Investing in nature: Unlocking Opportunities for the Sustainable Management of Natural Capital by WWF-Myanmar

INVESTING IN NATURE

Unlocking Opportunities for the Sustainable Management of Natural Capital

CONTENTS

EXECUTIVE SUMMARY

ON FIELDS AND RIVERS

EXTRACTING FROM THE FUTURE

CHAPTER 1

CHAPTER 2

1.1 A country supported by its fields

1.2 Rivers of life

1.3 Fisheries

1.4 Timber and nontimber forest products

INVESTING IN NATURE TO CREATE ECONOMIC OPPORTUNITIES

CONCLUSIONS AND RECOMMENDATIONS

CHAPTER 3

2.1. Connecting the country 30 2.2 Energizing the country 32 2.3 The problem with dams 34

2.4 Industrializing the country

1.5 Livestock

2.5 Diminishing social capital

1.6 Wildlife

2.6 Disappearing safety nets 38

1.7 Mining

1.8 Impacts of exploitation 26

Authors

Gustavo Nicolas Paez, Economic Advisor, WWF-Myanmar Urvana Menon, Sustainable Infrastructure Manager, WWF-Myanmar

CHAPTER 4

Shoon So Oo, Head of Climate and Energy, WWF-Myanmar Sara Umaña, Economic Advisor

Editing support

3.1 Agricultural production

4.1 Conflict and the power of community

Andrea Jones Austin Kassia Wordley

3.2 Aquaculture and aquaponics

4.2 Achieving sustainable development

Design

3.3 Infrastructure development

3.3.1 Road planning

3.3.2 Energy development

Reuben Houfe

Cover photography © Shutterstock / Laeye © Shutterstock / TZIDO SUN © Shutterstock / Tawin Mukdharakosa © Shutterstock / Jakob Fischer

EXECUTIVE SUMMARY

SUSTAINABLE RESOURCE MANAGEMENT: CAN LOCAL COMMUNITIES LEAD THE WAY? Although Although Myanmar Myanmar has enjoyed has enjoyed extraordinary extraordinary growth growth during during the last the last decade, decade, a significant a significant shareshare of its of growth its growth has been has abeen consequence a consequence of theof the transformation transformation of capital of capital ratherrather than than the creation the creation of new ofgoods new goods and services. and services. At theAtsame the same time, time, the development the development strategy strategy followed followed by recent by recent governments governments has had hasahad damaging a damaging effecteffect on theon the country’s country’s greatest greatest source source of income, of income, its its bountiful bountiful natural natural resources. resources. Caring Caring for for and investing and investing in nature in nature in Myanmar in Myanmar is is imperative imperative to ensuring to ensuring its long-term its long-term prosperity, prosperity, as well asas well guaranteeing as guaranteeing safetysafety nets that netssupply that supply the basic the basic needsneeds of its of people. its people. Current Current strategies strategies of land of land and water and water use are usesignificantly are significantly degrading degrading natural natural capital capital and and increasing increasing the inequalities the inequalities between between cities cities and rural and rural areas.areas.

and energy and evaluates both the and energy – and–evaluates both the in which sectors impact ways ways in which these these sectors impact nature andtheir how productivity their productivity is nature and how is affected the degradation of nature. It affected by thebydegradation of nature. It aims to assess the current state of aims to assess the current state of Myanmar’s natural resources through Myanmar’s natural resources through an investment lenstoand to demonstrate an investment lens and demonstrate it is possible to design an approach that itthat is possible to design an approach to economic development that protects to economic development that protects nature allowing for the nature whilewhile allowing for the sustainable and equitable sustainable and equitable use ofuse of Myanmar’s natural resources. Myanmar’s natural resources. The The is directed to those who are reportreport is directed to those who are interested in helping the people of interested in helping the people of Myanmar a more inclusive Myanmar createcreate a more inclusive and and resilient economy. resilient economy.

Although the report will begin Although the report will begin by by examining individual sectors, examining individual sectors, opportunities will be outlined a opportunities will be outlined usingusing a landscape approach to illustrate landscape approach to illustrate the the This report This report is theissecond the second in a four-part in a four-part synergies synergies between various initiatives between various initiatives seriesseries and follows and follows Investing Investing in Nature: in Nature: and the andimportance the importance of interactions of interactions to Myanmar’s Sustainable A KeyAtoKey Myanmar’s Sustainable between stakeholders. The report between stakeholders. The report will will Development, presents Development, whichwhich presents the the also show that communities local communities – also show that local – theoretical justification for investing theoretical justification for investing in in defined defined as individuals in rural as individuals in rural and and nature. Building that framework, urbanurban nature. Building upon upon that framework, settings and community-based settings and community-based this report considers economic this report considers eight eight economic organizations (CBOs), asas well as more organizations (CBOs), as well more sectors – agriculture, fisheries, forestry, formal sectors – agriculture, fisheries, forestry, formal civil-society organizations (CSOs) civil-society organizations (CSOs) livestock, wildlife, mining, transport livestock, wildlife, mining, transport aretokey to achieving – are –key achieving these these goals.goals.

4 | WWF-Myanmar Investing in Nature

As presented As presented in theinfirst thereport, first report, nature nature has intrinsic has intrinsic value.value. Yet, due Yet,todue theto the subjective subjective nature nature of assessing of assessing such such value,value, the report the report will continue will continue to focus to focus on those on those valuesvalues that can thatbecan translated be translated into economic into economic benefits benefits for the forlocal the local

population. population. Nonetheless, Nonetheless, recognizing recognizing both the bothintrinsic the intrinsic and economic and economic value value of of nature, nature, the case thefor case the forrecovery the recovery and and protection protection of Myanmar’s of Myanmar’s natural natural resources resources becomes becomes even more even more evident evident and urgent. and urgent.

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CHAPTER 1

ON FIELDS AND RIVERS 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8

A COUNTRY SUPPORTED BY ITS FIELDS RIVERS OF LIFE FISHERIES TIMBER AND NON-TIMBER FOREST PRODUCTS LIVESTOCK WILDLIFE MINING IMPACTS OF EXPLOITATION

In 2000, 57.2 per cent of Myanmar’s GDP was derived from agriculture, forestry and livestock products. Twenty years later, the share was 22.8 per cent (World Bank 2021). During these decades, several major shifts occurred. The first decade was the final period of the rule of the military generals, a period during which the country was considered the least free economy in Asia, comparable globally to Zimbabwe, Angola or Venezuela (Gwartney, Hall and Lawson 2010). Most enterprises were either directly owned by the state

or had a working relationship with the military (Turnell 2006). However, beginning in 2011, significant reforms began to take place within the military-led government. In 2015, a civilian-led party, the National League of Democracy (NLD), won the general election. The NLD promoted a fast transition to open Myanmar’s economy, welcoming foreign direct investment (FDI). Sanctions were lifted and Myanmar also began receiving overseas development assistance (ODA).

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7 | WWF-Myanmar Investing in Nature © Shutterstock / SasinTipchai

1.1 A COUNTRY SUPPORTED BY ITS FIELDS With investments from both FDI and ODA, Myanmar quickly diversified its economy, as shown in Figure 1. The data shows a drop in agricultural exports as

a share of the economy, creating the illusion that the country was undergoing a rapid industrialization process.

However, according to the National Comprehensive Development Plan (2014), most states and regions continued to focus on agricultural

production. As Figure 2 confirms, all states and regions, except Yangon, still had at least a third of their economy dedicated to agriculture in 2017.

Figure 2: Sector of primary job, 12-month recall (in per cent)

A. AGRICULTURE

B. INDUSTRY

B. SERVICES

Figure 1: Myanmar exports across sectors

TRANSPORT 2.00%

ICT

TRAVEL AND TOURISM

11.48%

13.07%

WOMEN'S SUITS AND PANTS

PETROLEUM GASES

WOMENS OVERCOATS, NOT KNIT 3.28%

2.46%

16.18%

MEN'S OVERCOATS, NOT KNIT

SWEATERS, PULLOVERS, SWEATSHIRTS ETC., KNIT

MEN'S SUITS AND PANTS 1.79%

2.16%

2.05%

T-SHIRTS, KNIT

OTHER FOOTWEAR OF RUBBER OR PLASTICS

0.60%

TEXTILE FOOTWEAR

LEATHER FOOTWEAR 0.72%

0.69%

0.59%

MEN'S… 0.22%

SOCKS,… IRON… 0.27%

PETROLEUM OILS, REFINED

0.30%

PETROLEUM OILS, CRUDE

LEAD ORE

0.42%

0.18%

TIN ORE

BABIES'… 0.27%

MEN'S… 0.21%

1.85%

MANGANES…

0.56%

0.50%

BRASSIERES

WOMEN'S SHIRTS

1.08%

WOMEN'S SUITS, KNIT

0.53%

63-74 53-63 43-53 33-43 22-33 13-22

1.07%

Source: World Bank 2017

0.53%

WOMEN'S…

MEN'S SUITS, KNIT

0.34%

COMMODITIES NOT SPECIFIED ACCORDING TO KIND

2.65%

ACTIVEWEAR

0.47%

0.28%

REFINED COPPER AND COPPER ALLOYS

WOMEN'S OVERCOATS, KNIT

GARMENTS MADE OF TEXTILE FELTS AND NONWOVEN FABRIC

MEN'S SHIRTS

0.91%

0.29%

LEGUMES, DRIED

RICE

3.39%

2.32%

4.42%

SUGARCANE & SUCROSE

FERROALLOYS 0.65%

0.38%

PRECIOUS STONES

WOOD SAWN LENGTHWISE

0.45%

CRUSTACEANS

0.49%

0.33%

0.96%

OPTICAL FIBERS

0.44%

TRUNKS OR CASES

1.65%

OTHER NUTS

NATURAL RUBBER

1.34%

BOVINE

0.90%

COMPOUNDS OF RARE-EARTH METALS 0.48%

SYNTHETIC 0.25%

OTHER OIL SEEDS

0.24%

FROZEN FISH, EXCLUDING FILLETS

0.58%

FISH, EXCLUDING FILLETS

CORN

0.96%

0.55%

Source: Atlas of Economic Complexity 2021

8 | WWF-Myanmar Investing in Nature

Figure 3 provides a time perspective of exports and shows that although Myanmar’s exports were growing, the country remained predominantly an exporter of raw materials. Moreover, out of a total of 22.2 million enumerated people in the workforce in 2018, 11.1 million reported working in raw goods, specifically agriculture, forestry and fishing (UNFPA 2017; ILO

2019). Despite the push for added value goods, Myanmar’s economy still depended on the agriculture sector prior to the COVID-19 pandemic. Large-scale investments, which were mostly focused on the creation of infrastructure, did little to better position Myanmar in the global economy. Myanmar is still a country primarily supported by its fields.

Figure 3: Myanmar exports

MYANMAR EXPORT GROWTH AND VARIATION OVER TIME $28B $26B $24B $20B $18B

$16B $14B

Services

$12B $10B $8B

Stone

$6B

Minerals

Figure 4: Economic growth 2014-2021

REAL GDP GROWTH AND CONTRIBUTIONS TO GROWTH BY SECTOR

$4B Agriculture

$2B

Textiles

Source: Atlas of Economic Complexity 2021

With the collapse of the economy after the 1 February 2021 military coup, agriculture was the sector that suffered the least. It was also the sector that best withstood the impacts of the COVID-19 pandemic; according to the World Bank COVID-19 7th survey Myanmar’s agriculture sector saw only 19 per cent of its firms reduce employees, while retail and wholesale lost more than a quarter

of theirs. Both the pandemic and the coup led to an increase in food insecurity, allowing the sector to grow even under adverse circumstances (World Bank 2021). As seen in Figure 4, the young industrial and service sectors, which were still consolidating, were more vulnerable to disruptions. Exports of services and garments practically disappeared in the wake of the coup.

5 Percent, percentage points

20 18

20 16

20 14

20 12

20 10

20 08

20 06

20 04

19 98

19 96

19 98

$0B 19 96

Current Gross Export

$22B

0 -5 -10 -15 -20 2014 Agriculture

2015

2016 Industry

2017

2018

2019

Services

Source: World Bank 2021

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2020

2021

Real GDP growth

With other sectors in crisis, the agriculture sector was positioned to absorb the labour pool. However, this sector already encompasses the most vulnerable individuals, those whose poverty status and low education levels

make it difficult for them to pivot to other sectors with higher added value. Figure 5 illustrates the strong negative relationship between the share of waged workers in agriculture and the average wage of each region.

Figure 6: Regional paddy productivity

LOW YIELDS AND HIGH LABOUR USE KEEP MYANMAR’S LABOUR PRODUCTIVITY LOW Monsoon Dry Season 600

Productivity, kg/day

Figure 5: Scatterplot of the share of wage-earners employed in agriculture and median hourly wages by state/region

DISTRIBUTION OF WAGES R-squared=0.6690 1000

Chin

500 400 300 200 100

Ch in a

Th ai la nd

Shan

Vi et na m

Mon

In do ne si a

800

Tanintharyi

Ca m bo di a Ph ili pp in es

Kayah

In di a

Yangon

M ya nm ar

Average hourly wage (kyat)

Kachin

Kayin

Mandalay

Sagaing

600

Source: World Bank 2016

Rakhine

Nay Pyi Taw

Bago Ayeyarwady Magway

400 |

Percent of wage-earners employed in agriculture

While the agriculture sector has the virtue of feeding people and contributes to creating some economic opportunities in the current political situation, the already unsustainable use of natural resources is creating

increased pressure on the ecosystems supporting agricultural production; in the future, production will become more difficult and require more external inputs, reducing profitability.

Source: World Bank 2017

Also correlated with low wages is the fact that agricultural productivity in the country is way below international benchmarks. Figure 6 shows how

Myanmar’s paddy production is both the least productive and the most labour intensive in the region (World Bank 2016)

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MYANMAR’S PADDY PRODUCTION IS BOTH THE LEAST PRODUCTIVE AND THE MOST LABOUR INTENSIVE IN THE REGION (WORLD BANK 2016). 13 | WWF-Myanmar Investing in Nature

1.2 RIVERS OF LIFE Just as Myanmar depends on its fields, its fields depend on its rivers. Myanmar civilization evolved along the Ayeyarwady River, which flows freely over 2,164 kilometres. Its basin covers 61 per cent of the landmass and shelters 66 per cent of Myanmar’s population (WWF 2018). Its largest tributary, the Chindwin River, runs along the northwest landscapes of the country and has been fundamental for the fish and mineral industry (Misachi 2017). Parallel to the Ayeyarwady basin flows the Thanlwin (Salween) River, a 2,400-kilometre river that feeds the Dawna Tenasserim landscape, a hotspot of biodiversity that includes more than

568 bird species, more than 1,300 species of orchids, and harbours the fourth largest area of mammal species richness in the Indochina ecoregions (WWF-Myanmar 2020). The river feeds more than 13 ethnic groups, supporting more than 10 million people (Oxfam 2021). Combined, the Ayeyarwady and Chindwin basins support more than 44 million people. Figure 7 shows specifically how the Ayeyarwady basin supports the agricultural production of the country. Of paddy crops, which represent 43 per cent of Myanmar’s agricultural value, 71 per cent come from this basin (MONREC 2019).

Figure 7: Distribution of agricultural production in Myanmar.

WHERE ARE MYANMAR’S CROPS GROWN? Ayeyarwady Basin Rest of the country 2,852,870 ha

234,341 ha 5,330,936 ha

1,534 ha

343,989 ha 535,176 ha

8,517,506 ha

224,954 ha

93,535 ha

10,059 ha 11,812 ha

308,493 ha

889,859 ha

738,267 ha

11,602,493 ha

842,735 ha

17,283 ha 796,590 ha 80,024 ha

Rice paddy

Oil seeds

Cereals

Pulses

Tobacco & betel

Tea

Coﬀee

Source: WWF 2018

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Sugarcane

Fruit

Fibre

COMBINED, THE AYEYARWADY AND CHINDWIN BASINS SUPPORT MORE THAN 44 MILLION INDIVIDUALS. 15 | WWF-Myanmar Investing in Nature

Displaced and impoverished communities face two alternatives –

Figure 8: Myanmar ﬁshery production and exports

FISHERY PRODUCTION

Production volume of ﬁshery products

Although fishery exports have been Although fishery exports have been in recent Figure 8 places stablestable in recent years,years, Figure 8 places results in a larger time frame thesethese results in a larger time frame and and howexploitation the exploitation the rivers showsshows how the of theofrivers has increased without precedent has increased without precedent in in decades. recentrecent decades.

FISH EXPORT (YEAR 2013)

Destination of exports 160

Air Sea Land

140

120 000 Ton

4 3

100 80 60

40 1

Others

India

Thailand

China

2015

2010

2005

2000

1995

1990

1985

1980

0 Bangladesh

Source: NLMP 2018

1975

| | | | | | | | | | |

1970

20 1965

Whether by large corporations or by individuals, forests in the catchment areas of the rivers are being stripped of their trees, drastically affecting the water regulation cycle and increasing the effects of climate change. In 2015, the monsoon rains, exacerbated by cyclone Komen, flooded more than 527,000 hectares of crops (FAO 2015) while in 2020, droughts in the dry zone of Myanmar affected more than 20,000 hectares of sesame (Myanmar Times 2020). These extreme weather events have the potential to decimate Myanmar’s agricultural production. Currently, farmers do not have adaptions in place to mitigate these impacts (Civic Engagement Alliance 2021).

country (WWF and several, country (WWF 2018)2018) and several, including the Rohu (Labeo rohita), including the Rohu (Labeo rohita), high export potential. As native have have high export potential. As native species, production species, their their production does does not not the local ecosystems. affectaffect the local ecosystems.

1960

These forest lands were primarily held and managed by local communities, and served specific functions for the collection of goods and services. Many areas gave priority to customary practices. The new laws, however, did not acknowledge these types of tenures and allowed them to be transferred to new holders. Smallholders and community members working on these ‘virgin lands’ became trespassers. For example, in December 2019, 41 Karenni indigenous farmers in Kayah state were sued as trespassers for reclaiming lands that were confiscated by the military in 1990. Similarly in June 2020, the military destroyed 770 hectares of crops planted by the Pa’O indigenous community, seized expensive agricultural equipment and sued 30 farmers for criminal trespassing (IWIGIA 2020).

either encroach further into the forest for new land, increasing deforestation rates, or accept waged work, where they can earn an income but become dependent on their capacity to engage in the labour markets. The risk posed for these citizens has become evident in the wake of the military coup; as much of the waged labour disappeared, an estimated six million people are suffering from food insecurity (VOA News 2021; DW 2021).

million Ton

Traditionally, the Thanlwin River basin has been a source of diversified crops ranging from medicinal plants to cash crops. However, through policies developed during the last decade, the forest around the river has become a new agriculture frontier focusing on export crops such as palm oil, rubber and sugar cane (Middleton and Lamb 2019). Indeed, with the aim of rapid industrialization and opening markets, the country’s forests were seen as lands that were not used and therefore a wasted economic opportunity. Laws such as the Vacant, Fallow and Virgin Lands Management Law (Dunant 2018; Oxfam 2018; DVB 2014) invited investments by large corporations, enticing them with the low cost of land made possible by encroachment processes into native forests.

1.3 FISHERIES In Myanmar, fishing represents In Myanmar, fishing represents aboutabout a tenth of GDP and employs a tenth of GDP and employs 6 per6 per cent the population (Belton, cent of theofpopulation (Belton, Marschke and Vandergeest Marschke and Vandergeest 2019;2019; Fish provide WorldWorld BankBank 2019).2019). Fish provide aboutabout 60cent per of cent of animal protein intake. 60 per animal protein intake. the Ayeyarwady 311 fish In theInAyeyarwady basin,basin, 311 fish species recorded, species have have been been recorded, out ofout of which, a hundred are unique which, a hundred are unique to theto the

16 | WWF-Myanmar Investing in Nature

Adding to the problem, destructive techniques such as electric fishing are regularly used in many areas that are key for water life reproduction cycles (Tezzo 2020). On paper, there are laws such as the Fishing Rights of Foreign Fishing Vessels 1989 and Myanmar Marine Fisheries Law that forbid pair trawling, electric fishing, fishing using poisons, chemicals and explosives, and push nets (FAO 2006). However, regulation is minimal.

per hectare when compared to traditional paddy fields, and can employ twice the number of people. However, many of the fishponds in Myanmar are illegal and unregulated. Thus, while fish farming reduces direct impacts on the rivers, poor techniques, such as unintentional links between the fishponds and rivers, allow invasive species to enter nearby rivers (Laxmappa 2016; Jabatan Perikanan 2007). Furthermore, global trends show that many aquaculture workers are employed in precarious arrangements and are often drawn from vulnerable populations, such as women, Indigenous Peoples, children, seasonal workers, migrant workers, and rural and remote workers (FAO 2021).

1.4 TIMBER AND NON-TIMBER FOREST PRODUCTS

Forests are another directdirect sourcesource of Forests are another of income for thefor country. Due to its to its income the country. Due geographic position and topology, geographic position and topology, Myanmar enjoysenjoys a widea variety of forest Myanmar wide variety of forest ecosystems, including mixedmixed deciduous ecosystems, including deciduous forest,forest, hill evergreen forest,forest, evergreen hill evergreen evergreen forest,forest, dry forest, deciduous dipterocarp dry forest, deciduous dipterocarp forest,forest, and tidal, beach,beach, dune dune and and and tidal, swamp forestforest (Timber TradeTrade PortalPortal swamp (Timber 2016).2016). TheseThese supplysupply a large rangerange of a large of Unable to compete in the auction products of export quality. timber products of export quality. system, local fisherfolk have turned to timber to theto International Tropical According the International Tropical fish farming, or aquaculture, with mixed According Timber Organization, Myanmar’s timber Timber Organization, Myanmar’s timber results. The river-rich delta region of the industry accounted for a total of industry accounted for a value total value of country is now home to 70 per cent of US$400 million in 2015 TradeTrade US$400 million in (Timber 2015 (Timber the fishponds nationwide. Regarding 2016).2016). land use, aquaculture is highly profitable PortalPortal

18 | WWF-Myanmar Investing in Nature

Teak Teak and other high value species have have and other high value species been been declared reserved trees trees and their declared reserved and their logging requires government logging requires government authorization (FAO (FAO 2010).2010). However, authorization However, illegalillegal logging is common practice, and and logging is common practice, the current pace is so fast is possible the current pace is soitfast it is possible to visualize a monthly deforestation to visualize a monthly deforestation rate via (Heubl 2021).2021). Between ratesatellite via satellite (Heubl Between 2010 2010 and 2020, Myanmar ranked and 2020, Myanmar ranked seventh among countries rapidly losinglosing seventh among countries rapidly forested areas,areas, with an infamous forested with an infamous average of 290,000 hectares of forest average of 290,000 hectares of forest lost per 2020). lostyear per (FAO year (FAO 2020). Furthermore, illegalillegal logging has has Furthermore, logging historically been been tied totied conflict. SinceSince historically to conflict. the February 2021 2021 coup,coup, there there is the February is compelling evidence of increased compelling evidence of increased deforestation linkedlinked to quick profits deforestation to quick profits that benefit a minority (Heubl 2021).2021). that benefit a minority (Heubl

Timber is notisthe only product. Timber notforest’s the forest’s only product. Non-timber forestforest products (NTFPs) Non-timber products (NTFPs) have ahave significant shareshare in thein the a significant household economies of rural areas.areas. household economies of rural Various studies of forest communities Various studies of forest communities show show that NTFPs contribute between that NTFPs contribute between one-third to four-fifths of household one-third to four-fifths of household income (Aye and 2017;2017; Moe and income (AyeMaung and Maung Moe and Liu 2019; Feurer, Gritten and Than Liu 2019; Feurer, Gritten and Than 2018;2018; FAO 2014). TheseThese products rangerange FAO 2014). products from from bamboo, the primary source of bamboo, the primary source of value,value, to charcoal, honeyhoney and and to charcoal, medicine. Most Most NTFPs directly medicine. NTFPs directly support livelihoods, but there is a is a support livelihoods, but there shareshare dedicated for sale markets dedicated forin sale in markets that provides people in remote areasareas that provides people in remote accessaccess to additional sources of income. to additional sources of income.

Figure 9: Uses of NTFP

TYPES OF NTFPs Extract

Sell

Self consumption

100 90

Sampled households (%)

The exploitation of rivers is driven, in part, by a system of auctioning fishing rights. Although the system has been in place since the colonial period, its administration shifted from the central government to the regions during the democratization period and has led to a privatization of the rivers that mimics issues of land privatization and threatens community fisheries and traditional practices (Langeard and Tezzo 2019). As auctions are won by the highest bidders, it is usually large enterprises, rather than community members, who secure the rights; local communities then become dependent on market mechanisms to buy fishing rights as delegated by private companies (Narinjara 2013; Zaw 2016). The bidder, unconnected with local landscapes or traditional practices, is incentivized to extract as much fish as possible knowing they will not return to that area of the river in the future. Meanwhile, the government earns rapid income via taxes (Zaw 2018).

80 70 60 50 40 30 20 10 0

Charcoal

Bamboo

Medicinal plants

Wild vegetables

Source: Soe and Yeo-Chang 2019

19 | WWF-Myanmar Investing in Nature

Poles

Firewood

1.5 LIVESTOCK

MYANMAR ENJOYS A WIDE VARIETY OF FOREST ECOSYSTEMS, INCLUDING MIXED DECIDUOUS FOREST, HILL EVERGREEN FOREST, EVERGREEN FOREST, DRY FOREST, DECIDUOUS DIPTEROCARP FOREST, AND TIDAL, BEACH, DUNE AND SWAMP FOREST.

Due to income levels as well as cultural beliefs, livestock is not a core product in Myanmar. About half of the meat production of the country is chicken, which represents about 1.6 million tonnes a year, followed by pork at 29 per cent, and beef at only 13 per cent. Most livestock production coincides with paddy crop harvests due to the additional fodder available at that time. (European Union 2020). Cattle production is concentrated in the central dry zone where they are used for transport and draft animal power as well as meat (WWF 2018).

Although not a large economic sector, Figure 10 shows how the situation has been increasingly difficult for these farmers, especially with the COVID-19 pandemic. Increasing costs for feed and frequent drought that reduces pasturing options have left farmers struggling to provide food for their animals, leading to increased degradation of local ecosystems as livestock range freely over larger areas where they destroy plant species and compact soil (Kyi 2012; ADB 2013; Animal Production and Health Division 2007)

Figure 10: Challenges of livestock farmers in Myanmar

PERCENTAGE OF SURVEYED LIVESTOCK-PRODUCING HOUSEHOLDS REPORTING DIFFICULTIES WITH PRODUCTION, BY TYPE OF DIFFICULTY AND LIMITING FACTOR 6% 62% 24% 62%

Although NFTPs are of little interest to the government and remain unregulated, the environmental damage can be significant when activities such as collection of fuel wood increase to unsustainable levels. For example, during the period 2000-2012, 48-60 million cubic metres of biomass were extracted for fuel wood, an amount several times higher than that estimated for timber extraction (UNDP 2017). Since 2000, however, Myanmar’s Forest Department has had some success in formalizing the management

of community forests through community groups. These initiatives have encouraged communities to protect the production of NTFPS as means of improving their incomes and provide an example of how conservation results in economic benefits. In 2017, there were 3,840 groups managing 217,492 hectares, benefiting 99,315 households (Tint, Springate-Baginski and Gyi 2011; Tint, Springate-Baginski and Macqueen 2014; Khaine, Woo and Kang 2014).

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Insuﬃcient income Not available from usual vendor Not able to access market

21% 71% 21% 10% 10%

Access to feed

10%

Access to veterinary services

Access to veterinary inputs

Source: FAO and WFP 2021

21 | WWF-Myanmar Investing in Nature

Higher price than usual

Moreover, while the livestock sector represented only a tenth of the GDP between 2000-2010, its greenhouse gas contribution was 13 per cent. This is compared to the 18 per cent generated by agriculture, which represented 50 per cent of the GDP during the same period

(MONREC 2019; Dopelt, Radon and Davidovitch 2019). Thus, while sustainable production of livestock is possible, the current production techniques are not efficient; the sector is both contributing to the degradation of nature and suffering from it.

1.6 WILDLIFE

While Myanmar boasts significant biodiversity as part of the Indo-Burma hotspot (CEPF 2020), Figure 11 shows that little is known about the status of many species. The graph also highlights that where there is sufficient information, populations are decreasing.

SPECIES TRENDS IN MYANMAR

Plantae

To regulate the wildlife market, Notification 691/2020 authorized commercial breeding centres where 90 different protected species may be legally reproduced. Despite this, 79 per cent of the species advertised on social media are directly captured from the

Abuses in the wildlife trade contribute to various environmental concerns. Defaunation kills forests from the inside by removing key species from the ecosystems and altering ecosystem relationships and structure (Redford 1992). Moreover, 79 per cent of the species being traded present health risks and zoonosis potential (WWF 2021).

Figure 11: Status of Red List species

Animalia

wild (WWF 2021). While animal farms can be seen as a solution to the direct exploitation of forests, several conservation groups have highlighted the risk that the law creates a loophole for poachers to pass their captures as legal (PHYS ORG 2020; WWF 2020; Bangkok Post 2020).

Terrestial Vertebrates

In Myanmar, a small number of isolated communities depend on sustainable hunting and the consumption of wild animals for their source of protein and food security. However, demand for luxury wild meat, exotic animals as pets or entertainment, and wildlife parts for unsubstantiated medical use, has fuelled an upsurge in poaching and illegal trade of wildlife products (Naidoo, Bergin and Vertefeuille 2021). For example, 51 per cent of those who consume elephant products do so as a symbol of status and wealth, and 37 per cent consider it a luxury good (WWF-Myanmar 2020). Similarly, wild meat consumption is most common among a young, well-educated population (Min 2020).

MAGNOLIOPSIDA LILIOPSIDA JUNGERMANNlOPSIDA GNETOPSIDA CYCADOPSIDA POLYPODIOPSIDA PINOPSIDA MALACOSTRACA INSECTA HYDROZOA HOLOTHUROIDEA GASTROPODA CLITELLATA CHONDRICHTHYES CEPHALOPODA BIVALVIA ARACHNIDA ANTHOZOA ACTINOPTERYGII REPTILIA MAMMALIA AVES AMPHIBIA

200

Decreasing

400 Stable

600 Increasing

800 Unknown

Source: IUCN Red List 2021

22 | WWF-Myanmar Investing in Nature

23 | WWF-Myanmar Investing in Nature

1000

1200

1400

1600

1.7 MINING During the last decade, the legal mining sector represented between 5-10 per cent of Myanmar’s GDP (World Bank 2021). Just prior to the coup, it represented 5.2 per cent of state revenues and 35 per cent of total exports (EITI Myanmar 2021). Figures 12 and 13 shows how legal

mining in Myanmar is concentrated near the catchment areas of the Ayeyarwady and Thanlwin rivers and in the hill areas and dry zone of the country, all of which have been highlighted as strategic places for the conservation of healthy ecosystems.

Figure 12: Mining sites in Myanmar

MAJOR MINING SITES OF MYANMAR Powerhku (Molybdenum) Panwar / Lagwi (Lead) Lonkhin (Jade)

Tagaung (Nickel)

Panmauk (Gold)

Bawdwin (Lead)

Kyaukpazat (Gold)

Phalin (Lead )

Kyaukpahto (Gold)

Yadanatheingi (Lead)

Shangalon (Copper)

Manpan Monma (Coal)

Paluzawa (Coal)

Namma (Coal)

Kalaewa (Coal)

Hsipaw (Gypsum)

Mogok (Gems) Thabeikkyin (Gold)

MANDALAY

Singu (Gold)

Maung main (Zinc) Monghsu (Gems) Kyatwinye (Iron)

Monywa (Copper)

Sabetaung (Copper)

Phayaungtg (Gold)

Aryee (Manganese)

Paungdaw (Lead)

Figure 13: Concession areas for legal mining

MYANMAR CONCESSION AREAS MAY 2015

Bawsaing (Lead)

Lebyin (Antimony)

Pingpet (Iron)

Shweminbon (Gold) ModiTaung (Gold)

Liharmyar (Antimony) YANGON

MawKhee (Zinc)

Lonchien (Zinc) MANDALAY

Mawchi (Tin - Tungsten)

Thabyu (Antimony)

Shwegyin (Gold)

Kanbauk (Tin)

Mewaing (Gold) Hermyingyi (Tin) Heinda (Tin)

YANGON

Pakarye (Tin) Nanthilar (Tin) Theindaw (Tin) Yadanabon (Tin)

Exploration areas

Mining from the other of Mining differsdiffers from the other typestypes of natural resource extraction natural resource extraction in thatinitthat is it is completely non-renewable. In 2015, completely non-renewable. In 2015, remote analysis showed 90,041 hectares remote analysis showed 90,041 hectares ofdedicated land dedicated to mines (Connette et of land to mines (Connette et al. 2016). This approximation al. 2016). This approximation only only captures the large mines, of them captures the large mines, most most of them in Sagaing and Kachin (Papworth in Sagaing and Kachin (Papworth et al. et al. It is expected that mining 2017).2017). It is expected that mining areas areas have multiplied several have multiplied several timestimes since since the the analysis was done, particularly after the analysis was done, particularly after the coup Irrawaddy (The Irrawaddy coup (The 2021).2021). Like timber extraction, mining has been Like timber extraction, mining has been a central element in conflicts a central element in conflicts and isand is conducted illegally. to its rapid often often conducted illegally. Due toDue its rapid extraction and liquidity, extraction and liquidity, minesmines have have been as used as quick income. Several been used quick income. Several sources indicate that the number of sources indicate that the number of into neighbouring illegalillegal routesroutes into neighbouring

Large Scale Mining Areas

Source: Ohn 2015

Small Scale Mining (as points)

24 | WWF-Myanmar Investing in Nature

25 | WWF-Myanmar Investing in Nature

countries, wherewhere sellerssellers can access countries, can access lucrative markets, multiplied in 2021, lucrative markets, multiplied in 2021, indicating an increase in illegal indicating an increase in illegal extraction (Combs 2021;2021; PWYP extraction (Combs PWYP Australia 2021;2021; Naw, Naw, Fishbein and and Australia Fishbein Pilgaard 2021;2021; New York 2021).2021). Pilgaard New Times York Times Mining in Myanmar presents several Mining in Myanmar presents several environmental problems. First,First, environmental problems. chemicals such as cyanide and mercury, chemicals such as cyanide and mercury, whichwhich are used theinopen pit mines are in used the open pit mines common to Myanmar, resultresult in severe common to Myanmar, in severe damage to living organisms (UNEP damage to living organisms (UNEP 2020).2020). Second, in addition to theto the Second, in addition removal of landcover for the removal of landcover formines the mines themselves, land is cleared for for themselves, land is cleared supporting household projects, roadsroads supporting household projects, and farms, all of all which encroach on theon the and farms, of which encroach forests. The development of mining forests. The development of mining communities is organic and rarely communities is organic and rarely organized, thus elements such as waste organized, thus elements such as waste management and basic services in these management and basic services in these projects are non-existent. As these projects are non-existent. As these

emergent economies depend fully on emergent economies depend fully on the mineral extraction, the towns the mineral extraction, the towns disappear once the are depleted, disappear oncemines the mines are depleted, leaving behind environmentally leaving behind environmentally devastated areas.areas. devastated Sand Sand and gravel mining, although and gravel mining, although drivendriven by different factors, also also by different factors, concentrates near rivers. Due to theto the concentrates near rivers. Due government’s large large infrastructure government’s infrastructure investment over the last investment over thedecade, last decade, extraction has increased and isand largely extraction has increased is largely executed by illegal companies (Gruel(Gruel executed by illegal companies and Latrubesse 2021).2021). Besides the issues and Latrubesse Besides the issues outlined for open mines, sand and outlined for pit open pit mines, sand and gravelgravel mining affectaffect the composition of mining the composition of rivers,rivers, increasing soil erosion in thein the increasing soil erosion basinbasin and directly impacting farmers and directly impacting farmers (The Third Pole 2017; StockStock 2016; 2016; (The Third Pole 2017; Myanmar WaterWater PortalPortal 2018;2018; Coastal Myanmar Coastal Care 2020; Ko and 2018).2018). Care 2020; KoChau and Chau

by major stakeholders with scarce by major stakeholders with scarce benefits for thefor local In In benefits the community. local community. contrast, the benefits of NTFPs are are contrast, the benefits of NTFPs mostly for local and their mostly for communities local communities and their exploitation is concentrated at theat the exploitation is concentrated community level. level. Finally, with mining, community Finally, with mining, the exploitation is likeistimber as it isas it is the exploitation like timber

centrally drivendriven and provides only only centrally and provides minorminor benefits to local benefits to communities. local communities. Mining products are non-renewable Mining products are non-renewable and, like can becan a cause of and,timber, like timber, be a cause of conflict in thein area. FigureFigure 14 illustrates conflict the area. 14 illustrates these these differences. differences.

Figure 14: Patterns of natural resource exploitation

RATE OF IMPACT ACROSS 4 SECTORS Fishing

Economic beneﬁts to the local communities

Mining Wildlife Forestry High

Medium

Recovery speed of the resource

Exploitation promoted by the authorities

Low

1.8 IMPACTS OF EXPLOITATION The examples presented in thisinchapter The examples presented this chapter show show how nature supports civilization how nature supports civilization in a variety of ways; as a provider of in a variety of ways; as a provider of goodsgoods – food, waterwater and economic – food, and economic opportunities – and–asand a provider of opportunities as a provider of services such as regulating waterwater and and services such as regulating nutrient cycles,cycles, controlling erosion and and nutrient controlling erosion preventing desertification. In Myanmar, preventing desertification. In Myanmar, it is thanks to these services that the it is thanks to these services that the Ayeyarwady and Thanlwin basinsbasins have have Ayeyarwady and Thanlwin been able support civilization for for beento able to support civilization manymany years.years. Unfortunately, the the Unfortunately, practices outlined aboveabove are are practices outlined deteriorating the natural environment deteriorating the natural environment and impacting the wellbeing of current and impacting the wellbeing of current and future generations. and future generations.

The motivation and economic The motivation and economic mechanisms associated with resource mechanisms associated with resource exploitation change between sectors. For For exploitation change between sectors. example, in thein case fisheries, the the example, theof case of fisheries, dynamics are mostly drivendriven at a local dynamics are mostly at a local level; level; the exploitation is to cover basic basic the exploitation is to cover needsneeds and the resource can recover and the resource can recover relatively fast. In theIn case wildlife, the the relatively fast. theof case of wildlife, exploitation can becan driven to cover basic basic exploitation be driven to cover needs,needs, but it but alsoithas component of alsoa has a component of luxuryluxury goodsgoods in which the people who who in which the people benefit are not benefit arefrom not local from communities local communities and these communities only participate and these communities only participate as theas first thein supply chain.chain. thelink firstinlink the supply Forestry has a has dualaidentity: regarding Forestry dual identity: regarding timber, the exploitation is mostly drivendriven timber, the exploitation is mostly

26 | WWF-Myanmar Investing in Nature

Luxury consumption

Conﬂict sensitive resource

Source: Author

Linking this discussion to the first report of this series, the exploitation of these resources has implications regarding who benefits from the resource, or the transfer of wealth. On one extreme are fishing and NTFPs, where consumption is mostly driven by the local community and their efforts to improve their livelihoods. In the case of NTFPS, if the resources are managed properly, they are fully renewable. On

the opposite extreme is mining and timber. These resources are extracted by private organizations with little or no compensation to local communities – the potential wealth of that resource is transferred away, leaving the community further impoverished. Moreover, these resources take a long time to renew or, in the case of mining, are impossible to recover.

27 | WWF-Myanmar Investing in Nature

CHAPTER 2

EXTRACTING FROM THE FUTURE 2.1 2.2 2.3 2.4 2.5 2.6

CONNECTING THE COUNTRY ENERGIZING THE COUNTRY THE PROBLEM WITH DAMS INDUSTRIALIZING THE COUNTRY DIMINISHING SOCIAL CAPITAL DISAPPEARING SAFETY NETS

However, by understanding how the land and rivers support life and economic development in Myanmar, it is easy to see that development policies, combined with inefficient practices, are

Arguments on how a country best achieves economic development vary by authors and regions. Common to most are the ideas of authors Paul Rosenstein-Rodan and Walt Rostow, who claim that a country must move its rural population to the cities. By creating good infrastructure, they contend, rural to urban migration provides a labour force to support emerging industries (Rosentein-Rodan 1961; Rostow 1960).

Myanmar’s development path during the last decade has followed this logic; the privatization of land and the deterioration of rural conditions has created massive urbanization. Furthermore, large government investments have been almost exclusively dedicated to building ‘things’, such as infrastructure for transport and energy, to service the cities.

28 | WWF-Myanmar Investing in Nature

1. 3.

Development policies are affecting the status of the forests and rivers and their ecosystem services.

risking the ecosystem services on which Myanmar’s population relies. There are three key development issues threatening the livelihoods of much of Myanmar’s population:

Current agricultural policies do not internalize the costs they are creating for future generations and, while seemingly productive, profit margins rely on the ecological damage being created.

Many people, whose income and education levels are already low, are losing their means of production as well as their ability to participate in markets. These individuals are driven – by need – to engage in unsustainable practices that intensify the degradation of natural resources, and inversely, further trap them in poverty.

29 | WWF-Myanmar Investing in Nature

2.1. CONNECTING THE COUNTRY According to the Asian Development Bank’s (ADB) 2016 Transport Policy note for Myanmar, US$60 billion was allocated for use between 2016-2030 to expand access and repair current transport infrastructure. At that time, about 20 million people lacked basic road access and, out of the 6,110 kilometres of railroad, 60 per cent were

in poor condition (Nation 2021; Myint 2019). Figure 15 represents the National Transport Master Plan (2019), which includes 142 mega projects mostly dedicated to roads and railways. The centre of attention is the Belt and Road Initiative (BRI) that aims to connect China and India (Myanmar Times 2017)

Figure 15: Myanmar Project Bank transport plans

TRANSPORT PROJECTS (IN US $ MLLIONS) Total

Water Road Rail Air 0

2000

4000

6000

8000

10000

New

Project concept development

Pre-feasibility / Feasibility study

Contract / negotiation of contract

Implementation

Unknown

12000

Source: Myanmar Project Bank 2021

IN 2016, ABOUT 20 MILLION PEOPLE LACKED ACCESS TO BASIC ROADS AND, OF THE 6,110 KM OF RAILROADS, 60% WERE IN POOR CONDITION. 30 | WWF-Myanmar Investing in Nature

Transport infrastructure is needed in Myanmar. The ADB data shows that 30 per cent of Myanmar’s villages have functional roads only during the dry season and another 40 per cent have no road access at all (ADB 2016). These disconnected villages are not equally distributed throughout the country; Yangon and Mandalay regions have almost no connectivity problems, while in Kayin and Rakhine states, 69 per cent of the villages have either no access or limited access. The projects in the Myanmar Project Bank purport to be fulfilling the primary goals of the Myanmar Sustainable Development Plan, which are to build infrastructure that facilitates sustainable growth and economic opportunity and to promote equitable and conflict-sensitive socio-economic development throughout all states and regions. The reality is that the projects either upgrade already existing highways and main roads, or they trace new lines across major cities to speed up transit but bypass villages the roads previously served. Thus,

contrary to the commitments of projects like the BRI, current implementation does not increase equitability but continues to focus on connecting major urban centres. Moreover, the new roads cross important ecological corridors (Ascensão et al. 2018; Shier 2018). The India-Myanmar-Thailand Trilateral highway has resulted in a reported decrease of at least 36 per cent in ecological connectivity, fragmenting habitats and accelerating deforestation and defaunation (Kaszta et al. 2020). Recent evidence shows that the projects connecting Thailand with the Dawei special economic zone have pushed deforestation and illegal wildlife trade to historical records (Cowan 2021). WWF-Myanmar highlighted these risks in 2017, showing that the benefits of large-scale infrastructure projects such as the BRI could be undermined by substantial social, environmental and economic costs, such as fragmented ecosystems, endangered wildlife, and deforestation that contributes to landslides, flooding and pollution.

31 | WWF-Myanmar Investing in Nature

2.2 ENERGIZING THE COUNTRY

Figure 17: Planned energy investments

SYSTEM-WIDE CAPACITY OUTLOOK 70,000

According to a press release made by State Counsellor Daw Aung San Suu Kyi in December 2019, 50 per cent of Myanmar’s population did not have access to reliable power, as defined by access to either grid or mini-grid systems (Mizzima 2019). Figure 16

shows that 13.5 per cent of the people in Myanmar have no access to electricity and 48 per cent access electricity off the grid (Koo et al. 2019). Figure 15 also confirms that the grid services only the cities while rural areas depend on solar or battery power.

60,000 50,000 40,000 30,000 20,000

Peak demand

Oﬀ-grid access Solar lantern / lighting system 25.2%

85.3%

2050

2049

2048

2047

2046

2045

2044

2043

2042

2041

2040

2039

2038

2037

2036

2035

2034

2033

2032

2031

2030

2029

2028

2027

2026

2025

2024

ACCESS TO ELECTRICITY BY TECHNOLOGY, URBAN / RURAL

2023

2022

Figure 16: Distribution of electricity

2021

10,000

Coal

CCGT

ICE / OCGT

Hydro (>10 and <=100 MW)

Solar

3.0% 61.1%

Source: WWF; IES; MKE; Spectrum; REAM, 2021

Solar home system 14.5% 2.7%

16.9%

22.0% 11.0%

3.7%

Rechargeable battery 11.8% 1.6%

No electricity

Grid access

Oﬀ-grid access

Local mini grid connection 9.4%

3.7%

Urban | Grid (85.3%) + Oﬀ-grid (11.0%) Rural | Grid (22.0%) + Oﬀ-grid (61.1%)

Electric generator 0.1% 0%

Figure 18 illustrates energy projects currently in Myanmar’s Project Bank and shows that most are not designed to provide access to more customers, but rather to increase the reliability of the grid for current customers and to provide surplus energy for export. Only four of the current projects provide

energy directly to remote areas; only two are currently being implemented (Myint 2021). Finally, national projects related to solar energy are designed to complement production for the grid during the dry season rather than expand service to rural areas.

* Based on household’s main source of electricity

Source: Koo et al. 2019

Development of energy sources has been a priority for recent administrations. Figure 17 highlights that, based on the Nationally Determined Contributions, the government planned to increase investments in hydropower and solar power, transform outdated combined cycle gas turbines and internal

combustion engines to liquefied natural gas, and reduce investments in coal. Although many of these plans have been cancelled due to disruptions caused by the coup, it is important to note that Figure 17 also demonstrates that distribution, not production capacity, is the reason some areas are without power.

32 | WWF-Myanmar Investing in Nature

Figure 18: Myanmar Project Bank energy plans

Figure 19 illustrates how dams have directly deteriorated the conditions of vulnerable populations. The left side of the graph illustrates the connectivity status index, which shows how the rivers are becoming disconnected and highlights the issues in the delivery of ecosystem services. The right hand side shows the effects of the fragmentation in combination with the effects of the

ENERGY PROJECTS (US$ MILLIONS) Wild power Solar enegy Power generation / renewable sources Hydroelectric power plants; Power Hydro-electric power plants

dams themselves, including sediment trapping, increased urbanization and road construction around the dams, and the degree to which dams are used to regulate water flow. While regulation allows for some control in times of drought or flooding, it impacts the natural cycles of the river and the ecosystems it supports.

Gas-ﬁred power plants Energy manufacturing Electrical transmission / distribution

Figure 19: River pressures

500

1000

1500

New

Contract / Negotiation of Contract

Project Concept Development

Implementation

Pre-feasibility / Feasibility Study

Unknown

2000

2500

CONNECTIVITY STATUS INDEX Existing dams

DOMINANT PRESSURE FACTOR

Existing dams

Source: Myanmar Project Bank 2021

2.3 THE PROBLEM WITH DAMS While planned energy investments do nothing to close the rural gap, the projects have a significant impact on rural areas, specifically in the case of hydropower plants. Developers claim that hydropower is clean because it does not create greenhouse gas emissions like thermoelectric plants. This overlooks the fact that greenhouse gases are not the only environmental concern associated with the production of energy. The dams required for hydropower, which are planned and placed along the rivers in rural and remote areas, have significant ecological impacts. While the placement is logical based on the flow of the river in these areas, the

impact of the dams is absorbed by the local communities who depend on the river for their livelihoods. Besides the obvious effect of blocking or inundating areas around the dam, dams restrict the flow of the river and affect the reproductive cycles of fish, the species available for fishing and the nutrient cycles upon which the land around the river depends for its fertility (Yoshida et al. 2020; Fredén 2011; DW 2014; Aung, Fischer and Azmi 2020). Furthermore, the existing and proposed hydropower plants only provide power to the grid, which does not benefit the impacted communities.

34 | WWF-Myanmar Investing in Nature

Degree of fragmentation Degree of regulation Sediment trapping Urbanization Use Road construction

Source: WWF 2020

35 | WWF-Myanmar Investing in Nature

2.4 INDUSTRIALIZING THE COUNTRY One of the banners of the NLD’s democratic transition was Myanmar’s potential for rapid industrialization. During NLD’s administration, Myanmar enjoyed an extraordinary growth rate oscillating between 5 and 15 per cent. However, much of this growth was fuelled by policies that do not account for the full cost of production; it can be said that the growth was a product of transformation, or transfer, of capital rather than a creation of value. Instead of nurturing long-term investments, the

country increased its economic power by relying heavily on the influx of international funds and the sale of its natural resources. In this period, the low cost of land, the relatively free access to natural resources and arrangements that focused on exploitation without requiring sustainable management made rural areas attractive to investors. Adding to this direct exploitation of natural resources orchestrated by the government, vulnerable individuals also

LOW COST OF LAND, RELATIVELY FREE ACCESS TO NATURAL RESOURCES AND ARRANGEMENTS THAT FOCUSED ON EXPLOITATION WITHOUT REQUIRING SUSTAINABLE MANAGEMENT MADE 2.4 INDUSTRIALIZING THE COUNTRY RURAL AREAS ATTRACTIVE TO INVESTORS. One of the banners of the NLD’s democratic transition was Myanmar’s potential for rapid industrialization. During NLD’s administration, Myanmar enjoyed an extraordinary growth rate oscillating between 5 and 15 per cent. However, much of this growth was fuelled by policies that do not account for the full cost of production; it can be said that the growth was a product of transformation, or transfer, of capital rather than a creation of value. Instead of nurturing long-term investments, the

country increased its economic power by relying heavily on the influx of international funds and the sale of its natural resources. In this period, rural areas were made attractive to investors by the low cost of land, the relatively free access to natural resources and arrangements focused on exploitation without sustainable management. Adding to this direct exploitation of natural resources orchestrated by the government, vulnerable individuals also

exploitation of of nature nature as as saw the exploitation cope with with their their urgent urgent needs, needs, solution to cope to actions actions that that leading them to the environment environment even even deteriorated the made them them more more vulnerable vulnerable further and made hazards. to natural hazards. uncertainty regarding regarding tenure tenure of of The uncertainty also encouraged encouraged those those with with resources also convert them them to to cash cash as as control to convert possible. This This exploitation exploitation quickly as possible. rapid flow flow of of capital, capital, model created aa rapid

some of of which which reached reached the the overall overall some population and and fostered fostered the the notion notion that that population the country country was was better better off. off. However, However, as as the has been been shown shown by by the the COVID-19 COVID-19 has pandemic and and the the coup, coup, the the inflow inflow of of pandemic money was was not not successfully successfully absorbed absorbed by by money industries capable capable of of creating creating value; value; industries cashing-out nature nature was was not not making making the the cashing-out country richer richer but but impoverishing impoverishing country current and and future future citizens citizens who who will will current have fewer fewer means means of of production. production. have

2.5 DIMINISHING SOCIAL CAPITAL The money that flowed into Myanmar during the last decade was also not reflected in a comparable improvement of human capital. Typically, overseas development assistance (ODA) funds are specifically earmarked for social development programmes. However, in the case of Myanmar, approximately 50 per cent of ODA was employed in infrastructure development (OECD 2021). Moreover, due to the privatization and exploitation of lands and rivers, traditional community relationships, which are at the core of the creation of social capital, have been severed. This has been further fuelled by internal

displacement resulting from both conflict and the reduction of opportunities in rural areas. In addition to losing traditional means of production, people are losing their sense of community belonging. Given the low education levels of the rural population and the difficulties they face integrating themselves in the production of added value goods, they are often forced to engage in low-skilled jobs that pay minimal wages or to accept riskier jobs, such as illegal mining. These factors embed them further into a poverty trap where their income is mostly dedicated to consumption.

THE PRIVATIZATION AND EXPLOITATION OF LANDS AND RIVERS, TRADITIONAL COMMUNITY RELATIONSHIPS... HAVE BEEN SEVERED. © Shutterstock / Guadalupe Polito

2.6 DISAPPEARING SAFETY NETS As outlined at the beginning of the chapter, economic development theories tend to encourage rural-urban migration to create a cheap labour force that can support emerging industry. Rural-urban migration does not have to be a negative process and is inevitable with increased industrialization. If the education level of the rural population is high and there are social protection programmes to support internal migrants, helping them to integrate into the urban economy, then the transition can be desirable from a macro development perspective. However, as has been recorded in multiple cases around the world (Lucas 2016; Gentilini 2015; Tacoli, Satterthwaite and McGranahan 2015), rural populations often give up their safety nets when they move to the city. Although those living in rural areas have limited economic opportunities, they have access to multiple safety nets that guarantee their basic needs, such as the ability to grow crops or collect NTFPs. They also have a safety net through neighbours and family

members who work together in times of crisis. In contrast, once these populations are dispersed to urban areas, they lose their means of production, as well as their community ties, and become part of a waged labour force dependent on their salaries to confront economic hardships. Without social protection programmes to mitigate these conditions, the transition is a socially costly process and has significant effects on the lives of the most vulnerable people. Several countries are working on social protection for workers who migrate from rural areas (ILO and FAO 2021; Hopkins, Bastagli and Hagen-Zanker 2016); however, in the case of Myanmar, the social security sector is quite limited and given the political circumstances, there is no expectations it will improve soon (UNDP 2021). Figure 20 highlights that citizens in rural areas, which by 2019 was still 69.15 per cent of the total population, are those who need the most help.

RURAL POPULATIONS HAVE ACCESS TO SAFETY NETS THAT GUARANTEE THEIR BASIC NEEDS, SUCH AS THE ABILITY TO GROW CROPS AND COLLECT NTFPS, AS WELL AS NETWORKS OF FRIENDS AND FAMILY MEMBERS WHO WORK TOGETHER IN TIMES OF CRISIS. 38 | WWF-Myanmar Investing in Nature

These pernicious dynamics are currently causing the Myanmar people to slide down the development pyramid

Figure 20: Poverty in Myanmar

PER ADULT EQUIVALENT DAILY CONSUMPTION, 2017 (KYAT) Union Urban

3,475

Rural

POVERTY HEADCOUNT IN 2017 (%) Union

2,628

24.8

Urban

Yangon

3,374

Tanintharyi

13.2

3,055

Mandalay

13.2

Mandalay

2,994

Yangon

13.7

Bago

2,784

Nay Pyi Taw

2,703

Mon

2,663

Nay Pyi Taw

NATURE-SUPPORTED HUMAN DEVELOPMENT PYRAMID

30.2

Tanintharyi Bago

Figure 21: Progression in development

11.3

Rural

2,286

PERSONAL FLOURISHING

17.4 19.2 22.1

COMMUNITY DEVELOPMENT

Kayin

2,511

Kayin

Kayah

2,491

Shan

2,459

Sagaing

30.7

Ayeyarwady

31.7

Ayeyarwady

2,344

Magway

2,260

Kayah

Sagaing

2,251

Magway

Kachin Rakhine

1,000

2,000

ECONOMIC INDEPENDENCE

32.0 35.6

FOOD SECURITY AND HEALTHY ENVIRONMENT

36.6 41.6

Chin

1,737 0

28.6

Rakhine

1,963

Chin

24.2

Kachin

2,117

3,000

4,000

58.0 0

Poverty headcount (%)

Food

Non-food

Housing

that was introduced in Report 1 and shown again here in Figure 21.

PROTECTION AGAINST LIFE-THREATENING EVENTS

Durables

Source: World Bank, 2017

Source: Investing in Nature: A Key to Myanmar’s Sustainable Development, WWF-Myanmar 2022

40 | WWF-Myanmar Investing in Nature

41 | WWF-Myanmar Investing in Nature

CHAPTER 3

INVESTING IN NATURE TO CREATE ECONOMIC OPPORTUNITIES

The environmental and social issues related to natural resource exploitation described in the previous chapter demonstrate the damaging development trends unfolding in Myanmar. However, there are opportunities to reverse these trends. Except for mining, all the resources discussed are renewable; given the right management, Myanmar has the potential to redirect its production techniques onto a sustainable path while adding greater value to its products. This will not only increase Myanmar’s economic output, but also improve the placement of its people on the development pyramid. To this point, the report has looked at issues in Myanmar through the lens of

economic sectors. However, solutions are best found through an integrated landscape approach. The landscape approach is a conceptual framework whereby stakeholders in a landscape aim to reconcile competing social, economic and environmental objectives. In practice, the landscape approach helps provide tools to manage land sustainably in areas where human activity competes with environmental and biodiversity goals. Adopting a landscape approach results in a sustainable landscape, satisfying the needs of the many actors dependent on and with vested interest in that landscape, including communities, local organizations, private sector and government.

42 | WWF-Myanmar Investing in Nature

The graphic below illustrates a combination of three primary landscapes in Myanmar – river, mangrove and forest – and highlights potential initiatives and opportunities made possible by healthy landscapes. Figure 22: Diagram of integrated landscapes

INTEGRATED LANDSCAPES APPROACH

Source: Author

17 1

19 12

10 7

PROTECTED AREA

PROTECEATE AR

3 15 2

RIVERS 44 | WWF-Myanmar Investing in Nature

MANGROVES

FORESTS 45 | WWF-Myanmar Investing in Nature

3.1 AGRICULTURAL PRODUCTION In Myanmar, the production of staples exceeds internal demand, making it possible for the country to export elements like rice and pulses. However, as shown in Figure 23, Myanmar’s yields and productivity are extremely low compared to

neighbouring countries, falling, for instance, at approximately one-sixth of the yields of neighbouring Thailand. Myanmar’s comparative advantage in exports is possible only because of low wages and the low cost of land.

Agroecological practices provide a large body of knowledge that allows farmers to diversify their production and increase their profits at the same time. By intercropping and increasing efficiency in techniques and technologies, ecosystem services are protected and increased while farmers produce various goods and reduce their exposure to single products (Li et al. 2020; Brooker et al. 2014; Chen et al. 2018; Fukaia and Trenbath 1993). If the farmers in Myanmar adopt more

efficient agriculture practices, they could maintain production levels but use less land. Studies analysing the success of Thailand, for instance, highlight the rational use of fertilizers and pesticides, and the strategic allocation of water across the crop cycle (Laborte et al. 2012). As illustrated by Figure 24, if Myanmar improves efficiency while maintaining its advantages in land and labour costs, the productivity gap could be reduced by at least one-fifth.

Figure 23: Regional labour intensity in monsoon paddy crops

MYANMAR’S MONSOON PATTY PRODUCTION IS MOST LABOUR INTENSIVE 140 120

Figure 24: Eﬀects of technological improvements on land use

RATE OF LAND USE DROPS AS TECHNOLOGY IMPROVES

Days/ha

100 80 60

Production curve after

40 20

Agricultural Production

M ya nm ar

In do ne si a

In di a

Ca m bo di a Ph ili pp in es

Ch in a

Vi et na m

Th ai la nd

Note: Data for Myanmar are for Ayeyarwady. Data for other countries refer only to one key rice-growing area. Source: Author

Production curve before

Land required after

Land required before

Agricultural land Source: World Bank 2016

47 | WWF-Myanmar Investing in Nature

With the increases in efficiency, there might be a temptation to produce even more by using more land. A caution against this rests in the reality that in Myanmar, agriculture does not need large additional inputs to prosper; the surrounding ecosystems provide these inputs for free. As agriculture production is based on commodities, meaning that merchandise is difficult to differentiate, its profit margins depend on the reduction of the production costs. If ecosystem

services deteriorate, production costs will increase and reduce the competitiveness of the products. Thus, the effect will not be an increase of the price of the goods, but a reduction in the profit of farmers. By stopping agriculture frontier expansion and dedicating the additional space to the recovery and protection of ecosystem services, it is possible to not only halt increasing costs, but potentially reduce costs. The process is illustrated in Figure 25.

Figure 25: Relationship between ecological services and production costs

CHANGES IN THE ECOSYSTEM SERVICES

Increased ecosystem services

3.2 AQUACULTURE AND AQUAPONIC Given the lucrative economic opportunities found in aquaculture, it is remarkable that some townships in Myanmar maintain strict controls that prevent the conversion of rice lands into fishponds (FAO 2019). Historically, food security has been equated with rice security, which may explain the preference to conserve an unproductive crop that is reliable at times of crisis (Belton et al. 2015). Myanmar’s export of rice, when its yield is significantly lower than other countries in the region, however, proves that the dependency on rice is not obeying any social protection or economic criteria.

Multiple international organizations have developed studies on the feasibility of aquaculture (9,10,11) and its potential to improve livelihoods (FAO 2019). Moreover, with its capacity to regulate production and achieve international standards, this sector is ideal for export (van Beijnen 2018). Figure 26 presents the gross productive margin of different crops in Bangladesh for which Myanmar demonstrates similar yields. Even shrimp, the cheapest aquaculture element considered in the survey, has a gross margin four times higher than the most productive type of rice.

Agricultural proﬁt

Status quo Figure 26: Productivity in Bangladesh

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4000

3310

3000 2000

1698

2147

2502

Ti la pi a Pa ng as iu s

314

Ca rp

146

473 Sh rim p To m at o

460

M an go

2185

3461

1084

1000

Ch ill i O ni on

complete recovery of ecosystems. Moreover, by distancing themselves from monocrops, communities can also consider higher added value goods, ranging from handicrafts to the implementation of a tourism industry (5, 6, 7, 8).

5000

Po ta to

These synergies are not limited to agriculture products; as highlighted in the graphic at the beginning of the chapter, synergies between crops and animal farming, such as in aquaponics or orchards and bee farms (1, 2), as well as synergies between crops and forest products (3, 4), can foster a more

6011

6000

pa dd Ra y in (lo fe ca d p l) Ir a Ra dd rig in y at fe (H ed d YV + pa irr ) dd ig at y (H ed YV pa ) dd y (H YV )

Source: Author

Gross margin per hectare (USD)

Production costs

HIGH VALUE ACTIVITIES

Ra in ed

Reduced ecosystem services

Per hectare returns from paddy, horticulture and aquaculture in Bangaladesh

Source: Belton et al. 2015

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Furthermore, it is possible to go beyond the basics of aquaculture and intensify the use of space by implementing aquaponics (12), a combination of aquaculture and crop production in which the residuals of aquaculture can be used as nutrients for plants that, in turn, improve conditions for the fish. Evidence shows that for food security, particularly in access to vegetables and quick growing protein sources, aquaponics offers high yields in relatively short periods of time (Jordan et al. 2018). Moreover, due to the intense use of resources,

aquaponics is extremely efficient at saving water; in some cases, systems can recover up to 90 per cent of the water used. In contrast to other production systems, aquaponics requires dedication of time and energy, as elements such as the water quality and flow must be regularly monitored. Nevertheless, with its high production yields, aquaponic systems have been considered a key tool for community economies and for improving food security in many places of the world, specifically in those with limited water access (Obirikorang et al. 2021).

3.3 INFRASTRUCTURE DEVELOPMENT Myanmar’s economic development is hampered by inadequate linear infrastructure. However, more infrastructure does not always equate to more benefits for the overall population. For instance, the benefits related to a highway connecting two points needs to be balanced against the negative effects on the local communities and natural resources around the highway. Each stage of infrastructure development, from strategic planning and design, to construction, operation, maintenance and decommissioning, can present opportunities to factor in ecological considerations that reduce adverse impacts. In practice, factoring in ecological considerations means recognizing the importance of natural capital,

ecosystem services and biodiversity when making decisions about infrastructure. The use of climate change data for science-based evidence is key to ensuring resilient outcomes and the durability of investments (13,14). This also means considering the resilience services provided by intact ecosystems such as flood risk reduction and erosion control (15,16). Such an approach recognizes opportunities for innovation and risk reduction as they relate to resilience and adaptation in linear infrastructure development. Incorporating natural capital and resilience considerations into project design and development can lead to more sustainable, cost-effective roads while maintaining or enhancing the additional benefits nature provides to its citizens, from clean water and air to food and timber.

3.3.1 ROAD PLANNING Sustainable linear infrastructure does not have a standard definition, but in general, it promotes infrastructure that is designed and implemented according to a clear set of environmental, social and economic criteria. For example, if a planned road cuts through a protected area, then a new design is sought that will bypass the area. If this is not possible, strategies such as special wildlife crossings to mitigate

wildlife-vehicle collisions can be implemented. If neither redesign nor mitigation strategies are possible, then negative impacts need to be offset. For example, if a road cuts through a protected area, then the project must find an equivalent piece of land to put under protection. Figure 27 illustrates considerations for sustainable road development.

Figure 27: Environmental considerations in road planning

ENVIRONMENTAL IMPACT ASSESSMENT PLANNING & CONSULTATION Land Use Plan To avoid negative impact to communities, wildlife and the natural environment

Multi-disciplinary Technical Consultation To ensure the road development will meet technical, environmental and social requirements

DESIGN

CONSTRUCTION

Adjust Road Alignment (Avoidance)

Temporary Slope Stabilization

Adjusted to the topography using engineering elements to minimize earthwork

To maintain slope stability during construction period

Design Wildlife Crossings & Mitigation Measures Design overpasses or underpasses to maintain connectivity

Culverts for Wildlife Movement To allow small or medium-sized wildlife to cross the road

Signs & Warning Systems

Civil Society & Local Community Consultation

Place in sensitive areas to reduce wildlife-vehicle collisions

Aﬀected communities should be involved and fairly compansated

Fencing & Screening To guild wildlife to safe areas for crossing the road

Natural Resource Management Plan To ensure water puriﬁcation, protect forests, and prevent poaching and illegal wildlife trade

Source: WWF 2015

Offseting Habitat oﬀesting as last resort when avoidance and mitigation measures are not suﬃcient

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MAINTENANCE Long-term Slope Maintenance Wildlife Monitoring Monitor wildlife movements and behaviour and prevent wildlife poaching

Wildlife Passage Maintenance Appropriate collisionmitigation measures should be implemented

Wildlife, forests, water, soil and air are all important natural capital stocks that provide human beings with critical ecosystem services and cannot be easily replaced. Therefore, it is critical for

governments and contractors to understand their true value when planning infrastructure. Oftentimes, when a road is designed and a budget is drawn up, it only includes the cost of

labour, materials, and perhaps land acquisition. What sustainable road infrastructure design demands is that we take the cost of lost ecosystem services into account when looking at a

road budget, while also considering the benefit of a forest’s maintenance services to a road, such as controlling erosion and flooding. Only then can the true cost of a road be understood.

Figure 28: Opportunities to protect natural capital with sustainably planned linear infrastructure

DENSE FORESTS PROTECT SLOPES AND INCREASE BIODIVERSITY

BRIDGES AND FLYOVERS INCREASE WILDLIFE CONNECTIVITY

COMPLEX AGROFORESTRY PROTECTS SLOPES, INCREASES BIODIVERSITY, AND PROVIDES INCOME FOR LOCAL VILLAGERS WILDLIFE CROSSING TO PREVENT COLLISIONS

BIOENGINEERED SLOPES REDUCE EROSION AND INCREASE HABITAT VALUE

VEGETATED SWALES TO ENCOURAGE INFILTRATION AND REDUCE PEAK FLOW

PROTECTED NATURAL TRIBUTARY HEALTHY RIPARIAN EDGE PREVENTS EROSION AND CATCHES SEDIMENT

VILLAGE COMMUNITIES BENEFIT FROM HEALTHY ECOSYSTEMS AND MAINTAIN HILLSIDE VEGETATION AND SLOPE STABILITY

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FISHERIES BENEFIT FROM HEALTHY RIVERS

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upgrades. Taking advantage of the time variants in renewable energy would also allow Myanmar to produce surplus power at certain times in the day and in certain seasons. This surplus could be exported. Current laws in Myanmar make converting agriculture lands to other purposes challenging. However, farming communities can develop innovative plans to invest in solar power. For example, solar panels in elevated frames allow farmers to maintain space for agriculture on the ground (SEIA 2022). Because land tenure has been a critical issue in Myanmar over past decades, inviting landowners to become shareholders in renewable energy has been shown globally to be an effective way to incentivize investment (Energy.gov 2022). © Shutterstock / lovelyday12

MYANMAR COULD OPERATE ITS ELECTRICITY SECTOR USING 100% RENEWABLE ENERGY 3.3.2 ENERGY DEVELOPMENT Investing in the energy sector using nature-derived solutions such as solar and wind power (17,18) is also key for the sustainable development of Myanmar. https://www.wwf.org.mm/en/renewable_energy_vision/ WWF’s Renewable Energy https://www.wwf.org.mm/en/renewable_energy_vision/ Vision (2021) projected a need for US$80 billion in investment by 2050

https://www.wwf.org.mm/en/renewable_energy_vision/ https://www.wwf.org.mm/en/renewable_energy_vision/ https://www.wwf.org.mm/en/renewable_energy_vision/

in the renewable energy sector. The vision also concluded that Myanmar could operate the electricity sector with 100 per cent renewable energy while providing both decentralized solutions (19, 20, 21) that would better serve remote areas and on-grid

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Lessons can be taken from WWF-Philippines Palawan Island Power Development Plan (2015) developed by the local government working with advisory group partners. The plan laid out a clear roadmap for renewable energy generation and a distribution plan from 2014-2035 that is not only attracting investors in the energy sector but also investments in ecotourism (Bargos 2021). The success of this subnational level energy planning with community buy-in relied heavily on welcoming CSOs and CBOs to the planning table. With many rural areas of Myanmar yet to access reliable electricity, areas such as Chin and Tanintharyi with lower access to electricity would be attractive for community and province level investments.

Investing in renewable energy closer to rural communities (22) is also the quickest way to electrify rural areas. As discussed previously, larger energy infrastructure projects feed into the national grid that distributes to major cities, while the rural areas that suffer the environmental consequences of these projects remain without energy. Nature-based solutions such as solar panels or wind farms are feasible in these areas and result in fewer environmental impacts. For example, Karen State’s plan for a special economic zone near Hpa An includes powering it primarily with solar power. Plans for Dawei’s deep water sea port and economic zone in Tanintharyi present another opportunity for solar hybridization. These decentralized solutions can be scaled up according to demand. Although these plans are threatened by the country’s current political instability, small scale and decentralized projects are still possible in remote areas by focusing investments in mini and micro grids, and even micro hydro solutions. In summary, implementing sustainable linear infrastructure prevents large-scale and long-term impacts and focuses on inclusion and the needs of local communities, Indigenous Peoples, women and other marginalized groups, while promoting resilience to climate change. Opportunities exist for far greater effectiveness in capitalizing on natural infrastructure, or nature-based solutions, to deliver economically viable and climatically resilient infrastructure services.

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CHAPTER 4

CONCLUSIONS AND RECOMMENDATIONS 4.1 CONFLICT AND THE POWER OF COMMUNITY 4.2 ACHIEVING SUSTAINABLE DEVELOPMENT

BY INVESTING IN NATURE, MYANMAR COULD DOUBLE ITS AGRICULTURE GDP.

The economic development of Myanmar has strongly relied on its natural wealth. However, the urgency for rapid returns has driven the country down a path where natural capital is being converted into cash at a rate that does not allow ecological processes to keep pace; natural resources are diminishing despite nature’s innate capacity for renewal. For a transition to take place,

Myanmar must change its focus from profit maximization, which breeds inequality and impoverishes local communities, to economic growth that fosters the wellbeing of current citizens as well as opportunities for future generations. Myanmar must incorporate investments in nature into its strategy.

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It is difficult to calculate the overall profitability of investments in nature. The portfolio of investments for a country as diverse as Myanmar is virtually boundless. If these investments are interlinked with natural processes that guarantee their sustainability, the benefits derived from them can be boundless as well. While the current political landscape brings challenges, this report has reflected on various actions that will allow nature to recover, thrive and provide for sustainable development. As a benchmark, consider the rural population of Myanmar in 2020, an estimated 35.77 million people with 10.8 million living under poverty conditions (“Rural Population Myanmar | Data” 2018). While the livelihoods of these individuals depend

heavily on nature, the current exploitation models are highly inefficient. For example, Myanmar’s rice yield, their primary product, is less than half when compared with their neighbours. By improving rice production techniques alone to match the efficiency of neighbouring countries, Myanmar could double its agricultural production. Another accessible strategy is replacing paddy crops with higher yield products such as aquaculture. Applying only these two gross considerations, Myanmar would be able to double its agriculture GDP, which in 2019 was US$17.72 billion. As the most vulnerable populations are most likely to be involved in these sectors, this increase in productivity would directly impact their ability to rise out of poverty.

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4.1 CONFLICT AND THE POWER OF COMMUNITY Given the conflict context of the country, large investment projects are unfeasible. Furthermore, the exploitation of natural resources is one of the tools historically used by different stakeholders to earn power in conflicts. Even in times of peace, those in power in Myanmar tend to concentrate resources in their favour. The projects outlined in Chapter 3 are intended to stimulate ways in which rural and remote areas can be empowered. Subtly, these projects centre around local communities rather than governments or individuals. The reason for this is the

robustness of local communities in Myanmar. CSOs and CBOs have always played a pivotal role in shaping public discourse at the intersection of land and resource governance, peace and security for ethnic communities, legislative and politics reform, and sustainable development. Relevant and effective NGOs and CBOs exist in local communities, particularly in areas of weak central government control and of armed conflict. They have successfully mobilized campaigns targeting a range of natural resource governance issues and sectors. Some examples include:

· After the NLD government came to power in March 2016, 100 leaders from over 60 organizations in Kachin State released a statement reiterating ownership of natural resources, the need for governance to address armed conﬂict, and for adherence to free, prior and informed consent practices and other integrity mechanisms on good governance, including a call for a temporary moratorium on all land and natural resource related projects. (Woods 2019).

· In August 2016, Shan community groups raised their collective voices against dams planned on the Thanlwin River and notiﬁed the government that the unilateral decision to proceed with the dams without political dialogue was depriving ethnic communities of their right to decide about natural resources in their areas ("Open Letter From 26 Shan Community Groups to Daw Aung San Suu Kyi to Cancel Salween Dams" 2016).

· In September 2016, the Arakan Natural Resources and Environmental Network had gathered 300,000 signatures calling for full Rakhine State control of local property and resources (Woods 2019).

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4.2 ACHIEVING SUSTAINABLE DEVELOPMENT If policies are reoriented toward nurturing natural capital and strengthening safety nets, where the needs of all citizens are the core policy priority, Myanmar will begin to see its citizens advance up the nature-supported human development pyramid. Figures 27, 28 and 29 show

opportunities within three landscapes and begin to show how by integrating activities across sectors, with a focus on preservation of resources, Myanmar can exhibit its large development potential and significantly improve the livelihoods of its population.

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Figure 29: Forest landscape

FOREST LANDSCAPE

Source: Author

1 PROTECTED AREA

PROTECTION AGAINST LIFE-THREATENING EVENTS 1 LANDSLIDE AND FLOOD PROTECTION

Dense forest and vegetation on mountain slopes reduces landslides and prevents thousands of dollars in damages to homes, roads and crops.

ECONOMIC INDEPENDANCE

PROTECTION AGAINST LIFE-THREATENING EVENTS 2

PROTECTION AGAINST LIFE-THREATENING EVENTS 3

FOOD SECURITY AND HEALTHY ENVIRONMENT

PROTECTING WATER SOURCES

ECOLOGICAL CONNECTIVITY

NON-TIMBER FOREST PRODUCTS

Healthy ecosystem services guarantee the regular flow of water, providing security to the nearby villages.

Bridges and flyovers increase wildlife connectivity, protecting habitats and maintaining biodiversity.

Healthy forests regulate ecosystem services, supply food and medicinal products for rural communities, and provide a key research tool for the pharmaceutical industry.

COMMUNITY DEVELOPMENT

PERSONAL FLOURISHING

ARTISTIC INSPIRATION

CROP DIVERSIFICATION

POWER FROM WATER

ACCESS TO INFORMATION

With diverse production portfolios, farmers improve their income and reduce exposure to risks.

Community managed micro-hydro plants generate electricity while reducing negative environmental impacts.

A mini-grid project powered by renewable energy can support cell towers and nearby communities, increasing opportunities for education and income generating activities.

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PERSONAL FLOURISHING Healthy ecosystems inspire artists.

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Figure 30: River landscape

RIVER LANDSCAPE

Source: Author

PROTECTION AGAINST LIFE-THREATENING EVENTS 1 ROOTS THAT CLEAN THE WATER AND HOLD LAND

SUSTAINABLE FISHING

The riparian buffer reduces erosion and helps to clean runoff waters before they enter the river, providing a natural barrier between the pollutants used in agriculture and water bodies.

ECONOMIC INDEPENDANCE

FOOD SECURITY AND HEALTHY ENVIRONMENT

By protecting water basins, trees promote water life, which in turn gives local communities access to more balanced nutritional options.

COMMUNITY DEVELOPMENT

ECONOMIC INDEPENDANCE

DIVERSIFIED INCOME OPPORTUNITIES

AQUAPONIC SYSTEMS

Complex agroforestry enhances the income of local communities.

PERSONAL FLOURISHING

Through aquaponics, farmers can improve their production yields and reduce the space needed for crop production.

ADDED VALUE PRODUCTS

SOCIAL FABRIC

UNIQUE EXPERIENCES

When raw materials are used to create value added goods rather than sold directly, communities benefit from higher profits with minimal investments.

The sustainable management of ecosystem services fosters teamwork. This cooperation improves the relationship between community members and provides them with support to develop their projects.

Healthy river ecosystems hold species – such as the Irrawaddy dolphin – that can’t be found elsewhere and which inspire current and future generations.

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ECONOMIC INDEPENDANCE

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Figure 31: Mangrove landscape

MANGROVE LANDSCAPE

Source: Author

4 5

6 2

PROTECTION AGAINST LIFE-THREATENING EVENTS 1

FOOD SECURITY AND HEALTHY ENVIRONMENT

ECONOMIC INDEPENDANCE

COMMUNITY DEVELOPMENT

FLOOD PROTECTION

FISH NURSERIES

BEE KEEPING

NON-TIMBER FOREST PRODUCTS

Mangroves control the effects of tides and create a shield that protects the coastline as well as local communities.

Mangroves provide fish safe spaces to breed, making fishing a sustainable practice and providing local communities with additional sources of protein.

Due to their flora, mangroves provide ideal areas for honey farms. Moreover, the bees provide a pollination service to the farms in the area, improving their production.

Mangroves host products that can be sold in international markets at high prices. From fishing crustaceans to harvesting dyes for crafts, mangroves provide inputs that can be managed by the communities in order to diversify their income sources.

COMMUNITY DEVELOPMENT

PERSONAL FLOURISHING

COMMUNITY MANAGEMENT

RECREATION

ECOTOURISM

CARBON SEQUESTRATION

Sustaining healthy ecosystems requires cooperation among community members, strengthening the social fabric and fostering social capital.

Healthy mangroves provide multiple recreational activities that allow families to integrate and enjoy happy moments.

Mangroves attract ecotourism, which can provide millions of dollars in revenue to local communities.

The world’s mangroves sequester about 24 million metric tonnes of carbon in soil per year, helping to combat the climate crisis.

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BIBLIOGRAPHY

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OUR MISSION IS TO CONSERVE NATURE AND REDUCE THE MOST PRESSING THREATS TO THE DIVERSITY OF LIFE ON EARTH. panda.org