SINGAPORE – Myanmar bank branches closed and government officials boycotted jobs. Factory workers fled to their rural homes and foreign companies sent out their overseas employees. The internet has been largely cut off.
More than two months since the army seized power in a coup and launched a deadly campaign to suppress protests, the economy is collapsing, while the World Bank and others in the course of this year ‘ expect a double-digit contraction. The revolution erases the huge gains the country has made in reducing poverty and scares off foreign businesses and tourists who have contributed greatly to lifting Myanmar over the past decade.
It is already one of the poorest countries in Asia. Six million people live on less than $ 3.20 a day, a poverty line for lower-income countries like Myanmar. A fourth of the children in the country are far too small for their age due to their inadequate nutrition.
There is a reason for this: Myanmar has been ruled for half a century by military generals who have pursued disastrous policies. The picture has gradually begun to change over the past decade as a democratic opening brought a partial civilian government to power and more international investment flowed in. According to one measure, according to World Bank data, poverty decreased to 24.8% in 2017 from 42.2% in 2010..
The progress of the past decade is now being reversed. Following the coup, which overthrew an elected government, the World Bank says the number of people living on less than $ 3.20 is expected to rise by 30% by 2021. That’s 1.8 million extra poor people in one year.