Spending growth has been faster in recent years. Living standards improvements are reflected in a number of indicators, including in more pronounced sales of consumer goods such as mobile phones, motorcycles and televisions. In 2015, over 42 percent of households owned motorcycles, compared to only 25 percent in 2009.

“This analysis provides us with an overview of the poverty trends over time in Myanmar,” said H.E. U Kyaw Win, Union Minister for Ministry of Planning and Finance. “We are encouraged by the decline in poverty, moving ahead it will be critical to ensure that economic reforms continue to reach everyone in Myanmar. Supporting stronger growth in Myanmar’s farms and villages will be vital to continuing the reduction in poverty.”

Two methodologies were applied for the report. The first methodology is outlined in the Integrated Household Living Conditions Survey report of 2007, and uses data from 2004/05. A second methodology was introduced by the World Bank in a 2014 report, using data from 2009/10. Similar trends are seen from both methods. The second method showed a decline in poverty to 26.1 percent in 2015, falling from 44.5 percent in 2004. The joint assessment recommends that the Government of Myanmar consider revising and rebasing its measurement of poverty using the updated living standards data. This change is recommended to allow poverty measures to reflect new goods, such as mobile phones, in people’s lives.

“The decline in poverty seen in Myanmar during the last decade is encouraging, and reflects the country’s strong track record on economic growth,” said Ellen Goldstein, Country Director for Myanmar, Laos and Cambodia. “With conditions in both the country and lower-income communities continuing to change, the World Bank is recommending an update in the way that poverty is measured to capture living conditions in 2015.”

The report is the first of a two-part series on poverty assessment that recommends a revision of poverty measurements for Myanmar. Part two of the assessment will be released in late 2017.

The poverty report is part of a series of analytical work outlined in the Country Partnership Framework (CPF). After a recent review of the CPF for Myanmar, the strategy has been extended to 2019, to continue to help strengthen the country’s programs and reforms that will promote growth in rural areas, invest in basic social services to provide better nutrition, health and education services, build infrastructure and create more and better jobs.

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The World Bank-supported program includes reforms that are critical to modernizing economic management and building an effective State. These reforms aim to address challenges such as rising inflation, public debt sustainability, efficiency of government spending, and tax collections. The DPO also provides long-term, concessional financing for critical public investments.

“The policy actions that we proposed could help sustain confidence in economic policies as well as reduce poverty and help increase access to public services for Myanmar people including electricity, education and health,” said U Kyaw Win, Union Minister for Planning and Finance. “For example, low and stable inflation could help Myanmar to attract high quality investments to create jobs and grow in an inclusive manner.”

The DPO has two pillars. The macroeconomic stability pillar includes reforms to promote prudent public debt management; an end to Central Bank financing of the fiscal deficit; fiscal discipline of State Economic Enterprises; and policy-based budgeting. The reforms under the fiscal resilience pillar aim to increase revenue mobilization; prudent gas revenue management; the financial viability of the power sector; and effective public finance management.

“Poor households are the ones most severely affected when prices of food and other basic needs increase,” said Ulrich Zachau, the World Bank Country Director for Southeast Asia. “This program is designed to benefit poor and vulnerable people through reduction in price pressures. The World Bank is pleased to support Myanmar’s efforts to strengthen their policies and institutions for stable growth over the long-term.^”

The credit will come from the International Development Association (IDA), the Bank’s fund for the low income country. The terms for the IDA credit include a maturity of 38 years, with a grace period of six years and a zero interest rate.

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