Phát triển kinh tế hộ nông dân gắn với giảm nghèo bền vững ở tình Bắc Kạn (2)

VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES NGUYEN VAN CONG PROMOTING HOUSEHOLD ECONOMY IN ASSOCIATION WITH SUSTAINABLE POVERTY REDUCTION IN BACKAN PROVINCE Major: Development Economics Code Number: 62.31.01.05 SUMMARY OF DOCTORAL DISSERTATION HANOI – 2017 Scientific instructors group: Dr Le Anh Vu Dr Phan Van Hung Critic 1: Assoc.Prof.Dr Nguyen Danh Son Critic 2: Assoc.Prof.Dr Le Xuan Dinh Critic 3: Dr Nguyen Thi Lan Anh The Dissertation will be defended in front of the Dissertation Grading Council of Academy Level, at Graduate Academy of Social Sciences, 477 Nguyen Trai street, Thanh Xuan, Hanoi ………………………… This dissertation can be found available at: - National Library - Library of Graduate Academy of Social Sciences LIST OF THE AUTHOR’S SCIENTIFIC WORKS IN ASSOCIATION WITH THE DISSERTATION Nguyen Van Cong (2016), “Promoting household economy in association with sustainable poverty reduction in Backan Province”, Journal of Human Geography Research, No 3(14) September – 2016, p 31-38 Nguyen Van Cong (2016), “Measures to improve economic efficiency of Backan tangerine”, Socio-economic Information and Forecast Review (No 127, 2016, July), p 30-39 Nguyen Van Cong (2016), "Exploiting strengths human capital to improve the livelihoods of farmers in poverty in Bac Kan," Journal of Labor and Social Affairs (No 529 May 6/2016), p.59 -61 Nguyen Van Cong (2016), "Stabilization of household income towards sustainable poverty reduction in Bac Kan province", Journal of Labor and Social Affairs (No 528 May 6/2016), p.49-51 Nguyen Van Cong (2013), “Develop rural household business in Vietnam” Economy and Forecast Review (No 16, 2013 August), p 16-18 INTRODUCTION Rationale Nowadays peasant economy still remains a common economy in the rural area of Vietnam Innovation and global economic integration have given peasant economy more opportunities to develop, increase in income, and reduction in poverty However, in the rural area especially the mountainous areas, peasant economy is still facing various difficulties and the number of poor families is still at peak Bac Kan is a poor mountainous province where most of the people are ethnic minorities Its economy is yet to develop In the GDP rate, forestry and agriculture are counted 35,95%, however, the industrial section is only 15,33% Eighty one percent of the people are living in the rural area, with more than 83% of the labor working in the forestry and agricultural section The section of industry, trading, and service are almost not developed The peasant economy is very common, but the development level is still low and the poverty rate, according to the multidimensional standard, is quite high at 29,4% Based on the fact above, it is vital to develop peasant economy, which will bear a great foundation for the socio-economic development and poverty reduction of the province Therefore, the topic “Promoting household economy in association with sustainable poverty reduction in Bac Kan Province” is selected to study Objectives of the study - To clarify the theoretical background of the development of peasant economy, actual experience, and lesson for Bac Kan Province - To clarify the actual state of development of the peasant economy integrated with sustainable poverty reduction in Bac Kan Province - To propose solutions to develop the peasant economy integrated with sustainable poverty reduction in Bac Kan Province in this new situation nowadays Subject and scope of the study - The subject and scope of the study is the development of the peasant economy integrated with sustainable poverty reduction in Bac Kan Province Methodology Information collection methods - Secondary document synthesis: Synthesizing the relevant studies like released theoretical documents, books, magazines and policies, reports, statistics, etc of the state bodies and in Bac Kan Province - In-depth interview: This study gathers opinions of experts like policy- makers, scientists in some of the state bodies in Bac Kan Province through interviews and questionnaires The interviews are about the policies related to the development of the peasant economy - Collection of information on peasant economy: Investigating 400 households in Bac Kan through questionnaires During the data collection procedure, this study also uses group discussion method in combination with reality observation Information analysis methods - The investigated information will be put in the Excel software in a computer to analyze and evaluate This thesis uses both quantitative method and qualitative method to explain different economic phenomena - Descriptive statistics: is used to describe the actual economic development of the province, resources, poverty issues, and other problems of the households in order to discover the positive/negative factors during the development procedure and poverty reduction in Bac Kan - Comparative analysis: using the information in time series to compare between the criteria themselves to give comments on the study subject; Statistic function like ratio, average, development speed, and so on are used to analyze and compare in the thesis Novelty of the study - The study has helped to systemize and clarify some theoretical schools on development of the peasant economy - The study explains the development of the peasant economy integrated with sustainable poverty reduction in the globally economic integration nowadays - The study clarifies the role of peasant economy in poverty reduction - The study gives objective and thorough evaluation of the actual state of peasant economy and the poverty reduction of the households in Bac Kan Province - The study proposed some feasible solutions to resolve the reseach issue for Bac Kan in the future Theoretical and practical significance of the study Although it is more like a case study, from the actual analysis in Bac Kan Province, the study has orientated to a higher level of generalizing the issue of peasant economy development integrated with sustainable poverty reduction for all mountainous areas in Vietnam, which have certain similarities in natural and economic-social conditions The issues and their solutions are based on the actual state of the province, which shall give the leaders and managers of Bac Kan Province scientific foundation in making the decisions on economic development in general, and particularly the peasant economy development in the coming years so that it will develop better ensuring sustainable poverty reduction Design of the study Other than the introduction, the study consists of four chapters: Chapter 1: Overview Chapter 2: Theoretical background and practical experience in developing peasant economy integrated with sustainable poverty reduction Chapter 3: Reality of the development of peasant economy integrated with sustainable poverty reduction in Bac Kan Province Chapter 4: Viewpoints and solutions on the development of peasant economy integrated with sustainable poverty reduction CHAPTER 1: OVERVIEW 1.1 Review of international studies By studying different studies of some authors and organizations in the world in recent years, related to the topic economy and poverty escape of peasants, this study comes to some conclusions: - Form and function of peasant economy: a wide range from autarky to commercial purposes - Difficulties of developing peasant economy and the poverty issue: it is shown that most of the households lack resources, face natural disasters and market risk, especially with the ethnic minorities in the developing countries - Reality of poverty escape of the peasant: the decrease of poverty rate is closely related to production diversity; joining market; transferring to nonagricultural activities - Proposing policies to develop peasant economy orienting sustainable poverty reduction: recommending land reform policies, providing credits; subsidy, price support, tax reduction; investigating on human through education, training, technical support; investigating on infrastructure; reforming rural area social institution, etc 1.2 Review of the studies in Vietnam Debates on peasant economy under different approaches, research methods, and research scopes are studied by many authors in national level and regional level like: Vu Tuan Anh (1997, 2007); Tran Thi Que (1996); Chu Tien Quang (2007); Le Xuan Dinh (2008); Bui Quang Dung (2013); Nguyen Thi To Quyen (2012); Sa Trong Doan (1999); Social and Human Center (1993); Social Science Institution of Vietnam (2011); Committee for Ethnic Affairs, and so on These studies have clarified the huge aspect of peasant economy in Vietnam theoretically and practically, for instance: - Confirming that peasant economy in Vietnam is the basic economic unit, which has an important role in each and every development step - Evaluating current difficulties and challenges of peasant economy in Vietnam: it is capital, low accumulated property, low production performance, poor adaptation to the market and especially discrete agricultural land which is lessened day by day - Development trend of peasant economy in Vietnam: many authors are convinced that developing peasant economy should be oriented to commodity production, agricultural land gathering, development of farm economy - Poverty and poverty reduction of peasant: A lot of authors argue that in Vietnam “most of the poor are living in the rural area.” After innovation, the development of peasant economy has helped to alleviate poverty dramatically Nowadays, various new forms of poverty are created by the market, unemployment, and having no land 1.3 Gaps for further studies The development of peasant economy in the current context with new poverty episodes that have not been thoroughly studied like the issue of economic globalization, climate change, economic crises, political crises, etc Moreover, it is the theory between developments of peasant economy integrated with sustainable poverty reduction that has not been studied and explained thoroughly, especially study in a province that has high rate of poverty with most of people being ethnic minorities like Bac Kan CHAPTER 2: THEORETICAL BACKGROUND AND PRACTICAL EXPERIENCE IN DEVELOPING PEASANT ECONOMY INTEGRATED WITH SUSTAINABLE POVERTY REDUCTION 2.1 Theoretical background of peasant economy 2.1.1 Fundamental concepts of peasant economy The development of peasant economy integrated with sustainable poverty reduction can be generalized in the following contents: Increasing income, increasing life standard of peasant; The peasants should be able to exploit the resources wisely and effectively; peasant economy must change towards advance, developing through linking and joining the market and product value chain ; management capacity of the householder and workers in the household, and ability to adapt to the crises from the outside 2.1.2 Function of peasant economy to the social-economic development Creating and supplying main products for human and society; for the processing industry; contributing to the development of commodity production; motivating sustainable agricultural and rural development 2.1.3 Factors influential on the development of peasant economy It includes natural condition factors; internal factors of the household; economic development conditions in the province and area; policies of the state, etc 2.1.4 Theories on peasant economy 2.1.4.1 Classic theories on movement and development of peasant economy Nowadays, there are three outstanding schools about peasant economy: - The first supposes that small peasant economy will be eliminated during the development of capitalism and market economy - The second supports the everlasting existence of the peasant economy - The last argues that the existence of peasant economy lay on the hand of farmers themselves 2.1.4.2 Contemporary theories on the development of peasant economy - Theory of peasant’s means of livelihood It considers the development of peasant economy in five groups of resources - Theory of production cooperation: It supposes that the development of peasant economy must be based on cross connection - Theory of value chains of agricultural products : It states that development of peasant economy must be based on the product value chain - Theory of “Tam Nong” or “Agriculture, peasants and rural areas” It states that development of peasant economy must be put on the whole development of agriculture and rural areas 2.2 Theory background of poverty reduction 2.2.1 Concepts of poverty and poverty reduction Nowadays definition and comprehension of poverty have been extended towards approaching multidimensional poverty, meaning to say to consider life standards of the people in a more thorough way Recently, the term “sustainable poverty reduction” is also frequently used Sustainable poverty reduction can be understood as the job creation for the poor to escape poverty, to be able to deal with negative effects from nature and society, ensuring that they will not be poor again; at the same time the poor can use medical service, educational service, and social welfare system Development of peasant economy integrated with sustainable poverty reduction means that sustainable poverty reduction of the households must be based on the sustainable development of peasant economy and poverty reduction 2.2.2 Theory of development of peasant economy integrated with sustainable poverty reduction 2.2.2.1 The necessity of developing peasant economy integrated with sustainable poverty reduction Nowadays, in poor and developing countries, the peasant economy concentrates mostly in rural areas Therefore, poverty is the problem of farmers Peasants are both the subject of the policy and the ones who gain benefits from the outcome of policies to develop economy and reduce poverty 2.2.2.2 Theory of relation between peasant economy integrated with sustainable poverty reduction Poverty takes household to be the fundamental base In national scale, poverty reduction is gradual change from underdeveloped economy to contemporary, from agricultural production to nonagricultural production Under the angle of the poor, poverty reduction is the process to help poor families to get resources, getting education, profession, management capacity, etc 3.1 Socio-economic and natural conditions affecting the development of the peasant economy in Bac Kan Province 3.2 Features of peasant economy in Bac Kan Province 3.2.1 Quantity and structure of the peasants in Bac Kan Province In recent years, the structure of peasant group in Bac Kan has decreased and the group of industry-civil has increased However, this transformation is quite slow, so the peasant group still makes up a large number 3.2.2 Scale and land allocation of peasants The average of the agricultural land area per household is 0,558 hectare, and forestry land is 2,497 hectare/household Generally, land use in Bac Kan is small and separated and the traditional cultivation method is no longer suitable with the new development requirements of the agricultural section of mass production nowadays 3.2.3 Labor of the peasants In Bac Kan, most of the labor is working the agricultural section, which accounts for 83% of the total labor in the entire province The current average of labor per household is 2,46 people The trained labor of the province is quite limited (30%) This is also the reason of low work performance In 2015, average per capita income a moth was 1,8 million Vietnamese Dong, about half of that of the whole country 3.2.4 Budget of peasants for production and training Budget collection of the peasant is low The loan/ household is also low and the loan procedure is complicated Usage of budget is not very effective The demand for loan is high 3.3 Reality of peasant economy in Bac Kan 3.3.1 Reality of peasant production Rice and corn are still the main crops, which has the highest cultivation land in total cultivation area Breeding has yet to develop to a large-scaled commodity and it mostly meets self-provision demands 10 3.3.2 Reality of technical and scientific implementation Using machines and tools in production of the peasants in Bac Kan is quite limited Mechanization is limited Machines are mostly used for irritating and killing insecticide Machines for harvesting and storing are rarely equipped 3.3.3 Reality of commodity production of peasants Commercial level of peasants in Bac Kan is increasing However, the ratio and product value are still very low The distribution channel sells products for merchants (66%); the rest are retails The market is mostly within the province 3.3.4 Connection cooperation and consumption of peasant products In general the connection is very limited The reason is the undeveloped processing industry, limitation in forms of cooperation and enterprises, so it does not play the role of leading factor to connect and guild peasants in product value chain Bac Kan has never had any product in the international value chain 3.4 Analysis of the business result of the peasants in Bac Kan 3.4.1 Cost for production and trading Nonagricultural investment 28,49% Annual plant investment 33,29% Breeding investment 17,86% Forestry investment 1,53% Fishing investment 1,98% Annual plant investment Forestry investment Breeding investment Perennial investment 16,85% Perennial investment Fishing investment Nonagricultural investment (Source: the author’s investigation in 2016) Figure 3.10 Production investment of peasants in Bac Kan Province 11 Average investment on production of peasants in Bac Kan is 33,62 million VND per year Where, investment on annual plants is 33,29% (11,19 million VND); that of perennial is 16,85% (5,66 million VND); that of forestry is 1,53% (0,513 million VND); that of fishing is 1,98% (0,664 million VND); that of breeding is 17,86% (6 million VND), and cost for nonagricultural activity is 28,49% (9,57 million VND) * Average production costs per hectare of the peasants (Source: the author’s investigation in 2016) Figure 3.11 Average production cost/ hectare of peasants Costs per one hectare is still low: the average is 33,08 million VND/ hectare/ year cultivation land (annual plants + perennial) Where annual plants count for 27,59 million VND; perennial counts for 54,5 million VND; Investments on agricultural land are very limited According to groups of households, we see that the average land of the poor households and near poor households are less than that of the non-poor households, but the production cost per hectare is lower than that of the non-poor households 12 Table 3.4 Costs/ hectare of land of the households in Bac Kan Province Unit: 1.000 VND No Item Total Annual Perennial Forestry Fishing plant Average/ 33.088,39 27.599,68 54.503,25 198,54 23.229,59 household Poor households 23.417,99 19.709,58 38.882,73 155,64 20.233,97 Near poor households 24.014,67 19.499,60 40.749,31 208,25 23.102,43 Non-poor households 37.130,72 32.060,57 56.732,46 311,53 23.910,64 (Source: the author’s investigation in 2016) 3.4.2 Income and sources of income of the peasants in Bac Kan Province Annual plant net income 9,07% Perennial net income 6,29% Other income 20,31% Forestry net income 2,16% Fishing net income 2,12% Income from salary, wage 27,97% Non agricutural net income 19,93% Breeding net income 12,16% (Source: the author’s investigation in 2016) Figure 3.12 Structure of average net income of the peasants 13 Income of peasants in Bac Kan Province come from different sources The income from salary, wage and other sources increase every year In the group of poor households and near poor households, their main income comes from the state support and work For the non-poor households, their income comes from the money that their family members send home after working in the city The average net income of 93,83 million dong / household / year In which the structure of income from agriculture, forestry, fisheries and livestock production accounted for 31,79% and that of salary and wage is 27,97% Income from nonagricultural sections is 19,93% Other income is quite high, counting for 20,31%, Considering different groups of households, we see that the poor households have an average income of 42,77 million VND/ household/ year, equivalent to 635 thousand VND/ person/ month, three times lower that the average income of the province The nonpoor households have an average income of 109,9 million VND/household/year, equivalent to 2,51 million VND/ person/ month, 1,32 times greater than the average income of the province Table 3.5 Total average net income/ household in Bac Kan Unit: 1000 VND Total NonOther No Criteria Agriculture Salary income agriculture income Average 93.834,22 29.834 18.701,25 26.241,25 19.057,34 Poor 14.162 6.242,39 9.461,87 12.911,00 households 42.777,66 Near poor 17.425 7.755,10 11.510,20 9.709,05 households 46.399,69 Non-poor 21.802,20 31.965,45 23.009,20 households 109.942,23 33.165 (Resources: the author’s investigation in 2016) * Net income/ hectare of cultivation land of peasants in Bac Kan 14 Income/1 hectare of land is still low The extensive farming is quite common The coefficient of land use is only 1,53 times Average net income is 28,29 million VND/hectare/year, where annual plant land is almost 21 million VND/hectare, perennial land is 56,74 million VND/hectare, income of forestry land is lowest, 0,78 million VND/hectare 80.000 69.610,07 Thousand VND 70.000 56.747,36 60.000 50.000 40.000 30.000 20.996,60 20.000 781,59 10.000 Annual plant Perennial Forestry Fishing (Source: the author’s investigation in 2016) Figure 3.14 Average net income/ hectare of land of peasants 3.5 Development of peasant economy integrated with poverty reduction in Bac Kan 3.5.1 Reality of poverty and poverty reduction in Bac Kan Province The poverty rate of Bac Kan is 29,4%, (multidimensional standard), two times higher than 2014 and 2,5 times of the former poverty standard Many districts have high rate of poverty like Na Ri 40,89%, Ngan Son 50,96% This shows that social welfare service is low Bac Kan has 12% of the households are near poor These have a high risk of being poor again By investigation, it shows that 95,65% of the poor households are ethnic minority Where Mong people is 32,61%, Dao people is 27,17% and Nung people is 18,48%; economic structure of these households 15 transfer really slow and at low level The average rate of being poor again in 2015 was 17,39%, highest was Mong people: 23% Table 3.6 Poor household rate of Bac Kan in the years 2010 -2015 Unit: % No Year Whole province 2010 2011 2012 2013 2014 2015 2015*M 32,1 23,5 20,4 11,24 29,4 Cho on Dist 25,94 15,7 14,5 14,31 13,73 10,14 20,59 Pac Nam Dist 53,8 45,44 40,47 35,36 28,7 23,82 50,84 Ba Be Dist 43,65 29,63 26,56 22,1 18,04 14,52 34,04 Ngan son Dist 40,21 20,5 50,96 Na Ri Dist 46,02 34,3 28,42 26,55 17,98 13,49 40,89 Bach Thong Dist 18,59 12,74 10,46 9,58 6,58 26,31 Cho Moi Dist 31,6 24,66 20,56 20,43 16,12 12,33 25,38 32 18,6 14,8 28,17 25,01 20,51 7,21 Bac Kan City 6,54 4,6 4,06 3,36 2,44 1,85 3,2 Source: Bac Kan Department of Labour, War Invalids and Social Affairs (2015*M is the poverty rate according to multidimensional standard in the period of 2015-2020) Poor households in Bac Kan lack of production sources, where the highest lack is cultivation land 29,72%; lack of production capita counts for 24,1%; lack of production facilities is 12,78% Poverty rate in Bac Kan is high, meaning that there is a need to change the socio-economic development policy in the coming years towards the trend of putting human to the center, integrated with sustainable poverty reduction 3.5.2 Function of peasant economy to sustainable poverty reduction in Bac Kan Province 3.5.2.1 Creating stable jobs, improving income of peasants and poor households 16 In the situation of the low economy of Bac Kan Province undeveloped industry and service, lack of capital sources, development of peasant economy will create jobs for people, helping to reduce poverty and stabilize society 3.5.2.2 Changing production scale, promoting the capacity to reduce poverty of poor households In order to reduce poverty, we need to raise income of the households, especially the poor Poor households often lack and find it difficult to get development sources Therefore, raising income of the peasants should ensure the quantity and quality of the input to expand production scale and therefore enhance the capacity to reduce poverty 3.5.2.3 Diversification of income to help peasants to reduce poverty The fact is that peasant economy, especially the poor households in Bac Kan, does not diverse in income, basing mostly on agriculture, making peasant economy unstable and not everlasting Therefore, diversification of income from agriculture to non-agriculture, transferring to plant and breeding will help to develop sustainable economy, therefore reducing poverty 3.5.2.4 Implementation of policy to develop peasant economy and promote sustainable poverty reduction It is very important to release and implement policy suitable with each period The policies must reduce risks for the households, especially the poor ones 3.5.2.5 Applying science-technology in production to develop economy and reduce poverty The advancements in agriculture are considered to be successful if they are welcomed and done by the peasants However, the advancements are often associated with strict procedure which requires capital and skillful labor Therefore, the state needs to support them in order to put these advancements into production, helping to develop peasant economy, thereby raising income and production capacity, and reducing poverty 17 3.5.3 Issues during the development of peasant economy integrated with sustainable poverty reduction in Bac Kan 3.5.3.1 The poverty rate is still high; sustainability of poverty reduction work is low; it is hard for peasant economy to join production in product chain 3.5.3.2 Development model of the province tends to develop agriculture but it lacks necessary support for peasant economy to develop in huge product orientation 3.6 Common evaluation of reality of development of peasant economy integrated with poverty reduction in Bac Kan Province 3.6.1 Achievements In general, peasant economy in Bac Kan has developed; there are households who have income of hundreds of million VND per year Peasants tend to choose the business and production following the policy of the province Some peasants have initially expand to some nonagricultural jobs to raise their income, which help to reduce poverty every year 3.6.2 Drawbacks - Small peasant economy is still very common in Bac Kan Small production with characteristic of self-provision and depending on nature - Peasant economy in Bac Kan is limited in land scale, capital, technology, management capacity, information about market; technical level and old-fashioned technology, limitation in applying science - Farm economy is yet to develop Connection forms are not common It is hard for the peasants to join the value chain - Average income per capita in a month is 1,8 million VND (equal to half of the average income of Vietnam) - Poverty reduction rate is low and unstable and the risk of being poor again is high 18 3.6.3 Causes of those drawbacks 3.6.3.1 Objective causes The households have little and separated flat land; mountainous land is easily washed Most of the people in Bac Kan are ethnic minorities with limited education and understanding There are few natural resources, therefore it is hard to develop industry to transform labor The number of valuable forests is low and most of them are not old enough to be exploited Therefore, income from forestry is so limited for the peasants The main resources depend mostly on the state support and the potential and social resources are low 3.6.3.2 Subjective causes First: Model of economic development does not focus on industry to transform economic structure and labor Second: Infrastructure like roads, market has various weaknesses Third: Bac Kan lacks enterprises like the leading factors to connect and guild the peasants to develop their product in chain Social organizations and co-operatives are small Fourth: There are various issues in the state management system; the Departments, Divisions only focus on production but they not help peasants to connect production with market Policies to support peasants are not for a long term Fifth: Financial system is yet to develop It does not provide enough capital on time for peasants who are in need Sixth: Labor education is low and there is no high-tech agricultural model to raise their income Some poor peasants have no passion to be rich and just wait for support from the state 19 CHAPTER VIEWPOINTS AND SOLUTIONS ON THE DEVELOPMENT OF PEASANT ECONOMY INTEGRATED WITH SUSTAINABLE POVERTY REDUCTION IN BAC KAN PROVINCE 4.1 International and domestic context influential on the development of peasant economy and poverty reduction 4.2 Viewpoints on the development of peasant economy integrated with sustainable poverty reduction in Bac Kan Province First: Development of peasant economy integrated with sustainable poverty reduction must consider human to be the center Second: Development of peasant economy integrated with improvement of industrialization and modernization, enhancing globally economic integration, economic transformation, diversification of jobs, giving people opportunities to raise their income Third: Development of peasant economy integrated with poverty reduction in Bac Kan needs the combination between the state support and promoting inner power, creating a new development step in peasant economy Fourth: Development of peasant economy towards goods production, exploiting all the advantages of the province, orientating the farm economy and sustainable environment protection Fifth: Development of peasant economy must be based on the cooperation in agriculture 4.3 Some solutions on peasant economy integrated with sustainable poetry reduction in Bac Kan Province 4.3.1 Solutions on policy aspect 4.3.1.1 Planning produce production integrated with market and comparative advantages Bac Kan needs to have outstanding leap, based on the advantages of development of unique agricultural products with high quality under the form of “fresh” products so that the products can get into the domestic market and gradually approach the global market 20 4.3.1.2 Focusing on development of economic infrastructure, especially in rural areas Promoting more such programs as government and citizens it together and combine effective the capital of different projects Especially we should work on the combination of programs to develop innovative rural areas, where infrastructure for production is priotized 4.3.1.3 Solutions on policies to develop processing industry and transfer technical advancements to peasants For processing industry to develop, the province needs policies to promote and attract investors inside and outside the province to this section through priority in using site, exploiting resources, reducing tax, and lowering credit interest Together with the development of processing industry, Bac Kan needs to focus on transfer technical advancements to peasants We need to implement the technical and scientific advancements into production, especially breed; Focusing on implementation of innovative production procedure; transfer technology to peasants should go with renewing methods and improving capacity of agricultural motivation system We need to provide peasant with enough technical and scientific services at the right time 4.3.1.4 Solutions on policies to promote connection and cooperation for peasants Nowadays, for peasant economy to integrate with sustainable poverty reduction, peasants cannot work alone but they must join the value chain Peasant economy must connect with enterprises Therefore, we need to combine it with processing industry, creating opportunities for enterprises and cooperative organization to develop Promoting agricultural activities Innovating cooperatives 4.3.1.5 Solutions on promoting farm economy, developing forestry economic potentials for peasants Together with other solutions like developing jobs, creating livelihood for peasants, applying technical and scientific advancements 21 into production, and so on to transform labor, transform income of certain groups of peasants from agriculture to industry We need to immediately generate an appropriate environment and promote the process of gathering land to form farm economy Bac Kan has a lot of forests but it takes a long time to grow plants and there are so many difficulties of production conditions Therefore, in order to utilize forestry advantages to develop peasant economy integrated with sustainable poverty reduction, the state and enterprises need to give strong support Rather than supplying breeding plants for forestation, forestation managements needs policies to guild peasants to combine with production models under forestation like combining raising plants with breeding; planting short term plants to increase income Choosing forestry plants needs to be done thoroughly and suitable with the wood processing industry In addition, we need to focus on developing roads to transport forestry products 4.3.2 Solutions on enhancing sources for peasants 4.3.2.1 Raising profession and capacity for householders and workers The province needs to continue policy of training peasants in the project “training rural labor until 2020” We need to divide different forms of peasant economy to have suitable training plan For poor household, we need to focus on basic things like raising business management capacity; equipping technical knowledge, etc The training forms must be particularized for each of the districts to exploit regional advantages Continuing to study and spreading models of peasants who are good at doing business in different areas to expand the model Propagating more to raise awareness on becoming richer and escaping poverty and eliminating dependent thinking; Putting multidimensional poverty reduction in the center to carry out social welfare 4.3.2.2 Supporting peasants with capital 22 The province needs programs and policies to lend capital to peasants with low interest and appropriate time and quantity of loan for each kind of produce so that peasants can produce stably The loan procedure needs to be simple In addition, there is a need for a long term policy in supporting peasants with capital so that they can transfer to specialized farm economy 4.3.2.3 Diversification of livelihood for peasants Nowadays, the livelihood of peasants in Bac Kan is to use land to produce agricultural and forestry products They have different possibility to get and choose livelihood Therefore, we need to divide them into groups like rich-poor, purely agricultural - combined so that we can choose appropriate livelihood 4.3.2.4 Supporting in construction of typical economic models of enriched households in order to tug the poor families Focusing on building, expanding the typical advanced models that suit each locality; implementing model in which farmers train each other The province needs to have policies to resolve resources of households with the purpose of developing economy and creating the expansion in the community Combining with attracting investment businesses and linking farming households 4.3.2.5 Solutions of raising sources for poor households and near poor households First: focusing on raising people’s awareness and propagating people to escape poverty and desire to be rich and not depend on society Second: continuing the policies to support poor students on education to enhance their education and to reduce poverty Third: focusing on investing and improving training quality for poor people and ethnic minority Fourth: continuing to give medical support to poor and near poor households Fifth: continuing to implement policy on credit priority for poor people like making loan procedure more simple; raising the loan amount and loan period to make it suitable with production requirements; and 23 guiding poor households to use capital wisely We should combine credits with saving activity to help poor households to escape sustainable poverty, and at the same time we should monitor the capital use by organizing credit group Sixth: It is important to have annual assessment, review and classify poor households in order to propose specific solution for each house Seventh: continuing to carry out agricultural support activities for poor peasants, guild them how to work, transfer technology, and provide market information CONCLUSIONS Peasant economy in Bac Kan has transformed from self-provision to commodity production However, most of peasant economy in Bac Kan develop slowly and commodity production is not very fast Peasants in Bac Kan have not caught up with the changes of the innovation They not have much effect on market economy and international integration and they have few opportunities to approach the market Their ability to escape poverty on their own is limited The conditions for strengthen peasant economy to reduce sustainable poverty like market, labor quality, saving capacity of peasants are all limited 24