Following adoption of the doi moi ("renovation") strategy in 1986 and the introduction of a series of economic reforms, Vietnam experienced GDP growth rates averaging 8 percent per year between 1990 and 1997. Absolute poverty declined from 58 percent in 1993 to around 37 percent in 1998, while the number of people below the "food poverty line" dropped from 25 percent to 15 percent. Trends in nonmonetary indicators of welfare confirmed that living standards were improving. Access to health, education, and infrastructure services expanded for the bulk of the population.
The shift toward a market-oriented economy also brought some changes in the political structures of the country. According to the new constitution adopted in 1992, the Communist Party remains the leading organ of the state, but is bound to operate within the framework of the law and the constitution. The constitutional and legislative powers of the National Assembly, whose members are elected through universal suffrage and secret ballot, were also expanded.
In recent years, the government has taken significant steps to improve communication and to encourage a two-way flow of information and views. In 1998 a Grassroots Democracy Decree was passed, which established the legal framework for the participation of citizens in local decision- making processes at the commune level and their right to "monitor" local government expenditures. Although the capacity of citizens to participate actively remains constrained, especially by their lack of awareness of their rights and entitlements, the decree is viewed as a step toward enhancing the transparency and accountability of local government officials.
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