Mobilization of investment from local community for construction of rural technical infrastructures in the Mekong Delta Region

A BRIEF OF MSC IN PUBLIC MANAGEMENT GROUP 15 - MPPM INTAKE - UPPSALA Title: Mobilization of investment from local community for construction of rural technical infrastructures in the Mekong Delta Region Level: Thesis of MSc in Public Management Author: Thu Nguyen Thi Hoai Dzung Mai Quoc Supervisor: Dr Sven-Erik Svärd PhD Dr Hung Nguyen Manh PhD Date of presentation: 18th May, 2013 Objectives: Awareness about the important role of technical infrastructure for economic development and social stability, Viet Nam Government has spent about 9-10% annual GDP to priority invest for infrastructure development across the country, especially rural areas - where 66% of Viet Nam's population live and work However the dependence on almost 100% of the limited national budget and have not been mobilized other sources from the community for rural infrastructure is a major constraint in Viet Nam in the past in which farmers in the Mekong Delta is a typical example By a research on policies to attract investment to construct rural infrastructure, the authors stated that: there is a big incentive for rural development in a great potential of Mekong Delta if can gather contributions of the people to build infrastructure through a mechanism to attract investment from the community in this area Therefore, to identify key elements in terms of policies influence on investment attraction of community to build infrastructure and analyze roles of the community in activities of investment attraction to construct rural infrastructure in the Mekong Delta, it is a necessary to make recommendations on mechanisms to attract investment with community involvement i A BRIEF OF MSC IN PUBLIC MANAGEMENT GROUP 15 - MPPM INTAKE - UPPSALA Research Questions: - What is the community’s role in participating in construction of rural infrastructures in the Mekong Delta Region? - What are the major factors that impact the mobilization of investment from local community for construction of rural technical infrastructures in the Mekong Delta Region? The objective and scope of the thesis This paper aims to analyze the role of the community in investment attraction Moreover, it aims to identify the main factors of policy affecting the mobilization of investment from the community in construction of rural infrastructure in the Mekong River Delta Thereby, the paper also look for recommendations on mechanisms to promote investment attraction with the participation of the community in construction of rural infrastructure in the Mekong River Delta Theoretical Framework The model of studying investment mechanism with participation of community in technical infrastructure construction in MDR based on considering the role of the local community participation in the World Bank’s specific project in 2002 (Community-based Rural Infrastructure Project CBRIP) in relation to indices such as voluntary contribution, transparence and responsibility for explanation to people of The Viet Nam Provincial Governance and Public Administration Performance Index (PAPI-2011) Research Method: Through using data of statistical reports, specialized reports, especially performance indicators and management of provincial administration in Viet Nam - 2011 (PAPI), and based on actual results of a project have been implemented by the World Bank in Viet Nam, the authors had analyzed, ii A BRIEF OF MSC IN PUBLIC MANAGEMENT GROUP 15 - MPPM INTAKE - UPPSALA compared advantages - disadvantages of Mekong Delta rural from which to point out opportunities and challenges for building a mechanism of investment attraction from community on technical infrastructure sectors by SWOT analysis Reflection and conclusions: Based on analysis results of actual states and affecting factors, authors come into a conclusion as follow: transparency and accountability to people have an organic relationship with participation and contribution of people in building mechanism of attracting investment in community It is also recommended to adjust some contents in legal documents together with classify community and perform mechanism of managing basic construction investment as for rural infrastructures The study shows that policy on mobilizing resources from community is considered as an important factor to develop technical infrastructure as well as rural socio-economic development in the whole country generally and Mekong Delta in particularly Recommendation for a futher study: In the scope of study with limitation of time, group of authors proposed to use secondary data to analyze in the thesis; it is seen to be a reasonable option due to legitimacy, reliability and level of credibility of data used in reports and researches made by prestige organizations including Government Inspectorate,Ministry of Interior, United Nations, etc However, mechanism of investment attraction with participation of community to develope rural technical infrastructure in Mekong Delta can be more effective if there is more time to conduct the thesis that allows to integrate analysis and assessment into report results based on provincial competitiveness index (PCI – 2011) and group of authors in charge of exploiting, analyzing primary data through summary of questionairs and extensive surveys due to characteristics of population areas apart from each other, difference in education as well as iii A BRIEF OF MSC IN PUBLIC MANAGEMENT GROUP 15 - MPPM INTAKE - UPPSALA management skill of commune-level officers in this area; this is really large challenge during study Value of the thesis: In a scope of this research, an objective is to advise policy makers and authorities at all levels The central authorities can base on the proposals to enact policy frameworks (in the form of legal documents such as decrees of the Government, decisions of the Prime Minister ), local authorities base on proposed mechanisms of the central authorities to issue specific policies which meet with their local conditions (particularly at the provincial level) The study has also suggested new recommendations (for proposed new mechanism) or adjustment (for current policies) some legal documents The study also plays a role to orient developers (including foreign and domestic) in dialogues and suggestions policies for central and local governments in terms of investment to construct infrastructure Key words: Community ; PAPI indicator; Participant ; Transparency ; Investment attraction ; Responsibility of explanation; Mechanism ; Eco-social development ; Technical infrastructure ; Rural development ; Rural ; Mekong Delta Region iv -1- TABLE OF CONTENTS INTRODUCTION 1.1 Rationale 1.2 Research Questions 1.3 The objective and scope of the thesis 1.4 Literature reviews 1.4.1 Theories of investment, the role of investment and investment policy in socio-economic development 1.4.2 Theories, viewpoints about investment, its policies, and capital source for rural infrastructure development in Vietnam 11 1.4.3 Definitions and roles of infrastructures in development issue: 15 1.4.4 Roadmap for building legal documents related to public-private partner 17 THEORETICAL FRAMEWORK 19 2.1 The connection between community participation and investment in building rural technical infrastructure 19 2.2 The Provincial Governance and Public Administration Performance Index (PAPI) 22 RESEARCH METHOD 28 3.1 Data collection 28 3.2 Methods of analysis 28 CURRENT MOBILIZATION STATE OF AND INVESTMENT POLICIES INTO ON RURAL INFRASTRUCTURE IN THE MEKONG DELTA REGION 29 4.1 Current social-economic and rural infrastructure situation of the Mekong Delta 29 4.2 Rural infrastructure development policy in Vietnam and the Mekong Delta Region 32 -2- 4.2.1 General Guideline and policy 32 4.2.2 Investments in infrastructure development 35 4.3 Analysis of PAPI index to identify the factors that impact on infrastructure investment in the Mekong 38 CASE STUDIES: CAN THO CITY AND LONG AN PROVINCE 43 5.1 Can Tho City 43 5.2 Long An Province 46 POLICY RECOMMEDATIONS 50 6.1 Adjusting Regulations 50 6.2 Classifying community to make investment attracting mechanism more effective 50 6.3 Implementation of typical basic investment management for rural technical infrastructures 51 CONCLUSION 53 REFERENCES 57 APPENDIX 61 -3- LIST OF FIGURE, DIAGRAM: Figure1:The location map of Mekong River Delta Figure 2: Two measuring factures in PAPI 24 Figure 3: PAPI index and component indices 26 Figure 4: Influences between PAPI’s assessment contents 26 Figure 5: Analysis frame for attraction mechanism of investment in building infrastructure with participation of the community 27 Figure 6: Administrative map of the MDR 29 Figure 11: Infrastructure Development Funding mechanisms 35 Figure 8: The chart on contribution mobilization from the community - PAPI 2011 39 Figure 9: The index of openness, transparency and accountability to the people of 13 provinces in MDR 39 Figure 10: Administration map of Can Tho City 44 Figure 11: Administrative map of Long An Province 46 LIST T OF TABLE: Table 1: Summary of some infrastructure criteria of Mekong Delta in 2011 31 Table 2: Infrastructure Investment Funding Mechanism (%GDP) 36 Table 3: Total investment capital for rural development 47 LIST OF REFERENCE: Box 1: (PPP) Public Private Partnership 17 Box 2: PAPI in Vietnam for the period 2009 – 2011 23 Box 3: New Rural Program 68 LIST OF APPENDIX FIGURE: APPENDIX FIGURE - 1: Comparison of PAPI 2011 in some provinces/cities 61 APPENDIX FIGURE - 2: PAPI Table - 2011, weighted summary 62 APPENDIX FIGURE - 3: PAPI Table - 2011, non-weighted summary 64 APPENDIX FIGURE - 4: PCI map 2011 66 APPENDIX FIGURE - 5: Ranking of Provincial Competitiveness Index in 2011 67 ... infrastructures in the Mekong Delta Region? - What are the major factors that impact the mobilization of investment from local community for construction of rural technical infrastructures in the Mekong Delta. .. community From the essential demands, the authors group chose the topic: ? ?Mobilization of investment from local community for construction of rural technical infrastructures in the Mekong Delta Region? ??... Delta Region? - What are the major factors that impact the mobilization of investment from local community for construction of rural technical infrastructures in the Mekong Delta Region? 1.3 The