[Updated on Apr. 18] Integration of CiNii Articles into CiNii Research

Livestock insurance and poverty alleviation in developing countries : Pilot study of agricultural insurance in Vietnam

JASI HANDLE Open Access

Bibliographic Information

Other Title
  • 途上国における家畜保険による貧困削減の可能性 : ベトナムにおける家畜保険パイロット事業を事例に
  • トジョウコク ニ オケル カチク ホケン ニ ヨル ヒンコン サクゲン ノ カノウセイ : ベトナム ニ オケル カチク ホケン パイロット ジギョウ オ ジレイ ニ

Search this article

Abstract

Controlling production risk in agriculture is one of the most important factors in stabilizing farmers' income over different time periods. However, financial and insurance markets are not well-developed in developing countries, including rural Vietnam, where opportunistic behavior, such as adverse selection and moral hazard, especially impede the development of a livestock insurance market. In 2011-2013, the government of Vietnam introduced an agricultural insurance system as a trial which the main focus on poverty alleviation. Our survey results indicate that farmers who received insurance payments were able to re-introduce new swine to their production, contributing to poverty alleviation. However, the enrollment rate is quite low among middle-income households, who are assumed to be very knowledgeable about animal production and hygiene technology. Therefore, policy markers and insurance companies will face a trade-off between contribution to temporary poverty alleviation and adverse selection.

Controlling production risk in agriculture is one of the most important factors in stabilizing farmers' income over different time periods. However, financial and insurance markets are not well-developed in developing countries, including rural Vietnam, where opportunistic behavior, such as adverse selection and moral hazard, especially impede the development of a livestock insurance market. In 2011-2013, the government of Vietnam introduced an agricultural insurance system as a trial which the main focus on poverty alleviation. Our survey results indicate that farmers who received insurance payments were able to re-introduce new swine to their production, contributing to poverty alleviation. However, the enrollment rate is quite low among middle-income households, who are assumed to be very knowledgeable about animal production and hygiene technology. Therefore, policy markers and insurance companies will face a trade-off between contribution to temporary poverty alleviation and adverse selection.

Journal

Related Projects

See more

Details

Report a problem

Back to top