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Page 1: ATM #18 Empowering Hanoi's Poor
Page 2: ATM #18 Empowering Hanoi's Poor

The Asian Trends Monitoring Bulletin is a project sponsored by the Rockefeller Foundation,

New York, the Centre for Strategic Futures, Singapore and the Lee Kuan Yew School of

Public Policy, National University of Singapore. The Lee Kuan Yew School of Public Policy

gratefully acknowledges the financial assistance of the Rockefeller Foundation and the

Centre for Strategic Futures, Singapore.

The Asian Trends Monitoring Bulletin focuses on the analysis of pro-poor projects and

innovative approaches that will contribute to alleviate poverty. The emphasis is put on

identifying major trends for the poor in rural and urban areas, highlighting sustainable and

scalable concepts, and analysing how these could impact the future of Asia’s well-being

and future development.

The Asian Trends Monitoring Bulletin are designed to encourage dialogue and debate about

critical issues that affect Asia’s ability to reduce poverty and increase awareness of the

implications for pro-poor policy and policy development.

Disclaimer

The opinions expressed in the Asian Trends Monitoring Bulletin are those of the analysts and

do not necessarily reflect those of the sponsor organisations.

Frequency

The Asian Trends Monitoring Bulletin will be produced eight times a year and can be

downloaded for free at http://www.asiantrendsmonitoring.com/downloads

Principal Investigators

Darryl S.L Jarvis

Phua Kai Hong

T S Gopi Rethinaraj

Research Associates

Johannes Loh

Taufik Indrakesuma

Nicola Pocock

Production

Chris Koh, Manager, Production & Research Dissemination

Image credits, with thanks

All the images in this issue were taken by the ATM team during their Hanoi trip of May 2012,

except for the following images on:

• this page and page 21, copyrighted by United Nations Photo

• page 9 and 12, copyrighted by Padmanaba01

• page 14, copyrighted by Dave_B_

• page 15, copyrighted by din bcn

• page 17, copyrighted by Roberto Vincitore

Permission is granted to use portions of this work copyrighted by the Lee Kuan Yew School

of Public Policy. Please acknowledge the source and email a copy of the book, periodical or

electronic document in which the material appears to [email protected] or send to

Chris Koh

Lee Kuan Yew School of Public Policy

469C Bukit Timah Toad

Singapore 259772

Page 3: ATM #18 Empowering Hanoi's Poor

Hands of a Vietnamese woman making biomass briquettes

Page 4: ATM #18 Empowering Hanoi's Poor

Hanoi’s poor: how do we empower them? 3

Poverty and public services in 4 rapidly growing Vietnam

Large-scale assistance through 12 empowerment efforts

Future outlook: entrepreneurship 17 among the urban poor in 2035

References 22

Contents

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The Asian Trends Monitoring team continues its reporting on the state of

urban poverty in Southeast Asia. After the first two issues on Jakarta and

Manila, the team now releases a bulletin on a city that is markedly different

from the first two: Hanoi, Vietnam.

Unlike the more developed economies of Indonesia and the Philippines,

Vietnam is very much an economy in transition. With its recent rise into

the cluster of middle income countries (countries with a GDP per capita of

US$1,000 or more), Vietnam has an opportunity to adjust its growth strat-

egy to become more inclusive and lift millions of its people out of pov-

erty. One of the best places to start would be its capital city. Hanoi, unlike

Jakarta and Manila, is not quite a megacity, but it is definitely heading in

that direction. Thus, Hanoi must rethink its strategies and models for ser-

vice provision in order to remain inclusive and accessible throughout this

period of growth.

This issue of the Asian Trends Monitoring Bulletin analyses the living con-

ditions that Hanoi’s poor residents must contend with, and the services

that are in place to assist them. More specifically, we look into the poten-

tial roles of empowerment strategies such as microfinance and social busi-

nesses as viable ways to close service gaps in cities like Hanoi.

This issue also features primary data from our Urban Poverty and

Service Provision dataset. The data we present will hopefully paint a

clearer picture about the state of public services in the city, as well as which

problems most urgently require solutions.

In the final part of this bulletin we provide four alternative future sce-

narios for Hanoi 2035. Will the city choose a new direction and head towards

“vibrant self-reliance” or will it end up in the “inevitable breakdown” sce-

nario? Read about these and two more scenarios in the new future outlook

section.

Throughout 2012 the team has conducted the survey in a total of four

cities: Jakarta, Manila, Hanoi, and Vientiane. Future issues of the ATM Bulletin

will include cross-city comparisons in key areas such as health, water and

access to finance.

We invite you to share the ATM Bulletin with colleagues interested in pro-

poor issues in Southeast Asia. The Bulletin is also available for download

at www.asiantrendsmonitoring.com/download, where you can subscribe

to future issues. We encourage you to regularly visit our website for more

updates and recent video uploads in our blog. Thank you again for support-

ing the ATM Bulletin, and as always, we gladly welcome your feedback.

Taufik Indrakesuma

Johannes Loh

Hanoi’s poor: how do we empower them?

Small business owners like this require much training and assistance to become competitive

Suggested citation

When citing individual articles

• Indrakesuma, T., & Loh, J. (2012). Poverty and public

services in rapidly growing Vietnam. In Asian Trends

Monitoring, Bulletin 18: Empowering Hanoi’s Poor

(pp. 4-11). Lee Kuan Yew School of Public Policy,

Singapore.

When citing the entire bulletin

• Asian Trends Monitoring (2012). Bulletin 18:

Empowering Hanoi’s Poor. Lee Kuan Yew School of

Public Policy, Singapore.

When citing our survey data

• Asian Trends Monitoring (2012). A dataset on urban

poverty and service provision. Lee Kuan Yew School

of Public Policy, National University of Singapore.

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4

Vietnam is the country with the highest urbani-

sation rate in Southeast Asia—just a decade

ago only 24% of its population lived in cities,

with 65% of the labour force employed in rural

agriculture. Today, already more than 30 mil-

lion people live in urban areas, accounting for

approximately 34% of Vietnam’s total popula-

tion. The country is witnessing a speedy prolifer-

ation of urban areas, with the number of towns

or cities at 755 and rising. Planners estimate that

Vietnam’s cities will be home to more than 46

million people by the year 2020.1 The largest of

these cities, Hanoi and Ho Chi Minh City, are the

growth engines of the country, supported by

relatively low urban unemployment at 4.6%. In

contrast, rural unemployment is reported to be

over 20%.2

With its newly attained status as a middle

income countrya and its ambitions to achieve

higher levels of human development, the coun-

try needs to address challenges in basic social

service provision for both rural and urban popu-

lations. In particular, Vietnam will have to cope

with rural-urban migration, a global megatrend

that will continue to trouble city planners for the

forseeable future. Many poor rural Vietnamese

will try their luck in the thriving urban centres,

perceiving them to be full of job opportunities

for both skilled and unskilled workers. Urban

planners need to find a way to accommodate

this influx of migrants and account for the fact

that most of them are ill-equipped to participate

in the urban economy.

In Thailand, Indonesia and the Philippines,

agriculture accounts for 42%, 41% and 35%

of the total labour force, respectively. This

means that their transitions into a service sec-

tor-led economy are well ahead of Vietnam’s.

According to official statistics, Vietnam’s agri-

culture sector still employs just over half of the

total labour force.3

Data from several reputable sources indi-

cates that Vietnam has been successful in

pairing economic development with poverty

alleviation in its growing urban areas. This is

evident from the progress in its Millennium

Development Goals and Human Development

Index indicators. For example, Vietnam’s provi-

sion of improvedb water and sanitation sources

in urban areas compares favourably to its

“more developed” ASEAN neighbours such as

Indonesia and the Philippines. Reports about

Vietnam’s progress towards the Millennium

Development Goals (MDGs) document tremen-

dous achievements against the baseline data

from 1990. Compared to all other ASEAN coun-

tries Vietnam’s poverty reduction record stands

out—from a poverty rate of 58.1% in 1990, the

country managed to lift millions of people out

of poverty by 2008, which showed a rate of only

14.5%.4

While progress on MDG 1 (Eradicating

extreme poverty and hunger) is focused mainly

on income levels, “new forms of poverty” such

as urban slums and service deprivation repre-

sent challenges that require targeted and cross-

sector solutions. In light of the pace of urbanisa-

tion in Vietnam, specific interventions and solu-

tions to alleviate urban poverty will become

increasingly important.

The emerging trend of urban poverty

has been neglected in transitional Vietnam.

Government programmes prioritise rural pov-

erty alleviation programmes, while city admin-

istrations are more concerned with generat-

ing and sustaining the booming economic

growth. But for the marginalised and vulner-

able in Vietnam’s urban areas, problems of

depressed housing conditions, poor water and

Poverty and public services in rapidly growing Vietnam

Table 1. Access to improved water and sanitation in the urban areas of Indonesia, Philippines, Vietnam

Access toUrban

IndonesiaUrban

PhilippinesUrban

Vietnam

Improved water 89% 93% 99%

Improved sanitation 67% 80% 94%

Source: World Bank, World Development Indicators and Global Development Finance Database (2010 data)

by Taufik Indrakesuma & Johannes Loh

a Above US$1,000 GDP per capita b An improved drinking-water source is one that, by nature of its construction or through active intervention, is likely to be protected from outside contamination. An improved sanitation facility is one that hygienically separates human excreta from human contact.

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5

sanitation facilities and health risks due to pol-

lution can have devastating impacts, if not dealt

with quickly.

Service deprivation in Hanoi: evidence from the field

In order to assess the severity of the problems

that the urban poor face, the Asian Trends

Monitoring team conducted a survey among

Hanoi’s poor population between 18–24 May,

2012. We collected a total of 351 responses

from four different neighbourhoods with the

help of 12 field interviewers from the Centre

for Studies and Applied Sciences in Gender in

Hanoi. We used the random walk method to

sample respondents from every third house or

shelter.

The survey had a “perception of difficulties”

section comprising ten categories, each to be

rated on a 5-point scale (from “easy” to “impossi-

ble/unable to do”). The survey results show that

the greatest self-reported challenges among

the urban poor are “accessing health services”,

“finding work opportunities”, “saving money”

and “finding good schools” for their children

(see Figure 1). In each of these four categories

more than 40% of respondents answered with

very difficult or unable to do.

Our sample included 225 women and 124

men because the survey was conducted during

the day, when most of the men are at work.

Heads of household and spouses comprised

93% of respondents in total, with 171 and 153

responses, respectively. The average age of

these respondents was 47 years. The house-

holds had an average size of 4.02 members,

and migrant households accounted for 73.4%

of the sample.5

It is striking how prominently so-called “new

forms of poverty” feature among the major

issues indicated by the survey respondents.

While income (reflected by the inability to save

money) is represented in the top four issues,

access to health services, education and finding

employment are equally difficult.

Figure 1. Perception of difficulty among Hanoi’s poor

Source: Asian Trends Monitoring. (2012). A dataset on urban poverty and service provision. Lee Kuan Yew School of Public Policy, National University of Singapore.

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The ten categories presented in Figure 1

were compiled into a “Life difficulty index”

through direct summation. A breakdown by

education group reveals large differences in

perceived life difficulty across all levels of educa-

tion (see Figure 2). However, group comparisons

are only significant between those with school-

ing up to grade 9 and those with high school

degrees or more.

Life in the city is especially tough for

migrants. With no official residence in Hanoi,

migrant households are categorically excluded

from the “poor list” of eligible recipients for gov-

ernment services. This means no subsidies, no

free healthcare, and no other form of govern-

ment support for them. In fact, the city gov-

ernment tries to avoid slum upgrading and fre-

quently raids illegal settlements, pushing the

poor beyond the city boundaries and out of

sight from the public. Thus, Hanoi’s labourers

and micro-entrepreneurs, drawn from migrant

populations, are faced with the daunting task of

commuting great distances from the city centre

to their homes in the outskirts. A recent UNDP

report euphemises the situation in stating that

“government policies and expenditure have,

at times, tended to prioritise achieving higher

rates of economic growth over broader human

development outcomes”.6

Based on the above findings, it is clear

that Hanoi’s development is not yet inclu-

sive. The services available to Hanoi’s poor

are extremely limited and often inaccessible

to those most in need. Migrants and seasonal

workers, often among the city’s poorest resi-

dents, are by default not eligible for the Poor

List (see page 8, “The Poor List”) because they

are not official Hanoi residents. Furthermore,

they are unable to access decent housing and

financial services.

As most of Hanoi’s poor are self-employed

in the informal sector, they often require loans

for working capital and consumption smooth-

ing. Unfortunately, microfinance services in

urban areas are rarely available. In urban areas

there are two major players: the Vietnam

Bank for the Poor and the Women’s Union. In

order to get a loan from these organisations, a

household needs to be listed on the Poor List.

In the case of the Women’s Union, an official

membership is also required. Revolving funds

and self-organised savings groups can only

be run illegally, according to our NGO source.

Consequently, scaling and replication of those

highly effective financial services remains

blocked by law.

The survey data confirms the lack of choices

when Hanoi’s poor are in need of credit. The

overwhelming majority of respondents (73.9%)

take private loans from relatives or friends. Even

the services of informal money lenders, often

the next most popular alternative when the for-

mal financial system is inaccessible (compare

this to ATM Bulletin 17 “Manila’s Poor”), are only

used by 7.8%.

The poor are also deprived when it comes

to health services. If they are unable to afford

health insurance at market rates, they are

forced to pay out-of-pocket for every treat-

ment. An ongoing commercialisation of health

services has further worsened the gap between

the affluent and the poor. The UNDP Human

Development Report notes that attempts to

ensure sustainability of social service funding

have led “to the increasing commercialisation of

public social services, and over-reliance on user

fees by service delivery organisations”.7 As evi-

dent in Figure 4, more than 50% of respondents

have difficulties in paying for health treatments.

As a result, many choose to self-medicate or

leave their ailments untreated. Moreover, a third

(36%) of those who make use of locally available

clinics are dissatisfied with the service quality

(see Figure 5).

Figure 2. Life difficulty index, by the level of education obtained, as a percentage of maximum difficulty

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Figure 3. Response to the question: Where do you primarily borrow money?

Figure 5. Response to the statement: I receive good service at my local health centre

Figure 4. Response to the statement: I have enough money to pay for health services

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Several NGO representatives we inter-

viewed in Vietnam confirmed the observation

that urban life has become more challeng-

ing due to rising food prices and costs of liv-

ing. Hong, born and educated in Hanoi, tells

us that “it takes a minimum of VND1,000,000”

(approximately US$50) for a person to survive

for a month in Hanoi, while the current urban

poverty line is set at VND653,000 (US$32.65).11

From the perspective of the poor, government

support is difficult to get and, when available,

remains limited. Moreover, the financial cri-

sis has impacted assistance from overseas—

relatives and friends have lower savings and

remittances have gone down. The crisis has

also impacted the local economy, drying up

employment opportunities that were already

quite scarce before the crisis.

One of the very few studies monitoring

Vietnam’s urban poverty is led by ActionAid

and Oxfam. Through questionnaire-based

interviews, group discussions and in-depth

interviews, their research team tried to deepen

their understanding of urban poverty and

identify the most needed social services. The

study found that poor human resource quality,

an inability to find alternative livelihoods, and

a lack of social capital are major disadvantages

for poor urban residents.12 The study’s results

are very similar to what our interviewees on

the ground named as their major challenges.

According to the study, urban migrants face

additional challenges such as limited access to

public services, uncomfortable and unsafe liv-

ing conditions, high costs of living, and lack of

social integration.

Without a comprehensive social protection

policy, this group of urban migrants and the

next generation of urban poor could constitute

a ticking time bomb for city planners. If the ser-

vice gap keeps growing, it will further aggravate

the social and economic inequality in Vietnam’s

cities and become a major threat to social and

political stability.

“The Poor List”

The Vietnam government’s provision of services for the poor utilises a targeting system

based on household income levels. The Ministry of Labour, Invalids and Social Affairs

(MOLISA) constructs the list of poor households based on a poverty line of VND653,000

(US$32.65) per person per month in urban areas and below VND400,000 (US$20) in rural

areas (as of 2012)8, and household income is assessed based on household surveys and

community discussions. The list of poor households is updated annually.9

In every interview regarding government services in Hanoi, our sources never failed

to mention this infamous “poor list” and what they believed were its flaws. The main

concern is that many consider the poverty line to be set unrealistically low. The "poor

list" threshold of US$32.65 per month is barely above the US$1 per day poverty line

used a decade ago. Locals argue that there are a large number of households that are

unable to meet their basic needs despite having a household income that is too high for

poor list eligibility. The 2011 Human Development Report argues that Vietnam needs to

expand its coverage for social services in order to achieve higher levels of human devel-

opment. It states that the “the system of subsidies and benefits available to the poor and

disadvantaged is not yet sufficient to ensure universal access to social services”.10

The seemingly obvious solution to this flaw is to raise the threshold, granting more

households access to government assistance. However, this solution entails either an

expansion of the government budget for poverty alleviation efforts or a smaller share of

the pie for each household. As government budgets are unlikely to grow so significantly,

the most likely outcome of expanding the “poor list” is that each household will receive

reduced benefits, which can severely lessen the impact of the assistance on the whole.

Thus, a more sustainable solution would be for other organisations to step in and

cater to the other needs of the in-betweens—those too wealthy for Vietnam govern-

ment assistance but still too poor to sustain a decent living. It is important to consider

that the “in-between” households have more resources at their disposal than the “poor

list” households. They can be assisted in other targeted ways such as better employ-

ment opportunities or skills training, which are more viable for smaller organisations

compared to efforts like building free water pumps or free health clinics.

A traditional market in Hanoi.

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9

Migrants versus residents: yet another disparity?

A comparison between rural-urban migrants

and established Hanoi residents shows large

differences in perceptions of difficulty.13 The

migrant group rates access to a number of ser-

vices as significantly more difficult than the resi-

dent group. Clean water is perceived as very

difficult to access by 28% of the migrant group

compared to only 8% of the residents (See

Figure 6). One possible explanation would be

that the “residents” were settled at a time when

the city was less crowded, enabling them to live

close to clean water sources.

Differences in access to modern health ser-

vices are less pronounced, but follow the same

pattern. Once again, the migrant group has a

significantly more difficult time gaining access

to modern health treatments than the resident

group (See Figure 7).

Hanoi street vendors sell meat in the open.

Figure 6. Ease of access to clean water

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Figure 7. Ease of access to modern health treatments

Figure 8. Ease of access to toilets

Figure 9. Ease of finding good schools for children

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With regards to accessing sanitation facili-

ties, 14% in the migrant group have expressed

difficulty compared to only 4% in the resi-

dent group. This discrepancy becomes more

pronounced when we look at the other end

of the spectrum, where 92% of the residents

found accessing sanitation facilities to be easy

or fairly easy, as opposed to only 69% in the

migrant group.

By just looking at the data, one could

get the impression that migrant children

are discriminated against when applying for

schools. 15% more migrants than residents rate

it as very difficult to find good schools for their

children. One of our interviewees pointed out

that it is not uncommon to pay bribes upwards

of a couple of hundred US dollars to “buy”

admission to decent primary schools. If it is

true that migrants, on average, earn less than

the longer established urban populace, ability

to pay this expensive bribe could explain the

results (See Figure 9).

The results from these four categories are a

clear indication that exclusion from basic facili-

ties and services is more severe for rural-urban

migrants. Interestingly, the questions on work

opportunities and regular savings do not show

significant differences between these two

groups. From the survey results, it appears that

finding work and saving money is equally diffi-

cult for both migrants and Hanoi residents,

regardless of how long they have been living in

the city.

Trash collection, a livelihood of last resort

The team travelled to the Nam Son landfill and solid waste treat-

ment in Soc Son, Northern Hanoi. The main purpose of the visit

was to interview trash pickers earning their living at the landfill.

However, at the time of our visit, the landfill was not open to the

trash collectors, as they are only allowed in the area very early in the

morning, before the garbage trucks arrive. This is one of the major

differences when compared to Jakarta’s Bekasi landfill or Manila’s

harbour landfill. The operator’s strict rules significantly reduce the

danger for trash pickers in the vicinity of the trucks, dumping fresh

garbage. In Jakarta and Manila, the most profitable items can only

be snatched away while the trucks are still unloading and thus the

work has to be done precariously close to the moving trucks.

We interviewed a family who has earned their living in the “recy-

cling” business for the past thirteen years. Hanh, her husband and

their three kids live in a village of about 500 people. Their home is a

simple housing complex with five families, each owning their own

room and a shared outdoor toilet. Even though their area is con-

nected to the water network, the pipe ends at the main road a few

hundred metres away. So, they built a community well.

Rice farming used to contribute about 50% of their monthly

income. However, a few years ago, one family started a brickmak-

ing business that was so profitable that most other families followed

suit. The resulting boom in the number of brickmaking ovens com-

pletely dried up and damaged the soil, rendering it unusable for

commercial farming. Today, they can only use the land for subsis-

tence farming, leaving the landfill as their only source of income.

Hanh’s family acts as a “distributor” in the middle of the supply

chain for recyclable goods. Rather than collect the garbage directly,

the family buys plastic bags, old clothes and sometimes human hair

from other collectors. Subsequently, they clean and dry the mate-

rial and resell it to larger recycling operators. This unique position

means that Hanh’s family members are not put at risk of physical

harm from being in the landfill, making them better off than the

families who collect trash directly.

However, being part of a long, inefficient supply chain also

means that profit margins for the family remain small. Hanh’s

monthly household income is about VND3,000,000–4,000,000

(approximately US$144–191) which translates into less than US$1.30

per person per day. Consequently, they have no safety cushion in

cases of medical emergencies, and even the school fees for their

children are a big burden. To make matters worse, their income level

is deemed “too rich” for government assistance, and when we asked

them about NGOs in their area, we drew only blank looks.

The family would like to scale its business and open a grocery

store, but the loan conditions are not worth the risk. While the bank

asks for collateral which they do not have, the loan shark (usually

one of the local brick producers) asks for outrageous interest rates.

They are left with no real alternatives aside from saving up little by

little from their recycling activities.

Having seen inspiring examples of social businesses based in

trash-picker communities in Manila and Jakarta, we are left wonder-

ing what it would take to mobilise Nam Son’s villagers to get started

and gain access to access to markets for products from recycled

materials.

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12

In cities where government services are inacces-

sible for the poor, NGOs would typically step up

and act as a substitute provider for the people.

However, in a city like Hanoi the service gaps are

so large that direct provision from NGOs is not

a viable alternative. Most pro-poor NGOs are

small and have limited resources, meaning that

they can only serve one community at a time.

Additionally, the evidence from the field in

Jakarta and Manila suggests that these small

NGOs that engage directly with the commu-

nities are more successful than large NGOs

that adopt the “assistance from above” pro-

vision models of the government. However,

mimicking the direct engagement service

model on a larger scale is difficult and requires

sizeable expenditures for human resources.

These expenditures will only get larger with

time, due to the anticipated growth in the num-

ber of poor urban residents.

Thus, NGOs working in Hanoi are faced with

two choices: be content with providing services

to a limited number of people (perhaps one

neighbourhood or ward), or adopt a different

strategy that can be scaled up while retaining

financial sustainability. Two such strategies that

have found success in other cities are social busi-

nesses and microfinance.

Before discussing the details of these strate-

gies, it is important to note their common char-

acteristics that may have contributed to their

success. First, both of these strategies focus

on empowerment rather than direct provi-

sion of services. Although building clinics and

schools for the poor can be effective at times,

Large-scale assistance through empowerment efforts

by Taufik Indrakesuma & Johannes Loh

Stuck in Hanoi.

Page 15: ATM #18 Empowering Hanoi's Poor

13

it also requires a constant stream of resource

to be poured in. This means that the services

are often at the mercy of donor funding and

will have to cease operations when the money

runs out. On the other hand, social businesses

and microfinance institutions choose instead to

provide the poor with jobs or the capital to start

their own businesses. The resulting improve-

ments in household income will, in the long run,

enable the beneficiaries to access and pay for

existing services, without depending on hand-

outs from the providing organisations.

Secondly, both of these strategies are finan-

cially sustainable because they are run on a for-

profit basis. Social businesses and microfinance

The micro-entrepreneurs of Hoan Kiem Lake

From a quick walk around Hanoi’s popular tourist areas, the tourism-

related economic activity is striking. Souvenir shops, restaurants,

cafes, and hotels have popped up almost everywhere to accom-

modate the increasing numbers of tourists. However, these busi-

nesses generally require a significant amount of capital to set up;

their business models have only limited benefits for the poor. Micro-

entrepreneurs with access to small amounts of capital to support

their endeavours have not been able to capitalise on this growing

tourist market.

The team interviewed a number of micro-entrepreneurs who

worked around Hoan Kiem Lake, a popular tourist spot in Hanoi.

We wanted to know how their businesses have fared in the last few

years, when Hanoi’s tourism sector grew significantly.

Our first interview was with a rickshaw driver, who moved to

Hanoi 21 years ago and has worked as a rickshaw driver ever since.

Over that time, he has seen a shift in how his services are used.

Initially, rickshaws were a primary method of transport, which

meant that his services were in demand and his income was high.

Then, motor vehicles grew quickly in popularity and rendered rick-

shaws obsolete, except as a tourist attraction. However, the recent

growth in tourism has not translated to increased earnings for rick-

shaw drivers. “We’re just not popular anymore,” our interviewee

said. When asked whether the government has attempted to pro-

mote rickshaws as a tourist attraction and help improve their condi-

tions, he answered, “No. Why would they?”

Other vendors around the area felt the same way. A woman who

sold Vietnamese cakes shared, “I usually don’t get many foreign

customers, only locals. The foreigners don’t want to try my cakes.”

Our interpreter added that foreigners are generally unwilling to buy

food from street-side vendors because of hygiene concerns. This has

left many small-scale food sellers unable to tap into the growing

tourist market.

These anecdotes are examples that Hanoi’s micro-entrepreneurs

need assistance. The rickshaw drivers, toy sellers, and food vendors

of Hoan Kiem Lake are stuck with the same jobs and/or business

models as ten years ago. A lack of capital limits their ability to adapt

to the changing markets and adjust their services accordingly.

Microfinance may be the best way to provide this helping hand.

Having some extra capital will allow rickshaw drivers to set up a

proper tour guide business using their rickshaws or to switch to

a motorcycle taxi service. The same applies to food vendors who

would be able to clean and upgrade their stalls to make them more

attractive to foreign tourists.

However, it would be wrong to perceive these micro-entrepre-

neurs simply as people who need handouts. These small-scale busi-

nesses have potential for untapped profits, due to the aforemen-

tioned rapid growth of Hanoi’s tourism industry. Thus, microfinance

institutions would not just be filling a gap in service provision and

helping to lift communities out of poverty—they would be tapping

into a profitable market as well.

This old man makes US$2 a day selling toys.

Page 16: ATM #18 Empowering Hanoi's Poor

14

organisations are both strategies that seek a

return on investment. Successful social busi-

nesses are profitable enough to be able to

employ workers at fair wages, while microfinance

organisations establish good rapport with local

communities and generally keep non-perform-

ing loans to a minimum. This element of financial

sustainability allows the organisations to expand

their services both in reach and in duration.

Effective empowerment through social business

Social business is a development buzzword that

has grown in popularity in recent years. The con-

cept and term were popularised by Muhammad

Yunus, Nobel Peace Prize laureate and founder

of the Grameen Bank. Loosely defined, any pri-

vate entreprise with poverty alleviation as one

of its objectives can be considered a social busi-

ness. A more specific definition given by Yunus

involves his seven principles14:

• [the] business objective will be to over-

come poverty, or one or more prob-

lems (such as education, health, tech-

nology access, and environment) which

threaten people and society, not profit

maximisation;

• [the business is] financially and economi-

cally sustainable;

• investors get back their investment

amount only, [without dividends] given

beyond investment money;

• when investment amount is paid back,

company profit stays with the company

for expansion and improvement;

• [the business is] environmentally conscious;

• workforce gets market wage with better

working conditions; and

• do it with joy.

Social businesses tend to achieve their

social objectives in two main ways. Some

social businesses help the poor by providing

goods or services at affordable prices. Some

notable examples around the world include

A tough life hidden from view

Ngoc is a 54-year lady who runs a micro-business in Hanoi. She runs a “shop on wheels”,

a bicycle used as a pushcart packed with second-hand clothes, household linens, and

other assorted trinkets. She is also a seasonal migrant—for three months in a year, she is

a farmer, and for the other nine months, she becomes part of Hanoi’s poor population.

She is a registered resident in a village 60km outside of Hanoi, but moved to the city

looking for opportunities to earn additional money. Her family barely owns enough

land to feed themselves and their children dropped out of high school to contribute

as bread-winners.

When Ngoc came to Hanoi (alone, as the rest of her family chose to remain in the

village), she did not know anyone and came with little money, barely enough to start

a business. Luckily, she was able to find a group of migrants who came from the same

province. This gave her both companionship in the city and a way to communicate with

her family back home. Since she cannot afford a mobile phone, she has to rely on people

travelling through her village to relay news to and from her family.

Because she returns to her home during harvest season, she needed a business with

non-perishable goods and low investment costs. Without the skills to secure a job in a

factory, she settled for trading and selling second-hand clothes from a bicycle. “I know

my business is not very profitable,” says Ngoc, “but it’s still better than in my village,

where I have no work for most of the year”. She earns about US$1 on bad days and

maybe US$2.50 on good days. However, half of her profits go for the rent (US$25 per

month) of her sleeping place. After factoring in other costs of living, there isn’t much

money left to be sent back home.

This situation is typical for thousands of poor people in Hanoi: little working capital,

no access to finance, no access to subsidised public services due to non-eligibility, and

poor health due to their living conditions with bad or little sanitation facilities. Ngoc’s

case illustrates how Vietnam’s city planners need to rethink their approach to public

service provision for the urban poor.

Life is tough for Hanoi's street hawkers.

Page 17: ATM #18 Empowering Hanoi's Poor

15

Grameen Danone, a joint venture between

Grameen and DANONE to market cheap, nutri-

tious yogurt (called Shokti+) to solve child

malnutrition in Bangladesh. The product was

developed to meet child nutritional require-

ments and was marketed at 6 Bangladeshi

Taka (~US$0.07) for a 60g cup in rural areas and

12 Taka (~US$0.14) for a 80g cup in urban areas.

Due to its affordability and nutritional content,

the product grew popular very quickly, with a

sales level of 95,000 cups per day in April 2010.

A report released in May 2010 detailed the

following social and economic impact of the

venture15:

• 1-out-of-4 children in the marketed areas

eats at least one cup of Shokti+ per week;

• 700 door-to-door sales ladies are get-

ting additional income of 50-100 Taka

(US$0.60–1.20) per day; and

• 370 micro-farmers are also adding 40%

to their daily income from selling to

the Grameen Danone production plant

instead of going to the market.

However, it is worth noting that despite all

of its positive impacts, Grameen Danone and

other similar social businesses require large ini-

tial capital investments, and can take much lon-

ger than conventional business models to reach

the break-even point (in the case of Grameen

DANONE, it does not foresee reaching full

repayment even by 2015, or ten years of opera-

tion). Thus, this particular model of social busi-

ness can run into the same financial constraints

that limit the reach and impact of traditional

NGO provision schemes.

One final point to consider about social busi-

nesses is the quality of the products. The goods

and services should be able to improve the cus-

tomers’ lives, and should thus be of a reason-

ably high quality. This is in stark contrast to the

typical government service provision model,

especially programmes that use self-targeting

schemes. Self-targeted programmes attempt

to circumvent the time-consuming process of

identifying beneficiaries by providing goods

and services of an inferior quality that would

only be demanded by households or individu-

als that are poor. However, inferior goods lead to

smaller benefits, as well as negative side-effects

on the target communities such as shame

and resentment. In this case, social businesses

become better providers than government

agencies, provided a committed entrepreneur

and an investor can be found to fill a particular

service gap.

The other way in which social businesses

can help the poor is through involvement of

the poor and unskilled in the production side.

This can be through ownership by the poor, fair

employment of the poor, or cooperation with

other poor-owned businesses. In the previous

example of Grameen Danone in Bangladesh, the

company not only produces goods that benefit

the poor, it also employs poor rural women as

door-to-door salesmen with fair compensation

and buys its ingredients from local micro-farm-

ers at higher than market prices.

In Hanoi, poor and unskilled workers do not

have much bargaining power and are typically

A river hawker displays her merchandise in Halong Bay .

Page 18: ATM #18 Empowering Hanoi's Poor

16

employed under bad conditions and with mini-

mal compensation. Social businesses can fulfill

their social objective by choosing to pay fair

wages that are sufficient for fulfilling the work-

ers’ needs. Additionally, the entreprises can go

even further and empower their employees

through education and skills training. One nota-

ble example that the team found during the visit

was KOTO, a restaurant that employs poor street

children and also gives them formal training in

the hospitality industry. (See page 16, KOTO: the

right model at the right time)

Aside from KOTO and its model of employing

poor youths, there are also some organisations

that work with existing small businesses to

enhance their profitability and reach. One exam-

ple is Craft Linkc, an organisation that works with

traditional craft artisans in Hanoi and rural

Vietnam. Craft Link fulfils their social objective by

assisting these poor communities that have trou-

ble adapting to Vietnam’s rapid economic

growth and modernisation. It trys to help these

artisans to sell their handicrafts to the modern

market by developing new skills and production

techniques, designing new products, and using

modern marketing techniques. The training and

other assistance programmes are fully funded by

the main business of selling the handicrafts,

both locally and internationally. Craft Link’s

activities count as an effective form of empower-

ment because the knowledge transfer will make

the artisan communities more resilient and

adaptable to future changes in the Vietnamese

and world markets for handicrafts.

KOTO: the right model at the right time

To some, KOTO (visit the website at www.koto.com.au) is just a

fancy restaurant in Hanoi with good food, a good atmosphere, and

a friendly service staff. However, to many of its service staff as well

as the poor communities around Hanoi, KOTO represents an oppor-

tunity to escape poverty and achieve a better life.

Founded by Vietnamese-Australian Jimmy Pham in the late 1990s,

KOTO (which stands for Know One, Teach One) is one of the big suc-

cess stories among Hanoi’s social businesses. The success of its model

has inspired imitations in recent years such as STREAT in Melbourne16.

The way in which this restaurant achieves its social objective of

poverty alleviation is by training and employing street children and

other poor youths from the surrounding communities. Their web-

site states:

“Every six months KOTO recruits up to 30 street or dis-

advantaged youth aged 16–22 coming from difficult life

circumstances. These include poverty, abandonment,

orphans, abuse, youth involved in exploitative employ-

ment, neglect, conflict with the law, parents with addic-

tions, parents with mental health problems and a range

of other troubled backgrounds.”17

Successful applicants are then enrolled in a 24-month training

programme which includes extensive training for the hospitality

industry as well as English, computer literacy, and other life skills.

During this time, KOTO also provides accommodation, meals, and

routine health check-ups.

After the training programme, graduates can either work at the

KOTO restaurants in Hanoi and Ho Chi Minh City or find a hospi-

tality job with other organisations in Vietnam’s major cities. Most

KOTO graduates manage to secure trainee positions in established

businesses in Vietnam, but also abroad. More recently, KOTO has

secured partnerships with hotels, resorts, and restaurants around

the world, giving its graduates even more lucrative opportunities.

Part of the success of the business model can be attributed to the

growth of the hospitality industry in Vietnam’s urban areas. There is a

significant growth in the tourism sector, which means that new hotels

and restaurants will be in need of a larger number of workers. KOTO

succeeds because it fills that labour demand gap successfully by sup-

plying highly trained workers. This leads to organisations being more

likely to invest or donate money into the KOTO training programme,

which will make the operations more sustainable in the long run.

The other part of KOTO’s success as a social business is that its

model truly helps households at the bottom of the pyramid. Aside

from providing its beneficiaries with the short run improvements

in health care and nutrition, KOTO also equips them with the tools

to thrive in an increasingly competitive urban economy. As a

result, the expected earnings of KOTO graduates should be

enough to support their families and allow them to escape pov-

erty. In the long run, this has a much larger and more sustainable

impact than government subsidies for food, healthcare, or educa-

tion ever could.

c For more information about Craft Link, visit their website at www.craftlink.com.vn

Page 19: ATM #18 Empowering Hanoi's Poor

17

The Vietnamese capital is undergoing several

drastic changes. The city’s look and feel are

changing, and the city’s inhabitants have evolved

their preferences and demands. This presents

new risks and challenges that policy makers must

juggle. Thus, the kind of choices that city plan-

ners take will heavily influence Hanoi’s aspiration

as a modern and inclusive metropolis.

The ATM survey indicates that health ser-

vices, good schools, work opportunities, and

financial services are the most critical unmet

needs of the poor. Finding solutions is especially

urgent due to the population pressures caused

by growing share of rural-urban migrants try-

ing their luck in the “big city”. Current strategies

will fail: slum clearing and restrictive eligibility

criteria for government benefits are short-term

strategies to drive people away from Hanoi, but

these disincentives are no match for what the

city has to offer.

In order to equip planners with a framework

to base their policy design, we have developed

four alternative futures for Hanoi. They are cen-

tered along two critical junctures:

• pace of rural-urban migration and its con-

sequences for urban infrastructures; and

• service delivery method for the urban

poor.

Both of these issues were discussed at length

in previous sections of this bulletin. The combi-

nation of those critical junctures produces the

following four alternative futures (See Figure 10).

To simplify the comparison of the alternative

futures, three criteria will be used to evaluate

the different outcomes:

• pace of economic growth;

• inclusiveness of the economy for the low-

est income groups; and

• quality of life of the lowest income groups.

Future outlook: entrepreneurship among the urban poor in 2035

by Taufik Indrakesuma & Johannes Loh

A much-needed break from a hard day's work.

Page 20: ATM #18 Empowering Hanoi's Poor

18

Figure 10. Which future to choose? Hanoi in 2035…

Pace of economic growth

A development model focused on maximum

productivity and rapid GDP growth often results

in unwanted externalities such as higher social

and economic inequality, environmental degra-

dation or resource exploitation. Choosing more

inclusive alternatives can, but does not have to

slow down economic growth. Therefore, it is an

important criterion when reflecting on future

policy measures.

Inclusiveness

In the context of improving livelihoods for the

urban poor, the inclusiveness of the economy

for the lowest income groups is crucial. They

need to have a support structure for business

development and sufficient training and job

opportunities in order to lift themselves out

of poverty. Historical experiences show that

relying on the “trickling-down theory” will not

work.

Quality of life for the lowest income group

Living conditions for the urban poor in rap-

idly growing megacities in developing coun-

tries are harsh. Entrenched historical patterns

show high degrees of service exclusion and

much lower levels of human development,

particularly in urban slums. This criterion is

linked to and complements the inclusiveness

criterion, but will be affected by different sets

of policy measures.

Page 21: ATM #18 Empowering Hanoi's Poor

19

Scenario 1: Controlled and inclusive growth

A decelerated pace of rural-urban migration would allow

urban infrastructure to catch up with population levels.

Additionally, a concerted empowerment strategy would

enable the poor to participate in turning Hanoi into a dynamic

metropolis. The city would have a vibrant economy with

micro-entrepreneurs competing alongside big businesses.

A mix of government and NGO-run training centres would

ensure that micro-entrepreneurs learned the necessary skills

to develop their businesses. A controlled population level

leads to manageable competition and bigger profit-margins

for small businesses such as street-vendors, kiosk owners and

tuktuk drivers. Access to practical training, even for those with

only limited schooling, would improve job opportunities for

the lowest income groups. With the ability to afford basic ser-

vices, these groups would achieve better social integration

and higher social capital in their neighbourhoods.

The “poor” would enjoy good levels of inclusion, socially

as well as economically. However, these benefits come at the

cost of excluding a number of would-be migrants that will be

denied entry to control population levels. Also, the required pol-

icy adjustments would also slow down economic growth due to

the shift away from a strict GDP growth target.

Policy measures

This alternative future requires a way to harness and control

the trend of rapid urbanisation, which is not an easy feat. One

policy, already in place in Laos, is creating secondary cities in

other parts of the country to draw attention away from major

capitals. Policy reforms to attract businesses to small towns,

as well as investments in infrastructure in underdeveloped

areas, could support this move.

This future also requires extensive investment into skills

training and capacity building for the urban poor in addition

to creating a supportive business environment for Small- and

Medium-sized Entreprises (SMEs). For successful examples in

these massive skills training programmes, planners can draw

inspiration from the workfare and retraining programmes in

the USA and European welfare states.

Scenario 2: Vibrant self-reliance

In this future, the city planners embrace both trends. Planners

see rapid rural-urban migration as a chance to transform their

city into a vibrant marketplace and an engine of economic

growth. Public institutions realise the need to respond to

the urban poor’s needs while minimising the risk of depen-

dency. Extensive programmes to facilitate social integration

of rural-urban migrants into Hanoi’s economy and broad-

based support for initiatives to train and work with the poor

will be put into place. The city’s growth strategy will be based

on start-ups, social entreprises and a diverse range of afford-

able or free training opportunities for Hanoi’s poor. Rather

than providing hand-outs, the support for the urban poor

will be focused on enhancing productivity and self-reliance.

While slums and poor living conditions are likely to occur in

the short term, over time they will organically improve due to

the increased income levels of the poor. Quality of life would

be slightly lower due to effects of crowding, pollution and dif-

ficult living conditions, but improvements will come as the

infrastructure catches up with population trends.

Policy measures

In order to shift the entrenched historical pattern—poor ser-

vice delivery, high social exclusion and lack of opportunities for

the urban poor—towards a scenario of vibrant self-reliance,

Hanoi’s policy makers must step into uncharted territory, as

this model in its entirety has never been seen before.

Planners must improve the business environment for

SMEs and micro-entrepreneurs, representing a significant

shift from the dominant paradigm of economic growth led by

big businesses. This may antagonise big businesses to some

extent, so the political fallout must also be addressed.

Empowering the lower income groups towards self-reli-

ance is neither cheap nor easy, since it would require setting

up and scaling training opportunities and inviting social busi-

nesses to employ large numbers of new migrants. This aspect

of the plan can emulate the Bangladesh model, where social

businesses are thriving and are a large source of employment

for the poor.

Page 22: ATM #18 Empowering Hanoi's Poor

20

Scenario 3: Improvement through exclusion

The third scenario sees rural-urban migration slowing down

through policies of control and exclusion. This would increase

the quality of life for Hanoi’s established residents, due to a

preservation of population density and lower competition over

scarce resources. However, this will further maarginalise the

urban poor. The deficits in service provision would be tackled

through extensive direct service provision and social welfare

programmes. There would be an expansion of government

services such as water, health care and electricity, both in quan-

tity and quality, with NGOs providing services to the remain-

ing gaps. In the short run, this would result in quality of life

improvements for all of Hanoi, especially the poor. However,

preserving these outcomes puts a strain on public budgets.

Overall, the quality of life would be acceptable for the

lower income groups. Although Hanoi’s poor would be able

to survive off these services, they would still experience social

exclusion, a growing dependency on the government, and no

real prospects of improving their livelihoods. A comprehen-

sive social protection system cushions some of the negative

impacts, but would not address the issue of rising social and

economic inequality over the long run. Finally, with a priority

on big businesses and the traditional economic development

model, economic growth would be high, but would not be

inclusive and would result in social stratification.

Policy measures

This model of development resembles the China model for

rapid growth. Rural-urban migration would be discouraged

with tight eligibility criteria and bureaucratic hurdles to set-

tle within the city boundaries. The China example, however,

shows that there is the risk of creating a large class of illegal

migrants.

The economic approach would continue to focus on large

scale investments and a favourable environment for big busi-

nesses. The government would be willing to invest into direct

service provision and improve access and quality for those

falling under the eligibility criteria.

Scenario 4: Inevitable breakdown

The final scenario comes into effect if rapid urbanisation con-

tinues and the government continues its traditional approach

of service provision in Hanoi. This is a ‘business-as-usual’ and

‘do nothing new’ scenario which underscores the unsustain-

ability of present policies in the context of key trends, issues

and trajectories. Existing challenges such as poor urban liv-

ing conditions, service deprivation and economic exclusion

would worsen over time as the infrastructure development

struggles to keep pace with the rising population. Frequent

bottlenecks and breakdown of infrastructure in the transport,

health, sanitation, and education sectors would drive a shift

towards private service provision reserved for the affluent res-

idents of Hanoi. Living conditions in poorer neighbourhoods

would worsen and slum-like settlements would form. Public

services available to the poor would be difficult to access and

mostly of low quality due to overcrowding effects.

Overall, the quality of life would be low across different

income groups, even for the more affluent due to bottlenecks

in transport, higher pollution and increasing crime rates.

The city would become more and more divided, economi-

cally, politically and socially. In the medium run, the econ-

omy would enjoy high growth rates, but eventually issues

with infrastructure would negatively affect the city’s growth

potential. In essence, this scenario is the current condition of

most poorly-planned megacities such as Mexico City, Jakarta,

and Manila.

Policy measures

The government will continue to push for urban moderni-

sation, often at the expense of the less educated and mar-

ginalised urban constituencies. Crowding effects will be

addressed “after-the-fact” in a reactionary way through

slum clearance and gentrification. Service provision will shift

towards further commercialisation leaving the less prosper-

ous with insufficient low quality service infrastructure in a city

bursting from its seems.

Page 23: ATM #18 Empowering Hanoi's Poor

21

Towards a desirable outcome

It is clear that planners are under immense pres-

sure to make decisions that could change the

current trajectory of Hanoi’s development. Of

these four scenarios, only one scenario is clearly

undesirable: the breakdown scenario. The other

three scenarios have their own merits and weak-

nesses. “Controlled, inclusive growth” damp-

ens the growth potential of the city, “vibrant

self-reliance” requires the most effort from the

part of the government, while “improvement

through exclusion” can be politically complex.

Choosing between these scenarios requires

extensive dialogue and strategic cooperation

with the relevant stakeholders, including the

poor. Unfortunately, the voices of the urban poor

are usually among the least prominent in the dis-

course over choosing future development paths.

We hope that these scenarios will inform the pub-

lic and initiate new dialogue on which future

Hanoi’s policymakers and inhabitants envision

and seek to realise for themselves.

Urban slums in Hanoi, a challenge for city planners.

Page 24: ATM #18 Empowering Hanoi's Poor

22

References

1. Vietnam Investment Review (2006, March 15). “Planners dig themselves out of a hole”. Accessed July 3, 2012 from http://www.intellasia.net/planners-dig-themselves-out-of-a-hole-59400.

2. Giang, T. (2012, April 14). Poverty Deduction Remains a Daunting Challenge. Saigon Times. Accessed July 10, 2012 from Factiva Inc.

3. World Bank (2006). Employment in agriculture (% of total employment). World Development Indicators Database. World Bank.

4. UN Vietnam (2008). Achieving the MDGs with Equity. MGD 1 Progress Report.

5. Asian Trends Monitoring. (2012). A dataset on urban poverty and service provision. Lee Kuan Yew School of Public Policy, National University of Singapore.

6. UNDP Vietnam (2012). Social Services for Human Development. Vietnam Human Development Report 2011. United Nations Development Programme, p.2.

7. UNDP Vietnam (2012). Social Services for Human Development. Vietnam Human Development Report 2011. United Nations Development Programme, p.4.

8. Vietnam News Brief Service (June 20, 2012). Society: Vietnam Poverty Rate 2012 Likely at 20.7% on New Standards: WB. Accessed July 17, 2012 from Factiva Inc.

9. ASEAN Secretariat & World Bank (2009). The country report of the ASEAN assessment on the social impact of the global financial crisis: Viet Nam.

10. UNDP Vietnam (2012). Social Services for Human Development. Vietnam Human Development Report 2011. United Nations Development Programme, p.4.

11. Vietnam News Brief Service (June 20, 2012). Society: Vietnam Poverty Rate 2012 Likely at 20.7% on New Standards: WB. Accessed July 17, 2012 from Factiva Inc.

12. Action Aid (2011). Participatory Monitoring of Urban Poverty in Vietnam – Fourth Round Synthesis Report 2011. A study by ActionAid and Oxfam.

13. We use the 10 year mark to differentiate between “recent migrants” and “established residents”

14. Retrieved and paraphrased from www.yunuscentre.org

15. Yunus, M. (May 2010). Grameen Danone Foods Ltd., a Social Business in Bangladesh. Retrieved July 13, 2012 from http://www.muhammadyunus.org/images/stories/in_the_media/GDFL_BP_210510.pdf

16. Moonee Valley Weekly. Flemington café gives hope for the homeless. http://www.mooneevalleyweekly.com.au/news/local/news/general/flemington-cafe-gives-hope-for-the-homeless/2585581.aspx

17. KOTO. KOTO Programmes. https://www.koto.com.au/vietnam-charity/koto-programmes (Accessed on July 9, 2012).

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Page 26: ATM #18 Empowering Hanoi's Poor

24

Johannes Loh is working as a Research Associate at the

Lee Kuan Yew School of Public Policy. He holds a Master’s

degree in Public Policy from the Hertie School of Public

Policy in Berlin, and a Bachelor of Arts in Integrated

Social Science from Jacobs University Bremen. His previ-

ous research experience includes aid governance, visual

political communication and public sector reform in

developing countries. Prior to joining the Lee Kuan Yew

School of Public Policy he has also worked for the United

Nations Environment Programme in Geneva, Transparency International Nepal, and

the Centre on Asia and Globalization in Singapore. His email is johannes.loh@nus.

edu.sg and you can follow his updates on trends in pro-poor policies in the region on

Twitter @AsianTrendsMon.

Nicola Pocock is a research associate at the LKY School of

Public Policy. She is also the research manager at aidha,

a non profit financial education and entrepreneurship

training school for migrant women, especially domes-

tic workers, in Singapore. She holds a BA from Warwick

University and an MSc from Kings College London. Prior

to joining the LKY School of Public Policy, she interned

as a Fast stream trainee in the UK civil service at the

Home Office and as a research volunteer at Amnesty

International. Nicola has also carried out social work in Marseille, France as a European

Union sponsored youth volunteer. Her research interests span health and social policy,

health systems financing, social impact assessment, gender, migration and financial

behaviours. Her email is [email protected] and you can follow his updates on trends

in pro-poor policies in the region on Twitter @AsianTrendsMon #health

Taufik Indrakesuma is a research associate at the Lee

Kuan Yew School of Public Policy. He is a recent gradu-

ate of the Master in Public Policy programme at the

Lee Kuan Yew School of Public Policy. He also holds a

Bachelor in Economics degree from the University of

Indonesia, specialising in environmental economics.

Taufik has previously worked as a Programme Manager

at the Association for Critical Thinking, an NGO dedicated

to proliferating critical thinking and human rights aware-

ness in the Indonesian education system. His research interests include behavioural

economics, energy policy, climate change mitigation and adaptation as well as urban

development policy. His email is [email protected]

Darryl Jarvis is an Associate Professor at the LKY School

of Public Policy. He specialises in risk analysis and the

study of political and economic risk in Asia, including

investment, regulatory and institutional risk analysis. He

is an author and editor of several books and has con-

tributed articles to leading international journals. He has

been a consultant to various government bodies and

business organisations and for two years was a member

of the investigating team and then chief researcher on

the Building Institutional Capacity in Asia project commissioned by the Ministry of

Finance, Japan. His current research is a large cross-national study of risk causality

in four of Asia’s most dynamic industry sectors. He teaches courses on risk analysis,

markets and international governance and international political economy. His email

is [email protected]

Phua Kai Hong is a tenured professor at the LKY School

of Public Policy and formerly held a joint appointment as

Associate Professor and Head, Health Services Research

Unit in the Faculty of Medicine. He is frequently con-

sulted by governments within the region and interna-

tional organisations, including the Red Cross, UNESCAP,

WHO and World Bank. He has lectured and published

widely on policy issues of population aging, health-

care management and comparative health systems in

the emerging economies of Asia. He is the current Chair of the Asia-Pacific Health

Economics Network (APHEN), founder member of the Asian Health Systems Reform

Network (DRAGONET), Editorial Advisory Board Member of Research in Healthcare

Financial Management and an Associate Editor of the Singapore Economic Review.

His email address is [email protected]

T S Gopi Rethinaraj joined the Lee Kuan Yew School

of Public Policy as Assistant Professor in July 2005.

He received his PhD in nuclear engineering from the

University of Illinois at Urbana-Champaign. Before

coming to Singapore, he was involved in research and

teaching activities at the Programme in Arms Control,

Disarmament and International Security, a multi-disciplin-

ary teaching and research programme at Illinois devoted

to military and non-military security policy issues. His

doctoral dissertation, “Modeling Global and Regional Energy Futures,” explored the

intersection between energy econometrics, climate policy and nuclear energy futures.

He also worked as a science reporter for the Mumbai edition of The Indian Express

from 1995 to 1999, and has written on science, technology, and security issues for

various Indian and British publications. In 1999, he received a visiting fellowship from

the Bulletin of the Atomic Scientists, Chicago, for the investigative reporting on South

Asian nuclear security. His current teaching and research interests include energy secu-

rity, climate policy, energy technology assessment, nuclear fuel cycle policies and inter-

national security. He is completing a major research monograph "Historical Energy

Statistics: Global, Regional, and National Trends since Industrialisation" to be published

in Summer 2012. His email address is [email protected]

Principal Investigators Research Associates

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The Lee Kuan Yew School of Public Policy is an autonomous, professional graduate school of the National University of Singapore.

Its mission is to help educate and train the next generation of Asian policymakers and leaders, with the objective of raising the

standards of governance throughout the region, improving the lives of its people and, in so doing, contribute to the transformation

of Asia. For more details on the LKY School, please visit www.spp.nus.edu.sg