UN report: Myanmar coup, COVID could cause poverty

The effects of the military coup in Myanmar, together with the impact of the COVID-19 pandemic, could undo years of progress and double the number of its people living in poverty, a United Nations report said.

The report by the UN Development Program, or UNDP, said 12 million people could fall into dire economic straits as businesses remain shuttered in a standoff between the junta and a mass civil disobedience movement.

A protracted political crisis would cause a drop in access to food, basic services and social protection.

The Feb. 1 coup wrested power from the elected government. Since then, the military has severely restricted internet access and violently suppressed protests.

Many factories, offices, banks and other facilities have closed and trade has been disrupted by work stoppages and other disruptions at ports, economists say. That has worsened already bleak conditions due to the pandemic.

The UNDP said conditions could deteriorate by early 2022 to a level of poverty last seen in 2005 when half of Myanmar's population was poor.

The economy grew rapidly after a previous military regime initiated a partial transition to a civilian government, while keeping control of key ministries, industries, and seats in parliament.

Foreign investment in garment manufacturing, tourism and other industries helped create millions of jobs, providing a lifeline of support for many families living in rural areas. But that progress has ground to a halt as the coup added to troubles from the pandemic.