Assessment of the Myanmar Agricultural Economy

Description: 

Overview: "During two weeks in January 2009 a team from the Asia Programs unit of the Harvard Kennedy School?s Ash Institute, International Development Enterprises (IDE), and the Ministry of Agriculture and Irrigation of the Union of Myanmar conducted a humanitarian assessment of food production and the agricultural economy in Myanmar. We focused on paddy production, because rice is the country?s staple crop. Based on fieldwork in cyclone-affected areas of the Ayeyarwady River Delta and in Upper Myanmar, we conclude that paddy output is likely to drop in 2009, potentially creating a food shortage by the third quarter. Our estimates are based on imperfect data, and this scenario may not materialize, but the avoidance of a food shortage this year would represent a temporary reprieve, not a recovery. Myanmar?s rural sector is stretched to the breaking point and the natural resilience that has sustained it is leaching away. This paper recommends a set of interventions to avert this looming crisis: 1) an increase in credit for farmers and other participants in the rice economy including traders and millers, 2) steps to increase the farm gate price of paddy in order to create an incentive for farmers to produce more paddy, and 3) a program to finance small-scale village infrastructure projects to increase demand for wage labor for the rural poor who are most at risk. This paper proceeds as follows. Section I describes the study?s rationale and methodology. Section II presents the research team?s key findings. Section III offers an analytical framework for considering how and why food markets fail. The next two sections consider the implications of our finding, examining income loss, crop production, and land concerns. Section VI recommends a three-pronged policy response. Section VII concludes by considering the distinction between humanitarian responses and development strategy. Appendix I discusses Myanmar?s likely actual GDP growth rate. Appendix II summarizes the policy options available to the government in the face of continued deterioration of conditions in rural areas."

Creator/author: 

David Dapice, Tom Vallely, Ben Wilkinson

Source/publisher: 

International Development Enterprises

Date of Publication: 

2009-01-00

Date of entry: 

2010-09-01

Grouping: 

  • Individual Documents

Category: 

Language: 

English

Local URL: 

Format: 

pdf

Size: 

177.13 KB