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VIEWPOINT: ECONOMIC GRAFITTI
Saigon Socialism
Vietnam may be poorer than India, but it is not as impoverished
By Kaushik Basu
As soon as our
flight from Delhi touches down in Bangkok, there is pandemonium. Virtually
all the Indian passengers are up and jostling to get to the door. India
does not win any medals in the Olympics, but when it comes to disembarking
from aeroplanes, Indians have no peer. It is a pity that the International
Olympic Association does not recognise this as a sport. From Bangkok a
short flight takes me to Ho Chi Minh City (formerly Saigon). It may be
a manifestation of my geographic infidelity, but Vietnam seems more fascinating
than any other place I have seen. The basic facts about Vietnam I knew
well before my journey: that it has a per capita income of $370 per annum
(significantly less than India's $450); that its economy is controlled
by a communist Government; that it fought a devastating war with the world's
most powerful nation from 1964 to 1975. It won the war but
at the terrible cost of four million civilian lives (10 per cent of
its population).
But
this does not square up with the facts. Nowhere in Ho Chi Minh City does
one see the kind of poverty that one encounters in Indian cities. There
are beggars but they are better dressed and better nourished. There is
no animus towards the large numbers of tourists, mainly from Europe and
America. The dollar is as much a Vietnamese currency as the dong. The
average quality of life is impressive. In the evening young couples ride
their bikes to the banks of Saigon river in the fashionable Dong Khoi
area, to sit locked in embrace and watch the barges. The women of Vietnam,
all elfin charm, have the alluring quality of being both liberated and
demure (besides having the best posture in the world). Clearly, they feel
secure in the streets for they are out late in the evening, in their flowing
ao dais or, more commonly, in western dresses.
Another big surprise is art. Art shops are everywhere.
Not only imitations of Van Gogh and Picasso, even Botero, Hopper, German
expressionists and Mexican muralists find space in the small Janpath-like
shops. There are original paintings by Vietnamese artists also. I explored
several galleries. Prices go up to $3,000. I did not see paintings that
measure up to the level of, say, Anjolie Ela Menon, but what is surprising
is the high average quality and the amount of art being produced and sold.
The answer to the Vietnam puzzle unfolds gradually,
speaking to people in the streets and economists in the know, and travelling
to the suburbs and beyond the cities. One of the first clues to the puzzle
is the realisation that there are no sprawling residential bungalows or
dachas. And, indeed, a little investigation confirms that there are few
very rich people here. Most of the cars on the roads belong to the embassies
and donor agencies. The Vietnamese, overwhelmingly, use motorbikes and
bicycles. Even ministers and politburo members go to work on bikes. Hence,
despite the low per capita income of the nation, there is not as much
poverty as in other Third World countries-the cake is divided much more
equitably. Another factor that has fuelled Vietnam's cultural achievements
is its literacy rate. At 95 per cent, it is not only way above India's
65 per cent, but is comparable to southern Europe.
The communist Government's economic policy is
notable for its pragmatism. In the late 1980s, it abandoned its overarching
control. The reforms, the so-called doi moi, included greater openness
to trade and foreign direct investment. This, coupled with the state's
commitment to equality, has given a great fillip to the economy, which
has grown at rates as high as 9 per cent in recent years.
The economy's battle is by no means over. As
it moves up the value chain in terms of trade and production (Hanoi newspapers
keep referring to India's software success as something that Vietnam could
replicate), it is being forced to do more business with MNCs. The Vietnamese
are apprehensive that they will be duped by them. This understandable
hesitation can and does lead to bureaucratic delays, hampering business
and efficiency. The other problem is that its admirable equitableness
is likely to come under strain. The local people will sooner or later
resent the wealth of the "outsiders", and many will strive to
emulate them. This is bound to skew incomes and, unless there is skilful
government intervention, may even exacerbate poverty.
With each passing day in Vietnam, I began to
understand its strange mixture of socialism and the free market. On our
last day, we visited the Temple of Literature in Hanoi, an 11th century
institution of learning dedicated mainly to Confucianism. At the bookshop,
amidst books on Marx, Lenin and Ho Chi Minh, was a book written in Vietnamese.
It is prominently displayed, clearly in the knowledge that whoever sees
it will want to buy it. On turning a copy over, I realised it was a biography
of Bill Gates.
(The author is professor of economics at Cornell
University.)
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