Social security for farmers in market economy conditions in Vietnam - 1


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Ministry of Education and Training

National Economics University

Social security for farmers in market economy conditions in Vietnam - 1

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Mai Ngoc Anh


SOCIAL SECURITY FOR FARMERS


IN THE MARKET ECONOMY CONDITIONS IN VIETNAM


Major: Economic Management

Code: 62.34.01.01


PhD thesis in economics


Scientific instructor:


Guide 1: Associate Professor, Dr. Mai Van Buu Guide 2: Dr. Nguyen Hai Huu


Hanoi, 2009


Commitment


I hereby declare that this is my own research work. The data and research results in the thesis are honest and have never been published in any other scientific work.


Thesis author


Mai Ngoc Anh


INDEX

COMMITMENT i

TABLE OF CONTENTS ii

LIST OF ABBREVIATIONS iii

LIST OF TABLES iv

LIST OF FIGURES

INTRODUCTION 1

CHAPTER I: THEORETICAL BASIS OF SOCIAL SECURITY SYSTEM FOR FARMERS IN THE CONDITIONS OF MARKET ECONOMY DEVELOPMENT 6

1.1. SOCIAL SECURITY FOR FARMERS IN MARKET ECONOMY CONDITIONS: NATURE AND ROLE 6

1.2. CONTENT, CONDITIONS FOR BUILDING AND COMPLETING THE SOCIAL SECURITY SYSTEM

ASSOCIATION FOR FARMERS IN MARKET ECONOMY CONDITIONS 23

1.3. EXPERIENCES OF SOME COUNTRIES IN BUILDING AND IMPROVING SOCIAL SECURITY SYSTEMS FOR FARMERS 47

CHAPTER 1 CONCLUSION 68

CHAPTER II: ASSESSMENT OF THE CURRENT STATE OF THE SOCIAL SECURITY SYSTEM FOR VIETNAMESE FARMERS 70

2.1. OVERVIEW OF THE DEVELOPMENT PROCESS OF THE SOCIAL SECURITY SYSTEM FOR THE COUNTRY

WITH VIETNAMESE FARMERS 70

2.2. ASSESSMENT OF THE DEVELOPMENT OF THE SOCIAL SECURITY SYSTEM FOR AGRICULTURE

VIETNAMESE PEOPLE TODAY 100

2.3. CAUSES OF LIMITATIONS OF SOCIAL SECURITY SYSTEM FOR FARMERS

VIETNAMESE PEOPLE TODAY 121

CHAPTER 2 CONCLUSION 134

CHAPTER III: ORIENTATIONS AND SOLUTIONS TO BUILD AND IMPROVE THE SOCIAL SECURITY SYSTEM FOR VIETNAMESE FARMERS IN THE COMING YEARS 135

3.1. CONTEXT OF SOCIO-ECONOMIC DEVELOPMENT AND ISSUES RAISED IN BUILDING AND IMPROVING THE SOCIAL SECURITY SYSTEM FOR VIETNAMESE FARMERS IN THE COMING YEARS 135

3.2. ORIENTATION FOR BUILDING AND PERFECTING THE SOCIAL SECURITY SYSTEM FOR THE EMPLOYEES

FOR VIETNAMESE FARMERS IN THE COMING YEARS 144

3.3. SOLUTIONS TO DEVELOP SOCIAL SECURITY SYSTEM FOR FARMERS

VIETNAM IN THE COMING YEARS 173

CHAPTER 3 CONCLUSION 187

CONCLUSION AND RECOMMENDATIONS 188

LIST OF AUTHOR'S WORKS 190

REFERENCES 191

APPENDIX 199

LIST OF ABBREVIATIONS

ADB: Asian Development Bank ASXH: Social Security

BHTN: Unemployment insurance

Health Insurance & Social Insurance: Health Insurance and Social Insurance

Health Insurance for the Poor: Compulsory Health Insurance for the Poor

LĐTBXH: Labor, War Invalids and Social Affairs

Agriculture and Rural Development: Agriculture and Rural Development

BTC: Ministry of Finance BYT: Ministry of Health

Federal Republic of Germany: Federal Republic of Germany GDR: Slavery

CNXH: Socialism CSHT: Infrastructure CXNT: Primitive commune

DNS: State-owned enterprises DVXHCB: Basic social services

Science and Technology: Science and Technology KTTT: Market Economy

MTQG: National target CNY: Chinese Yuan

State budget: State budget NS&VSMT: Clean water and environmental sanitation Publisher: Publishing House

PCT: Informal

PT Askes: Health insurance for civil servants, retired veterans and their relatives

PT Jamsostek: Social security for workers

PT Jasa Rahaja: Traffic Accident Insurance

PT Taspen: Social insurance for civil servants

TECHCĐ: Children in special circumstances TGBHYTTN: Number of participants

TGLVNT: Working time in rural areas

ESCAP: Economic and Social Commission for the Region TGĐX: Emergency Assistance

Asia - Pacific GDP: Gross Domestic Product HGĐ: Household

Cooperative: Cooperative

HSSV: Students ILO: International Labor Organization

IPP: Personal Insurance Program KCB: Medical examination and treatment

Industrial Park: Industrial Zone Export Processing Zone: Export Processing Zone

TGTX: Regular assistance TGXH: Social assistance TLHGN: Poverty reduction rate

TNND: Farmer income TNNND: Farmer household income WHO: World Health Organization

XĐGN: Hunger eradication and poverty reduction

UNDP: United Nations Development Programme Social Incentives: Social Incentives


LIST OF TABLES

Table 1.1: Distinguishing between social security and social security system 10

Table 1.2: Comparison of health insurance under social insurance and business health insurance 31

Table 1.3: Pension and old age insurance for German farmers 48

Table 1.4: Cost and funding levels of agricultural accident insurance 49

Table 1.5: ESCAP 66 social security system model

Table 2.1: Summary of voluntary health insurance participants 81

Table 2.2: Comparison of Nghe An farmers' social insurance with national voluntary social insurance in 2008 84

Table 2.3: Percentage of rural households with hygienic latrines by region (2005) 99

Table 2.4: Number and structure of rural households by region (2006) 103

Table 2.5: Average living expenses of farming households in 108

Table 2.6: Social insurance participation 2003-2005 in rural areas 111

Table 2.7: Number of primary school dropouts in Vietnam during 2003 – 2007 114

Table 2.8: Malnutrition rate and mortality rate of children under 1 year old in Vietnam (2004) 115

Table 2.9: Summary of revenue and expenditure of Vietnam's health insurance in the period 2000-2006 118

Table 2.10: Quantity and proportion of the State budget spent on social security programs for the region

rural areas in the period 2000 - 2007 (billion VND) 123

Table 2.11: Input prices of some essential goods for farmers' production 126

Table 2.12: Percentage of households outside the formal sector receiving financial support from domestic and foreign organizations and individuals 127

Table 2.13: Average income per person (2007) 128

Table 3.1: Contribution capacity and need for State support for foreign workers

formal sector when participating in social insurance 137

Table 3.2: SWOT matrix (strengths, weaknesses, opportunities, challenges) 138

Table 3.3: The ability of people to benefit from the social security system for

Farmers in the current market economy conditions in Vietnam 139

Table 3.4: Ability for people to actively participate in the farmer social security system 141

Table 3.5: Women participating in self-employment activities in agriculture 152

Table 3.6: Increased investment in labor and occupational change in rural areas

will create conditions to increase income for farming households 163

Table 3.7: Social welfare goals for farmers in the period 2011 - 2015 164

Table 3.8: Social security goals for farmers in the period 2015 - 2020 165

Table 3.9: State support level for implementing universal health insurance and expanding the voluntary social insurance coverage network to 40% of agricultural workers 176

Table 3.10: Forecast of state budget expenditure for purchasing health insurance cards for beneficiaries

passive participation in the health insurance and social insurance system 177

Table 3.11: Forecast of state budget expenditure for farmers eligible for assistance from the social security system in the period 2011-2020 179

Table 3.12: Estimated total cost of implementing social security for Vietnamese farmers

Men 2011 – 2020 period 180


LIST OF DRAWINGS


Figure 1.1: Social development and social security issues through stages 7

Figure 1.2: Life cycle and risks in human life 8

Figure 1.3: Using capital to deal with health shocks

human 9

Figure 1.4: Forms and systems of management of participation in the social security system

Association for farmers in market economy conditions 27

Figure 1.5: Poverty is the root cause of hunger 36

Figure 1.6. The relationship between poverty, unemployment, social exclusion and social security 36

Figure 2.1: Distribution of disabled people who are farmers living in 8 regions of Vietnam (2006) 88

Figure 2.2: Number of beneficiaries of regular subsidies (2000-2008) 89

Figure 2.3: Damage caused by storms, floods and droughts (2000 - 2007) 90

Figure 2.4: Resources to assist victims of natural disasters in the period 2000-2007 92

Figure 2.5: Vietnam's poverty reduction rate according to international poverty standards 94

Figure 2.6: Number and proportion of communes with general schools nationwide (2006) 95

Figure 2.7: Number of communes with health stations and private medical facilities nationwide (2006) 96

Figure 2.8: Number of communes with centralized domestic water supply works and implementing activities

Environmental sanitation campaign nationwide in 2006 98

Figure 2.9: Development of the public service system in rural Vietnam (2006) 102

Figure 2.10: Structure of rural labor shift from agriculture, forestry,

seafood to service 104

Figure 2.12: Average monthly income and expenditure of Vietnamese farmers in the period 1999 - 2007 106

Figure 2.13: Average value of agricultural, forestry and fishery output in the period 1992 - 2005 107

Figure 2.15: Percentage of poor people receiving compulsory health insurance cards in the period 2001 - 2006 109

Figure 2.17: Current status of community social assistance in the period 2000-2007 112

Figure 2.18: Poverty rate in Vietnam in the period 1998 - 2007 113

Figure 2.19: Poverty rate of Kinh and ethnic minority households in total poor households in Vietnam in the period 1992 - 2005 113


Figure 2.20: Percentage of outpatient visits with physician contact in rural areas

2002 115

Figure 2.21: Results of clean water supply for rural areas by region (2005) 116

Figure 2.22: Forms of participation in the social security system for farmers in

Vietnam 120

Figure 2.23: Workers' choices of lifestyle in old age (%) 121

Figure 2.24: Conditions for farmers to participate in the social security system

national security in general and social security for farmers in particular 124

Figure 2.25: Percentage of untrained workers in 8 regions of Vietnam in 2004 125

Figure 2.26: Percentage of villages with doctors 132

Figure 3.1: Social security model for Vietnamese farmers by author 146

Figure 3.2: Mechanisms and policies on voluntary health insurance and social insurance to mobilize farmers

Vietnamese people actively participate in the next 150 years

Figure 3.3: Model of orientation for building laws, mechanisms and policies to help farmers better integrate into the social security system for farmers in

Vietnam in the coming time 167

Figure 3.4: Job creation model to increase income, thereby encouraging farmers of working age to participate well in the social security system for

Farmer 169

Figure 3.5: Income generation model for people beyond working age in rural areas

can participate well in the social security system for farmers 171

Figure 3.6: Support for learning and future career orientation for children in the area

rural area 172

Figure 3.7: Improving the awareness of officials and farmers in implementing

Social security policy for Vietnamese farmers in the coming period 174

Figure 3.8: State budget expenditure for social security program for farmers 175

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