The UN Development Programme (UNDP) released a report on Thursday describing the situation in poverty-stricken Rakhine as an “unprecedented disaster”.
The report warned of a “perfect storm” caused by a combination of issues such as restrictions on trade, hyperinflation, loss of livelihoods, declining agricultural production, and lack of essential services.
If urgent action is not taken, the majority of the population (about 95%) will be forced to enter “survival mode” due to a decrease in domestic production, rising prices, widespread unemployment, and increased insecurity.
Rakhine is home to the predominantly Muslim Rohingya community, who fled a violent military crackdown in 2017. Today, nearly one million Rohingya refugees remain in neighboring Bangladesh, where UN aid teams have had to reduce food rations due to funding shortages.
Data collected from Rakhine in 2023 and 2024 showed a significant decline in the state’s economy, with key sectors such as trade, agriculture, and construction almost at a standstill.
The report also highlighted that the restrictions imposed by the military’s State Administration Council were aimed at isolating Rakhine and punishing the vulnerable population.
UNDP further warned that the recent escalation in manipulating ethnic identity, combined with the looming economic catastrophe, will deepen marginalization and put intercommunal relationships at even greater risk.
The situation in Rakhine is also contributing to a pattern of internal migration within Myanmar. As the economic situation worsens, many families are forced to relocate for survival, and young adults are leaving their communities in search of work and stability.
However, the reality is often far from what they hoped for, with limited job opportunities and severe mental health challenges for those who migrate for safety rather than economic reasons.
Women face additional challenges, such as lower wages, discrimination, and barriers in the job market.
The migration crisis extends beyond Myanmar’s borders, with those who move abroad often experiencing better living conditions and wages. This could lead to labor shortages and hinder future recovery efforts.
Furthermore, the conflict and economic hardship are also degrading Myanmar’s human capital, with essential services like healthcare and education becoming inaccessible for many. The dropout rates are increasing in regions affected by violence and economic struggles.
The healthcare system is overwhelmed, and basic medical needs are not being met. The mass exodus of skilled workers is also depleting the nation’s productive capacity, exacerbating the long-term effects of the crisis.