Here’s a side-by-side comparison of Burma’s (Myanmar’s) poverty situation before and after the 2021 military coup:
Poverty in Myanmar Before the 2021 Coup
| Aspect | Before the Coup (2011–2021) |
|---|---|
| Poverty Rate | Around 24.8% of the population lived below the poverty line by 2017. Efforts from international aid organizations, pro-democracy reforms, and gradual economic liberalization helped reduce poverty rates. |
| Economic Growth | Myanmar had experienced modest economic growth, with the economy growing at an average rate of 6-7% annually from 2011 to 2020, driven by economic reforms, foreign investment, and the development of the telecommunications and tourism sectors. |
| Inflation and Currency Value | Inflation was relatively low (around 5% per year) and the value of the currency, the kyat, was stable before the coup. |
| Job Market | Unemployment rates were estimated at around 1.7% in 2020. The expansion of the service and industrial sectors, along with foreign investment, increased the availability of jobs. |
| Access to Healthcare | Healthcare coverage was limited but gradually improving, with a rising number of healthcare providers and international organizations aiding rural and underserved areas. |
| Education | Education system faced challenges but was improving. Primary school enrollment rates were rising and international organizations worked with the government to improve secondary and higher education levels. |
| Foreign Investment | Myanmar had started receiving increased foreign investment, particularly in sectors like energy, telecommunications, and manufacturing, driven by the partial lifting of sanctions and the perceived opening of the country. |
Poverty in Myanmar After the 2021 Coup
| Aspect | After the Coup (2021–Present) |
|---|---|
| Poverty Rate | Poverty surged to an estimated over 40% of the population by 2023. The military coup disrupted economic activity, and the country faced sharp economic declines due to instability, inflation, and reduced foreign investment. |
| Economic Decline | The economy contracted dramatically by around 18% in 2021. Key sectors such as tourism, construction, and exports suffered due to the coup, sanctions, and ongoing civil unrest. |
| Inflation and Currency Value | Inflation spiked to over 30% in 2021, and the kyat lost significant value against the US dollar. Prices for basic goods like food, fuel, and medicine soared, further burdening the population. |
| Job Market | Unemployment increased drastically, with hundreds of thousands of people laid off due to businesses closing, strikes, and disruptions in supply chains. Many workers were forced into informal work or were displaced due to violence. |
| Access to Healthcare | Healthcare services deteriorated as the country faced shortages of medicine and medical staff, especially in conflict zones. The military junta also diverted aid meant for civilians, leaving many without access to necessary healthcare. |
| Education | School closures and displacement due to the ongoing civil war, combined with the military’s crackdown on protestors, hindered education for millions of children. Many teachers joined the civil disobedience movement (CDM), leaving schools understaffed. |
| Foreign Investment | Foreign investment plummeted due to the coup, with many international businesses halting operations in Myanmar in protest against the military regime. Sanctions by Western countries also isolated the country economically. |
Key Differences:
- Economic Growth vs. Decline:
- Before the coup, Myanmar was experiencing moderate growth with opportunities for foreign investment and development.
- After the coup, the economy saw a dramatic contraction, with GDP shrinking by 18% in 2021, drastically reducing living standards.
- Poverty Rate Surge:
- Before the coup, poverty was slowly decreasing, but after the coup, poverty rates jumped to 40% due to the destruction of businesses, inflation, and instability.
- Inflation and Currency Depreciation:
- Before the coup, inflation was under control at around 5%. After the coup, inflation surged to over 30% and the kyat lost much of its value, raising prices on everyday goods.
- Unemployment:
- Before the coup, Myanmar had a relatively low unemployment rate of around 1.7%. After the coup, unemployment rates spiked due to widespread closures and strikes, and many people lost their jobs as businesses suspended or shut down.
- Healthcare and Education:
- While healthcare and education were struggling before the coup, efforts by international organizations helped improve these systems. After the coup, both sectors were severely disrupted due to a lack of resources, teacher strikes, and the junta’s repression of humanitarian aid.
- Foreign Investment:
- Before the coup, Myanmar was opening up to foreign investment, with growth in sectors like tourism and manufacturing. After the coup, foreign companies pulled out, and international sanctions reduced opportunities for economic growth.
Conclusion:
The 2021 military coup has reversed much of Myanmar’s progress, plunging the country back into economic hardship. Before the coup, Myanmar had made gradual advancements in poverty reduction, economic growth, and foreign investment. However, the aftermath of the coup has led to a sharp rise in poverty, economic decline, hyperinflation, and job losses, contributing to an overall worsening of living standards across the country.