20 April 2009
Nobody is immune from the impact of the current global economic crisis, from large banks in the US to car manufacturers in Japan, and even trishaw operators in the Burmese city of Mandalay.
U Kan Saung has seen his business drop since the beginning of the year and, with a toddler at home and another child in primary school, he’s struggling to make ends meet.
"I’ve been a trishaw driver by the central market for the last 15 years," he says, "earning anything between $2 and $4 per day. It’s enough to survive, but for anything more than that, I have to borrow." He notes that, with high-income jobs scarce, more and more people are turning to trishaw-driving for a living, making the competition for customers around the market fiercer than usual.
Another trishaw driver, Maung Win Han, is well aware of the effects of the increased competition. He attributes his recent loss in business to the growing numbers of motorcycle taxis on the road. Now that the taxis have started to charge the same price as the trishaws, Maung Win Han is bringing less money home to his wife and young child.
Consumers cut back
Market sellers are also starting to feel the pinch. Daw Mya Chit has sold cold drinks near the central market in Mandalay for more than ten years, earning between $3 and $12 a day. In the hot season, business is good, but when the rainy season comes around, her income suffers.
"Since the middle of 2008, there have been fewer and fewer customers coming to the market," she says. "Maybe people are shopping at local markets and don’t need to come into town so much. Whatever it is, I’m struggling to feed my three young children – I’m just hoping the next few months will be hot!"
Store holders in the city of Yangon have also noticed changes in consumption patterns. "When buying cooking oil or detergent, people are buying smaller quantities, just enough for what they need," says one shopkeeper. Others mention the rise in cases of shoplifting in recent months.
The downturn is also starting to hit the informal economy. Until last year, Htet Htet worked in a garment factory, but when she lost her job, she turned to working in a karaoke bar. Htet Htet confesses that she’s not a good singer, but over time she has managed to improve to get a salary of $8 per month. However, it’s the tips which make the difference. "I can get over $120 per month in tips," she says. But she has already heard of other karaoke bars shutting and, with customer numbers and tips falling in recent months, she fears that hers too will soon follow.
Securing incomes
As the crisis is felt by more of Burma's poor, DFID is working to support those people who are most at risk. For example, DFID is currently helping to establish a livelihoods and food security trust fund with other donors. The objective is to create jobs and boost household incomes.
And to improve rural livelihoods, DFID Burma has been supporting the non-governmental organisation International Development Enterprises (IDE). By distributing technologically appropriate pumps and other tools to smallholder farmers, IDE is helping to increase their crop yields.
Over the next two years, DFID will commit up to £6 million to projects to increase the incomes of poor households. This assistance, together with DFID's other work to eradicate poverty and encourage growth in Burma, should strengthen the country's ability to cope with the challenging times ahead.
Facts and stats
- Burma's trade and output are already being affected by falling demand in neighbouring China and Thailand - countries on which Burma is heavily dependent for exports.
- DFID will increase its aid to Burma by £10 million in each of the next two UK financial years. This is in addition to previously announced increases. DFID planning figures are now £25 million for 2009/10 and £28 million for 2010/11.
- While significant assistance is still required in the areas of the Irrawaddy Delta affected by the 2008 cyclone, desperate poverty exists throughout Burma. DFID therefore intends to spend about 60% of its aid increase on cyclone-related assistance and about 40% on its regular programme of humanitarian aid across the whole country.