CNI News
29 December 2023
As most of the states and regions in the country are facing military crises, the economy of the country has been stagnant and its development could not be anticipated, businessmen and economic commentators told CNI News.
The battles are breaking out between the Tatmadaw and some EAOs/PDF joint forces in northern Shan State, Rakhine, Chin, Kayin, Kachin, Kayah States, Sagaing and Tanintharyi Regions.
Due to the battles, border trades with China, Thailand, India and Bangladesh have almost suspended and the flow of goods among the states and regions has almost stopped.
Because of the military crisis, delay in commodity shipment within the country and rising prices of commodities are arising. Moreover, the country's economy also has stopped, U Thiha Paing, founder of the Via Logistics and Supply Chain, told CNI News.
While seeing Myanmar exports at the port
" Because of battles, the firstly affected thing is logistics supply chain. In other words, it's the transportation sector. All the border routes are blocked kind of. It's the first incident. Secondly, goods cannot be transported within the country. Besides, goods from abroad cannot be imported as well. And then, the people suffer from high prices. Another thing is fuel. Due to high price of dollar, a lot of fuel cannot be bought as well. It's not easy to re-operate the logistics because it's related to trade and transportation. If a border gate was closed, another gate would be used. But now, all the border gates are closed kind of. So, the economic development cannot be anticipated." he said.
With the country's economic decline, the livelihood of the people is also becoming difficult.
Because the armed organizations are collecting money along the trade route, the prices are rising more.
Due to high prices like that, the people could not fully enjoy their hard-earned income and the public economy was also declining, U Li Paw Reh, chairman of the Lisu National Development Party (Dulei Party), told CNI News.
While the trade cars are stuck in a fight
" As soon as the State is economically in difficulty, we, the people also take no exception. We, the people, have to pay the tax the both sides. The people can't even spend half their income because truck drivers have to pay both sides along the transportation route. In fact, these money had to be paid by the people only. The rich and truck drivers don't pay. Sellers will raise the prices any more. So, the people can't fully enjoy their income. The people are economically in a difficult situation." said U Li Paw Reh.
In addition to political instability, because the economic policies were often changed, it was difficult to make the economy stable, pointed out businessmen.
" If there is no regional stability, if the governance is politically weak, the economy will be affected. Economy and politics are related. Firstly, regional stability should be carried out. And then, I think the way the country is governed should be changed because it's going to be three years in this way. A government that can do more should be given the responsibility, I think. That's the only way the economy will be able to recover." said U Thet Zaw, an economic commentator, to CNI News.
Because the Myanmar's current economic crisis arose due to military and political crises, political crisis should be solved firstly, pointed out in the report released by the World Bank.
