In this chapter we trace the history of land reform in South Vietnam during the war and assess how the various programs affected the material well-being of the rural population. A full analysis of income distribution in wartime Vietnam would be a welcome addition to our knowledge of how war policies affected development. In particular, we would like to know if these policies were effective in eliminating relative inequality or absolute poverty as they are usually measured, but an analysis of this sort is not possible because of lack of data. It is possible, however, to infer from nonincome data the progress made in reducing rural poverty and the changes that took place in the relative economic positions of farmers, landlords, and urban wage earners as groups. In addition to its descriptive value in the overall development picture, this kind of information is a useful input to explaining the dynamics of popular support for the government in its political struggle with the Communist forces.

5.1 Income distribution and economic development

At least up to the 1970s, research in economic development stressed growth in per capita income. Development policy, therefore, was concerned primarily with manipulating those variables such as foreign aid that were thought to be effective in speeding up the growth rate in per capita income. In comparison with growth, the concern for equity took a back seat, or it was simply assumed that rapid growth would promote equity, a kind of trickle-down approach.