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

Poverty in Myanmar 43
Mandalay
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
25 Within the poverty and equality pillar, only Mandalay's inequality stands a bit out: it is higher than
national average. But as the reference position is an extremely equal society, and some economist
even argue that some inequality is required for economic development, it should not -yet- be seen as
a reason for major concern.
Despite its very central location, Mandalay's workers do not seem to achieve a sufficient return of
their work. This might be a consequence of inadequate skills or of market imperfections, but more
likely the former. If so, Mandalay's anti-poverty strategy would certainly include not only
investments into skills development, but into the development of the right skills. This does require
the establishment of a labour market information system, along with an appropriate representation
of the private sector as major employer.
As Magway, Mandalay is the S/R that suffers by far most from agricultural losses due to calamities.
And as Magway, those calamities are almost exclusively related to drought, which costs the farmers
annually 12% of their output. Paddy yield is low, especially in non-irrigated areas. Nevertheless, the
Government appears to be driving rice self sufficiency for the whole region, although rice could be
easily purchased from more productive S/R in Myanmar, like Mon, Bago and Ayeyarwady. Driving
rice self-sufficiency at S/R level is clearly a very sub-optimal policy, which drives many farmers into
poverty instead of helping them -and the S/R as a whole- to get out of it.
Mandalay's comparative advantages are rather in pulses, some culinary crops such as chilli and
onion, fruits, vegetable, and, potentially, maize. Also potato can be grown with sufficiently high
yields, but cannot achieve the market share of Shan.
The oil seed processing industry requires structural adjustment but has potential. This adjustment
does not only include technological and skill upgrading, but also institutional organisation -none of
the actors in the edible oil value chain has trade associations-, supporting services such as
certification, and the development of new markets. China appears to be focussing on the import of
25 This chapter’s recommendations draw on the work of U San Thein