Myanmar, also known as Burma, is a republic in Southeast Asia. Stretching from the foothills of the Himalayas to the Thai-Malay peninsula, the region is populated with more than 135 officially recognized ethnic groups (and numerous others). The National League for Democracy’s historic election in 2015 marked the country’s first civilian government after more than 50 years of military rule. Yet, this experiment with democracy was short-lived, as a military coup in 2021 has since plunged the state into a multifaceted conflict and humanitarian crisis. Today, poverty in Myanmar is worsening significantly. A third of the population requires humanitarian aid, and internally displaced people are the most vulnerable.

Crumbling Infrastructure 

The conflict’s impact varies across the states but has reversed years of poverty reduction efforts. In 2018, the government launched the Myanmar Sustainable Development Plan to encourage liberal trade policies, fund infrastructure projects and create more equitable access to markets, information, technology, education and health care. This plan recognized the importance of democratic principles, environmental sustainability and stability in directly addressing the key drivers of poverty.

Warfare has stifled this progress. In particular, the military junta’s scorched-earth tactics to crush actors have damaged civilian access to necessary resources, including health care, medicine, energy and food. Infrastructure destruction continues to isolate communities from economic opportunities and essential services. According to the World Bank, poverty rates have surged from 24.8% in 2017 to approximately 49.7% in 2023.

The humanitarian situation is dire: armed groups damaged 333 health care facilities between January and December 2024; food insecurity affects 15.2 million people; and more than half of the children of internally displaced people, returnees or stateless people can not access formal education. These factors combine to entrench intergenerational cycles of poverty in Myanmar.

Resource Wealth and Corruption

Natural resources dominate Myanmar’s economy, accounting for 43% of economic activity through agriculture, livestock, fisheries and forestry. The country also has significant mining and natural gas industries, with gas comprising 40% of exports. Kachin State produces most of the world’s jade, valued at up to $31 billion in 2014 — half of Myanmar’s GDP.

Despite this immense wealth potential, narrow interests can exploit weak institutions and absent checks and balances to the detriment of the local community. In Kachin, a mosaic of ethnonationalist conflict predates the 2021 coup. The Kachin Independence Army, one of the largest armed ethnic organizations, has fought for regional autonomy since 1961. This has created “war economies” where resource extraction is used to sustain the groups’ survival by maintaining a complex web of alliances and interests rather than supporting development. Despite generating billions in jade revenue, 37.4% of locals in the northern region live below the poverty line.

Human Rights Abuses 

Human rights violations — including torture, illegal killings and collective punishment — characterize the conflict. Both the military junta and opposing factions share responsibility, with civilian recruitment blurring combatant lines.

In many states, armed violence and abuses predate the coup — the Rakhine being a notorious example. The previous civilian government’s genocide against the Rohingya forced approximately 1 million people to flee to Bangladesh, while more than 140,000 remain in camps. Those remaining live under apartheid-like conditions, with restricted movement and limited access to healthcare, education and livelihoods.

These abuses directly perpetuate poverty in Myanmar. Displacement separates people from land and livelihoods; trauma impairs earning capacity; restricted movement prevents market access; and property destruction eliminates savings — creating persistent poverty traps across generations.

Humanitarian Response to Address Poverty in Myanmar

Humanitarian aid is crucial for Myanmar’s vulnerable populations. As Western governments reduce development assistance, the sector faces uncertainty. Recent policy changes under the Trump administration have refocused attention on reform initiatives like The Grand Bargain and Charter for Change, which emphasize locally driven aid. 

The Joint Strategy Team in Kachin and Northern Shan State is one local actor that has led humanitarian efforts in the Kachin State since the re-eruption of conflict in 2011. It is an intermediary body comprised of faith-based and community organizations like the Kachin Relief and Development Committee (KRDC), Kachin Women Association (KWA) and the Bridging Rural Integrated Development and Grassroot Empowerment (BRIDGE). Its 10 governing leaders have demonstrated the success of relevant, flexible and decentralized decision-making. Since August 2021, it has directed foreign-aid funding from the Livelihoods and Food Security Fund (LIFT) and the Foreign, Commonwealth & Development Office to respond to instability and crisis – supporting more than 200,000 internally displaced people as of July 2023.

This localization offers hope for more effective poverty reduction. Local organizations better understand community needs, can access areas international actors cannot and often deliver aid more cost-effectively. However, armed conflict, bureaucratic obstacles and targeted violence of humanitarian infrastructure create significant challenges. Myanmar has one of the world’s most underfunded humanitarian response plans. Donors have provided only 34% of the funding for the 2024 Humanitarian Needs and Response Plan, leaving 1.4 million people deprived of the assistance they need.

The Future of Addressing Poverty in Myanmar

Addressing poverty in Myanmar requires conflict resolution, governance reforms, infrastructure rebuilding, economic diversification and social protection systems. Until political stability returns, supporting locally led humanitarian initiatives provides the best path to mitigate extreme hardship while building foundations for recovery. Sustainable poverty reduction ultimately depends on achieving inclusive peace.

– Bijal Manoj Daialal

Bijal is based in Leicester, UK and focuses on Business and Politics for The Borgen Project.

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