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Impacts of Price Hikes on the<br />

Lives and Livelihoods<br />

of Poor People in Viet Nam<br />

4. The fourth priority group include clothes and shoes of which clothes for school children is<br />

considered more important.<br />

5. The last priority group include “luxurious” items (purchased only when some savings are available)<br />

such as furniture, house building, visits to relatives and friends and other social activities. Visiting<br />

parents and looking after them when they fall sick is considered the most mandatory activity, even<br />

if they have no money and must get a loan to do this.<br />

Most poor households surveyed have to cut items from low priority groups, especially from the third, fourth<br />

and fifth groups. They already struggle to maintain the higher priority items as costs have all gone up by at<br />

least 50 percent over the last year. As expenditures increase and incomes remain the same people shorten<br />

prioritise in the order listed above and as a result are becoming more vulnerable to risks such as accidents,<br />

ailments, natural disasters and diseases.<br />

3.3.4 Impacts on women and children<br />

Children<br />

People reported that EM children are increasingly likely to drop out of school, especially those at lower and<br />

higher secondary levels. On the priority list, school fees for children are among the top items after essential<br />

items such as seeds and fertilizers and before fish/pork and clothes. However, since total spending on food,<br />

agricultural inputs and weddings/funerals already constitutes a high proportion, the budget left for all other<br />

items including education for children is very small. At the same time school fees are considered a major<br />

burden by poor people. Although they could ask to be exempted from paying “school enrolment” fees there<br />

are still dozens of other types of “socialized fees” totalling at least 300,000-400,000 VND/year per child in<br />

lower secondary school. The feeling of embarrassment as their parents cannot afford to pay these fees is a<br />

major reason for children dropping out of school in addition to the fact that many EM children find it<br />

impossible to follow the current school curriculum.<br />

Such a situation represents a conflict between short-term and long-term solutions: in the short-term,<br />

children of the poor households can stop going to school to work and earn extra income to support their<br />

families: “Since my child stopped going to school, the family has become better supported as we have had<br />

extra income”. However, in the long term, the children who have dropped out of school will become poor<br />

themselves and will hardly be able to escape from poverty.<br />

Dropping out: Excessively high school fees and inability to follow school curriculum<br />

M’Hang village, Cu Hue commune (Eakar, Dak Lak): Êđê group. According to a local officer the number<br />

of drop-outs has increased over the last two years. Prices are rising and there has been a drought this year.<br />

There are a total of 131 households in the village. This school year (2007-2008) 15 children from grades<br />

8 and 9 have dropped out. The main reasons include difficulties following the curriculum and high school<br />

fees. For example, a child moving from grade 7 to 8 has to pay 350,000 VND school enrolment fees at the<br />

beginning of the school year and another 500,000 VND on school uniforms (thre sets). If they fail to achieve<br />

admittance to a public school and have to go to a semi-public school the costs are even higher (1.5 million<br />

VND at the beginning of the school year) and the school may be as far as nine km away from home.<br />

Pa Dong village, Thanh Xuong commune (Dien Bien): Thai group. Over the last year, eight children have<br />

dropped out of primary school and two out of lower secondary school. When interviewed, 49 year old<br />

D. V. T., who is the head of a Thai household in Pa Dong village, Thanh Xuong commune said he moved<br />

from a different commune of the same district of Dien Bien in 1999 so he did not get allocated any<br />

farm land. He, his wife and six children earn their living from hired jobs. They go to the “labour market”<br />

in Dien Bien City every morning with shovels in hand and do whatever jobs are available. Mr. T is most<br />

concerned about the weather condition. If it rains and they have no jobs then the family will only have<br />

porridge to eat. “The most difficult enemy to fight is poverty… if the weather is good then we will have<br />

jobs to do and survive. Otherwise we will not be able to sleep for the whole week”.<br />

50

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