Browsing by Person "Fischer, Isabel"

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Constraints and potential of livestock insurance schemes: a case study from Vietnam
(2004) Fischer, Isabel; Dufhues, Thomas Bernhard; Lemke, Ute
Livelihood systems of poor rural households are often so fragile that a small misfortune can destabilize households for years. Strategies for coping with risk include informal mutual aid agreements and/or formal microinsurance schemes. In developing countries, insurance markets are usually underdeveloped.Nevertheless, if the development path is supported by strong structures and institutions, anonymous markets will, over time, replace informal insurance networks as they are more efficient. In Vietnam, livestock is an important household income source and has additional non-economic functions in the households. For a long time, rural financial institutions in Vietnam financed only a small array of agricultural investments, but these frequently included livestock purchase. The absence of off-farm investment possibilities further promotes investment in livestock production. Failure of an investment, especially when loan-funded, can leave a household in an extremely vulnerable position. Livestock death is considered to be a major factor contributing to poverty. Farmers using credit to purchase livestock face two risks at once: (1) loss of the livestock due tovdisease and subsequently (2) failure of investment. Farmers would like to reduce the uncertainty, but a broad-based livestock insurance scheme does not exist in Vietnam. There are only a few formal and semi-formal schemes with very limited outreach. Thus, access to formal insurance is almost non-existent, and farm households have to rely mainly on informal mutual aid schemes within their social networks to reduce their risks. The objective of this paper is to contribute to the discussion on the general feasibility of a livestock insurance scheme in Vietnam. In this context, the demand for and supply of livestock insurance schemes is discussed. Quantitative (N=322) and qualitative data collection took place between 2001 and 2004. The quantitative data comprise cross-sectional household-level data from three different districts in Northern Vietnam. Four different types of insurance providers were selected for analyzing the supply side: 1. Insurance tied to credit within a state-owned company; 2. Insurance tied to credit within a development project; 3. A state-owned insurance company (which collapsed); 4. A private insurance company. By selecting these different insurance providers, the range of livestock insurance types offered in Vietnam was covered. The main result is that provision of sustainable livestock insurance is hampered principally by unreliable data on livestock mortality and by premia that are set politically at a low evel.
Insurance preferences of smallholders : results from an adaptive conjoint analysis in Northern Vietnam
(2008) Buchenrieder, Gertrud; Fischer, Isabel
Livestock plays a pivotal role for smallholder production systems in mountainous Northern Vietnam. Poor rural farm households are vulnerable and their livelihood systems are often so fragile and finely-balanced that a small misfortune can destabilize the households for many years. Economic risks, especially loss of livestock, are one of the major reasons for slipping into poverty. Normally, insurance systems could step in here. In developing countries however, insurance markets are usually underdeveloped. Empirical research reveals that raising livestock and selling it in case of a livelihood emergency is a particularly popular risk management strategy. Based on the results of a computer-based Adaptive Conjoint Analysis (ACA) with 155 responding households of different ethnic minority groups in Son La and Bac Kan provinces of Northern Vietnam, this article examines insurance preferences of rural farm households. In general, smallholders are very interested in livestock insurance. The ?insured animal? is the most important attribute for all respondents and the buffalo is the highest valued animal. However, the critical issue is how to design the insurance package. It is argued that the provision of adapted livestock insurance could help decreasing household vulnerability by a forward looking risk management strategy. Insurance preferences of smallholders are presented and policy recommendations are given to improve the overall situation of vulnerable households in mountainous Northern Vietnam.
Linkages between poverty and sustainable agricultural and rural development in the uplands of Southeast Asia
(2008) Zeller, Manfred; Beuchelt, Tina; Fischer, Isabel; Heidhues, Franz
Most of the upland areas of Southeast Asia are characterized by insufficient infrastructure, low productivity in smallholder crop and animal production, mounting environmental problems such as soil and forest degradation and loss of biodiversity, increasing population pressure, and widespread poverty, particular in rural areas. While some upland areas in South East Asia have been experiencing considerable progress during the past twenty years, others have stagnated or even declined with respect to economic, social and environmental objectives of development. The purpose of the paper is to describe major trends regarding sustainable development in the upland areas of selected countries in South East Asia, and review explanatory approaches for the observed trends based on case studies from Cambodia, Laos, Thailand, Vietnam, and Indonesia. The conceptual framework for this paper builds on the critical triangle of sustainable rural development. Here, equity or poverty alleviation, economic growth, and the protection of the environment are the three major policy objectives. We further distinguish three explanatory approaches for land use change and agricultural and rural development. Apart from the market approach and the population approach, we suggest that future studies should focus more on governance issues as a major driving force of land use change. The governance approach appears particularly relevant for upland areas which are often politically and institutionally marginalized. The paper begins with a review of definitions of sustainability, and proceeds with a conceptual analysis of the two-way linkages between poverty and the environment, and poverty and economic growth in rural areas. This is followed by empirical findings from research on agriculture and forestry as the major land uses in upland areas of selected South East Asian countries. Based on the results of different case studies from Cambodia, Laos, Vietnam and Indonesia, we seek to contrast stories of relative success with those of failure. The paper concludes with implications for rural and agricultural development policies, and suggests future areas of research.
Media supported communication in agricultural extension and participatory rural development in Northern Thailand
(2004) Fischer, Isabel
The inhabitants of Northern Thailand, Thais as well as the members of the different ethnic groups, the so-called hill tribes, face a variety of very complex problems that range from natural resources conflicts via human rights issues to health problems. All in all, those issues constitute the initial point of departure for every extension, development and research activity, regardless of whether carried out by governmental, non-governmental organizations and/or other agencies. In order to analyze the current extension situation in Northern Thailand, field research was carried out in collaboration with different governmental and non-governmental organizations. Insights were gained into major areas of operation as well as currently used extension methods and media (especially picture supported communication tools) that are used in extension and rural development work, particularly when the target group is illiterate. Three organizations were observed in more detail and will serve as case studies. The paper presents Methods and Media Used by Different Organizations as well as major Criteria for Using Media in Extension and Development Work. Furthermore, the Application of Criteria for Different Methods and Media will provide the basis for the discussion of major potentials and limitations of currently used media in comparison to the Flannelgraph method, which was chosen as a major methodological tool of reference. In summary, it appears that the extension situation in Northern Thailand is too heterogeneous to identify the one ?right? extension approach. The use of media and the choice of extension methods depend on specific financial, logistic, methodological and cultural criteria as well as further issues, such as infrastructure, target group and the costs of the respective tool. In order to increase the potential and decrease the limitations of the currently used methods, the organizations have to concentrate on a better use of the already existing means as well as the improvement of those factors that are not fully used at the moment.
Vulnerability and risk management of rural farm households in Northern Vietnam
(2010) Fischer, Isabel; Heidhues, Franz
Despite the achievements of the ?doi moi? reform process, which was launched in 1986, Vietnam is still one of the poorest countries in the world, with 28.9 per cent of the total population (85 million in 2007) living below the national poverty line (UNDP 2007). Especially the mountainous, rural areas of Northern Vietnam are underdeveloped. Poor and near-poor farm households endure manifold risks and income shocks, which threaten their existence. Normally, insurance systems would step in to assist. In developing countries however, where access to formal insurance services is hardly available, rural farm households have developed alternative risk management strategies. The Sustainable Livelihood Framework (SLF) of the Department for International Development (DFID 1999), was applied as an analytical tool to identify and assess risks and risk management strategies of vulnerable rural livelihoods in the Uplands of Northern Vietnam. The role of informal social networks was analyzed with the help of Social Network Analysis (SNA). An Adaptative Conjoint Analysis (ACA) was implemented to examine the potential demand for a formal or semi-formal microinsurance scheme in the area of livestock insurance. Furthermore, additional insights were gained from interdisciplinary research on issues of human, health and livelihood security, as well as from case studies on natural resource use in Southeast Asia. The central hypotheses of this research on livelihood strategies in general and adaptive strategies such as insurance in particular are that they (1) have the potential to reduce livelihood vulnerability and that (2) the differentiated knowledge of livelihood strategies is crucial for a better understanding of the reasoning behind the exploitation of livelihood assets, such as natural resources or physical assets in the form of livestock, despite the negative medium and long-term effects. Research results lead to the following conclusions: First of all, only a very elaborate use of existing capital assets can improve the livelihood situation of vulnerable households in Northern Vietnam. Living in remote mountainous regions with scarce natural resources and limited access to other assets, the preconditions are rather difficult for ethnic minority people, even more for women. Secondly, in order to improve the situation, all stakeholders have to be aware of the existing risk management strategies (e.g. raising livestock and selling it in case of a livelihood emergency is one of the most popular risk coping strategies in the mountainous regions of Northern Vietnam) and learn from both, advantages and disadvantages of currently applied strategies to translate them into effective policies. Concerning the access to financial services, people still face several constraints, as credits are often not available for certain activities or at a certain point in time. In addition, savings and insurance services, when available are not adapted to the needs. Furthermore, emerging expenditures for livelihood risks usually go beyond the scope of the dis-saving (in cash and in kind) ability of rural households. Taking into consideration the above stated situation of changing agricultural activities, including higher input use, and the resulting decline in the number of large ruminants, one should be very careful not to destroy the so far still functioning traditional social networks. Even though these networks are not able to fully buffer all shocks and crises, they are at least one asset (social capital asset) that is initially accessible by everybody and quite often a means to compensate to some degree the lack of other capital assets as depicted in the SLF. Research results point to a number of policy issues that need to be addressed if household?s vulnerability to poverty is to be significantly reduced among ethnic minority households in Northern Vietnam. First of all, poverty reduction strategies and programs need to consider a broader target group, not only the currently poor but also the vulnerable households. The promotion of innovative financial products, such as a combination of credit and insurance, especially for loans that are taken up to purchase livestock, is considered a successful approach to support vulnerable households. Finally, it is assumed that an efficient and accessible health care system would be an important alternative for securing livelihoods. In addition, im¬pro¬ved extension services and knowledge transfer for all people, especially women, could sup¬port a sustainable future development of ethnic minority households and therefore, in the long-run, lead to poverty alleviation.