In this research, we will examine how social security, especially pensions and social allowances, have played a role in reducing poverty for rural and ethnic minority elderly in Viet Nam, as well as provide further implications for promoting public policies on social security under expected aging population in coming decades. In addition to discussing changes in family structure in Viet Nam under urbanization and migration, using household surveys, we hope to present a detailed picture of providing old-age persons regarding their poverty prevention. We will also point out challenges and opportunities for Viet Nam to transform the current social security system to adapt with aging population. Introduction Across the globe, there is growing alarm over the well-being of old people living in rural and mountainous areas. Poverty, lack of basic health and social services and migration of young people to cities in search of jobs are endemic in rural areas, affecting millions of senior citizens in Vietnam. In comparison with more advanced countries in the region, old-age persons living in rural and mountainous areas are the majority in Vietnam. About 70 percent of the total old-age population are rural and mountainous residents. Old people in rural and mountainous Viet Nam are at high risk of marginalization. Migration patterns of working-age people have greatly weakened the once strong family ties in rural areas. In particular, in the central regions, less than one-thirds of old-age persons have an offspring living nearby. This geographic separation between the generations has reduced opportunities for old-age people to live with their children in what traditionally has been viewed as a stable home environment. Three to four-generation households are becoming history in rural and mountainous areas of Viet Nam. The old-age people are increasingly living alone, with their spouses, or with their grandchildren, which in turn show a great challenge to the longstanding pattern of family as the main source of support for old people in rural and mountainous areas. At the same time, the current social security system covers only one-fifths of old-age population, of which most are not poor and vulnerable to poverty. According to the draft of Social Protection Strategy 2011-2020 of Viet Nam, currently less than 5 percent of old-age citizens living in rural areas receive pensions; less than 20 percent of them are receiving social allowances, and few are getting long-term care programs. In some provinces, old people are living in extreme poverty conditions, and for them, even a small contribution from either their children or social fund can increase monetary security and emotional satisfaction. Under the strong impacts of urbanization and migration, old people in rural and mountainous Viet Nam have little options but to rely on family support at a time when family support cannot be taken for granted. Women are less likely to have financial resources and are especially vulnerable if they do not get support from their children. Instead of receiving support from their families, some old people in rural areas are called upon to use their meager resources to support their children or grandchildren. What can be done to prevent old-age people from being poor? Throughout the world, rural and mountainous old-age persons are vulnerable without family support and resources that allow them to live with dignity. As such, this problem can be addressed by, in addition to encouraging family responsibility, designing a comprehensive social security system. Such a system, presented in the form of income security and access to health services, will be a powerful tool to support old-age persons in rural areas and reduce the strain on families. Pensions and social allowances available will surely help old-age people to emerge out of poverty, giving them the means to provide for their basic necessities. In addition, high rate of accessibility to healthcare in rural communities and to long-term care services will also be instrumental in reducing vulnerability resulting from chronic illnesses associated with old age. Objectives In this research, we will examine how social security, especially pensions and social allowances, have played a role in reducing poverty for rural and ethnic minority elderly in Viet Nam, as well as provide further implications for promoting public policies on social security under expected aging population in coming decades. In addition to discussing changes in family structure in Viet Nam under urbanization and migration, using household surveys, we hope to present a detailed picture of providing old-age persons regarding their poverty prevention. We will also point out challenges and opportunities for Viet Nam to transform the current social security system to adapt with aging population. The research will focus on the following research questions: How poor and vulnerable are the rural and ethnic minority elderly in Viet Nam? How can cash transfers help to reduce their poverty incidence? What should be the modality of social security for the elderly in Viet Nam in the coming decades? Data The main aims of this research are to quantify the potential impacts on old-age poverty and the fiscal costs of expanding the cash transfer program to rural and ethnic minority elderly in Viet Nam. To pursue these research objectives, we will use the most recent Viet Nam Household Living Standard Survey from 2010 (namely, VHLSS 2010). This was one of the seven household surveys in Viet Nam conducted by the General Statistics Office (GSO) since 1992 under the World Bank’s Living Standard Measurement Surveys
Posted on: Fri, 06 Sep 2013 16:22:53 +0000