AGRICULTURAL MECHANIZATION AND STRUCTURAL TRANSFORMATION IN MYANMAR’S AYEYARWADY DELTA

Myanmar has experienced rapid economic growth since the civilian government came into power in 2011. Structural transformation of the economy, similar to that already experienced by other countries in the region, appears to be underway, with labor moving from agriculture to more productive urban-based industrial and service sectors. As this trend continues, it is likely that the share of agriculture in GDP will shrink in relative terms, even while continuing to grow in absolute value. The immediate consequences of this shift are labor shortages and rising agricultural wages, causing farmers to seek to substitute machines for manual labor to keep agriculture productive and profitable. Given the likelihood that structural transformation is already underway, we set out to understand current levels and rates of mechanization, and its characteristics and drivers. In order to do so, a representative farm survey was conducted in May 2016 in four townships close to Yangon city where paddy and pulses are widely cultivated; two in Yangon region (Kayan, Twantay) and two in Ayeyarwady region (Maubin, Nyuangdon)

SUPPLY SIDE EVIDENCE OF MYANMAR’S GROWING AGRICULTURAL MECHANIZATION MARKET

Recent evidence suggests that the mechanization of agriculture is proceeding rapidly in areas of Myanmar close to the country’s major city, Yangon, as farmers - driven by the need to remain profitable in the face of labor shortages and rising wage rates - adopt a variety of labor saving technologies (Win and Thinzar 2016). In this brief, we present findings from the first survey in Myanmar to analyze the supply side of agricultural mechanization. We find evidence of rapid growth in the number, geographical distribution, and sales of agricultural machinery supply businesses. The range and value of machinery sold accelerated rapidly, especially post-2011 as the country opened economically. New hire-purchase financing arrangements for machinery played a key role in facilitating this growth

SUPPLY SIDE EVIDENCE OF MYANMAR’S GROWING AGRICULTURAL MECHANIZATION MARKET

Recent evidence suggests that the mechanization of agriculture is proceeding rapidly in areas of Myanmar close to the country’s major city, Yangon, as farmers - driven by the need to remain profitable in the face of labor shortages and rising wage rates - adopt a variety of labor saving technologie

RURAL LIVELIHOODS IN MON STATE, MYANMAR: EVIDENCE FROM A REPRESENTATIVE HOUSEHOLD SURVEY

The purpose of this report is to provide information and analysis to government, civil society, and donors interested in improving the well-being of the rural population of Mon State. Specifically, the report analyzes the different sources of income for rural households, as well as their socioeconomic characteristics, with a view to identifying potential pathways to improving incomes, especially for poor households, and stimulating inclusive rural growth. The overall picture that emerges is one of an economy heavily dependent on services for local employment and on international migration for income. Like a two-legged stool, such an economy is potentially unstable in the face of external shocks. Diversification of the Mon State economy, including diversification and increased productivity within the agricultural sector, will lessen the relative dependence on external migration remittances and result in more resilient growth in the future