Burma is heavily endowed with resources both renewable and non-renewable. Particularly, the country has the forest resource that has been over the years a major player in the economic growth of the country. Burma has different types of forests such as tropical rain forests and deciduous among many others. The forest resource is a source of employment for thousands, a source of livelihood and a major foreign exchange earner. For the rural dwellers in Burma, the forest resource is a source of food, fuel, shelter and also livelihood as they engage in the trade of forest products. The demand for timber and other forest products by the global market has also promoted the logging and timber industries and as a result providing employment opportunities for thousands of Burmese citizens. Timber is also major export for the country, especially the teak which is highly valuable in the global market (Sovacool,6). The demand for the teak has greatly promoted the logging industry as merchants aim to benefit from the lucrative trade. Forests and forests products also promote key sectors of the Burmese economy such as agriculture, tourism and health. It is evidently clear that forest products and timber play an important role in the economic growth of the country (Mittleman, 4). However, the high demand for timber products has led to illegal logging and deforestation that has had a negative impact to both the environment and the economy. Illegal logging has led to many people losing their source of livelihoods and thus contributing to the poverty problem. Additionally, illegal logging has also resulted in environmental changes leading to climate change and its adverse effects.
The economy of Myanmar is mainly agrarian and consists of proper agriculture, forestry, livestock and fisheries. Agriculture contributes more than 50% of the country’s gross domestic product (GDP) and approximately 30% of the country’s total exports (Sovacool, 9). The forestry sector contributes less than 1% to the national GDP but is responsible for 10% of the total exports (Sovacool, 9). The forest sector is very vital to the agricultural sector and deforestation as a result of logging results in adverse effects to the sector. As it is with the other developing economies, Burmese external trade mainly relies on the exportation of primary products from natural resources which includes forest products. Over the years, earning from the forest products exportation has been on the rise and this is mainly attributed to the lucrative teak prices in the global market. Apart from agriculture, forests also support the service sector (tourism) through ecotourism. Burma has a high potential for the promotion of ecotourism which includes different species of flora and fauna and dense forests among many others. The Ministry of Forestry lists more than fifteen ecotourism sites in the country with many other places having the potential to be tourist sites. Even though the number of tourist arrivals in the country is relatively low, there is a massive potential in the ecotourism industry and nature tourism.
The forests offer an array of goods and services especially to the poor. The poor rely on forests for their basic needs; food, shelter and clothing. In the deep rural and remote areas of Burma, a considerable amount of people (mostly indigenous tribes) utilize forests for shelter. A large percentage of people in Myanmar utilize fuel wood for their energy needs and hence the importance of forests to the country. Myanmar has an inadequate supply of electricity and hence the continued use of firewood and charcoal to satisfy energy needs by a majority of people. Forests are also used by many people for income generation. The charcoal production industry is huge in the country as a huge number of people rely on the practice to meets their needs. People also extract a number of forest products such as wild fruits, medicines, latex, essential oils, glue and wax among many others which they trade for money. Employment creation is another important contribution of the forestry sector. Works related to forests which include logging (legal or illegal) and fuel wood collection among many others greatly reduce the underemployment and unemployment levels in the country and hence contributing greatly to economic growth. In the urban areas, activities such as saw milling, wood processing and making of furniture provide employment opportunities for thousands of the Burmese.
The highly lucrative trade in forest resources has resulted in illegal logging which negatively affects the environment and the economy (Mon et al., 2012). Illegal logging leads to deforestation which in turn leads to soil erosion, sedimentation of lakes and rivers and, drying up of rivers and lakes. Such effects affect the primary sectors of the economy especially agriculture that is mainly reliant on fertile soils and conducive weather. With the destruction of the forest environmental values, all people in Burma lose a great deal. Farmers together with fishermen may observe their costs rising since land are degraded through erosions and rivers and lakes experiencing sedimentation. Food prices will rise with inflation levels reaching alarming levels. Illegal logging contributes to climate change whose adverse effects cause strains to the economy and result in huge financial losses. It is estimated that developing countries such as Burma lose up to $15 billion per year as a result of illegal logging. These losses represent amount of money that would have rather been invested in other sectors of the economy such as health, education and infrastructural development. Illegal logging is also responsible for driving the price of timber and wood down due to the fact that the illegal loggers do not pay taxes. Consequently, the economy may lose some of the revenues it used to earn from legal logging activities and trade. Additionally, illegal logging causes political instability which results in conflicts that further harm the economy.
Mining is one industry that the Burmese government can invest in as an alternative to the forestry industry that is declining at a very fast rate due to illegal logging and deforestation. Historically, Burma was a major producer and exporter of minerals that include lead, jade, zinc, silver and crude petroleum. Additionally, the country produced a small amount of metallic weapons which include copper, gold and tungsten among many others. It has been noted that only 57% of the country has been mapped and this only means that the country has a wider chance of discovering new minerals which may play an important role in economic growth as they will support the export trade and also create thousands of job opportunities for the locals. The exploration of the mining sector would also build confidence of investors, both local and international; who would wish invest in the sector. Currently, it is estimated that the mining industry employs about 85, 000 people which translates to about 3.5% of Myanmar’s labor force (Ministry of National Planning and Economic Development). The total output of the mining industry in Burma is valued at $ 9.5 billion. The government is majorly responsible for the extraction of these minerals as the state firms are the ones that own a majority of the companies. The private enterprises and cooperatives have a smaller representation in the mining sector and this demands an expansion of the sector to attract more investors and also give a chance to the local companies to play a part in the industry. Even though the mining industry has been on a decline since the 1960’s, it is evidently clear that further investment in the sector will give the country a means by which to earn more foreign exchange and also reduce the unemployment and underemployment rates.
The mining industry in Burma has been on a decline mainly because no new mines have been developed ever since while the old ones have been abandoned or no efforts have been made towards renovating them. However, even with the neglecting of the industry, much progress has been made towards the production of precious stones, tungsten, tin and gold. For many years, the Burmese economy has only focused on minerals such as jade, tin and tungsten. Jade is the most common and most important mineral in Myanmar in terms of value and has for a very long time supported the Myanmar economy. Through mapping, the country can unearth some of the hidden mineral hotspots. Even with the massive potential of the mining industry, limited data is available on the production and the industry at large. Without this information, it becomes very difficult for local and international investors to put their money into the industry. The government should spearhead a campaign to clean the image of the mining industry through restructuring. The country will have to adjust its legislation and come up with one on mining. Such legislation is expected to prepare the way for international investors and partners to enter into the industry and upgrade the outdated practices that the country has been using for a while. For a very long time, due to sanctions, China has been the main importer of minerals from Myanmar but with political stability and reforms carried out in government, the mineral market is expected to spreads to the United States and Europe. By opening up these markets, Myanmar will have a market for its mineral products which in turn will boost economic growth. Investors have always relied on their own research before investing in the mining industry but with the government dedicating resources to the industry, the investors will have an easy access to information and also know the resources they need. By relying on their own research, the investors were taking a huge risk but a government’s commitment to the industry will bring about the clarity that is needed. The mining industry has the potential to employ as many people as the forestry industry employs given that Myanmar is endowed with a huge number of mineral resources. From excavations to polishing up the minerals for export, thousands of jobs are created which will partly solve the unemployment problem that is grappling the Burmese economy. The undiscovered mineral mines promise huge economic benefits for the country as they can create jobs and also ensure a steady supply of the country’s economic exports. As foreign companies have the best technologies in mining, their involvement in the industry will mean that very little will be spent as operating costs and the maximum benefits reaped. It is evident that the mining industry promises a prosperous Burma as it opens opportunities that have been lying for a very long time. It is time the Burmese government invested in mining to revive the economy and put an ease to the forest industry that is experiencing problems in terms of illegal logging and deforestation.
It is clear that forests are an important resource to the economy of Burma, Forests support lives of people through the provision of basic needs and also they provide forest products that are used by many citizens to earn income. Timber, especially teak, has resulted to illegal logging that has greatly threatened the economic growth and environmental conservation. The Burmese government should invest in other alternative industries so as to ensure that the remaining forests are not lost through logging and that the economy still thrives without being heavily reliant on forest products. The mining industry is one industry that can create many jobs and lead to a growth in the GDP. Although it is a silent sector, it offers a great opportunity that would lead huge economic benefits not only to the economy but also the people of Buram.
Works Cited
Mittleman, A., 2001. Secondary forests in the lower Mekong region: An overview of their extent, roles and importance. Journal of Tropical Forest Science. Vol 13, 67-690.
Mon, S. M et al., 2012. Factors affecting deforestation and forest degradation in selectively logged production forest: A case study in Myanmar. Vol 267, 190-198. Elsevier.
Sovacool, B., 2012. Environmental conservation problems and possible solutions in Myanmar. Contemporary Southeast Asia: A Journal of International and Strategic Affairs Volume 34.
