Support for economic Development




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.

Kanbauk market
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:


Pig, sheep and cattle farming through breeding, education and an intensive vaccination program.
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:

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.
Two model poultry breeding farms, one in Thechaung and one in Eindayaza, which have been operating according to the same principle since late 1996.
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).
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:

4,868 cattle vaccinations
2,800 pig vaccinations
126,532 chicken vaccinations
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
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.

 
The currency to finance the loans is translated at the official FSC rate.