Myanmar faces economic collapse one year after military coup
Maung Bo Yangon
February 1, 2022
A year after the military seized control of the country, Myanmar is facing a "multidimensional humanitarian crisis," the International Labour Organization has warned.
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Ma Aye, a 35-year-old office worker in Myanmar's former capital, Yangon, strategically skips meals to save money.
"In the past, I used to buy breakfast from a tea shop near my office after early check-in at the office. Now, I skip my breakfast and eat my lunch early which I prepare and bring from home," Ma Aye told DW.
"So, instead of eating breakfast and lunch," Ma said, "I eat brunch nowadays to cut my spending."
On social media platforms, people who face economic hardships share tips on how to save coins in daily life.
But Aye considers herself among the luckier ones. Unlike many around her, she still has a job.
Nearly half of population living in poverty
Myanmar's annual employment losses in 2021 amounted to an estimated 8%, or 1.6 million jobs lost, indicating a sizable decrease from employment of 20.5 million in 2020, the International Labor Organization (ILO) stated in its January 2022 report. The estimates cover the whole labor force of Myanmar, including formal and informal economy workers.
The country's construction, garment, tourism and hospitality industries were among the hardest hit, according to the report, as were rural farmers.
Myanmar in a state of turmoil a year since the military coup
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In addition, an estimated 25 million people (almost half Myanmar's population) were living in poverty by the end of 2021, and 14.4 million people are now in need of humanitarian assistance, the ILO reported.
The World Bank, meanwhile, said in its January report that Myanmar's economy is about 30% smaller than it might have been in the absence of the pandemic and the military coup.
International sanctions, a halt in foreign aid and the withdrawal of foreign investors have all pushed Myanmar to the brink of economic collapse.
Ongoing political turmoil and conflict between the military and armed resistance groups have also complicated the socioeconomic and public health challenges of the pandemic. Businesses all over Myanmar are facing bankruptcy.
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More frequent blackouts expected
Millions of people, including civil servants and private sector workers, have joined Myanmar's civil disobedience anti-coup movement, refusing to pay electricity bills and taxes until the military is ousted.
Businesses, especially factories, have also suffered from daily power outages. As most of Myanmar's electricity generation depends on hydropower, dry season will prove to be an additional challenge.
"This summer will be really tough. There will be longer and more frequent blackouts," Ko Oo, a business owner, told DW.
"I cannot use generators to run my factory as gasoline prices are sky high. I will only operate only when power is on. My production capacity would be greatly reduced," Ko Oo said.
General strike in Myanmar on 1 year anniversary of coup
Many workers in Myanmar have defied military orders and stayed home in a nationwide strike marking the coup one year ago. The UN has said Myanmar's military committed "murder, torture and abductions" over the past year.
Image: AP Photo/picture alliance
Yangon emptied one year after coup
Strand Road, a normally busy thoroughfare in Yangon, is deserted on Tuesday as those opposing Myanmar's military junta organized a nationwide strike marking the one-year anniversary of a military coup that toppled the Southeast Asian country's democratically elected government.
Image: AP Photo/picture alliance
Businesses defy junta orders to stay open
The plaza in front of Mandalay's train station is empty on Tuesday, in what activists are calling a "silent strike." The junta had threatened to seize businesses that participated in the strike and warned protesters that rallies or displaying anti-military "propaganda" could result in prosecution under counterterrorism laws.
Image: AP Photo/picture alliance
Some protesters still take to the streets
The threat of arrest did not deter some protesters. In Mandalay on Tuesday, protesters unfurled pro-democracy banners reading "who dares oppose the people's will." There were no reports of any violence.
Image: AP Photo/picture alliance
Military claims to have support
An image of a pro-military march in the capital Naypyidaw on Tuesday provided by a state news service. The junta does enjoy pockets of support at home, but is facing broad international resistance. On Tuesday, the UN said the junta was "committing murder, torture and abductions." On Monday, the US, Canada and the UK sanctioned junta-linked individuals to "promote accountability for violence."
Image: AP Photo/picture alliance
Suu Kyi on trial after brief period in power
Myanmar's civilian leader Aung San Suu Kyi and her National League for Democracy (NLD) were ousted in the coup. Suu Kyi was arrested and faces an array of charges that could carry a sentence of over 150 years. The military claims it took power a year ago over unfounded allegations of voter fraud during the 2020 election. Critics say the military wants to ensure Suu Kyi never returns to politics.
Image: REUTERS
Continued acts of 'civil disobedience'
Over the past year, protesters have organized acts of non-violent "civil disobedience" calling for public servants, business owners and service workers to strike. The last nationwide strike was in December, and towns and cities were emptied across Myanmar, as seen here in front of Yangon's famous Shwedagon Pagoda.
Image: AFP/Getty Images
A year of deadly clashes
Since the coup, Myanmar has plunged into violence as the military has tried to quash any resistance to its rule. What began as nonviolent demonstrations, quickly turned deadly as the army began to shoot protesters in the streets. In this image from a deadly week of protests in March 2021, a man hides behind a barricade in Yangon and hurls a flaming object at security forces.
Image: AP Photo/picture alliance
First recorded death last February
Local human rights groups estimate that over 1,500 civilians have been killed resisting military rule in Myanmar. The UN on Tuesday said that it was looking into reports of civilian deaths. Seen here is the funeral of a protester who was killed on February 21, 2021, and was listed as the first confirmed death.
Image: AP Photo/picture alliance
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Children living in poverty on the rise
The number of people living in poverty in Myanmar is expected to have more than doubled from before the pandemic, according to the World Bank.
Min Maung, 40, told DW that he is concerned about a surge in child poverty in Yangon.
"Since COVID, we have started to see an increase of child beggars at traffic lights," he said.
"After the coup, many more showed up. Only when you give money, they will leave. Now I am getting afraid to stop at traffic lights," he added.