Dr Phan Van Hung, deputy headof the Institute of Nationalities
NhanDan
Positive impacts
It is of common knowledge that the economy in mountainous and ethnic minority areas has experienced the lowest growth rate as compared to other regions nationwide. One of the major reasons is the shortage of capital for improving infrastructure and developing industrial, agricultural, commercial and services establishments.
The implementation of open door policy and integration into the international economy led the mobilisation of foreign direct investment (FDI) resources and official development aid (ODA) to exploit and promote the country’s potentials and strength, thus speeding up the modernisation and industrialisation of mountainous and ethnic minority areas. Statistics in the 1998-2005 period showed that the areas attracted 459 FDI projects with a total registered capital of US $3,268 million (roughly VND 52,000 billion). These projects contributed to economic development and job creation for people of different ethnic minority groups in many localities.
The mobilisation of ODA capital has also played an important part in socio-economic development and poverty reduction in ethnic minority areas. In the 1998-2004 period alone, ODA capital granted by international organisations through 340 hunger elimination and poverty reduction projects reached US $1,153 million (about VND 18,000 billion).
In the past years, the above mentioned capital was geared mainly in implementing the projects on transport, electric power supply, agriculture and social infrastructure and served as an important source which helped reduce poverty and improve the living standards of ethnic minority people. Following the joining to the World Trade Organisation (WTO) and successful organisation of the APEC Meeting, Vietnam’s prestige was raised to a new height and was marked by a record of US $4.445 billion in ODA pledged by international donors to Vietnam for the year 2007 at the Consultative Group (CG) meeting held in Hanoi in December 2006.
By the end of 2006, the World Bank (WB), countries and international organisations also committed to assisting poverty reduction activities in remote areas with a total of over US $200 million, representing the highest sum so far.
In the coming period, FDI capital is expected to increase as the country integrates deeper in the international economy.
After many years of carrying out economic restructuring towards commodity production, mountainous and ethnic minority areas have created a large quantity of goods for export, including a number of high world ranking items namely coffee, rubber, pepper and tea, bringing about significant source for the country and at the same time improving the people’s living standards. However, this process has faced several difficulties such as unstable prices and obstacles in getting access to large markets including high tax and unequal competition.
In the 1990s, people in mountainous and ethnic minority areas used to plant low yield crops which led to low income and hence widespread poverty. Thanks to the renovation process, there appeared many new plants such as maize, rice, soybeans, fruit trees and sugar-cane trees and poultries and livestock namely cows, chickens, ducks and swans imported from other countries which helped create high economic value to support poverty reduction. Many households have become rich from the application of new seeds and modern techniques. In recent time, many international organisations have deployed the models and projects of sustainable economic development in combination with environmental protection for mountainous and ethnic minority areas.
Among the socio-economic achievements in mountainous and ethnic minority areas, the records in the field of culture are of great significance. During the process of international integration, Vietnam was able buy equipment to transmit radio and television programmes to remote areas in difficulties. This was only a dream in the past.
People living in remote and mountainous areas are now able to watch important political and sport events in the country and in the world which are live broadcast. Through the means of communications, people of different ethnic groups are improving their knowledge about politics, cultures in other countries.
Difficulties and challenges
Of course, international economic integration and development of market economy create negative impacts, increasing poverty and living gap.
Vietnam has made impressive results in poverty reduction, however the gap between the rich and the poor continued to rise. Once the country integrates itself deeper in the world economy, part of ethnic minority people in remote and mountainous areas, who have low knowledge, will find it more difficult to access the market and social services and their income and living standards could be further and further lower than urban areas.
In fact, the goods in mountainous and ethnic minority areas are yet to develop. The scale of production is still small and scattered together with low quality, failing to meet the international food safety and hygiene standards. This means that from now on, their products will find it more difficult to overcome the barriers in terms of high standards in technique and environment. A number of products of high value such as sugar cane, maize and fruits will face critical competition and difficulties.
During the process of exchange and integration, the alien lifestyles and cultures would influence the community of Vietnamese nationalities or change their traditional values and identities. The traditional cultural factors namely languages, houses, architectures, clothes, music, foods, customs and lifestyles would be strongly impacted. Due to economic integration, cheap and convenient industrial products from other countries could fade several traditional crafts such as weaving and casting.
The fact has proved that despite the State agencies and local administration’s efforts in preserving the forest land in recent years, the area of natural forests continued to be violated together with environmental pollution caused by industrial establishments. The balance of economic development and environmental protection is now a great challenge for mountainous and ethnic minority areas.
Suggestions
Based on the recent experience and the trend of deeper international economic integration, it is necessary to implement the following proposed solutions to ensure sustainable development for mountainous and ethnic minority area- provide sufficient knowledge and improve abilities in international economic integration among officials in these areas so as to help them make full use of the opportunities and overcome challenges and accelerate socio-economic development and reduce poverty for people of different nationalities.
- give priority to implementing socio-economic development and poverty reduction projects in ethnic minority areas. The State should continue to invest in building infrastructure and creating favourable conditions for socio-economic development there. Attention should be focused on implementing projects on reducing poverty, raising income and narrowing income gap between nationalities and regions. In addition, stronger measures are needed to fight against crimes, drug related evils, prostitution and HIV spreading.
- raise the efficiency of ODA projects launched for mountainous and ethnic minority areas, ensure that investment leads to practical results and meet the aspirations of ethnic minority people. Implement policies on attracting FID capital, speed up economic growth rate in the areas of favourable conditions and create jobs for children of different nationalities.
- work out overall solutions on social security to support poor people and areas as well as those of high vulnerability, thus limiting the negative impacts and influences during the process of international economic integration and globalisation.
- strengthening national defence, combing well economic integration with preservation of social stability and cultural identities of ethnic groups. Agencies in charge of ethnic minority affairs should understand and meet the legitimate aspirations of ethnic minority people to prevent the dark attempts in using the issue of ethnic minority and religion to divide the national great unity bloc.
International economic integration is creating both big opportunities and challenges for the development of mountainous and ethnic minority areas. In order to make this integration efficient, officials in charge of ethnic minority work need to learn how to make full use of opportunities and overcome challenges. Improving capabilities for them is a basic factor to ensure successful implementation of the Party's renovation and nationalities policies.
