Institutions are not buildings ororganizations, they are the rules by which citizens, firms,and the state interact. The photographs that grace the coverof this Vietnam Development Report (VDR) 2010 epitomizemodern institutions. The settings may not appear modern, butthe activities they represent are cutting edge, and aretransforming Vietnam. Local level planning with the activeengagement of citizens. Monitoring of public works bycitizens groups. Efficient administrative services with thecitizen as the client. Legal advice being provided tocitizens. Professional media coverage of important events.These are the roots which feed the growth of a modern, open,and high-performing society. This VDR focuses on devolutionand accountability, two aspects of modern institutions thatare the essence of Vietnam's experience in the past twodecades. At the risk of over-simplifying, this VDRdistinguishes between two types of accountability, upwardaccountability focusing on compliance with rules, dictates,and instructions coming from within the hierarchy, anddownward accountability focusing on the results that theperson or body is entrusted to deliver. A person or bodyconcerned with upward accountability emphasizes adherence torules. Those concerned with downward accountability servetheir clients. Both forms of accountability are needed.Vietnam's devolution has shown many positive results.Competition among the provinces is driving them to improvetheir business environments. Eased entry for non-stateproviders of services and greater autonomy for themanagement of state facilities are supporting innovation andincreasing the variety of services.
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