A new report published on Thursday by UNDP reveals that the middle class in Myanmar has decreased by 50% since the 2021 military coup. Additionally, 75% of the population is either living in poverty or dangerously close to the poverty line.
UNDP Administrator, Achim Steiner, stated that less than a quarter of the population in Myanmar have stable incomes above the poverty line. Without immediate action, vulnerability will continue to increase and have long-lasting effects.
The estimated cost of addressing the growing poverty in Myanmar is $4 billion per year, which includes cash transfers and other means to help families recover from the recession.
UNDP is urging all stakeholders, both inside and outside of Myanmar, to take action to prevent vulnerable households from falling into irreversible poverty and despair.
A recent survey of over 12,000 households in Myanmar found that families have resorted to unsustainable coping mechanisms due to the dire situation. UNDP Regional Director for Asia and the Pacific, Kanni Wignaraja, emphasized the impact on education and healthcare, with families unable to afford these basic services.
The report also highlights the alarming situation in provinces affected by conflict, such as Kayah, Chin, and Sagaing. These regions have the lowest rates of per capita income and have experienced destruction of homes, restricted access to farmlands, and an increase in internally displaced people.
According to Ms. Wignaraja, IDPs who have fled to urban centers like Yangon and Mandalay for safety and basic services no longer have a safety net. She also highlighted the issue of rising criminal activity in Myanmar, including the production of opium and organized crime.
If these issues are not addressed and the ongoing war is not stopped, the middle class in Myanmar will continue to disappear, according to Ms. Wignaraja.