GENEVA: In a new report released on Thursday, the United Nations Development Programme (UNDP) revealed alarming statistics about Myanmar’s economic situation following the 2021 military coup. The report underscores a stark reality: the middle class has shrunk by half since the coup, with three-quarters of the population now either in poverty or teetering on the brink of it.
Achim Steiner, UNDP Administrator, expressed deep concern over the situation, emphasizing that less than 25% of Myanmar’s population currently earns enough to live above the poverty line. Without urgent interventions such as cash transfers, food security measures, and access to basic services, vulnerability will continue to escalate, potentially impacting generations to come.
According to UNDP estimates, a staggering $4 billion per year is needed to combat the growing poverty crisis through cash transfers and other support mechanisms, as Myanmar grapples with an “L-shaped” recession and minimal signs of economic recovery.
Kanni Wignaraja, UNDP Regional Director for Asia and the Pacific, painted a grim picture of household coping mechanisms, revealing that during the pandemic, spending on education dwindled to nearly zero, resulting in a potential generation with profound learning and health deficits.
The report also highlights regional disparities, pointing out that states like Kayah, Chin, and Sagaing, plagued by conflict between junta forces and opposing groups, exhibit the lowest per capita income rates. Conflict-ridden areas face additional challenges such as destroyed homes, restricted access to farmlands, and an influx of internally displaced people (IDPs).
Moreover, Myanmar is grappling with a surge in organized crime, particularly in the form of scam centers and illicit economic activities. If left unchecked, these criminal enterprises could further exacerbate Myanmar’s economic woes and contribute to the disappearance of its middle class.
The UNDP’s report underscores the urgent need for comprehensive action from all stakeholders, both within and outside Myanmar, to prevent irreversible poverty and despair from engulfing vulnerable households and the broader population.
