Viet Nam's Public Administration Reform to Build a Harmonious Society and Sustainable Development

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1 Network of Asia-Pacific Schools and Institutes of Public Administration and Governance (NAPSIPAG) Annual Conference 2005 BEIJING, PRC, 5-7 DECEMBER 2005 THEME: THE ROLE OF PUBLIC ADMINISTRATION IN BUILDING A HARMONIOUS SOCIETY WORKSHOP ON PUBLIC ADMINISTRATION STRATEGIES THAT HELP OR HINDER SOCIETAL HARMONY Viet Nam's Public Administration Reform to Build a Harmonious Society and Sustainable Development Ass. Prof. Vo Kim Son, PhD Dean of Faculty of Organization and Personnel Management. National Academy of Public Administration (NAPA) - Vietnam

2 Abstract: A concept of harmonious society is new but would be linked with sustainable development society. However a harmonious society and sustainable development has to focus on the main points: - Integrating three pillars: Economic Growth; poverty Reduction and environment protection; - Human development placed in the centre or "peoples first". - The Government of people, by people and for people. - The rule by law - To the eight Millennium Development Goals. The overall goal of the PAR Master Programme for the next 10 years will be to successfully build a democratic, clean, strong, professional, modern, effective and efficient public administration system which operates in line with the principle of the socialist State ruled-by-law under the leadership of the Party; public cadres and civil servants will have appropriate skills and ethical qualities to respond to the requirements of the cause of national building and development. Up to 2010 the public administration system will be fundamentally reformed to satisfy the requirement of managing a market economy with socialist orientation. Content Relationship between harmonious society and sustainable development society. Economic growth, poverty reduction and environment protection Since the UN Conference in Rio DeJaniero in 1992 the concept of a sustainable development has been the major idea for the international and national shaping of a common future. The basic elements of sustainable development is the simultaneous and equal pursuing of three aims as ecological, economic and socio- cultural. Communities, people, administrations play a special role in implementing concrete steps towards sustainable development. Without the support of people, society and state agencies, concept of sustainability cannot be translated into concrete issues and put into practice. A harmoniourity society development is a society of the development with balancing and harmoniourity and integrating of three filars: economic growth; poverty reduction and environment protection. It is a society with the development of harmoniourity and relevant of rural and urban areas and between human and nature. In Vietnam, the relationship between economic growth and poverty reduction has been much closed. The poverty reduction backed by strong economic growth. In during time , Vietnam has made tremendous progress in poverty reduction with 20 mil people having clamored out of poverty 1 /. The strong economic growth rates were the decisive factors in the strong performance in poverty reduction. Thanks of well economic growth in during ten years the state's community - based poverty reduction plan known as Programme / has been successful model. The programme has helped reduce the rate of poor households in the countries's communes substantially the numbers of poor families reduced by half at the end of 2004, compared to 2002 levels. With growth of private sector the businesses were playing a central role, 90% of funds for the poor come from local businesses investment. The state had to contribute just 10% of total funds. The businesses have been encouraraged to focus their investment in poor localities. The link between state, businesses and farmers and poor people in rural areas to building infrastructures such as roads, schools and clinics have been pay more attention. The private firms as key for economic growth and poverty reduction. They has created more than 90% of new jobs and provided most of the goods and services consumed. 1 Vietnam Development Report This programme approved by No135 Government's decision.

3 The government has established the fund for creating new job in rural areas which provided micro credit or loans to poor people. Thanks to these funds poor people in rural areas has expanded farm production (crops, livestock and aquaculture and so on), agricultures, processing and services and trading. With economic growth and increasing poor people's incomes they has repaid for the loans. The re-paid funds are now being loaned to new borrowers. The results of providing micro credit found that most the poor people increased their income significantly. The funds were used to support small and medium enterprises to creating new jobs. The businesses on rural areas have loaned from government's funds and donors to creating new jobs with very low rate (only 0.8 % per year). In 2003 over 300,000 households escaped poverty and 164,000 households across the country escaped from the poverty line in the first six months of In during time from a number of communes were excluded from list of extremely difficulties according programme 135. Poor rate in Vietnam has been decreasing very fast as shown on table new 2010 (est.) poverty line 58.1 % 37.4.% 28.9% 11% 8.3 % 26,7 % 15% Source: World Development Report 2005; The Ministry of labour, War Invalids and Social affairs. 3 Human development placed in the centre or "peoples first". According to the National Strategic Orientation for Sustainable Development, which was approved by the Government last August in its Decision No.153/2003/QD-TTG that the Strategic Orientation for Sustainable Development provides broad directions for sustainable development in Viet Nam, with human development placed in the centre. Viet Nam Agenda 21 indicates nineteen priority areas to achieve fast and effective economic development; reduce poverty; generate employment; ensure social equity; pay adequate attention to health, education while protecting the environment. The Government of people, by people and for people and the democratic Administration. The 1995 Copenhagen Declaration on Social development stated that we are convinced that democracy and transparent and accountable governance and administration in all sectors of society are indispensable foundations for the realization of social and people centered sustainable development". The democratic administration should be building and developed. Democratic administration is model of integration between Public administrations with democratic principles. In theory, there is some approach to democratic administration. Democratic Administration is new model of public administration. This model is encouraging the people to self-governing their community. Democratic Administration is new way of social coordination for resolving common problems. In this model, administrator is something like conductor of orchestra, the people is players. Democratic Administration is model of administration which emphasis participation of the people in process of decision- making. Value of democratic administration is really participation of the people, freedom and equality of the people with administrative agencies. Democratic Administration is the linking three components: freedom; equality and participation of the people in state management. Three components are not only the measure of democracy but also democratic Administration. (Figure 2). 3 As the new poverty line, an urban resident who earns VND 230,000or less a month and a rural resident earning 200,000 ( US$ 12.7 ) or less will be considered poor

4 Democratic administration refers to structures which facilitate and accommodate citizen participation in administrative process and seeks to overcome on impartial, detached, technical expertise. The participation of people in administrative process has been focus of democratic In Vietnam, Democratic administration reflects by the law on Complaints and Denunciation. This law on Complaints and Denunciation confirmed that: in order to ensure that complaints and/or denunciations are made and settled lawfully. Thus contributing to the promotion of democracy. The enhancement of socialist legal system, and the protection of the interests of the State as well as the legitimate rights and interests of citizens, agencies and organizations; According to this law: (1). Citizens, agencies and organizations arc entitled to complain about administrative decisions and/or administrative acts of State administrative bodies and/ or competent persork5therein when having grounds to believe that such decisions and/or acts have contravened laws and infringed upon their legitimate rights and interests. (2). Officials and public servants are entitled to complain about disciplinary decisions of competent persons when having grounds to believe that such decisions have contravened laws and infringed upon their legitimate rights and interests. (3). Citizens arc entitled to denounce to competent agencies, organizations or individuals illegal acts committed by any agencies, organizations and/or individuals, which cause damage or threaten to cause damage to the interests of the State and/or the legitimate rights and interest of citizens, agencies and/ On the other hand, organizations. Citizens have rights on petition; requirement; denunciation and complaints. Citizens also have the right to claim decisions of administrative agencies to administrative court if these decisions had violated legal interests of citizens [ 4 ]. Democratic administration is based on (1) an egalitarian assumption that everyone is qualified to participate in the conduct of public affair, (2) the reservation of all important decisions for consideration by all members of the community and their elected representatives, (3) restriction of power of command to a necessary minimum, and (4) modification of the status of administrative functionaries from that of masters to that of public servant [ 5 ]. Regulation on the exercise of democracy in communes In condition of Vietnam, Vietnam administration is to following the guidelines principle: the party as leader; State as the managers and the peoples as the master. The Vietnam democratic administration is to preserve and promotion the nature of the State of the Socialist Republic of Vietnam - law governed socialist state of the people, by the people and for the people truly representing the people's interest and mastership. People participation in state management has been defined by Decree 79/2003/ND-CP. According to this Decree, local governments should informed to people 14 issues; 6 issues should be directly discussed and decided by the peoples; The issues should be directly discussed or consulted by the people and decided by the commune people Council or People committee 6 /. 4 The law on Complaints and Denunciation. This law on Complaints and Denunciation 5 Re-quote from Management influences in public administration.j. David Edwards 6 Regulation on the exercise of democracy in communes. Work to be directly discussed and decided by the people: 1. Undertakings on the contributions and their levels for the construction of infrastructures and public welfare works (power supply, roads, schools, health centres, cemeteries, cultural and sport facilities etc.). 2. Rising of funds and their revenues and expenditures within the framework of laws. 3. Elaboration of village conventions, rules of cultural villages, building of a civilised life style, maintenance of security and order, abolishment of bad practices, superstition and social vices. 4. Internal affairs of the village or hamlet communities in compliance with the State's laws. 5. Setting up of boards in charge of supervising construction projects built with the people's contributions. 6. Organisation of the protection of production and business.

5 Thanks to the implementation of democracy at grassroots, people have become increasingly aware of the socio-economic development plans of their community and have taken part in the construction of public welfare projects. The open and transparent tax collection regime, spending and other public mobilization measures have improved the trust of the people in Party and State policies and local administration," the deputy minister said, noting that people were actively engaged in crop restructuring, land zoning and household-based economy to fight poverty and improve their livelihood. The grassroots democracy is the key to development in rural area in Vietnam. Rule by law and access equaly to justice for poor people. Enhancing access to justice for poor people is also the ways to improving harmonious society development and achieving MDG. The practice in Vietnam shown out that much needs to be done to enhance access to justice for poor people. The rate of people in Vietnam to access to court, to contact with the legal aid centre and using lawyers services was not very high 7 /.The local government ( People's committee and police has been place that people are to see to remedy injustices. The rich and people who living on cities and delta areas have more conditions to accessing to justice but poor and people who are living in rural and mountainous areas have very limited condition to access to justice. The awareness and access of poor people to legal information are lower level than average of country. Enhancing to access to justice for poor people is not only to increase people's confidence to legal system but also to help poor people to using this system to improving their living condition. The Vietnam government has made the effort to enable people to easily use the justice system. Two ways has been using: - Legal information disseminations; - Legal education for all. - The protection of people's legal rights and interests by specific intervention should be made to enable poor people and people who living in difficult areas to get the benefits from justice system. The eight Millennium Development Goals integrating into reform programmes Goal 1: Eradicate extreme poverty and hunger Goal 2: Achieve universal primary education Goal 3: Promote gender equality and empower women Goal 4: Reduce child mortality Goal 5: Improve maternal health Goal 6: Combat HIV/AIDS, malaria and other diseases Goal 7: Ensure environmental sustainability Goal 8: Develop a global partnership for development The achievements of Viet Nam in implementing the MDG's to date can be attributed to the mobilization of all domestic resources as well as the assistance, both in terms of resources and experience, of the international community including donors, NGOs and UN agencies. That assistance has actively contributed to the increased feasibility of reaching the Goals in Vietnam". The National MDG has focused on: - Poverty reduction; - school enrolment of people who were in the school aging; - under-five child mortality rates and increased forest cover; - Reducing the gap between rich and poor; - Reducing the gaps between rural and urban areas; - Decreasing the gap between population as well as Kinh and ethnic minorities 8 /. The reform programmes and Sustainable development focuses on: - a human-centered development strategy; - people's fundamental interests in the course of development; 7 "Life and law" Newspapers February The Kinh are more than 80 % of Vietnam population and living on cities and delta areas of the Red rive and Mekong rive.

6 - to take economic development as a central tasks; - to balance urban-rural development, regional development, socio-economic development; - harmonious development of man and nature, and domestic development and opening-up; - To coordinate economic development with population growth, resource availability and environment protection; - Sustainable development consistent with poverty reduction. Training courses for public servants on integration of poverty reduction and sustainable development has provided knowledge on: - sustainable, inclusive, pro-poor economic growth that fully integrates the environmental and social considerations of each of its DMC's - to create conditions for growth, such as achieving and maintaining macroeconomic stability, improving fiscal management, aiding financial sector restructuring, and developing the institutional and regulatory frameworks for private sector development. - Economic growth is essential in reducing poverty but it must be accompanied by effective social development programs to enable disadvantaged groups to benefit from the expanding opportunities that growth offers; - Health sector support was provided through improvements of public fund using in the health of the poor and the disadvantaged as well as financing of reforms for better delivery of health care services; - Social protection as key tasks of policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people's exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income; - Development of water supply and/or sanitation systems including wastewater and solid waste management systems mostly in urban areas ; - Promote rural development through market mechanisms that incorporate conservation and poverty reduction in integrated agricultural systems; - Improve managing natural resources such as water, coastal fisheries, and wetlands; to develop or improve water supply and sanitation; and to improve environmental quality; - Strengthen national institutions and build capacities for environmental and natural resource management, to explore alternative energy sources, to combat land degradation, and to develop environmental monitoring and management information systems; - The Poverty and Environment Program enhanced institutional learning on ways to integrate the environment into poverty reduction; The new programme for hunger eradication and poverty reduction and sustainable development The State's community based poverty reduction plan known as Programme 135 has suggested some successful model to be implemented over the next five years. The programme will be the continuation of the socio-economic development programme for ethnic communes in mountainous, borderline, island and remote areas. The new programme focuses on social and production assistance to poor households by: - Provide credit loans to about 4.6 mil poor households; - Support small scale rural infrastructure development in poorest areas as coastal, island communes and mountainous areas (schools, communication, rural electricity grid and markets and so on); - Deliver public services as education, health care stations with subsidizing from public funds; - Strength the capacities of programme staffs at all levels most importantly grassroots level;

7 - Enhance the role of people in effective implementation of national programmes and reform involving to reduce poor households. - Enhance people participating not only donating their labous in public programme but also involving of the people in processing decision making that effecting on their life; - To give benefits from new programme to real poor people; - Develop transparent financial management and systematic monitoring and evaluation systems which people's participating who getting benefit from those programmes. The draft of the National five year socio- economic development plan ( SEDP ) that will be submitted to X party Congress (2006) also focuses on the MDG. It is mean that the strong commitments of Vietnam Government to achieve the MDG through its five year plan. The fund for hunger eradication and poverty reduction in Vietnam through 2010 is estimated at US$ 3.8 bill. The new programme has also set a target - Providing free health care and treatment to 2.7 mil poor patients very year; - Free schooling for 9.9 mil poor ethnic minority students, vacation training for 100,000 poor; - Construction of 400,000 houses each year; - Focusing on young people and children. At presently 53% of the population is under 25 years old. The new poverty reduction programme will enable children to develop into a generation that can growth out of poverty. Public Participation Model in Public Administration for Sustainable Development Public Participation has been the topic of many foray and participation for sustainable development has become the matter concerning the international community. The first ASEM International Conference on Public Participation: Towards Good Practices in Public Participation for Sustainable Development focused on four themes: Public Participation in Environmental Impact Assessment; Participatory approaches in Natural Resources Management; Roles of Media and NGOs; Public Participation in Environmental Policy Development 9 /. This is the foundation for the participatory approaches in public administration for general development. Public participation in public administration is one of the important criteria for good governance 10 /. The participation of people (regardless of gender, races or colors, etc) in public administration means that they have their voices in the decision-making process of the public management bodies by direct participation or representation. Citizen participation is the involvement of citizens (individual) or interest groups (collective) who are directly influenced by the government decisions in identification, formulation, appraisal, approval and implementation of these decisions. Decisions influencing goods and service supplies for local communities require higher public participation. Citizen participation in public affairs is also one of the crucial contents in constructing a democratic administrative system which is truly of people, by people and for people 11 /. Participation of citizens and their representative organizations and interest groups can be under the form of direct democracy or representative democracy. Each form of participation has its own advantages and disadvantages. Thus, in many cases, it is advisory to harmonize these forms of public participation in public administration. In addressing community issues of a small administrative unit (at commune level), direct democracy should be expanded while representative democracy is more effective for bigger administrative units (at regional or territorial level). Participation is a process which engages all actors concerning issues of a community, a region, a nation or a territory. It is the involvement and cooperation of the following parties: - Government affiliated agencies (public administration) - Private sector; 9 1 st ASEM International Conference on Public Participation: Toward Good Practices in Public Participation for Sustainable Development. June 10-12, 2002, United Nations Conference Center, Bangkok, Thailand. 10 Among the principles of good governance, participation is a priority. (See what Good Governance is? UNESCAP ) 11 One of the common objectives of Vietnam Public Administration Reform Master Program is to build up a democratic administrative system.

8 - The third sector (civil society). The relationship of these three parties formulates the public participation model (Figure 1). In this model, the participation of citizens and their representative organizations (the third sector) plays the key role in this research. Involvement & collaboration Private sector Government affiliated - agencies Participation in public issues Involvement & collaboration 1. Figure 1: Public Involvement & collaboration Citizen, Civil society In the relationship, the interaction between the government affiliated - agencies and the rest is decisive in the participation model. In principle, the private sector and civil society are managed and affected by public decisions. Without their engagement, the participation mechanism does not exist. Private sector, citizens and civil society ask for their voices in the public decisionmaking process. However, there are limits to the results of their participation. Therefore, it is necessary to take following problems into account before adopting the participation model. Firstly, the private sector, citizens and civil society are not aware of their rights and public decision-making process. Their requirements are not based on institutional regulations. Although a number of decisions have been made in conformity with the state legal documents, the citizens awareness of their interest and benefits does not stem from legal principles, resulting in their demands exceeding what have been stated in laws. This is a root cause of laws violating acts. For instance, in Vietnam, the Law of Land early stipulates that public land is owned by people, which is managed by the state and that no one is permitted to make the public land become his/her own. But in fact, when the government reclaims their land for terrain clearance, people often resort to a lot of reasons to resist reclamation or ask for compensations. Secondly, the government should provide opportunities for its citizens to be informed of its regulations as soon as possible. Thirdly, public administration activities need to be continuous and obey the law from the outset. Vietnam is unable to address many problems since no one thought of management at the very beginning (many years ago). Even currently, many operations are not managed. Only when administration agencies come to put the laws in place, are the consequences of neglected management tackled. Public participation, in principle, facilitates relevant public decisions to respond to the demand of communities, citizens and interest groups. This is also the ground for sustainable decision-making. Below are various evidences to show how the roles of public participation in public administration connect to sustainable development. Public participation helps to address local issues effectively and sustainable First, public participation creates strength to address issues at the local level. When citizens get involved in dealing with their own problems, their potential strengths will be harmonized in the problem tackling process. In Vietnam, there is a saying that goes like this: A task though hundred times easier can not be done without people but it can be done even though it is 10 thousand times more difficult if unified people manage to do. This saying appeared to be true in the context of unbalanced Vietnam-American War and other historic fighting's for independence. Public participation research shows that when the people took part in addressing their local issues, these issues were under control.

9 Second, when an issue is addressed under participatory mechanism, its sustainability is better than those under top-down measures. Take an example of environmental pollution. The government can do a lot of work to protect the environment. But if the public do not participate in addressing their own problems (if they are not aware that these are their own problems), every effort made by the government is just temporary. Another typical case of to illustrate the sustainability of participatory decisionimplementing process is a traffic safety month in Vietnam. In this case, if the Vietnamese citizens are not aware that traffic safety is their own problem and of the whole community, after the month, they will go back to their own habits of violating the traffic laws. Third, public participation in their community issues helps to better their local administration and practices. Giving citizens chances of taking responsibilities for their own issues facilitates more accurate selection of priority matters which need to be urgently addressed than accepting solutions imposed by the local administration or top-down management. In the current context of rapid change (especially in developing urban areas) there emerges conflicts between the government and people, among interest groups and people, which requires just and harmonious resolutions. Without the participation of each relevant actor, it is impossible to tackle any problem. For instance, planning matters, ground clearance, public service delivery very much involve citizens and interest groups. Thus, without their ideas and comments, it is very difficult to resolve many problems. Fourth, in the increasingly developing and democratic society, which means that citizens tend to decide their community issues by themselves under law, public participation mechanism is an actual democratic practice. The rate of voters participating in elections tends to fall while many common issues are addressed by the public representatives elected by people. In the principle of representative democracy, citizens play limited roles in deciding matters between the two elections (usually from 3 to 6 years). Public participation expansion does not only mean representative democracy by elections but also citizens engagement in the real local affairs. People s organizations like non-governmental organizations, non-official organizations need to seen as the core of participation and it is the way people are actively involved in real issues rather than via elections. Fifth, public participation helps to perfect many aspects of life. In specific cases, the government is unable to address the issues by itself without public participation. Health care and education require the cooperation of citizens and their representative organizations. Sixth, the fact that citizens are aware of their roles and working together helps them to monitor the common activities in their community. A democratic administrative system with participatory mechanism through monitoring, recommendation, demand, denunciation and complaints or bringing lawsuits to administrative courts need to be more open and transparent. Economyfinancial Seventh, the involvement of citizens and their representative organizations is the way to attain sustainable Citizen/ society development in three and participation areas: economy finance to ensure the capacity in formulating retaining new living models; environment and ecology; society based on distribution of social interests. Public participation model will influence three areas sustainability as indicated Figure 2. Environmentalecological II. FIGURE 2: PUBLIC Social sustainability and equal Eighth, public participation in public administration is their engagement in decision-making process for their territorial and community socio-development. This is to determine responsibilities of in

10 citizens, public representative organizations in implementing these decisions. Public participation enhances more sustainability in decision making than without their involvement. Ninth, public participation and public representative participation mechanism to deal with their local issues help to define accurately what their priority matters are. Sustainable development can only be attained if the urgent issues are rightly identified. Prioritizing by combining the local issues of economy finance, ecological environment as well as social affairs will certainly mobilize the local resources for development. Tenth, participation of citizens and their representative organizations creates good opportunity for public administrators to learn social experiences. Eleventh, participation creates a harmonized community in implementing public decisions. This is the best way to implement poverty reduction and hunger alleviation, which is inevitable to sustainable development. Twelfth, participation of the public and their representative organizations is the most open consultation process in addressing social and community conflicts based on the principle of discussion to reach consensus among relevant interest groups, including public agencies. This process requires public administrators to learn and improve their knowledge and skills so that they can participate in the consultation process with a view to gaining equal agreement without violating the administrative objectives. Reasons for non-support to public participation in public administration Public participation in public decision-making process is positive but some do not support it. The first reason stems from economic interest. Public participation may delay important decision making process, which misses a number of good chances for economic transactions. The more difficult the agreements are reached among citizens and interest groups, the more delays there will be. Although the essence of the six areas of Grassroots Democracy is rights of community citizens to discuss and make decision among them, it is difficult to reach consensus and come to decisions. The second reason is the concern about the polarization among interest groups in the community, which leads to partial decision making. In reality, in some regions, the concept family line is changing the way we think of participation. The third reason is different public education levels which causes unequal participation in public decision making process. In this case, representative democracy tends to dominate direct democracy. The people recognize the roles of their representatives elected by themselves and authorize these representatives to participate in the decision making process. The fourth reason is that the administrative system does not change its administrative culture, so participation is just formalization. Public opinions and claims are often neglected, which creates public suspicion about the participation model. Government intervention to support the implementation of public participation in public administration for sustainable development As described in Figure 1, public participation model is the combination of three elements, of which the role of public agencies is a key because they are the subjects influencing economy-finance, environment-ecology and society. Therefore, public agencies need to deal with problems concerning participation model. First, the government should have a specific mechanism to inform citizens and their representative organizations of the government s affairs. In fact, the government often says it is the state secret then public access to information is limited. In addition, government related information is always valuable so public administrators often take the advantages of this for their own illegal sake. Those who know the information relating to planning or prices usually have chances to make illegal incomes. E- Government is seen as an important measure to open public access to information. But building up a real E-government requires experiencing many development stages. Up to now, many countries in the region have just stepped in the beginning of E-governments. In Da Nang City (Vietnam) the average number of computers per person is 1.5, but it has not yet E-government 12 /. 12 Vietnet News

11 Second, being connected with information system is information receiving mechanism. Public opinions and innovative ideas around urgent problems within their community are not received immediately at all by the public administrators. This also happens to public recommendation, denunciation and complaints because the government has no feedback channel to the public. This creates public suspicion about the public participation model. If the government does not have the public confidence, it is impossible to gain sustainable development. Third, the discussion mechanism facilitating agreements between citizens and the government needs to be established. Two-way interaction should be obligatory in public participation model. If public recommendations and feedbacks are left in silence, it will certainly lead to denunciation, complaints and lawsuits. Fourth, public participation should be open and transparent. The government should promulgate regulations that state what the people have the rights to know, to discuss, to do and to monitor. Fifth, it is necessary to formulate a supporting mechanism for public participation model in addressing their urgent problems. Public enthusiasm needs financial support from their local administrations. It is shown in reality that 6 contents that Vietnamese people are eligible to discuss and make decisions in the grassroots democracy regulations are difficult if there is no support from the government. Joint-implementation between the government and the people will surely help to deal with the local issues effectively. One-Stop Shop mechanism and public administration reform The OSS mechanism on the implementation of administration procedures for dealing with requests of people and organizations was first initiated in the area of foreign direct investments (FDI). So far the OSS and on-the-spot, one stop shop mechanism has become the guiding principle of the operation of Management Boards of industrial zones and export processing zones. Since 1995 many localities have proactively piloted the application of the OSS or one door one stamp, following the implementation of Resolution No. 38/CP dated 4 May 1994 of the Government on initial public administration reform for dealing with requests of people and organizations. The first mover in this area is Ho Chi Minh City. And following Ho Chi Minh City, four other cities - Ha Noi, Hai Phong, Binh Duong and Hoa Binh - also piloted the OSS mechanism; provinces followed suit, namely Quang Ninh, Tra Vinh, Tay Ninh, Dong Nai and Can Tho; Thua Thien Hue, Dong Thap, Quang Binh, Ba Ria-Vung Tau; Thai Nguyen, Quang Tri and Thanh Hoa. As of May 2003, up to 35 provinces and cities directly under the central authority had piloted the OSS mechanism in 196 units at the departmental level and 160 units at the district level. The successful experiences of pilot projects has been sum-up 13 / and the Prime Minister has approved No. 181/2003/QĐ-TTg dated 4 September Following the Prime Minister s Decision, the OSS mechanism has been implemented at the provincial and district level since 1 January 2004, and will be implemented at the commune level as of 1 January Nature of the OSS mechanism in Vietnam - OSS is the mechanism to process requests of citizens and organizations within the authority of public administrative offices, ranging from receiving requests and applications to returning results through a focal agency called Receiving Requests and Delivering Results Unit in the State administrative agency. - With the introduction of OSS, citizens and organizations have to contact only one focal agency. This 13 The key points of the pilot projects: - Transforming methods and processes for solving public administration procedures, creating fundamental changes in the relation between public administration offices and citizens, organizations, and reducing problems and costs for citizens, organizations, therefore gaining public support. - Slight preliminary adjustments to the organization structures; renewing and improving the working regime and working relations in public administrative offices. - Enhancing administrative skills and expertise as well as Government employees and public servants attitude towards serving people. - Modernizing one-stop premises of administrative offices.

12 State administrative agency processes the requests of citizens and organizations. - The implementation of the OSS mechanism aims to create a fundamental turning point in working relations and procedures between State administrative agencies and citizens and organizations, to reduce difficulties for citizens, organizations, and to combat red tape, corruption and authoritarianism among some public servants in order to enhance the power and effectiveness of State management. Principles of the OSS mechanism - Simplified, clear and lawful administrative procedures. - Making public administrative procedures, fees, charges and time to finish handling requests of citizens and organizations. - Receiving requests and returning results at the Receiving Requests and Delivering Results Unit. - The State administrative agencies with the responsibility of coordination among relevant agencies of public authorities in order to solve requests of citizens and organizations. - Dealing with requests of citizens, organizations in a fast, convenient and timely manner. Areas and requests to be solved according to the OSS mechanism - Provinces and cities under direct central authority: Approving foreign and domestic investment projects, approving capital/funds allocation for capital construction projects and programmes; issuing business registration certificates for enterprises, granting construction permits, issuing house entitlement deeds and certificates of land use right, land renting, and dealing with social policies. - Districts, towns and cities under the provincial authority: Issuing business registration certificates for individual business households, granting construction permits, issuing house entitlement deeds and certificates of land use right, residence registration, certification and social policies. - Communes, wards and towns: Dealing with housing construction, land, residence books and certification. Apart from the above-mentioned regulations, Chair people of provincial People s Committees can decide to add some more areas to the OSS mechanism in accordance with the situations of their localities. Challenges of public administration reform toward to harmonious society and sustainable development. Challenges of democratic administration, government of people, by people and for people. Democratic administration is a new model of the public administration that focused on the citizens and transparency and opening to people. Transforming to new paradigm, public administrative agencies take to some challenges: Firstly, democratic administration requires the administration agencies changing administrative culture. Administrative agencies should be changing from traditional public administration to new paradigm. Focused on citizens and the citizens will become controllers on public administration agencies. Secondly, democratic administration requires new and more knowledge's and skill from public servants. At currently, public servants do not have relevant training. Capacity to resolving relationship between administration and citizen by new model is lack. Thirdly, democratic administration requires more transparency, opening to citizens. It is necessary to establishing legal framework not only to confirm the right of citizens to participation in the state management but also requirement administrative agencies to opening. The right of affected parties to participate in decisions, which may be adverse to their interests. These rights may be secured through a variety of legal instruments. In some countries, these rights are contained in particular statutes and civil codes, in the Constitution, and/or in the common law;

13 Fourthly, democratic administration should be increasing requirement of citizens to public service deliveries by public administration. New model of democratic administration should be effectiveness, efficiency and responsive. Tradition public administration did not focus on these. It is necessary long time for changing. Fifthly, democratic Administration is a social coordination to resolving common problems. Efficiency of this model defends on the level of mature civil society. Without mature civil society social problems cannot be resolved in the democratically way. In condition of Vietnam, civil society is at beginning stage of development. Challenges of new poverty reduction programme 14 /. - Although the number of poor households in Vietnam is reducing quickly, the reduction is unsustainable because a large number of households are borderline and many more are at high risk of slipping below the margin again; - The strong economic growth rate was the decisive factor in the performance in poverty reduction but these dramatic gains remain fragile. Future reduction of poverty and poor households may become more increasingly difficult. The new programme for poverty reduction will require more power and funds and active assisstance. - Losses associated with migration to urban an suburban areas lacking basic services as well as exposure crime and environmental degradation in neighborhoods growing out of control; - According to new poverty line the number of poor households in Vietnam increases from 8.3% (2005 old poverty line) to 26 % (new). It means that more poor households need to help to anti- poverty. - Vietnam is still considered one of the poorest countries in the world with GDP per capita of only 500 US$ a year. But the execute the new national Programme for poverty alleviation for period, Vietnam would need to spend more than US$3.5 bill; - Many localities still have high rates of poor households, especially rural and mountainous areas which are the home of ethnic minorities. The rate of poor households in these areas is between times higher than country's average. - Training human resources fell far short of requirement not only for public servants but also for vocational in both urban and rural areas; Recommendations Basic implication of the democratic administration is to encourage and facilitate citizen participation in administration processes. Outcomes of democratic administration paradigm are to create an efficient, nonbureaucratic, open and transparent administration. In order to build up an administration truly of the people, by the people and for the people, a democratic administration basing on principle: people know, people discuses, people implement and people monitor, it is necessary: 1- To develop and strengthen the effectiveness of the legal documents concerning citizen participation into administration processes which affect their benefits. 2- To make a high commitment with people participation in administrative processes not only among high ranking leaders but also among officers at different administrative levels. 3- To create mechanism and channels for people to make their contribution to important decisions that influence directly to their life. The Government should approve the legal framework that allows for participation of the people in process of decision making. 4- The Party and state leaders should support the programme of legal and administration reform which build up and strengthen interdependencies between communist members, communist leaders, civil society and state administration. 14 Vietnam development Report 2004.

14 5- Leaders have to support the program which improves transparency, opening, accountability and responsiveness of government officials. 6- Public servants, who work in the new public administration paradigm should continuously improve their capacity including management skills; financial management, accountability and socio-economic analysis. 7- Public sector and administration should apply new public management to improve public services for the communities. 8- Preside information should be provided for citizens and government agencies in a fair way. 9- Authority and responsibilities of administrators should be identified clearly and openly. At the same time, a clear mechanism of reporting civil servants performance to citizen must be set up. 10- Application of Information technology in administration is considered as a means to improve citizen s access to state administration and their participation into monitoring activities of administrative agencies. 11- A democratic administration must be linked with poverty reduction as poverty is one of the causes constraining citizens participation to social activities. Improved education for citizens facilitates the implementation of the principle: people know, people discuses, people implement and people monitor. 12- Public administration reform must be implemented on the foundation of improving state administrative machinery and seeking for impacts of administration to socio-political life based on combining key factors: state (public sector); private sector and civil society. 13. Providing training courses on sustainable development not only for public servants but also for people, especially for poor people. NAPA (National Academy of Public Administration) should provide these training courses for public servants at higher level and Provincial School for middle a grassroots levels. 14. Vietnam is continually need the supports form donors to bring water and sanitation facilities to rural areas and ethnic mountain areas; prevent natural calamities and disseminate government information to all people (especially poorest people) 15 /. 15. The new national programmes on poverty reduction should be integrated with others programmes as vocational training and new job creation and national action plans on rehabilitations and prevention of prostitution and social crime; 16. Focusing on other do - nor supported poverty reduction activities. Creating new jobs for employees and providing vocational training courses. 15 WB has approved three credit totaling US$ 225 mil to Vietnam to help implementation of National programme for poverty reduction; ADB and Vietnam government signed ( May 2005)an agreement for US$ 1 mil grant to help improve the quality of life and livelihoods of poor communities in Vietnam's central region.