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Living Ghosts

The spiraling repression of the Karenni population by the Burmese military junta

Chapter 3: Livelihoods

Chapter Overview

The Karenni population relies extensively on agriculture for their livelihoods which is constantly under threat. While environmental factors such as drought affect crop yields, the continuing oppressive policies and devastating strategies, for example crop procurement, implemented by the Burmese junta directly undermine the Karenni villagers’ ability and capacity to sustain their livelihoods. Civil servants and day labourers are affected as a result of inadequate incomes and corruption. The combination of economic and social hardships are further exacerbated by unstable commodity prices that increase dramatically without warning.

In this chapter:

3.1 Types of Livelihoods

3.1.1 Agricultural Sector

Karenni woman in the fields
The vast majority of people in Karenni State rely on agriculture for their survival. In 2006 Burma’s agricultural industry made up 56.4 per cent of the national Gross Domestic Product (GDP) and employed 70 per cent of the nation’s workforce.25 Senior General Than Shwe acknowledged the sector’s importance saying that Burma’s agricultural industry was “the nation’s main economic pillar”.26 Despite this, farmers are struggling to meet their basic needs and 75 per cent of the country lives below the poverty line27 – a figure that has not improved in the last five years.

Most villagers in Karenni State live a subsistence existence – producing barely enough food to feed their families and bartering or selling any excess produce at local markets. Their livelihoods are constantly undermined by the policies and actions of the SPDC and to a lesser extent ceasefire groups and the KNPP.

3.1.2 Employment Sector

A Karenni woman performing traditional weaving
Despite working for the state, civil servants face hardships in meeting their basic needs. Salaries are heavily taxed (some ordinary taxes, others arbitrary) and any salary increases over the past six years have been nullified by skyrocketing commodity prices. To counter low salaries and high commodity prices many civil servants have additional businesses to earn extra money for their families’ income, while others, especially health workers and teachers, resort to extortion by charging exorbitant fees for their services (see Chapter 4 and 5).

Day labourers also face severe economic difficulties. In 2003 labourers earned approximately 600 Kyat per week. In one month a labourer would earn less than 3,000 Kyat. By comparison a tin (15 kilograms) of poor quality rice cost 3,000 Kyat. Whilst labourers’ incomes have increased slightly over the past four years, it has not matched the increase in commodity prices. As villagers have faced these deficits year after year, they simply do not have the financial resources to cope.

3.2 Threats to Livelihoods

3.2.1 Environmental Threats

For the last ten years there has been a drought in Karenni State - rains are late, and the rainfall is often too heavy to seep into the soil. Consequently, while Karenni State may receive high rainfalls, the water merely runs off the dried out ground taking with it nutrient rich top soil.

As a result crop yields have suffered. For example, in 2003 the rains arrived during harvesting, rather than after planting. The result was stunted growth of the crop, causing some villagers to produce only 40 per cent of their expected crop. In 2002 in Dxxx Px, Dxx Tx Mx, Mx Kxxx Sxx and Dxxx Pxx village tracts the situation was even worse, as farmers only produced 25 per cent of their expected crops. Some villagers from these four village tracts had to plant a second crop because the yields from their first crops were insufficient; others who did not have the financial resources to plant a second crop had to live of their meager first harvest.

Some townships and village tracts have better irrigation systems however the entire state faces water shortages. Despite this, areas where there is irrigation there are higher yields. In Hxx Pxx Kx Lx and Hxx Pxx Hxxx village tracts, where there are better irrigation and water sources, the production rate in both areas was 50 per cent of the expected crop. In comparison, Dxxx Px, Dxxx Tx Mx Gxx and Kxx Lxx village tracts, where there is no irrigation, had a crop yield that was only 25 per cent. Irrigation projects are expensive to establish and farmers’ simply do not have the capital to finance these systems even though their crops would improve significantly

Despite the drought, Karenni State is also prone to flooding. Flood water damages crops, and washes away nutrient-rich soil. In September 2006 the Pon River in Shadaw Township broke its banks, damaging around 500 acres of crops. Sxx Lxx village alone had 150 acres of sesame and betel nut crops damaged.28 Farmers receive no assistance or compensation for the loss of crops from the junta.

3.1.2 SPDC Policies

On top of the environmental hardships Karenni communities face, SPDC policies have gone a long way to make the livelihoods of Karenni villagers worse, if not impossible to sustain. The result is that many villagers have no other choice but to flee their homes in search of more secure surroundings and food sources.

3.1.2.1 Crop Procurement

In 2002 the SPDC forced villagers to sell six large tins (1 tin weighs 15 kilograms) per acre of paddy they produced to the military. The SPDC paid only 350 Kyat per tin, while market price was between 1,000 and 2,000 Kyat per tin. The soldiers threatened to confiscate the villagers land if they did not comply,” – B--- R--
For the last 40 years, villagers in Karenni State and the rest of Burma who produced rice were forced to sell a quota of rice at a reduced price to the military or civil servants, on occasion at one-sixth of the market price.29 The Myanmar Agricultural Produce Trade, a state agency, was responsible for the implementation of this paddy procurement policy. The amount that villagers had to sell differed depending on the size of their farm – the larger the farm, the larger the quota.

After 40 years of implementing this policy, the SPDC announced in April 2003 that in 2004 the policy would be removed. At the end of 2003 the SPDC raised the salaries of civil servants by 5,000 Kyat per month to counter the upcoming rise in rice prices.30 The rescinding of the policy also allowed for rice to be exported privately, enabling villagers and citizens to sell their product to the highest bidder and turn over a profit.31 However, the SPDC still controls the exporting and pricing of rice and has prohibited the export of rice on a number of occasions.32 Farmers are also still required to sell quotas to the armed forces at below market prices.

“We work hard and produce rice, but we do not get to keep our rice. If we could keep it, it would be enough for us. But we have to sell it and we do not get fair price. Now we do not have enough,” P--- R---- said.

3.1.2.2 Dry Season Crop

“The Burmese army orders villagers to grow rice paddy (a second crop) during the dry season”, - K-- R---- said.

Traditionally farmers produced one crop per year. Most villagers are swidden farmers who have many fields and rotate between these fields. This method allows nutrients in the soil to be replenished before the next crop is sown, resulting in higher yields.

The SPDC however, in a move to generate more income as a result of taxation and crop procurement, has been forcing farmers to produce two crops per year. Growing a second crop does not give the soil adequate time to recover and restore much needed nutrients. This second crop, grown during the dry season, puts additional demands on already limited water resources.

Both of these factors contribute to a lower crop yield for both the first and second crops. In some cases despite growing two crops a year, farmers are worse off than when they produced only one. As farmers continue to grow more than one crop per year, yields continue to decrease and will continue to do so until they will not even be able to scratch out a subsistence existence. Farmers will no longer have a primary source of food or income and will be forced to move.

“The dry season crop damages the land. There is not enough water and we have to plant soon after ploughing. The paddy does not grow strong,” W--- R---- said.

Farmers can purchase fertilizers and other chemicals to counter the lack of nutrients in the soil; however, these are costly and not readily available in all areas (please see Chapter 3.3). Additional equipment and labour is needed to tend to the dry season crops, which is another expense. As most farmers in Karenni State are making a subsistence living, they simply do not have the money to improve their yields.

“In three months the price of a tin (15 kilograms) of rice increased by 150 per cent,” – S--- R-- said.
“The labour costs you invest into the dry season crop does is not covered by what you harvest,” – P-- R--- said.

Villagers, in fear of the SPDC, have no other option than to grow the second crop or face having their land confiscated if they do not comply with the SPDC’s demands.

3.1.2.3 Human Rights Abuses

People’s livelihoods are constantly undermined by the systematic violation of human rights by the Burmese army. As most villagers in Karenni State rely on agriculture for their livelihoods, the destruction of villages (and surrounding fields) and forced relocation directly decreases their families’ food supply. Land confiscation means that villagers lose their source of livelihoods, but also their harvest making them vulnerable to food shortages. This is further exacerbated when villagers are forced to work on their land by the Burmese troops after the soldiers have stolen it. Additional forced labour and extortion demands are also common (more detailed information is available in Chapter 2).

3.3 Local Economy

A Karenni child with a water pot
Commodity prices in Karenni State are unstable and often there is no coloration between the price of goods and people’s incomes. Additionally, commodity prices are susceptible to dramatically increasing with little warning. A tin (15 kilograms) of good quality rice was priced at 4,000 Kyat and a tin of low quality rice was 3,000 Kyat in 2003. A tin of groundnut was between 1,200 and 1,500 Kyat, a viss (1.63 kilogram) of maize was 120 Kyat, a viss of green peas 350 Kyat and a tin of sesame was 6,000 Kyat. In contrast a public servant received a monthly salary of 4,000 and 5,000 Kyat and a seasonal labourer only 600 Kyat per week.

In Karenni State the SPDC restricts what commodities can be sold in villages. Local businesses (shopkeepers) have to bribe local Military Intelligence to bring restricted commodities into the village, including batteries, boots (similar to military boots) and alcohol. Fireworks, gunpowder and firecrackers are prohibited throughout the state. Unless they have bribed the local SPDC representatives, shopkeepers found stocking banned supplies will be interrogated and possibly tortured or executed.

“In the second week of June 2003, a villager named P--- from Dxxx village bought a pair of military boots, a belt and a pack of batteries in the market in Pxxx. On the way home, KNPLF troops led by T--- S-- and P--- R--- captured P---. They killed him because he was in possession of prohibited materials. Additionally, the women who were traveling with P--- were searched. The KNPLF checked all the women by stripping them naked, searching them and their belongings. They were also interrogated,” P--- W--- said.

Footnotes

25 “Burma Human Rights Yearbook 2006”, Human Rights Documentation Unit, 2007
26 “Economic Development must be building up the Nation”, New Light of Myanmar, March 20th, 2004
27 Economist Country profile 2004, “Failing the People of Burma? A call for a review of DFID policy on Burma”, The Burma Campaign UK, December 2006
28 “Flooding Damages Many Lands and Plantation Sites in Karenni State”, Kantarawaddy Times, October 7th, 2006
29 “Burma Human Rights Yearbook 2004”, Human Rights Documentation Unit, 2004
30 “Salary Hike for Burmese Civil Servants”, Democratic Voice of Burma, December 30th, 2003
31 “Burma’s rice policy chaos sows economic seeds of doubt”, The Financial Times, February 14, 2004
32 “Burma Human Rights Yearbook 2004”, Human Rights Documentation Unit, 2004

To read other sections of the report please use the links below:

Executive Summary
Introduction
Oppression
Health
Education
Drugs
Internal Displacement
Threats to Regional and Internationl Stability
Recommendations
Appendices


To email BI about our report, Living Ghosts, or the situation in Karenni State please click this link.