example of Latest Study in Vietnam
(continued)

(2) The average area cultivated with crops per
household has declined slightly over 1993-1998 in
the North Mountain region. So, area expansion has
not contributed to per capita income growth which
was 157 in nominal terms and 68 in real
terms.
(3) Yield increases have been the largest
factor in the growth of the value of crop
production (example rice yields from 2.7
tons/ha in 1995 to 3.7 tons/ha in 2000). To a
lesser extent, price increases have also
contributed.
(4) Diversification from low-value crops to
high-value crops has made a significant
contribution to income growth, but its effect has
been less than yield increases.
(5) Diversification in economic activities,
namely the shift toward non-farm activities, has
been also observed.

6
3. Example of Latest Study in Vietnam
(continued)

Final Report is expected to clarify the following
points, based on (i) 2000-01 Vietnam Household
Living Standards Survey (ii) a qualitative
assessment using rapid rural appraisal in the
region and (iii) analysis by a social accounting
matrix (SAM).
(1) Describe the patterns of crop
diversification and non-farm activities at the
household level,
(2) Estimate the relative importance of
various sources of rural income growth in the
region Yield increases, crop price increases,
growth in livestock and aquaculture,
diversification into high-value crops and the
shift toward non-farm activities,
(3) Estimate the relative importance of income
diversification and other sources of income
growth in reducing rural poverty,

7
3. Example of Latest Study in Vietnam
(continued)

(4) Compare different types of income
diversification in terms of their multiplier
effects, inter-sectoral linkages and contribution
to poverty reduction,
(5) Examine the constraints that farmers in
the Northern Mountain region face in diversifying
into high-value commodities and non-farm
activities, and
(6) Identify policy options for facilitating
the process of diversification into high-value
commodities and non-farm activities.
Finally the study has been carried out in close
collaboration with the World Bank and Vietnamese
Government, the latter is expecting to take its
result into consideration in their project
formulation.
End