[1] This is consistent with international empirical studies. Sen argues that, based on empirical studies, the hypothesis that there is no relationship between political freedom and economic performance 'is hard to reject'. However, Sen argues that 'developing a democratic system is an essential component of the process of development' (1999:150). Interestingly, the need to improve democratic processes (especially grassroots democracy) is a recurring theme in the development strategy approved by the Vietnamese National Assembly. At the end of the July-August 2002 session of the National Assembly, the Chairman called on Vietnamese 'to uphold national unity, strength self-reliance to successfully implement the industrialisation and modernisation process for a powerful country with wealthy people and an equal, democratic, and civilised society'.
[2] Sen (1999) stresses the interconnections between political freedoms and the understanding and fulfilment of economic needs. He notes that 'political freedoms can have a major role in providing incentives and information in the solution of acute economic needs' (1999:147). While there were few political freedoms in Viet Nam in 1986, the state did respond to domestic concerns about economic needs.
[3] Without large financial incentives, there was also greater incentive for external policy advisors to prepare arguments for policy reform carefully. In the absence of financial incentives, national policymakers were only likely to implement reforms if they were convinced of the benefits.
[4] The Sixth Party Plenum (Ninth Congress) in August 2002 called for 'accelerated administrative reform to abolish intermediary agencies that are usually found to be beset with red-tape and complicated procedures' and the separation of state administrative functions from business operations.
[5] Castello and Domenech (2002) argue that both the level and the distribution of education is important for economic growth. They find that greater equality in human capital development is associated with higher investment rates and income growth.
[6] The World Bank IDA Poverty Reduction Support Credit of US$250 million, agreed in 2001, includes a policy matrix with over fifty policy actions to be implemented over the coming three years. Given the success of the Vietnamese without such support and policy conditionality, this sort of comprehensive donor guidance might seem gratuitous, if not arrogant. The explanation seems to lie in the internal process of the World Bank, where the management seems to require the purchase of a policy matrix commensurate with the size of a credit.
[7] At a conference on information technology in September 2002, Nguyen Khoa Diem (Secretary of the Communist Party Central Committee and Politburo member) stressed the importance of the internet for social and economic development but complained that 'Internet and e-newspaper development remains slower than other regional countries and has not met the demand for national development and the needs of the people…Viet Nam's e-newspapers are not very informative and are not very attractive to readers while Internet costs remain so high'.