Neoliberal pension reform in Viet Nam: how do global pension proposals and their implementation (dis)Serve local people?

Abstract

In many countries in the Global South, elderly poverty is widespread. International reformers, including the World Bank, encourage pension policy reform to alleviate old-age poverty and improve pension systems’ financial sustainability. Focusing on Viet Nam, we ask how global neoliberal pension proposals, and their implementation (dis)serve local people, especially those with low lifetime income. The proposals are underpinned by actuarial techniques and focus on improving the financial position of the pension system. We find they advocate that citizens take self-responsibility by joining a contributory pension plan, therefore insufficiently addressing old-age poverty for elders in need. Our data also shows that emphasizing actuarial techniques has blurred cultural aspects of familial reciprocity. Using neocolonial concepts, we explain how local people with subordinate positions as the subaltern express non-violent resistance and implement piecemeal resilient strategies as they attempt to overcome poverty. Nevertheless, such resilience is not advocated by global and local elites with neoliberal agendas. We identify the need for policy advisors of development projects to consider the consequences of using financial logic as a dominant tool; it is likely to denigrate beneficiaries’ views and practices that appropriately respond to local circumstances. It is important to respect and incorporate beneficiaries’ views and practices as co-participatory tools alongside financial techniques to benefit those in need.