More than 32% of the population in Myanmar lived below the national poverty line in late 2023/early 2024 and about two-thirds face economic insecurity. These most recent statistics erase all of the progress the country had made since 2015.

By 2017, the poverty rate in Myanmar had dropped below 25% with 24.8% of the population living below the national poverty line. However, conflict, political instability and a faltering economy (just 1% GDP growth) have displaced more than 3 million people and worsened living conditions. These challenges underscore the need for bold and proven strategies to achieve poverty reduction in Myanmar. Here are five solutions for poverty reduction in Myanmar.

1. Revive Rural Agriculture

Almost half of Myanmar’s workforce depends on agriculture; however the yields remain low. Climate-smart seeds and improved irrigation can greatly improve the output of yields. 

From 2019 to 2022, the Climate Smart Rice Project helped 4,100 farmers in Shan, Mon, Mandalay and Bago adopt improved seed varieties and water-saving practices. These efforts increased rice yields by up to 22% while reducing methane emissions and water use. Similarly, the MYRice Pilot Program by IRRI introduced better post-harvest drying and storage techniques. This reduced crop losses and increased the market value of rice by 15%.

Investing in value chains, such as processing, transport and storage, not only increases rural incomes but also creates jobs and reduces food waste, contributing significantly to poverty reduction in Myanmar. 

2. Scale Up Social Protection 

A limited number of vulnerable households benefit from social safety nets. In Chin, Rakhine, and Kayin states, which are part of the nationwide rollout that began in 2017, the Maternal & Child Cash Transfer (MCCT) program has provided 15,000 kyats per month (about $10–11 USD) to pregnant and lactating women for up to 24 months, supporting their children’s crucial first 1,000 days. As of October 2019, the program reached 33,723 women in Chin State and 124,719 women in Rakhine State.

Meanwhile, Yoma Social Development Association’s mobile health initiatives in Karen State have tackled child malnutrition by training mothers in organic vegetable cultivation. In 27 villages, field facilitators identified children with moderate acute malnutrition and then equipped women, especially expectant and breastfeeding mothers, with seeds (e.g. beans, okra, eggplant) and farming tools. They also held nutrition awareness sessions and cooking demonstrations, resulting in a “noticeable improvement in positive social behaviors related to nutrition,” particularly for children under five.

3. Invest in Smart Infrastructure 

A shocking 84% of rural households lack electricity access in Myanmar. NGOs, like Techno Hill, have implemented solar micro-grids which serve 700 households and deliver 24/7 power to remote villages.

Moreover, by investing in all-weather rural roads and digital infrastructure, daily life in underserved regions can be transformed as economic productivity would be boosted and various aspects of life, such as education, disaster resilience, financial services and health care would be greatly improved, helping to reduce poverty in Myanmar. 

4. Expand Financial Access 

Only 23% of adults possess formal bank accounts, according to CGAP and GSMA. Expanding mobile banking and microfinancing services will create many opportunities for millions currently excluded from formal finance. Wave Money dominates the mobile finance market here—holding more than 80 % market share and serving about 38 % of the population via its agent network of 50,000 outlets. In 2019 alone, its transaction volume more than doubled to 6.4 trillion kyat ($ 4.3 billion USD).

KBZPay, which the KBZ Bank developed and launched in October 2018, has rapidly scaled, amassing more than 6 million downloads, serving 4 million customers, and enabling seamless digital access via a network of 280,000 agents nationwide.

5. Govern With People, Not Just for Them 

Corruption and opaque procedures pollute trust and public support. In Kachin, Kayah and Ayeyarwady, community budgeting and public scorecards have allowed for more responsive local services and reduced fund leakages. It is important to note that in conflict zones, poverty reduction and peacebuilding work in tandem as displaced households can be supported through integrated Humanitarian-Development-Peace (HDP) approaches.

Moving Forward 

Despite Myanmar’s worsening poverty crisis, there are tested and scalable solutions already in place: cash transfers, solar energy, climate-resilient farming, mobile finance and community-led governance. These interventions have demonstrated measurable impact and represent a viable path forward.

The future of poverty reduction in Myanmar depends on building on what works and ensuring these strategies reach the most affected, including rural communities, women, ethnic minorities and displaced families. While the challenges remain immense, the tools for transformation are already in motion.

– Arabella D’Aniello

Arabella is based in The Hague, Netherlands and focuses on Technology and Solutions for The Borgen Project.

Photo: Pixabay