Ha Noi (VNA) – A German micro-economist has proposed that the Vietnamese Government establish risk funds to help reduce the vulnerability of poor communities.
Speaking at a workshop jointly held by the German Agency for Technical Cooperation (GTZ) and the Ministry of Labour, War Invalid and Social Affairs (MOLISA) in Ha Noi on Mar 20, Dr. Michael Marx said that the proposal was based on the fact that Vietnamese poor people are facing a wide range of risks, especially after Viet Nam joined the World Trade Organisation (WTO).
While all Vietnamese face these risks, the poor and those just above the poverty line are more threatened due to their low savings, Dr. Marx added.
The German economist stressed that under the current circumstances the ability of the poor to pay insurance premiums plus public awareness is limited, therefore it is essential to establish a sustainable mechanism for social assistance at the local level, including risk funds, in addition to health insurance systems.
His research group, which has been carrying out a survey since early March 2007 in Thanh Hoa, Hoa Binh and Dak Lak provinces, proposed two types of risk funds, including a multi-purpose risk fund and a risk fund for livestock.
His proposal is that such risk funds should be established on the basis of memorandums of understanding signed between the GTZ and each commune, with the German agency contributing 30 million VND and the commune contributing 20 million VND to the fund.
At the workshop, Dr. Nguyen Hai Huu, Director of the ministry’s Department of Social Support, described risk funds as an active measure to help reduce the vulnerability of poor people.
Dr. Huu told other workshop participants that the ministry has, on a trial basis, launched an assistance fund for farmers in the Central Highlands , but it helped poor farmers only after they had taken risks.
Dr. Huu also said that the ministry is conducting a research programme on building a social security system, with six to seven research projects that will be implemented in the 2007-08 period.-Enditem
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