New Delhi (mizzima) – Agricultural credit should be made available in order to prevent rural indebtedness and to improve agricultural production in Burma, said Dr. Noeleen Heyzer the Executive Secretary of the United Nations Economics and Social Commission for Asia and the Pacific (UNESCAP).
Dr. Heyzer, who is on a week-long visit to military-ruled Burma to launch ESCAP’s study on Sustainable Agriculture and Food Security, said in order to ensure food-security and sustainable agriculture, countries in the region including Burma should take immediate steps in enhancing the purchasing power of the poor by undertaking pro-poor public expenditure, cash for work, rural infrastructure programmes and by developing the foundations for social protection.
ESCAP, at the request of member states, in 2008 conducted a study on timely analysis and policy options on how to ensure food security and sustainable agriculture. The report was officially released in April 2009 but she is visiting Burma to release a localised version for the country.
“She [Dr. Heyzer] is launching the report in Naypyitaw today,” Mitchell Hsieh at the UNESCAP information office in Bangkok told Mizzima.
The Executive Secretary, who began her trip to Burma on Monday and will remain till Saturday, in a statement on Tuesday said, “Adequate and sustained agricultural credit is crucial to prevent rural indebtedness and improve agricultural production, livelihoods and wage employment in rural areas.”
“These measures would reduce the hardships currently experienced by farmers and help address social impacts from the current economic crisis including return migration and human trafficking,” she added.
ESCAP’s study is also a response to some of the key findings of the Economic and Social Survey 2008, which showed that investment in the agricultural sector was declining and that a lack of agricultural credit was driving up farmers’ indebtedness.
Dr. Heyzer said it is the first step in a development partnership with Burma, whose agricultural economy contributes 42 per cent of the country’s Gross Domestic Products (GDP) and 70 per cent of its labour force, to discuss its agricultural economy and policy.
Dr. Sean Turnell, an Associate Professor at Macquarie University in Sydney, Australia, told Mizzima earlier that Burma’s rural economy is on the verge of collapse with lack of funds in its rural credit system.
Turnell said farmers particularly in the cyclone-devastated areas of the Irrawaddy delta are facing severe shortage of funds eventually threatening shortage in food production.
According to Turnell the government’s bizarre economic policies particularly on rural agriculture and fuelled by the current global economic downturn has put farmers in a tight corner with difficulties in finding credit even from local money lenders.
The ESCAP’s study suggests that the marketing of agricultural produce may be improved by removing restrictions on the movement of food including rice. Regional cooperation is needed for the development and transfer of technologies for production, post harvest and storage of food.
Dr. Heyzer said ESCAP is in a strategic position to be in a development partnership with the Burma and the “Launching the study here in Naypyitaw is the beginning of this development partnership.”
The Executive Secretary will also discuss agricultural economic policies including for rice, agricultural credit, rural infrastructure and livelihood opportunities in Burma as possible stimulus for the economy and well being of the people.
Besides meeting the Minister of Agriculture and Irrigation, Dr. Heyzer, during her trip, will also hold talks with the Burmese Prime Minister General Thein Sein, Foreign Minister Nyan Win, the Minister of Planning and Economic Development Soe Tha, and Chairman of the Civil Service Selection and Training Board Kyaw Thu.
The UNESCAP’s executive secretary is visiting the country at the invitation of Burmese Minister of Agriculture and Irrigation Htay Oo.
