Country Report: Myanmar

Its political and economic landscape has been rapidly changing since the general elections in 2010, which replaced the military government with a civilian one, and the easing of economic sanctions against the country in 2012. The extent of economic underdevelopment is clear when Myanmar is compared to neighboring Thailand, which has a population only around 25 percent larger but an economy of over six times that of Myanmar (in current US$). With a young population, a fast-growing consumer market, and an underdeveloped industrial sector, Myanmar attracts a large influx of foreign investment and is poised for an economic boom if the political and economic situations continue to improve. Myanmar's location offers proximity to the fastest growing economies in the world and access to key sea trading routes, making it a strategic partner for countries with large economies like China and the United States. Myanmar's population of 52.9 million consists of over 100 distinct ethnic groups, which the government has categorized into eight major national ethnic groups based on geography. The largest ethnic group is Bamar (68 percent), followed by Shan (9 percent), and Kayin (7 percent). In addition, the majority of the population are Buddhists (89 percent), followed by Muslims (4 percent), and Christians (3 percent). Such ethnic and religious diversity has given rise to tensions and communal violence, which were widely reported in recent years. Myanmar ranks second in a list of over 100 countries on the Long-Term Global Climate Risk Index published by the think tank Germanwatch, which ranks countries by the extremity of weather events experienced on average from 1996 to 2015. Such volatile climate has led to food and water insecurity in parts of the country. A former British colony, Myanmar gained its independence in 1948, and has been engaged in a series of civil wars since then as insurgents fought to secede from the nation. While ceasefires are common, permanent peace treaties were never signed between the government and the largest insurgent groups, which are also from regions most involved in cocaine trade and production. The civilian government has implemented various policies across sectors. Priorities have also been shifted to boost rural development, accelerate efforts to achieve peace, and improve the overall nutrition of its people. Besides foreign direct investment, which increased from 1.4 billion in 2013 to 9.5 billion in 2016, medium-term growth is also expected to attain an average of 7.1 percent per annum, indicating increased confidence in the economy and political situation of the country. With Myanmar's abundant natural resources (such as natural gas, oil, and precious stones) and the labor force, coupled with its geographical location offering huge economic and business opportunities, Myanmar becomes both a key supplier of these natural resources as well as acts as the regional trading hub. Poverty in Myanmar is largely concentrated in the rural areas where the poor are generally involved in the agriculture sector or rely on casual employment for their livelihood. Based on an estimation by World Bank, the 2012 annual income per worker in the agricultural sector in Myanmar was only US$194 as compared to US$6,680 and US$706 in Malaysia and Thailand respectively. A more alarming figure is that out of the entire population, 25.6 percent actually fall below the national poverty line. By using the national poverty line as a measure of poverty, Myanmar would be considered to have the highest poverty rate in the Association of Southeast Asian Nations (ASEAN).