It
was important to understand the forces driving economic
activity in the pipeline region, first in order to avoid
disrupting this activity, and above
all to nurture it. Consequently, the initial task assigned of the Yadana
project socio-economic teams was to analyze, with the support
of a specialized
consultant, Beicip-Franlab, local production and trading channels. These
were based on three core activities - fishing in the coastal
villages, rice
cultivation, and multi-crop subsistence farming including the production
of vegetables, animal husbandry (pigs and chickens) and
seasonal crops such as oil
palms, cashew nuts and rubber trees. Although agricultural output in
the region exceeded demand, selling the surplus was difficult
because of the condition of
the infrastructure and weak marketing channels. The regulation that requires
farmers to sell part of their rice production to a state-owned organization
at low prices affects their income and ability to save.
Equipped only with oxcarts,
farmers used traditional slash-and-burn techniques. They were not starving,
but did not live well and had no surplus nor any financing
system enabling them to
invest in order to break this cycle. In addition, a tin mine near Kanbauk
had ceased operations.
The purpose of the program designed with the villagers was to gradually
improve agricultural practices, rather than to revolutionize them, by drawing on
traditional experience and the villagers' drive. The goal was to generate real
progress without creating dependence or disrupting existing ways of life.
A permanent team of veterinarians and agriculturalists
from the Socio-Economic Program, assisted by veterinary auxiliaries, dialogued with each village to define appropriate
programs and provide the required technical support. Their initiatives
focused on developing:
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Pig, sheep and cattle farming through breeding, education and an intensive
vaccination program. |
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Food, perennial and horticultural crops through breeding, supply of plants,
plant protection products and fertilizers, and advice. |
The main activity of the agricultural program (agriculture and breeding) is to provide technical support to the local farmers, with the help of 16 people (3 agronomists, 3 agronomist technicians, 4 veterinary doctors, 4 vet technicians and 2 vet auxiliaries). In 2006, more than 1,800 farmers/villagers received support from the SE program. Around 2,400 acres of land were followed-up by the agronomist team and thousands of animals received veterinary care.
These initiatives are supported by several model farms, which are closely
supervised by program technicians but owned by groups of villagers, to ensure
subsequent progress throughout the rural regions. These operations include:
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Two model pig breeding farms, one in Kanbauk and one in Migyaunglang,
created in 1995 to raise piglets for sale to farmers after vaccination and
weaning. |
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Two model poultry breeding farms, one in Thechaung and one in Eindayaza,
which have been operating according to the same principle since late 1996. |
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A crop farm in Migyaunglang, founded in 1999, that supplies farmers
with quality seedlings and young plants to develop a variety of
perennial
crops (oil palms, cashew nuts, rubber trees). |
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A plantation in Thechaung (oil palms, cashew nuts and rubber trees) managed by around 60 farmers. |

Location of model pig and chicken farms
These initiatives drove the development of numerous farm
operations, including small pig farms (over 2,000 pig farms were realized by more than 1,500 families since the program began in 1995), small poultry farms. In addition, several hundred families are participating in a variety
of crop development programs.

The agricultural projects are financed by the farmers themselves,
who often join forces. They are supported by a system of micro-credits
offered under the
SEP, where loans in kyats at low interest rates (considerably lower than the moneylenders') are used to purchase animals,
plants or equipment required to start a project. The system also benefits
commercial
projects and fishing enterprises, which can purchase boats, motors and
nets. Outstanding debt on the loans was 131 millions Kyats at end of 2005 (around
US$131,000)
for 1,587 beneficiaries. Since the system was introduced in 1997, more
than 6,300 people have taken advantage of it. The loan program is managed, in each village, with the help of the Village Bank Committee elected by the villagers.

The temporary or long-term compensation received by certain villagers for the
use of their fields also provided resources for investment. A total of US$1.2
million (169 million kyats) was paid to 303 villagers for 585 acres of
cultivated land crossed by the pipeline right-of-way. It should be emphasized
that this generous compensation system negotiated with the villages was
favorably received.
Program initiatives conducted in 2006 included:
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4,868 cattle vaccinations |
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2,800 pig vaccinations |
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126,532 chicken vaccinations |
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57 training sessions attended by over 1,000 local farmers , with numerous sessions focusing on the prevention of bird flu, and emphasis on rubber planting and grafting |
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The continuation of crop programs |
All of the vaccinations and the technical advice were provided free of
charge. The Program has also financed small-scale projects for irrigation,
land-clearing, fertilizer supply and other improvements. Management of these
projects has been delegated as much as possible to the villagers, to encourage
their independence. The improvement of road infrastructure and the renovation
and expansion of the market in Kanbauk, which is now managed by villagers, have
considerably facilitated the local marketing of crops, fish and animals.
A frequent difficulty arising from development initiatives is providing
benefits for the poorest. Almost inevitably, the first people to benefit
from the programs are those who are the most assertive and can make
an individual
contribution to the project. To receive aid under the Yadana economic
program, a personal contribution in kind or currency for the project
is useful, although not mandatory, but it is difficult for the poorest
to launch projects. A special
Backyard Vegetable Project
program
was
set
up for
their benefit,
and
has been
so successful that
the initiative was expanded to all 25 villages. Studies are under way
to identify how to involve the poor more extensively in the region's
development
without
making
them totally dependent. However, this difficulty does not mean that the
poor are relegated to the background by the Socio-Economic Program:
they have equal
access to health care and education and do derive some general benefit
from the overall improvement in the region.
Another
issue is energy. Although the region has no collective electricity
grid, power is provided in some areas by solar panels financed by the
program, or by generators that some villagers have acquired. The lack
of access
to energy hampers agricultural product processing operations. A variety
of options are being considered to remedy this situation.
Another issue to be addressed in the future is that, as agricultural
production increases, marketing channels must be developed so that part of the
region's output, in particular cashew nuts and latex from rubber tree
plantations, can be profitably exported.
Residents of the 25 villages covered by the program have to confront these
issues and develop solutions. The Socio-Economic Program will provide the
necessary support.