A regional perspective on poverty in Myanmar - United Nations ...

Poverty in Myanmar 39
Chin
Land holding
Underemployment
gap
Losses from
calamities
Poverty rate
10
8
6
4
2
0
Poverty decline
Poverty gap
PPI
Loans
Poverty inertia
Utilities share
Food share
Inequality
23 Chin’s radar diagram is certainly the most unbalanced of all. As Chin State is almost in every aspect
an outlier, the possibility cannot be excluded that the survey results are not really representative.
Yet, an explanation shall be attempted.
Chin’s poverty rate and poverty gap seem to be highest in the country, yet, poverty shall be declining
rather fast. What certainly is an important characteristic is the high degree of chronic poverty as
visible from the high poverty inertia. Chronic poverty, as chronic unemployment and as malnutrition,
are very difficult to overcome, as people do not only lose skills and resources, but also hope and
drive. In this sense, Chin needs first a strong social push to sustainably bring people up to a level from
where they would be able to move on by themselves.
The high and persistent poverty goes in line with a high indebtedness. A pilot project could be started
to first convert existing informal loans into formalised loans (e.g. through microfinance
organisations), and then into soft loans. As shown, this might free a very large percentage of the
household expenses for other purposes. The goal should be to convert a credit, or rather: debtdriven
State into a savings driven State: poor would access their savings at the beginning of the
planting season, and repay at the end. Also for consumption smoothing, access to own savings is the
much better way, given financial education. This requires as well the establishment of convenient
savings possibilities.
The very low median landholding is part of Chin’s poverty problem: no farm of this size can generate
sufficient income to sustain a household. The effect of these low landholdings is also a low rate of
landlessness. The result is a State wherein no one can generate sufficient scale and income to
provide employment and to advance the State’s economy.
Many farmers cultivate subsistence crops, mostly rice. Besides the soil, climate and water,
mechanisation is important especially for crops like rice. This is often stimulated by an inadequate
policy of rice self-sufficiency, even in States like Chin where rice yields are very low. Should the
23 This chapter’s recommendations draw on the work of Khin pwint oo