Assignment #2: Critical Reflection

ASSIGNMENT 2: CRITICAL REFLECTION

Multidimensional Poverty Measurement

An important thing I extracted from this session is that the current poverty measurements applied in Vietnam which based on household incomes contain some limitations. Poverty is clearly not a one-dimensional issue; therefore, these current measurements lead to many unsustainable elements in the process of reducing poverty (Demombynes & Vu, 2015). For instance, in Vietnam, the living standard and the level of social protection for poor people have not been well-maintained, the number of households returning to poverty is high, and the core poor region is mostly in mountainous and remote areas where a large number of ethnic groups live (Le et al, 2006). Thus, there is a great need to apply multidimensional measurement which incorporates several different dimensions of poverty or well-being to implement poverty reduction sustainably in Vietnam.

This new understanding of the contribution of multidimensional poverty measurement in the poverty deduction process is very important. First, it points out that using one dimension, which is income, to measure poverty can leave a lot of people who need help out of the loop. For example, in Vietnam by setting up the national poverty line, which is US$ 1.61/ day in urban areas and US$1.03/day in rural areas (World Bank, 2012, p.15-16), it is still unable to distinguish among the poorest groups in society (Coates, 2010). Second, it is necessary to measure social reasons that people are poor. In Vietnam, people are poor because they do not have enough education, health services or nutrition. Nguyen and Tran (2014) imply that income is important but that does not necessarily mean the money that comes into the home is used for education or health. Third, multidimensional poverty index (MPI) can broaden my understanding of how inequality and rights related to poverty (Sen, 1999). MPI indicates poverty not only in terms of lack of economic resources but also lack of capacities and opportunities needed to live sustainably (ibid). If people are given lack of any these resources, they can be considered poor. 

This insight is connected with the concept of the feminization of poverty I have learned before. First of all, MPI makes me realize that a woman who is not poor in terms of economic resources (for example, incomes or possessions) can be considered poor in terms of rights and opportunities (for example, decision-making or accessing to public services). Furthermore, in the situation of extreme poverty, in which women have neither economic resources nor social resources, the manner women experience poverty is often more arduous and complex than experienced by men (ibid).

This understanding about MPI will be very useful in my future career as an advocate for achieving gender equality. MPI helps me to change my thinking in how the poor are counted. This changing can significantly improve the effectiveness of national or international aid organizations as they allocate resources among needy people. Furthermore, MPI enable me to have clear insight into why people are poor and women headed household are the poorest of the poor. This insight will help me to advocate for the government of Vietnam to apply multidimensional poverty measurement to determine budget allocations and define eligibility for a number of targeted poverty reduction programs (Demombynes & Vu, 2015). It is necessary to know that such measurements would put policymakers in a better position to plan effective poverty reduction policies and ultimately helps states to comply with the protection and promotion of fundamental human rights (Coats, 2010).

References

1.   Coates, A. (2010) “Multidimensional Poverty Measurements in Mexico and Central America: Incorporating Rights and Equality,” in: Sylvia Chant (ed.). The International Handbook of Gender and Poverty. Concepts, Research, Policy. Cheltenham: Edward Elgar, pp. 65-70 (6p.).

2.       Demombynes, G., & Vu. H. L. (2015).  Demystifying Poverty Measurement in Vietnam. Vietnam Development Economics Discussion, Paper 1. Retrieved on 26 June 26, 2015 from http://www-wds.worldbank.org/external/default/WDS ContentServer/WDSP/IB/2015/03/13/000333037_20150313112115/Rendered/PDF/9493 90WP00PUBL0m0Feb0201500PUBLIC0.pdf

3.  Le, T., D, et al. (2006). Poverty reduction in Vietnam: Disharmonies Behind that Impressive Achievements. Paper presented to World Bank ABCED Conference. World Bank: Japan, May.

4.  Nguyen, V. C.,  and Tran, A. (2014). “Poverty identification: practice and policy implications in Vietnam,” Asian-Pacific Economic Literature 28(1): 116-136.

5.       Sen, A. (1999). Development as Freedom, New York: Anchor Books.

6.     The World Bank, (2002). Vietnam poverty analysis Prepared for the Australian Agency for International Development by the Centre for International Economics, Canberra and Sydney

7.      The World Bank, (2012). Well Begun, Not Yet Done: Vietnam’s remarkable progress on poverty reduction and the emerging challenges. World Bank, Hanoi.