The Deepening Crisis of Multidimensional Poverty

A comprehensive new report by the United Nations Development Programme (UNDP), titled Layers of Deprivation: Multidimensional Poverty in Myanmar, paints a devastating picture of a nation in freefall. More than two in three people in Myanmar now endure multidimensional poverty or are at immediate risk of falling into it. This represents over 37 million people—amounting to 68 per cent of the population—who are experiencing overlapping crises that threaten the very fabric of their daily lives.

Since the military seized power in February 2021, Myanmar has been engulfed in civil war. This ongoing conflict, combined with macroeconomic instability, recurrent natural disasters, and the additional impact of the devastating March 2025 earthquake, has created an unprecedented humanitarian emergency.

“Myanmar may no longer dominate international headlines, but the hardships facing millions of people continue to deepen,” warned Kanni Wignaraja, UNDP Regional Director for Asia and the Pacific. Wignaraja emphasized that the current trajectory is unsustainable, describing the situation as a “no-win war” where everyone is losing and the “core muscle of the country is being systematically eroded.”

Vanishing Buffers and Systemic Deprivation

The UNDP analysis suggests that Myanmar is confronting a crisis that goes far beyond simple income shortages. The traditional buffers that once helped families absorb economic and environmental shocks—such as personal savings, stable livelihoods, access to basic services, and informal social support networks—are steadily disappearing.

According to the report, deficits in health and living standards are the primary drivers of this crisis, accounting for more than 80 per cent of multidimensional poverty. These deficits manifest as severe challenges in accessing:

  • Essential healthcare services
  • Adequate housing and shelter
  • Clean drinking water
  • Proper sanitation facilities

These challenges are particularly acute in conflict-affected areas, where infrastructure has been destroyed and access is heavily restricted.

Regional Disparities and Vulnerable Populations

The landscape of poverty across Myanmar is highly fragmented, driven by different localized factors:

  • Rakhine State: Located in western Myanmar, Rakhine remains one of the most severe multidimensional poverty hotspots. More than two-thirds of the population here are multidimensionally poor, and nearly a third live in severe poverty. The report notes that deprivation among stateless and displaced populations, including ethnic Rohingya communities who faced military repression in 2017, may be understated due to the limitations of collecting data via telephone.
  • Yangon Region: While Yangon exhibits lower overall poverty rates compared to active conflict zones, it is home to one of the largest absolute concentrations of multidimensionally poor people. This highlights the deepening vulnerabilities of urban and peri-urban households struggling with rising costs.

Climate Shocks and Macroeconomic Pressures

The humanitarian crisis is further compounded by severe environmental and external economic pressures. Roughly one in five households in Myanmar faces climate-related risks, including:

  • Floods and landslides
  • Cyclones and droughts

These environmental shocks are expected to intensify with the coming El Niño weather pattern. The vulnerability of these communities was demonstrated by the end of August, when roughly 600,000 people were affected by severe flooding.

Simultaneously, households are grappling with external economic shocks. Rising fuel prices linked to the Gulf crisis, rampant inflation, and escalating food costs have placed basic necessities out of reach for many. Families relying on casual labour are among the hardest hit, with nearly half of such households classified as multidimensionally poor.

The Youth Exodus and the Loss of Human Capital

Perhaps the most alarming long-term trend identified by the UNDP is the impact on Myanmar's younger generation. Growing up amid conflict, insecurity, and deep economic stress, young people face severely restricted options regarding education, employment, and mobility.

This lack of opportunity has triggered a massive youth exodus. At least one million young people may have left Myanmar since 2021. The UNDP characterizes this migration as one of the largest losses of human capital in the country's recent history, occurring at a time when the remaining population is rapidly ageing.

"The greatest risk facing Myanmar is not only the deepening of poverty today, but the narrowing of opportunities tomorrow," Wignaraja stated. She urged international partners not to wait for the conflict to resolve before intervening, noting that investing in livelihoods, education, healthcare, local markets, and basic services is essential to preserving the fundamental human capabilities the country will need to eventually heal and rebuild.