Thesis dissertation summary: Livelihoods improvement for ethinic minorities’ household in Lao Cai province, Vietnam

The study aims to assess current situation and analyze difficulties and factors affecting livelihoods of the ethnic minority households. Based on the study, solutions will be proposed to improve and ensure sustainable livelihoods for households of ethnic minorities in Lao Cai province.

VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE

Research results are published at

VIETNAM NATIONAL UNIVERSITY OF AGRICULTURE

Scientific Advisors: Assoc Prof Dr Nguyen Thi Minh Hien

1st reviewer: Asc Prof Dr Do Anh Tai

2nd reviewer: Asc Prof Dr Nguyen Phuong Le

3rd reviewer: Dr Nguyen Manh Hai

Dissertation will be presented under appraisement of the Scientific Assembly from Vietnam National University of Agriculture

at 2018

Dissertation could be found at:

1 National Library of Vietnam

2 Library of Vietnam National University of Agriculture

PART 1 INTRODUCTION

1.1 PROBLEM STATEMENT

Lao Cai is a mountainous area, sharing border with Yunan province of China There are 8 districts, 1 city, 164 communes, wards and towns The population is over 637 thousand people, which 25 different ethnic minority groups accounts for 64.1% The large area of agricultural, forestry land, many climate sub-regions together with rich natural mineral resource is a great potential for Lao Cai in the process of development of (Lao Cai Statistic Department, 2017)

Over the past few years, Lao Cai Province has received support from many projects funded by Vietnamese government, other agencies and NGOs Particularly from 2009 up to now, ODA donors and non-governmental organizations have invested a total capital of 154 million USD in Lao Cai for rural infrastructure development, urban infrastructure, economy development linked to sustainable poverty reduction, environmental protection and human resource development Together with international donor funded projects on poverty reduction, programs, projects using state budget such as NTP on NRD, Program 135, Program 30a, NTP

on fresh water and rural sanitation, National Program on education and training implemented in the province have brought positive changes The poverty rate decreased rapidly at average of 5% per year

In the process of international integration, expansion of border trade and along with the government's support policies, Lao Cai has had a strong development pace in recent years and achieved various significant successes in all aspects Economic growth for the period 2010 - 2015 reached an average rate of over 14% Rural infrastructure has been significantly improved The quality of education has been enhanced and enrollment ratio has been maintained Lao Cai People’s health care has been improved as well as the guarantee of social security In addition, public administration reform has achieved positive results The business environment of the province has been highly appreciated by enterprises

However, Lao Cai still faces many difficulties and challenges, such as unfavorable weather including natural disasters like hail, flash flood, and snow in the mountainous districts like Muong Khuong, Bac Ha, Si Ma Cai, Sa Pa and Bat Xat, which causes great damages to people and materials The poverty rate has declined, but it still remains high, especially among ethnic minority households The high poverty rate is still prevailing in some localities in the province, majorly in

6 districts such as Bac Ha (28.5%), Simacai (29.5%), Muong Khuong (31.3%), Sapa (25.3%), Van Ban (22.2%), and Bat Xat (21.6%) Most ethnic minority groups are involved in agricultural production They grow maize as their main food crop

and raise buffalo, cows, goats and pigs Few ethnic minority members are involved

in other activities (services, government, etc.) The livelihoods are not divers The production is mainly for self-sufficiency and lack of commodity products, so the income level of households is lower than non-ethnic minority households The poor

in these regions are struggling to raise their livelihood and living standards, accessing new technologies, credit, market, but particularly being vulnerable to natural disasters leads to fragile livelihood

Therefore, it is necessary to conduct a research in order to find solutions for livelihood improvement for the ethnic minority household in Lao Cai province, generalize solutions to Lao Cai province, as well as for the further northern part provinces of Vietnam, which has similar geographical and natural conditions

1.2 OBJECTIVES OF THE STUDY

1.2.1 General objective

The study aims to assess current situation and analyze difficulties and factors affecting livelihoods of the ethnic minority households Based on the study, solutions will be proposed to improve and ensure sustainable livelihoods for households of ethnic minorities in Lao Cai province

1.2.2 Specific objectives

(1) To review and develop theoretical and practical literature on livelihood and improvement of livelihood for ethnic minority household;

(2) To evaluate current situation of livelihoods of ethnic minority households

in Lao Cai province;

(3) To analyze factors affecting livelihood outcomes of ethnic minority households in Lao Cai province;

(4) To provide solutions and propose recommendations to improve livelihoods of ethnic minority households in Lao Cai province

1.3 SUBJECTS AND SCOPE OF THE STUDY

1.3.1 Object of study

Research object of this study is theoretical and practical issues regarding livelihoods of ethnic minorities in Lao Cai Province

1.3.2 Scope and limitation of the study

Livelihood of farmer households will be studied via five types of capital, including human, natural, physical, social and financial capitals and then livelihood activities, strategies and outcome will be determined After defining factors affecting to livelihood outcome, solution systems will be proposed to improve livelihood of ethnic minority household

The research is conducted in Lao Cai province However, four representative districts of Lao Cai (Bac Ha, Muong Khuong, Sapa and Simacai) where many ethnic minority households living will be selected for in-depth

Secondary information on livelihoods was information and data in period of 2015-2017 Primary data on current livelihood status in the study sites were collected in 2017 The solution will be supposed to apply until 2020 and vision

2025

1.4 CONTRIBUTION OF THE STUDY

This study contributes to make significant contribution to both theoretical and practical aspects as follows:

* Theoretical aspect

This study synthesizes theories and experiment lessons on livelihood, sustainable livelihood and livelihood improvement It also contributes to develop current methods in analyzing and assessing livelihoods of ethnic minorities

*Practical aspect

This study provided an updated database on livelihood status of ethnic minorities Lao Cai province; analyzed the current situation on livelihood of ethnic minority households and factors affecting livelihood of ethnic minority households

in Lao Cai; drew applicable solutions to improve livelihood of ethnic minority households in Lao Cai province The results of the study can also be applied to localities with similar characteristics to Lao Cai

PART 2 THEORY AND PRACTICAL REVIEW ON LIVELIHOOD IMPROVEMENT FOR ETHNIC MINORITY HOUSEHOLDS

2.1 BASIC THEORY

2.1.1 Concepts on ethnic minority households

A household is a unit of society consisting of one or more of a group of people living and eating together (demographics) Households are not consistent with a concept of the family; people in the household may or may not have blood relations, nurture or marriage, or both

“Ethnic minority is a group of people of a particular race or nationality living in a country or area where most people are from a different race or nationality” (Oxford University, 2014)

The official academic definition of an “ethnicity” is “a stable community, formed over a historical period, involving relationships of identity in regard to language, habitat, socioeconomic activities, and cultural characteristics – a community whose members are also conscious of their shared ethnic identity, on the basis of foregoing relations” The Vietnamese population, therefore, was classified into 54 official ethnic groups, of which the Kinh is the vast majority and the remaining consists of 53 other groups, officially called the ethnic minorities (dan toc thieu so, dan toc it nguoi) (Dang, 1998)

2.1.2 Features of ethnic minorities

i) Living in harmony

ii) Ethnic minorities live together with others Each has a different level of economic development, but there is no separate territorial division and social regime among groups

socio-iii) Each ethnic group has its own cultural identity, creating a diverse, rich and unified Vietnamese culture

iv) The residence place of ethnic minorities play a very important role in politics, economics, culture, security, national defense and foreign affairs and sustainable protection of ecological environment

v) The economy in the mountainous areas, still underdeveloped

vi) The proportion of poor and hungry households in ethnic minority and mountainous areas is higher than the national average rate

vii) The political system in ethnic minority and mountainous areas is still weak viii) The enemy forces always find ways to take advantage of difficulties of ethnic minorities in their livelihood, low intellectual, and make use of mistakes of local

authorities in implementing the Party's and State's ethnic policies

2.1.3 Theories of livelihood analysis and livelihood framework

2.1.3.1 Concept of livelihood

There are numerous approaches and definitions on livelihood “Livelihood is defined as adequate stocks and flows of food and cash to meet basic needs”

Chambers et al (1992) stated that a livelihood comprises the capabilities,

assets (including both physical and social capital) and activities required for a means of living A livelihood is sustainable when it can cope with and recover from stress and shocks and manage to enhance its capabilities and assets both now and in the future, while not undermining the natural resource base

Ellis defined livelihoods as the assets (natural, physical, human, financial and social assets), activities and opportunities to access to these assets and activities (via institutions and social relations) that jointly determine the living gained by individual or households (Ellis, 2000)

Livelihood could be defined as a bundle of resources and human abilities, incorporating with decisions and activities they make for their livings and realizing their targets and expectations (DFID, 1998),

This study is focusing on the latter perspective of livelihood as considering how people make a living

2.1.3.2 Sustainable livelihoods

Sustainable livelihood is a livelihood strategy in which all sustainable elements are ensured These elements are economy, environment and institutions The sustainability of livelihood activities largely depends on many factors such as capital accessibility, human capital, social relations, and development policies However, the sustainability of natural resources is foundation to decide the sustainability of a livelihood

In general, a livelihood of a household and community is considered to be sustainable when: (i) Individuals, households, and communities can overcome shocks caused by natural disaster, diseases and economic crisis; (ii) They can expand their current resources without exerting negative effects on natural environment

2.1.3.3 Improving livelihood

Livelihood improvement is an act that aims to improve livelihood outcomes

in a stable and sustainable manner These activities may be single or combination of the following activities: i) Improving livelihoods capitals: Improving access ability

to these resources for ethnic minority households; Using more sustainability and effectively livelihood resources; ii) Creating or modifying livelihood activities and strategies The diversification of livelihood activities will improve livelihood outcomes, create stability and mitigate risks; iii) Reducing the external negative factors that affect livelihood resources or livelihood outcomes; iv) Implementing

appropriate supporting policies to improve the efficiency of livelihood resources and create stable and sustainable livelihoods

2.1.4 Content of assessment of livelihood status of ethnic minority household

- Analyzing livelihood capitals: The five principal capitals (natural, human social, physical and economic capitals), which are important to livelihood are analyzed

- Analyzing livelihood activities and strategies of ethnic minority households: The results of this analysis help to find appropriate and potential livelihood models for ethnic minority households This is the basis for proposing solutions to improve livelihoods of ethnic minority households

Analyzing livelihood outcomes: They can be: (i) more income, (ii) increased well-being, (iii) reduced vulnerability, (iv) improved food security and (v) more sustainable use of the natural resource base

2.1.5 Factors affecting livelihood of ethnic minority households

- Policy and Government program

- Shocks and risk: Natural characteristics and disasters, seasonality, market and other factors

- Education and training

- Characteristics of ethnic minority groups

- Rural infrastructure

- Development programs’ aid

2.1.6 Main characteristics of livelihood of ethnic minority households

Firstly, livelihood assets of ethnic minority households are often very limited Secondly, ethnic minorities often live in mountainous and difficult areas, so they have low income, monotonous production activities, low employment opportunities and unsustainable livelihoods (Boothroyd et al., 2000; Baulch, 2010) Thirdly, ethnic minority households are often exposed to major risks, especially from natural disasters and weather

Fourthly, the culture identity, property, indigenous knowledge of ethnic minorities is preserved

2.2 EXPERIENCES IN IMPROVING OF LIVELIHOODS OF ETHNIC

MINORITY HOUSEHOLDS

Through the international experiences of Nepal, Thailand, the Philippines, China, South Korea and the experiences of provinces of Vienam (Ha Giang, Bac Kan, Quang Nam, Quang Binh), the lessons are:

Firstly, it is necessary to focus on improving the education and skills of

ethnic minorities by expanding the network of schools and developing vocational

training for ethnic minorities In addition, libraries should be set up, libraries should

be established, and regular education classes should be established for ethnic minorities

Secondly, access to financial resources for ethnic minorities needs to be

improved through the diversification of forms of credit support for them, with particular emphasis on supporting projects of foreigners for ethnic minorities

Thirdly, attention should be paid to "linking communities" in "livelihoods" to

increase livelihood efficiency, spillover and sustain new practices Maintaining and developing social relationships that help improve the social capital of ethnic minorities is their fulcrum when facing difficulties

Fourthly, it is necessary to take advantage of each village to increase its

ability to adapt to new conditions Ethnic minority livelihood strategies will be more successful when based on the advantages of geographical location, natural conditions, and infrastructure Traditional handicraft and specialties, social relations, mobilized cash flows of each village can be considered

Fifth, it is necessary to strengthen risk prevention capacity of the people and

ethnic minority communities This is a shortcoming, adversely affecting the sustainability of "livelihood models"

PART 3 METHODOLOGY

3.1 APPROACH AND FRAMEWORK ANALYSIS

3.1.1 Approach

Participatory Approach: This approach is a response to ‘bottom - up’

approaches to development, in which power and decision-making is largely in the hands of external development professionals

Sustainable Livelihoods Framework Approach: The sustainable livelihoods

approach (SLA) is a way to improve understanding of the livelihoods of poor people It draws on the main factors that affect poor people's livelihoods and the typical relationships between these factors It can be used in planning new development activities and in assessing the contribution that existing activities have made to sustaining livelihoods

Area-Based Approach: An area-based approach takes a small, homogenous,

socially cohesive territory, often characterized by common traditions, a local identity, a sense of belonging or common needs and expectations, as the target area for policy implementation

Ethnicity Approach: The approach put emphasis on separating and

identifying impacts of cultural practices on livelihoods and livelihood period, thereby affecting livelihood outcomes and vulnerability of ethnic minorities

3.1.2 Analysis framework

Figure 3.1 The sustainable livelihood framework

3.2 DATA COLLECTION METHOD

3.2.1 Location of the Study and Sample

Lao Cai Province has 1 city and 8 districts as Sa Pa, Bat Xat, Bao Yen, Bao Thang, Si Ma Cai, Van Ban, Muong Khuong, Bac Ha, with 164 communes and towns Lao Cai can be divided into 3 regions:

- Region I: Includes communes having good conditions in socio-economic

development This region is mainly lowland communes, near the center of the

district, city, and good transportation and social services

- Region II: With communes having difficulties in the socio-economic

development, most communes located in remote areas, and transportation is

relatively difficult; the basic social services have been relatively good

- Region III: Consists of communes having particularly difficult

socio-economic conditions and communes in the border areas, away from the district center, city; fragmented terrain, traffic movement is very difficult; Social services are limited

In this study, we will select four districts as representatives for the three different regions of Lao Cai province In each district, 3 communes will be chosen based on some criteria as proportion of ethnic minorities, economic condition, and social service

3.2.2 Collection of secondary data

Secondary information such as theories about livelihoods and household livelihoods, experiences about development and improvement of household’s livelihoods, basic Natural and Socio-Economic Characteristics of Lao Cai Province, center government and local government policy related to livelihood improvement were gathered from different sources such as reports, statistical data, scientific researches, articles, and among other published documents related to the research

topic

3.2.3 Collection of primary data

Interviewer Sample Method/tool Survey content

- General Information about household

- Livelihood asset and resources of the household and community

- Household livelihood activities, current livelihoods strategies and livelihood outcomes

- Advantages and, disadvantages and factors affecting livelihood and livelihood resources

of the household and the community

- Orientations in socio-economic development of the province, districts and communities

- Recommendations, need and suggestions of households and communities

3.3 ANALYSIS METHOD

3.3.1 Descriptive Statistics

Descriptive statistics such as frequency counts, percentages and means is used to describe the socioeconomic characteristics of the sample respondent groups, their sources of livelihoods, factors affecting ethnic minority’s livelihoods

3.3.2 Comparison Statistics Method

This method is utilized to compare the results of ethnic minorities livelihoods

in Lao Cai province in term of livelihoods sources, livelihoods models, economic characteristics of ethnic minorities and communities, livelihoods strategies, and etc The output of this method will help us find some key factors affecting the livelihoods improvement of ethnic minorities in the study area

socio-3.3.2 SWOT Analysis

SWOT analysis is used to find Strength, Weakness, Opportunities, and Threats in livelihoods improvement for ethnic minority households in Lao Cai

Province The result of SWOT analysis is the base for providing directions and solutions to improve livelihoods of ethnic minorities in Lao Cai province

3.3.3 Case study

In this study, the author uses this method to study cases that have a policy effect (Happiness program- KOICA supported pilot program at 8 villages) The case study results explain the policy interventions, role of participation and affecting of capacity building to Lao Cai ethnic minority people and identify important issues to

be further explored in the future

3.3.4 Modeling method

The Logit model is used for the purpose of determining factors influencing household livelihood outcomes (Anderson and Uboe, 2010) Household livelihood outcomes show that the main indicator is poor and non-poor Therefore, in order to evaluate factors influencing the livelihood outcomes of ethnic minority households,

we use the logit model The model is as follows:

Z

Z i

i

e

e K

e is the mathematical base; ui is the error of the model

Variables of the model are specified in the table below

Table 3.1 Definition of variables under Logit model

No Independent variable Description

1 Trust Trust towards state policies, from 1 (lowest) to 5

(highest)

2 Risk of natural disaster Household that have been severely damaged by

natural disasters in the last 5 years (1: yes; 0: No)

3 Risk of market Household that have been severely damaged by risk

of market in the last 5 years (1: yes; 0: No)

4 Age of household heads Number of household members in the working age

(people)

5 Educational level Number of studying years of household heads or

household main decision maker (years)

6 Number of livelihoods Number of household livelihoods

PART 4 CURRENT SITUATION AND FACTORS AFFECTING

LIVELIHOOD OF ETHNIC MINORITY HOUSEHOLDS

IN LAO CAI PROVINCE

4.1 CURRENT SITUATION ON LIVELIHOOD OF ETHNIC MINORITY

HOUSEHOLDS IN LAO CAI

4.1.1 Status of livelihood capital of ethnic minority households

Table 4.1 Size of households by ethnic groups

Criteria unit Giay H'Mong Nung Tay Others

Ethnic minority people in general

No of children up to 15

years old

Person

0.75 1.25 1.19 0.76 0.90 1.18

No of elderly people of

more than 60 years old

Person

0.75 0.11 0.30 0.35 0.00 0.16

No of main laborers Person 3.42 2.34 1.91 2.29 1.66 2.27

Survey results have proved that the percentage of illiterate household heads

is high in these districts as 45.28% whilst the average figure of the country is only 6.9% The illiterate rate of the ethnic minorities in Lao Cai is seven times higher than the average rate of the country, which is one of the problems against household’s livelihood improvement for the ethnic minorities in Lao Cai Local knowledge has been the background for maintaining the traditional social living of the ethnic minority households during their livelihood activities so far

4.1.1.2 Natural capital

Land is the most important natural asset of rural households An average household of ethnic minorities in Lao Cai has about 11,000 m2 The largest area is the area of agricultural land for rice cultivation with about 60% of the total area of