Urbanization and Multidimensional Child Poverty in Viet Nam

Nguyen Thi Van Anh, UNICEF’s Social Policy Specialist“Rethinking urbanization and equity in Asia: Harnessing the Potential

of Urban Living for All Children Brighton, 9-10 June, 2014

Session D1: Governance and Planning Presentation: 5

Contents1- Background

2- Overview of urbanization

2- Manifestation of child poverty

3- Policy implication and policy approach

Background- Low MICEconomy• GDP growth rate (2005-2010): 6.8% • GDP per capita : US$1375 (2011)

Demographics: Fast pop. growth rate: • Total population: 93,421,835 (July 2014

est.)• Annual population growth rate (2010): 1.04% • Urban population: 31% (2011)• Rural population : 68.3% (2011)• Rate of urbanization: 3.03% annual rate of change

(2010-15 est.)

Poverty• Poverty head count: 14.2% (2010)

Major urban area- population Ho Chi Minh City: 5.976 million; HANOI (capital): 2.668 million; Haiphong: 1.941 million; Da Nang: 807,000 (2009)

Overview of urbanization

Urbanization – Overview

Vietnam has the highest urbanization rate in Southeast Asia

Urbanization occurs in 3 ways Rural-urban migration Natural growth Reclassification of rural land as

urban

Rural – Urban migration: 9.2% (1999-2009)

Urbanization links to growth and development- is a key feature of eco. Development

0

5

10

15

20

25

30

35

7.57.9 8.7 9.210 11

16 17.220.721.5

19.219 19.720.724 25

26.927.529.6

The percentage of urban population during 1931-2009

Urbanization: rural – urban migration

0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60+0

5

10

15

20

25

Population of Ha Noi and HCM city by registration status, UPS 2010

Residents Migrants

Age group

%

Migrants - heavily concentrated in 15-34 age group25.57% of migrants in the 0-19 age group

High poverty density in urban settings

Poverty reduction have slowed down, especially in urban areas.

Income poverty measurement does not capture multi-dimensions of poverty

1993 1998 2002 2004 2006 2008 20100

10203040506070

25.1

9.5 6.6 3.6 3.9 3.3 6

66.6

44.935.6

25 20.4 18.727

Urban and Rural Poverty, 1993-2010

Urban Rural

Pove

rty

rate

s (%

)

It seems not a problem, from the data

IS THERE A PROBLEM OF MULTIDIMENSIONAL CHILD POVERTY IN URBAN SETTING ?

Manifestation of urban child poverty

Multidimensional child poverty, 2006-2010(Health, education, housing, water and sanitation, child labour, leisure

and social protection and inclusion)

Urban Multidimensional Child Poverty is increasing

2006 2008 20100

10

20

30

40

11.3 12.515.9

36.3 34.3 34.5

Multi-dimensional child poverty by Urban and Rural, VHLSS 2010

Urban Rural

Child

pov

erty

rate

(%)

Child poverty in social inclusion - higher in urban setting due to unregistered

MdCP

Education

Health

Shelte

r

Wate

r & sa

ni...

Child la

bour

Leisu

re

Socia

l inclu

s...

0

10

20

30

40

50

60

70

80

11.2 9.4

36.8

2.2

12.3

1.7

52.9

11.1

31.2

15.9

48.4

12.6

48.7

9.16

75.3

2.76

Urban Rural

MdC

P ra

tes (

%)

Social exclusion- policy issues ?

Migrants: 11.33% Hanoi pop. and 20.46% HCM city pop Children aged 0-14: 12.5% of migrants So poverty could be underestimated in urban areas Income poverty does not capture multidimensional aspects

Not everyone is counted the household surveys

* * *Social

Exclusion due to unregistered

migration?

Social exclusion – Policy issue?

The current “Ho Khau” system is based on household registration. It contributes to the formation of a management and service system of the localities.

Current system of social protection, financial investment and compulsory education have centered around “Ho khau”

Many procedures and policies made dependent on “household registration” (Ho Khau)

Child poverty in social inclusion in urban setting (11%) is 4 times higher than in rural setting due to unregistered, and over 20% in some big cities (HCM city and Binh Duong)

Lack of “Ho Khau”, migrant (unregistered) children are not able to enjoy the same rights as

local registered children

Social exclusion – Policy issue? Households without “ho khau” are most likely to be

“Invisible” and “in-calculated” in household survey and

Excluded from the “poor or social policy beneficiaries list”

Thus less benefited from support policiesMigrants

Face higher costs of living and to access to basic social and welfare services

Find hard to rely on formal institutions and access to social protection =>lack of information

Rely mainly on “informal” network Suffer prejudice against them (local children - not

to be friends to migrant children for fear of learning bad habits)

EDUCATION – Equal opportunity? Gaps in education between migrant vs. residents; Migrant children - enroll in private schools with

higher costs and poorer quality (Kindergarten); Benefit less from tuition and contribution fee

exemption

Migrants Residents899091929394959697

92.3

97Net enrollment rate, UPS 2010

%

Poor children - have to support parents, have little time to do homework and play, Little money to buy learning aids

Poor parents - difficulties in meeting children’s education costs and unable to invest in children’s higher education

Aged 5-9 Aged 10-14 Aged 15-190

102030405060708090

100 89

71

21

99 97

77

School Attendance by age groups, UPS 2010

Migrants Residents

%

Health care – Equitable?

Rich poor Residents Migrants0

5

10

15

20

25

12.3

18.817

21

Total medical costs in non-food expen-diture (%), UPS 2010%

Migrants- less likely than residents to get health insurance and health care in a public facility/seek professional treatment due to lack of registration and money 45% migrants “Only buy medicine” when sick; 15% migrants vs. 2% residents get professional

attention Do not get services for SI beneficiaries due to

insufficient supplies (e.g. drugs) from district SI funds; Some migrant children have to return home for vaccinations or pay for vaccinations services

Still 39% of urban children (0-4) are poor in healthcare

Migrant children have no full access to local health care services

Burden on medical costs on poor and migrants

Nutrition – City’s issues ?

HCM city 2010 malnutrition Underweight (<5): 6,8%, Stunting: 7,8% Obesity: 10,9%

Many migrant children have poor intake, not enough nutritious food and other daily essentials due to high costs of living

Living conditions –housing disparities ?

Housing with concrete roof: 22% poor vs.42% of non poor

housing with concrete floor: 71% poor vs. 90% non-poor

The very urban poor tend to be migrants and live in a dormitory or houses of poor and unsafe living conditions

Rental housing: 64% migrant vs. 2% residents

Living conditions - Water and sanitation disparities?

Still 12.3% urban children lack of access to clean water and hygiene sanitation

Access to water from

private tap 40% migrants vs. 65%

residents Using tap water 30% poor vs. 57% non-poor Using flush toilet 48% poor vs. 89% non-poor

Child protection – Child labour

Migrant children are five times likely to work than resident children

0- <5 6- <24 25- <42 >420.0

10.0

20.0

30.0

40.0

50.0

3

29.918.5

48.6

4.5

42.2

23.729.5

Child labour by working hours

Urban Rural

Residents Migrants0

1020304050607080

1.07

14.6720.03

75.71

Children with a principal job in Ha noi and HCM city

Aged 10-14 Aged 15-19

Child labour (aged 15-17) – higher in urban settings;

Urban child clabourers work longer hours. 95% of them are not attending school

Policy implication

& Policy approach

Policy issues ? Gap in statistics: Official data, used for

planning and for budgeting, might also underestimate the population

Urban Poverty could be underestimated

Leading to The exclusion of some

population groups in planning and budgeting

Right to policy choices not made

What difference does the undercounting make?

If plans and budgets are not based on actual populations, resources may not be adequate to deliver services.

And if resources are inadequate to deliver services, who misses out?

New challenges – New approaches Include migration in the development

Count themso they can be planned for,

budgeted for, their poverty and access to services tracked

Deliver services to themdo not make household registration status a barrier to accessing basic services

What legal and policy changes are needed to achieve this?

Urban planning and budget allocation Based on actual population, including migrantsOutputs-based social budgeting – prioritized budget

allocation to where the poor are

Adopt multidimensional approach to poverty monitoring and targeting – identify new emerging form of poverty and vulnerability, particular of migrants

Reform the current social protection system to make it more comprehensive and accessible - Help the urban poor to cope with risks and vulnerability e.g. replace “Ho Khau” with IDs

Design an integrated family package f social assistance for urban poor, migrants and their children - Priorities given to early childhood development

Stronger regulate/control over-commercialization (privatization) in health care and education

Create more effective policies to support small enterprises in promoting their social responsibility (e.g. Kindergarten) and promote the formalization of informal economic activities

New challenges – New approaches

Reference Urbanization review in Vietnam, World Bank Vietnam household living standard survey 2010, GSO Multidimensional child poverty 2013, GSO-UNICEF Urban poverty assessment 2010, GSO-UNDP Child Labour survey 2010, MOLISA/ILSSA-ILO Participatory urban poverty monitoring, Oxfam and

Action Aids Impact assessment of poverty reduction policies for 2009-

2013 in HCM city, MDRI Migration study 2010, UNICEF-DOLISA HCM city

Thank you

for your attention