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Myanmar has been fortunate in thus far having one of the lowest caseloads of COVID-19 per population globally, with under 400 confirmed cases as of early August. However, as a developing economy still beset by high rates of poverty and vulnerability, Myanmar is highly susceptible to the economic and social disruptions stemming from COVID-19. These disruptions began with the closure of the Chinese border and the cessation of agricultural exports in late January, followed in February and March by further disruptions to trade, tourism, manufacturing, and remittances. However, an economic simulation analysis by Diao et al. (2020) suggests that the most severe economic impacts of COVID-19 stemmed from the temporary lockdown policies imposed in late March, which – though necessary to prevent the further spread of the virus – led to significant disruptions throughout the economy, including the agri-food sector and the rural economy. Phone survey evidence on agricultural and industrial value chains demonstrates that economic disruptions related to COVID-19 are pervasive and significant (Fang et al, 2020; Goeb, Boughton, and Maredia 2020; Goeb et al. 2020, Takeshima, Win, and Masias 2020a, 2020b). In aggregate, economic simulations predict a modest contraction in Myanmar’s gross domestic product in 2020 (compared to rapid growth forecasted in the absence of COVID-19), but a more significant reduction in household incomes at around 12 percent on average.
Key findings ▪ Ninety-two percent of urban communities and 90 percent of rural communities experienced a decline in income of at least 20 percent compared to a year before due to lower income from both non-farm employment and crop farming. ▪ Compared to data collected in 2020 survey rounds, we see a shift towards reduction in food expenditures and selling agricultural and non-agricultural assets in 2021. Fifty-four percent of communities reduced food expenditure to cope with declining income in September 2021, compared to 17 percent in September 2020. ▪ Twenty-seven percent of communities experienced closed banks and 12 percent of communities reported cash shortage at their local ATMs.
Key findings Forty-two percent of farming communities experienced lower agricultural production than normal in the past 12 months, mainly due to drought and pests. Forty-four percent of farming communities reported greater difficulties in selling agricultural products than usual. Low crop price was the most frequently reported disruption. There are pressing concerns for the upcoming monsoon season harvest. Inorganic fertilizer prices are skyrocketing–compound fertilizer prices increased 56 percent in September 2021 compared to September 2020 while urea prices increased 72 percent compared to last year. About one-third of farming communities hired fewer agricultural wage workers this year compared to last year, with 46 percent reporting that this was mainly due to financial problems. For the current monsoon season, 45 percent of farming communities expect overall agricultural production will be lower than that of last year. Recommended actions Implement measures such as input subsidies, vouchers, or agricultural grants to limit the impact of the price increases of fertilizers and other inputs on agricultural production. As farming communities risk falling into vicious cycles of income loss, financial support is urgently needed to avoid long-lasting impacts of the crises on the agricultural performance of affected communities. Social protection is urgently needed in rural areas, including food/cash for work schemes to offset lower demand for agricultural labor.
Many governments imposed stringent lockdowns during the COVID-19 pandemic as a public health measure to suppress the spread of the disease. With consumer incomes already depressed, the potential impacts of these measures on urban food prices are of particular concern. This working paper examines the changes in Myanmar’s urban food prices during lockdown using detailed food price data collected from a panel of phone surveys conducted in August and September 2020 of 431 family-owned retail shops in Myanmar’s two largest cities, Yangon and Mandalay. We find that the supply side of Myanmar’s food retail sector was largely resilient to the shocks and lockdowns throughout the first six months of the COVID-19 pandemic. Estimates from a fixed effects differencein-differences model reveal that food prices were 3 percent higher in townships under lockdown compared to those not under lockdown, a statistically significant but modest effect. Lockdowns had smaller effects on prices for highly processed food items sourced directly from companies, but larger effects on prices for raw or lightly processed commodities sourced through wholesale markets, which comprise a larger share of urban consumer’s diets. Retailer margins did not change significantly under lockdown restrictions, suggesting no evidence of price gouging. Overall, our findings of a modest impact of the lockdown on urban food prices underscore the importance of keeping the food supply chain–including wholesale markets and retail shops–functioning as completely and as safely as possible during times of crisis, as was mostly the case early in the crisis for the two cities in this study.
Between April and October 2020, the International Food Policy Research Institute (IFPRI) and Michigan State University (MSU), with support from the United States Agency of International Development (USAID) and the Livelihoods and Food Security Fund (LIFT), have undertaken analyses of secondary data combined with regular telephone surveys of actors at all stages of Myanmar’s agri-food system in order to better understand the impacts of COVID-19 on the system. These analyses show that the volume of agribusiness has slowed considerably in Myanmar since COVID-19 restrictions were put in place. There is lower demand from farmers for agricultural inputs and mechanization services and lower volumes of produce traded, especially exports to neighboring countries whose borders are closed. All actors in the agri-food system are facing liquidity constraints and experiencing increased difficulties in both borrowing and recovering loans.
It is estimated that nearly one in seven people — more than 1 billion in total — are classified as migrants in national statistics. Of these, about 763 million are estimated to be internal migrants; the remaining 281 million are international migrants (International Organization for Migration 2021). Migration is an intrinsic part of the development process, representing one of the greatest opportunities to facilitate economic and social advancement in developing countries. Understanding how different types of individuals and households perceive these opportunities and overcome related constraints, and how these change over time, is of key interest. At the same time, migration presents one of the world’s biggest challenges, requiring adjustments by both sending and hosting communities, and understanding those adjustments is a priority. The CGIAR Research Program on Policies, Institutions, and Markets (PIM) has undertaken more than 40 studies designed to explore the causes and consequences of internal and international migration. In aggregate, the studies help us understand what motivates people to migrate and what factors impinge on their ability to do so. These studies focused on the relationship of migration with rural transformation, gender, youth, climate change, and social protection and cut across the whole PIM research portfolio. This brief synthesizes findings from this research in an attempt to present a more complete picture. While there is a vast literature on migration external to PIM and CGIAR, the results of the PIM investiga­tions constitute valuable inputs into national pol­icies and programs designed to foster economic and social development while maximizing the benefits and reducing the risks of migration.
Agricultural extension can have important impacts on vulnerable populations by increasing food production, which improves both rural incomes and urban food security. Yet, crises induced by violent conflict or disease outbreaks can sever the connections between extension agents and farmers. Understanding how agricultural extension systems can safely and effectively reach farmers in times of crisis could help stabilize agri-food systems in fragile states. In the context of COVID-19, a military coup, and an emergent threat of fall armyworm in Myanmar, this paper uses a randomized controlled trial to test the effectiveness of two cellphone-based extension interventions – a direct-to-farmer and a lead farmer intervention – for fall armyworm control in maize. Despite low compliance, both interventions caused knowledge improvements. However, damage control estimates show that the lead-farmer group used pesticides most effectively. Similar cellphone-based lead-farmer programs could be an effective tool in fragile states and when faced with emergent threats to agriculture.
Myanmar had one of the lowest confirmed COVID-19 caseloads in the world in mid-2020 and was one of the few developing countries not projected to go into economic recession. However, macroeconomic projections are likely to be a poor guide to individual and household welfare in a fast-moving crisis that has involved disruption to an unusually wide range of sectors and livelihoods. To explore the impacts of COVID-19 disruptions on household poverty and coping strategies, as well as maternal food insecurity experiences, this study used a telephone survey conducted in June and July 2020 covering 2,017 mothers of nutritionally vulnerable young children in urban Yangon and rural villages of Myanmar’s Dry Zone. Stratifying results by location, livelihoods, and asset-levels, and using retrospective questions on pre-COVID-19 incomes and various COVID-19 impacts, we find that the vast majority of households have been adversely affected from loss of income and employment. Over three-quarters cite income/job losses as the main impact of COVID-19 – median incomes declined by one third and $1.90/day income-based poverty rose by around 27 percentage points between January and June 2020. Falling into poverty was most strongly associated with loss of employment (including migrant employment), but also with recent childbirth. The poor commonly coped with income losses through taking loans/credit, while better-off households drew down on savings and reduced non-food expenditures. Self-reported food insecurity experiences were much more common in the urban sample than in the rural sample, even though income-based and asset-based poverty were more prevalent in rural areas. In urban areas, around one quarter of respondents were worried about food quantities and quality, and around 10 percent stated that there were times when they had run out of food or gone hungry. Respondents who stated that their household had lost income or experienced food supply problems due to COVID-19 were more likely to report a variety of different food insecurity experiences. These results raise the concern that the welfare impacts of the COVID-19 crisis are much more serious and widespread than macroeconomic projections would suggest. Loss of employment and casual labor are major drivers of increasing poverty. Consequently, economic recovery strategies must emphasize job creation to revitalize damaged livelihoods. However, a strengthened social protection strategy should also be a critical component of economic recovery to prevent adversely affected households from falling into poverty traps and to avert the worst forms of food insecurity and malnutrition, particularly among households with pregnant women and young children. The recent second wave of COVID-19 infections in Myanmar from mid-August onwards makes the expansion of social protection even more imperative.
This book explores how climate change and disaster risks threaten human security in Asia. Climate change and disaster risks have emerged as major human security challenges in the twenty-first century, and are an imminent “threat multiplier” with the potential to harm the vital core of human life and curtail people’s freedom and ability to live with dignity. Climate change and disaster risks undermine the security of individuals, communities, nations, and the world, considering the increasing trend in the frequency and magnitude of hydro-meteorological disasters and the projections on their future adverse impacts. Despite recent advances in the literature, there is still a major gap in understanding the relationship and linkages between climate change, disaster risks, and human security, particularly as gleaned from the Asian experience. Asia is the world’s most vulnerable region in terms of the quantity and magnitude of impacts from various forms of disaster. At the same time, it has developed a number of innovative responses to address those risks, offering a wealth of experience. Exploring and capitalizing on the Asian perspective, this book provides valuable resource material for students, academics, researchers, policymakers, and development practitioners working in these areas.
The perception of Ethiopia projected in the media is often one of chronic poverty and hunger, but this bleak assessment does not accurately reflect most of the country today. Ethiopia encompasses a wide variety of agroecologies and peoples. Its agriculture sector, economy, and food security status are equally complex. In fact, since 2001 the per capita income in certain rural areas has risen by more than 50 percent, and crop yields and availability have also increased. Higher investments in roads and mobile phone technology have led to improved infrastructure and thereby greater access to markets, commodities, services, and information. In Food and Agriculture in Ethiopia: Progress and Policy Challenges, Paul Dorosh and Shahidur Rashid, along with other experts, tell the story of Ethiopia's political, economic, and agricultural transformation. The book is designed to provide empirical evidence to shed light on the complexities of agricultural and food policy in today's Ethiopia, highlight major policies and interventions of the past decade, and provide insights into building resilience to natural disasters and food crises. It examines the key issues, constraints, and opportunities that are likely to shape a food-secure future in Ethiopia, focusing on land quality, crop production, adoption of high-quality seed and fertilizer, and household income. Students, researchers, policy analysts, and decisionmakers will find this book a useful overview of Ethiopia's political, economic, and agricultural transformation as well as a resource for major food policy issues in Ethiopia. Contributors: Dawit Alemu, Guush Berhane, Jordan Chamberlin, Sarah Coll-Black, Paul Dorosh, Berhanu Gebremedhin, Sinafikeh Asrat Gemessa, Daniel O. Gilligan, John Graham, Kibrom Tafere Hirfrfot, John Hoddinott, Adam Kennedy, Neha Kumar, Mehrab Malek, Linden McBride, Dawit Kelemework Mekonnen, Asfaw Negassa, Shahidur Rashid, Emily Schmidt, David Spielman, Alemayehu Seyoum Taffesse, Seneshaw Tamiru, James Thurlow, William Wiseman.