Devastating Civil War Plunges Myanmar into Poverty: UN Report Reveals

Myanmar, once seen as a country with a promising economy and a growing middle class in Southeast Asia, is now facing a serious issue of poverty. A recent report by the United Nations reveals that due to a devastating civil war, millions of people are being pushed further into poverty.

According to researchers from the UN Development Program (UNDP), almost half of Myanmar's population of 54 million now lives below the poverty line. Shockingly, 49.7% of the population survives on less than 76 US cents a day. This number has doubled since 2017, highlighting the worsening situation in the country.

After the military took control in a coup three years ago, the economy of the country has worsened quickly. The middle class is in danger of disappearing, and families are having to reduce their spending on food, healthcare, and education because of the high inflation rates, according to the report.

The researchers have uncovered a concerning situation in Myanmar. In October 2023, an extra 25% of the population were barely above the poverty line, living in precarious conditions.

The authors mentioned that the situation may have worsened since the report was published. The increased conflict has resulted in more displaced individuals losing their jobs and businesses closing down.

Myanmar had been successful in decreasing poverty, especially after transitioning to a democratic government in 2011, which brought about economic and political changes.

Myanmar military officers march during a parade to mark the 74th Armed Forces Day in Naypyitaw, Myanmar on March 27, 2019.

Myanmar military officers march during a parade to mark the 74th Armed Forces Day in Naypyitaw, Myanmar on March 27, 2019.

Aung Shine Oo/AP/File

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In 2016, Myanmar was recognized for having the region's quickest-growing economy by the Asian Development Bank. From 2011 to 2019, the country's economy saw an average annual growth of 6%, as reported by the World Bank.

The country made significant progress in reducing poverty, cutting its rate from 48.2% in 2005 to 24.8% in 2017.

However, the 2021 military coup, which removed the democratically elected government led by Aung San Suu Kyi, brought instability and violence to the country. This, combined with the challenges posed by the Covid pandemic, led to a reversal of the previous progress.

Poverty has not only doubled but people are also more deeply poor, the report found.

Kanni Wignaraja, assistant secretary-general and UNDP regional director for Asia, highlighted that about three quarters of the population are in poverty. However, the most concerning issue is the increasing number of people barely surviving at a subsistence level. This indicates a significant depth of poverty in the region.

Myanmar’s middle class is shrinking rapidly, according to Wignaraja.

She mentioned that a 50% decline in the middle class within two and a half years is extremely surprising, not just for Myanmar but for any country.

The report, based on over 12,000 interviews carried out between June and October 2023, is one of the largest nationwide surveys in recent years.

According to the report, poverty is prevalent throughout the country, but individuals in conflict areas are experiencing increased levels of destitution. Women and children are particularly impacted by this trend.

Anti-junta resistance forces and ethnic armies have been engaged in a fight against military troops following the coup in an effort to remove them from power. The military junta has been carrying out harsh attacks on the people of Myanmar, with ground battles, airstrikes, and raids on villages causing nearly three million people to flee their homes.

Thai military personnel stand guard overlooking the Moei river on the Thai side, near the Tak border checkpoint with Myanmar, in Thailand's Mae Sot district on April 10, 2024. Thai armoured cars patrolled the town of Mae Sot on April 10 as the deep boom of artillery thundered across from the border in Myanmar where the junta and an ethnic armed group fought for a second day near a vital trade hub. (Photo by MANAN VATSYAYANA / AFP) (Photo by MANAN VATSYAYANA/AFP via Getty Images)

Thai military personnel are standing guard overlooking the Moei river on the Thai side, near the Tak border checkpoint with Myanmar, in Thailand's Mae Sot district on April 10, 2024. Thai armoured cars were seen patrolling the town of Mae Sot on the same day. The sound of artillery could be heard booming from across the border in Myanmar, where the junta and an ethnic armed group were engaged in a second day of fighting near a crucial trade hub. This tense situation was captured in a photo by Manan Vatsyayana from AFP/Getty Images.

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In the tiny southeastern Kayah state, where fighting has been especially fierce, half of all households have experienced a decrease in income — the highest among all areas surveyed.

According to the report, even those not directly affected by the fighting are facing challenges. The local currency of Myanmar, the kyat, has dropped significantly in value, while the costs of food and other essential items continue to rise.

Foreign investment in the country has decreased significantly, while the number of unemployed individuals who have moved overseas has risen.

The report reveals that Myanmar's GDP has struggled to bounce back from the 18% decline it experienced in 2021, attributed to the combined impact of the political turmoil and the pandemic.

"We were shocked to see how quickly the big cities like Yangon and Mandalay were falling into distress," Wignaraja expressed.

Without quick action, the humanitarian crisis will get much worse and have long-lasting effects on development for generations to come.

UNDP Administrator Achim Steiner emphasized the importance of urgent interventions to address the growing vulnerability. He highlighted the need for cash transfers, food security, and access to basic services to prevent impacts from affecting future generations.

Steiner called upon all stakeholders, both within and outside of Myanmar, to come together and take action. It is crucial to protect vulnerable households from falling into permanent poverty and hopelessness.

Editor's P/S:

The article paints a grim picture of the devastating impact of poverty in Myanmar, where almost half of the population now lives below the poverty line.