Myanmar, once a promising economy in Southeast Asia, is now grappling with a severe poverty crisis as a devastating civil war pushes millions further into destitution, according to a recent United Nations report. Nearly half of Myanmar's 54 million population is living below the poverty line, with 49.7% surviving on less than 76 US cents a day, a figure that has doubled since 2017.
Following the military coup in 2021, the economic situation in Myanmar has rapidly deteriorated, risking the extinction of the middle class and forcing families to cut back on essential needs like food, health, and education due to soaring inflation.
The report highlights that an additional 25% of the population in Myanmar are barely above the poverty line, indicating a precarious situation for many. The ongoing conflict has led to more displaced individuals losing their livelihoods and businesses shutting down, exacerbating the poverty crisis.
Myanmar had shown significant progress in poverty reduction following political and economic reforms starting in 2011. However, the 2021 military coup, coupled with the Covid-19 pandemic, has reversed these gains, with poverty rates doubling and people sinking deeper into destitution.
The report emphasizes that about three-quarters of the population are now living in poverty, with a significant portion surviving at a bare subsistence level. The disappearance of Myanmar's middle class is a concerning trend, with a 50% collapse observed over a short period.
Widespread poverty affects all regions of the country, with conflict zones experiencing deeper destitution, particularly impacting women and children. The devaluation of the local currency, rising costs of basic necessities, declining foreign investment, and increased unemployment have further exacerbated the crisis.
Without immediate intervention, the humanitarian crisis in Myanmar is projected to worsen exponentially, with long-lasting inter-generational impacts on development. The UNDP calls for urgent action from all stakeholders to prevent vulnerable households from slipping into irreversible poverty and despair.
