FOOD SECURITY POLICY PROJECT RESEARCH REPORT #7 Research Report August 2016 Rural Livelihoods in Mon State: Evidence from a Representative Household Survey 2 Authors Myanmar Centre for Economic and Social Development: Aung Hein, Kyan Htoo, L. Seng Kham, Myat Thida Win, Aye Mya Thinzar, Zaw Min Naing, Mi Win Thida, Ni Lei, Lu Min, Naw Eh Mwee, Zaw Oo International Food Policy Research Institute: Mateusz Filipski, Ulrike Nischan, Joanna Van Asselt, Brian Holtemeyer, Emily Schmidt, Mekamu Kedir, Adam Kennedy, Xiaobo Zhang, Paul Dorosh Michigan State University: Ellen Payongayong, Ben Belton, Duncan Boughton Acknowledgments: This study was made possible by the generous support of the American people through the United States Agency for International Development (USAID). This document is also supported with financial assistance from the Livelihoods and Food Security Trust (LIFT) Fund, supported by Australia, Denmark, the European Union, France, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Sweden, Switzerland, the United Kingdom, the United States of America, and the Mitsubishi Corporation. We thank these donors for their kind contributions to improving the livelihoods and food security of rural people in Myanmar. The views expressed herein should in no way be taken to reflect the official opinion of USAID, the United States government, or any of the LIFT donors. The contents are the sole responsibility of the authors, who are affiliated with the Centre for Economic and Social Development of Myanmar (CESD), Michigan State University, and the International Food Policy Research Institute. The authors of this report also thank the following people for their invaluable help toward the completion of this report: Tim Dobermann from the International Growth Center; Kyaing Kyaing Sein, Thawtar Khaing, Aung Lwin, Nwe Ni, Swe Mar Hlaing, Win Hsu Marlar, Nyan Lin Oo, and Kyaw Htay from the CESD administrative team; all officials from the General Administration Department, from the regional to the village levels; all members of the survey advance team; and all enumerators. Most importantly we thank all interviewees of the Mon State Rural Household Survey for their generous contributions of time and hospitality. We sincerely hope this report will contribute to the well-being of their families. 3 Executive Summary 10 1. Introduction 13 2. Data and methodology 13 2.1 Sample design and implementation 14 2.2 Community questionnaire 15 2.3 Household questionnaire 16 2.4 Data cleaning and analysis 16 3. Characteristics of Mon State 16 3.1 Geography and Administrative Divisions 16 3.2 Climate, Topography, and Agroecology 19 3.3 Infrastructure and Public Services 20 3.4 Economy 22 4. Household Characteristics 23 4.1 Household Characteristics and Demographics 23 4.2 Educational Attainment and Employment 25 4.3 Health 26 4.4 Housing Conditions 26 5. Household Activities, Incomes, and Assets 29 5.1 Overview 29 5.2 Location and Household Incomes 30 5.3 Income Sources and Livelihood Strategies 32 5.4 Landownership and Tenure Arrangements 37 5.5 Other Assets 42 6. Agricultural Income-Generating Activities 46 6.1 Rice Production in Mon State 50 6.2 Rubber Production in Mon State 61 6.3 Other Crops 69 6.4 Livestock 78 6.5 Agricultural Extension 81 7. Off-Farm Income-Generating Activities 82 7.1 Casual Wage Employment 82 7.2 Salaried Employment 85 7.3 Nonfarm Enterprises 87 7.4 Natural Resource Extraction (Excluding Fisheries) 94 4 7.5 Fishing 97 7.6 Other Income Sources 107 8. Migration and remittances 109 8.1 Migration Scale and Scope 109 8.2 Migrant Characteristics 111 8.3 Migrant Destinations 112 8.4 Working Abroad 113 8.5 Migrant Remittances 115 8.6 Conclusion: Migration in Rural Mon State 118 9. Household Consumption and Vulnerability 119 9.1 Consumption 119 9.2 Perceptions of Well-Being 122 9.3 Shocks 123 9.4 Access to Credit and Savings 125 10. General Conclusions 132 Appendix A. Sampling Frame 135 TABLES Table 2.1 Allocation of sample enumeration areas and households for Mon State Rural Household Survey by activity stratum 15 Table 3.1 Number of sampled households per township (ordered from north to south) 17 Table 3.2 Village access 21 Table 3.3 Access to services (percentage of villages surveyed) 21 Table 4.1 Household characteristics in Mon State, by agroecological zone 24 Table 4.2 Educational attainment by gender, for population older than 16 26 Table 5.1 Share of households in income quintiles, by location characteristics 31 Table 5.2 Household characteristics, by per capita income quintile 31 Table 5.3 Difference of quintile average from sample average (percentage) 34 Table 5.4 Agricultural landholdings by township (north to south) 37 Table 5.5 Agricultural landholdings by agroecological zone 38 Table 5.6 Number and area (acres) of holdings by land use type 39 Table 5.7 Means of parcel acquisition by parcel type 40 Table 5.8 Share of households possessing documents conferring user rights, by parcel type and document type (percentage) 41 5 Table 5.9 Parcel use change from original to current 41 Table 5.10 Prevalence of asset ownership by asset type and household characteristics (percentages) 42 Table 5.11 Contribution of remittances to the purchase of large assets in households with migrants (percentage of households reporting) 43 Table 5.12 Change in large asset ownership during the last five years, by expenditure group 44 Table 5.13 Prevalence of asset ownership by small asset type and household characteristics (percentage) 44 Table 5.14 Share of households owning small assets, percentages, by consumption expenditure quintile 45 Table 6.1 Mean income and costs for agriculture sectors 48 Table 6.2 Cost breakdown by agriculture sector 48 Table 6.3 Mon State rice farming characteristics 50 Table 6.4 Mon State rice varieties planted 52 Table 6.5 Mon State fertilizer use 53 Table 6.6 Mon State machine and animal use 54 Table 6.7 Mon State permanent workers in rice farming 55 Table 6.8 Permanent workers in rice farming by township (north to south) 55 Table 6.9 Temporary workers by activity 57 Table 6.10 Rice income and production by rice income quintile 58 Table 6.11 Income and costs (in Myanmar kyats) 59 Table 6.12 Costs 59 Table 6.13 Percentage of rubber farms by original use 62 Table 6.14 Stage of rubber production by township (north to south) 63 Table 6.15 Average fertilizer used (kg/acre) 64 Table 6.16 Per-acre rubber farm workers 64 Table 6.17 Average rubber prices per pound, May–June 2015 67 Table 6.18 Mon rubber income and costs (Myanmar kyats) 68 Table 6.19 Quintiles of rubber income (per acre) 68 Table 6.20 Households producing different crop types in Mon State, by crop and agroecological zone (percentage) 70 Table 6.21 Annual crop parcels cultivated by crop type (percentage) and mean parcel size (acres) 70 Table 6.22 Reasons for choosing to produce annual crops (share of households responding, percentage) 72 Table 6.23: Per-acre other annual crop costs 72 Table 6.24 Share of households using inputs by crop type (percentage) 73 Table 6.25 Mean value of crops sold and consumed 73 Table 6.26 Annual crop production costs and income (in Myanmar kyats) 74 Table 6.27 Characteristics of orchard crop production 77 6 Table 6.28 Average input costs and income per household for orchard crops (in Myanmar kyats) 77 Table 6.29 Distribution of households with livestock activities 78 Table 6.30 Average number of animals owned 78 Table 6.31 Commercial and subsistence livestock operations 79 Table 6.32 Distribution of livestock points of sale and buyers 79 Table 6.33 Distribution of live and slaughtered sales 79 Table 6.34 Average sale price per animal (in Myanmar kyats) 80 Table 6.35 Average total livestock revenue and profit (in Myanmar kyats, households with livestock) 80 Table 6.36 Mean total value of livestock sold or consumed, subsistence and commercial households 81 Table 7.1 Share of rural households participating in casual wage labor (percentage) 83 Table 7.2 Participation in casual labor by gender 83 Table 7.3 Location where casual labor is performed (percentage of households) 84 Table 7.4 Average wage by type of work (in Myanmar kyats) 85 Table 7.5 Gender breakdown of salaried employees, percentages 86 Table 7.6 Nonfarm enterprise activities in the Mon State sample 87 Table 7.7 Distribution of business activities by agroecological zone 89 Table 7.8 Nonfarm businesses and landownership, percentages 90 Table 7.9 Net monthly earnings by type of business, Myanmar kyats 94 Table 7.10 Distribution of resource extraction activities, by type and gender 95 Table 7.11 Average monthly earnings from resource extraction 97 Table 7.12 Types of net used, by fishing environment (percentages) 102 Table 7.13 Most important fish by quantity, by fishing environment (percentage of respondents) 103 Table 7.14 Most important fish by value, by fishing environment (percentage of respondents) 104 Table 7.15 Median catch per boat and estimated total catch for Mon State, by fishing area 105 Table 7.16 Share of households receiving income and annual average, by income source 108 Table 8.1 Distribution of households with and without migrants (percentage of respondents) 111 Table 8.2 Relationship of (nonseasonal) migrants to household head (percentage of households with nonseasonal migrants) 111 Table 8.3 Characteristics of current long-term migrants, by gender 112 Table 8.4 Average cost of migration 113 Table 8.5 Summary statistics on employment of migrants returned from abroad at destination, percentages 115 Table 8.6 Remittances received from current migrants 116 Table 8.7 Largest expenses met using remittances (percentage of responses) 118 Table 9.1 Average household dietary diversity score 121 7 Table 9.2 Household perception of adequacy of basic needs (percentages) 123 Table 9.3 Share of households with one or more loans 125 Table 9.4 Average amount of loans received per loan and per year (in Myanmar kyats) 129 Table A.1 Distribution of Mon rural enumeration areas in the sampling frame by crop/fishing activity and level 136 Table A.2 Distribution of Mon rural enumeration areas in the sampling frame by combination of crop and marine fishing activities 137 Table A.3 Hierarchical criteria used for defining strata for predominant activities 137 Table A.4 Final distribution of sampling frame of rural enumeration areas in Mon State by predominant activity stratum and level substratum 138 Table A.5 Allocation of sample enumeration areas and households by activity stratum and level substratum 139 FIGURES Figure 3.1 Map of Mon State and townships 18 Figure 3.2 Survey locations by agroecological zone 20 Figure 4.1 Origin of household members who were not born in the village they were surveyed in 24 Figure 4.2 Population pyramid of rural Mon State, 2015 25 Figure 4.3 Distribution of household dwellings by number of rooms, excluding kitchens and bathrooms 27 Figure 4.5 Type of roofing used in dwelling 28 Figure 4.6 Access to electrical connection in the household, by district and income level 28 Figure 4.7 Main source of lighting 29 Figure 4.8 Main source of drinking water in the household 29 Figure 5.1 Median income, by per capita income quintiles (participating households only) 30 Figure 5.2 Distribution of number of income sources 32 Figure 5.3 Average number of income sources and household size, by income quintile 33 Figure 5.4 Share of households participating in income-generating activity, by income quintile 34 Figure 5.5 Percentage of households with majority income from various sources, by income quintile 35 Figure 5.6 Composition of total income by income quintile 36 Figure 5.7 Composition of agricultural income by income quintile 36 Figure 5.8 Lorenz curves for landownership 38 Figure 6.1 Percentage of households with agriculture income, by township (north to south) 46 Figure 6.2 Percentage of households with agriculture production income 47 Figure 6.3 Percentage of agricultural households per income quintile 49 8 Figure 6.4 Agricultural income as percentage of total household income 49 Figure 6.5 Percentage of farmers using machines, animals, or manual labor for rice farming, by township (north to south) 53 Figure 6.6 Average wage paid to unskilled rice workers by township (north to south) 56 Figure 6.7 Rice yields country comparison (kg/acre) 58 Figure 6.8 Percentages of rice-farming households that experience preharvest loss 60 Figure 6.9 Final uses of harvested rice 60 Figure 6.10 Fertilizer use by township (north to south) 63 Figure 6.11 Rubber yields by township (north to south), in pounds per acre 65 Figure 6.12 Rubber yields, Mon State and Myanmar, Ministry of Agriculture and Irrigation estimates (pounds per acre) 66 Figure 6.13 Rubber yields of largest rubber producers (pounds per acre) 66 Figure 6.14 Rubber prices by township (north to south), May–June 2015 67 Figure 6.15 Cost breakdown by parcel size group (acres) 69 Figure 6.16 Share of producing households selling annual crops (percentage) 71 Figure 6.17 Income and costs per acre in production of annual crops, by township (north to south) 74 Figure 6.18 Distribution of crop-growing households by income quintile 75 Figure 6.19 Percentage of orchard crops grown by agroecological zone 76 Figure 7.1 Share of casual laborers employed in selected farm and nonfarm activities, by month (percentage) 84 Figure 7.2 Share of salaried workers by employment type (percentage) 86 Figure 7.3 Percentage of households engaged in nonfarm business activities, by household subgroup 89 Figure 7.4 Percentage of households who run a nonfarm enterprise, by income quintile 90 Figure 7.5 Income distribution of business owners, by type of business 91 Figure 7.6 Location of business, percentage of households 91 Figure 7.7 Average number of household members engaged in the business activity 92 Figure 7.8 Percentage of businesses operating year-round 93 Figure 7.9 Percentage of businesses operating each month 93 Figure 7.10 Share of households engaging in resource extraction activity, by household type 95 Figure 7.11 Share of households selling all or part of the resources they extracted, by activity (percentage) 96 Figure 7.12 Share of households engaging in extraction of bamboo from forest, by month (percentage) 96 Figure 7.13 Share of all households reporting fishing income (percentage) 97 Figure 7.14 Types of fishing trips 98 Figure 7.15 Fishing seasonality, inland freshwater (with boat) and estuary 99 Figure 7.16 Fishing seasonality, inshore sea 100 9 Figure 7.17 Fishing seasonality, offshore sea 100 Figure 7.18 Most important fish, by quantity (percentage of respondents) 102 Figure 7.19 Most important fish, by value (percentage of respondents) 103 Figure 7.20 Most important buyer of fresh fish (percentage of respondents) 104 Figure 7.21 Perception of change in catch now compared with five years ago, by fishing type 105 Figure 7.22 Share of capture fishing households that also process fish 106 Figure 7.23 Share of total processing revenue (percentage), by product 107 Figure 8.1 Daily minimum wages in Myanmar, Malaysia, and Thailand, 2015 US dollars 109 Figure 8.2 Histogram: Year of departure for all current and past migrants 110 Figure 8.3 Share of households with migrants by income quintile (percentage of households) 111 Figure 8.4 Distribution of migration destinations for nonseasonal migrants (percentage of nonseasonal migrants) 113 Figure 8.5 Share of total household income from remittances 117 Figure 9.1 Average food expenditure per capita, per week, by income quintile (in Myanmar kyats) 119 Figure 9.2 Shares of food groups in total food budget (percentage), by income quintile 120 Figure 9.3 Share of households consuming food groups within the preceding 24 hours 121 Figure 9.4 Perception of state of the households, five years ago and today 122 Figure 9.5 Perception of wealth compared with neighbors, currently and five years ago 123 Figure 9.6 Shocks experienced, percentage of households 124 Figure 9.7 Most severe shock experienced, percentage of households 124 Figure 9.8 Primary coping strategies 125 Figure 9.9 Loan use 126 Figure 9.10 Sources of loans 127 Figure 9.11 Share of formal and informal loans 128 Figure 9.12 Location of lender by source of loan 128 Figure 9.13 Loan procurement 129 Figure 9.14 Mean and median annualized interest rate paid 130 Figure 9.15 Opinion of best way to hold savings 131 10 Executive Summary The purpose of this report is to provide information and analysis to government, civil society, and donors interested in improving the well-being of the rural population of Mon State. Specifically, the report analyzes the different sources of income for rural households, as well as their socioeconomic characteristics, with a view to identifying potential pathways to improving incomes, especially for poor households, and stimulating inclusive rural growth. The overall picture that emerges is one of an economy heavily dependent on services for local employment and on international migration for income. Like a two-legged stool, such an economy is potentially unstable in the face of external shocks. Diversification of the Mon State economy, including diversification and increased productivity within the agricultural sector, will lessen the relative dependence on external migration remittances and result in more resilient growth in the future. The analysis presented in this report is based on a sample of 1,632 rural households. The sample households were selected from village communities identified by rural enumeration areas (EAs) in the 2014 population census. All potential EAs were first stratified according to the primary agricultural activity (rice, rubber, orchard, or marine fishing). A total of 140 EAs (a little more than 6 percent of the sampling frame of rural EAs) were randomly selected, 35 from each of the four activity strata. For each selected EA, 12 households were randomly selected based on a household listing. The sample is designed to be representative of rural households in Mon State as a whole, as well as the major agricultural activities that rural households engage in. The household questionnaire collected demographic information on all household members, farm and nonfarm income-generating activities, migration, assets (including land), credit, consumption, and shocks. A community survey was also administered in public areas to a group of up to six prominent village figures, such as village leaders, religious leaders, youth group or women’s group representatives, and so on. The community questionnaire focused principally on villagewide characteristics such as infrastructure (roads, electricity, waterways, and the like), the availability of services (banking, schooling, and so on), natural disasters, conflict, and so forth. In terms of livelihood strategies for rural households, agriculture, remittances from migrant family members, nonfarm enterprises, and wage labor are the largest sources of income. Wealthier households have more diversified and more remunerative income sources, emphasizing remittances, agricultural production, nonfarm enterprises, and fishing. Although nonfarm enterprises are an important source of earnings at all income levels, poorer households are more likely to depend primarily on income from wage labor. Almost half of households in the sample had a member in Thailand, where wages are almost three times as high as in Mon State. Offering ample opportunities for unskilled laborers, migration is a common choice for working-age household members of both genders. Remittances sent by family members abroad generate almost a quarter of all income in our sample, at all levels of the income distribution. The earnings of migrants contribute significantly to consumption and asset accumulation, in particular land purchases and house construction. While migration helps bolster the Mon State economy, the absence of workers is being felt acutely in the state, where rising costs of labor are jeopardizing profitability in labor-intensive sectors such as rice and rubber. Small-scale capture fisheries support the livelihoods of 34 percent of residents in Mon State’s coastal zone. Many of these people are asset poor and landless, with few other livelihood alternatives. The contribution of small-scale coastal fisheries to the Mon State economy is similar to that of rice or rubber, but the fisheries receive little recognition or attention. However, the capacity of coastal fisheries to support fisher livelihoods 11 and make a significant contribution to the state economy is under threat from extremely limited management of fisheries for sustainable utilization of fish stocks. Agriculture is an important component of rural livelihoods, but agriculture is not fulfilling its potential. Half of all households engage in agriculture, and one in five earns wages from agriculture. Households engaging in agriculture earn about half their income from farming and half from nonfarm income sources. Rice and rubber are the most common agricultural enterprises (with 39 percent and 36 percent of households participating, respectively), followed by betel leaf, roselle, and green gram (mung beans). Livestock rearing is practiced by 40 percent of households, usually on a small scale with just one type of animal. Labor scarcity and cost is a major constraint to profitability, given low productivity. Access to land is a major constraint to livelihood strategies. Three out of every five households have no access to agricultural land, and hence are much more dependent on wage labor for their income. Even among those who do have access to land, the distribution is very unequal. The top 20 percent of households own 56 percent of the agricultural land, compared with just 2 percent owned by the bottom 20 percent of households. Only slightly more than one-third of households owning agricultural land have an official land title document. One result of unequal land distribution is that a high proportion of farmers, 43 percent in the case of rice, hire permanent workers (or sharecroppers in the case of rubber). Most permanent workers are of local origin. The area planted in rubber has increased rapidly in recent years, and the majority of trees have yet to reach productive age. Mature trees are harvested with average yields of 900 pounds per acre, compared with more than 1,400 pounds per acre in Thailand and more than 1,500 pounds in Vietnam. Limited fertilizer use, unimproved varieties, and inadequately skilled labor contribute to low yields. The profitability of rubber is further undermined due to low prices associated with poor quality (a high level of impurities and moisture) and inefficient marketing channels (multiple handlers). The potential for improvement is demonstrated by the top 20 percent of rubber income earners, who achieve average yields of almost 1,700 pounds per acre and three times the profit per acre of the average rubber farmer. The primary reasons for the low performance of rice and annual crops are (1) the small percentage of area cultivated in the winter season under irrigation (only one acre out of eight is cultivated in the winter season, and only 3 percent of rice farmers practice double cropping), (2) limited use of improved technologies, and (3) preharvest losses due to flooding and pests. Low use of improved technology is a constraint to the performance of agriculture. Lack of access to irrigation for winter-season production limits agricultural activity largely to the monsoon season. Median rice yields are only 50 baskets (a little more than a ton1) per acre. Despite labor shortages, only one in four rice- growing households owns a power tiller or a tractor. Even though rental markets allow almost 60 percent of rice farmers to use mechanized land preparation, there is considerable scope to increase access to mechanization for timely operations. Reflecting the predominance of monsoon rice cultivation, the most popular rice varieties are traditional long-stemmed varieties that are resistant to flooding and fetch a high market price. Fertilizer use is low and chemical-based weed and pest management negligible. Improvements in crop management could greatly increase productivity and profitability. The top 20 percent of rice growers in terms of profitability have yields double those of the average rice farmer but with similar costs per acre. 1 Throughout the text, tons are metric tons. 12 Limited diversification of agricultural production also constrains the contribution of agriculture to household incomes. Mon State is suitable for a wide variety of horticultural production (vegetables and fruit trees), yet only one in five agricultural households engages in it. For those that do, incomes per acre are much higher than for rice or rubber. Limited commercialization of agricultural products is both a reflection of and a contributing factor to low productivity at the farm level. Only half of rice farmers achieve a marketable surplus, and those who do have a surplus sell it shortly after harvest. A much higher proportion of other annual crops are sold. Most rubber is destined for low-quality use with multiple handling between farm and processor rather than coordinated supply chain management for high-quality manufacturing. In conclusion, the agriculture and nonfarm sectors could make much larger contributions to rural incomes in Mon State in the future than they do today. Realizing this potential would diversify the sources of income for the state economy, providing expanded income sources for families without migrants as well as resident members of migrants’ families. Diversification of Mon State’s agriculture requires expanded access to irrigation for more diversified, high-value production, as well as increases in the productivity and quality of its traditional food staple and cash crops (rice and rubber). Improved access to and quality of market- oriented farm advisory services, initially publicly financed, is a necessary investment to support this transformation. But diversification into high-value activities needs to occur in the nonfarm sector as well as in agriculture. Besides improved energy and road infrastructure, for Mon State to create higher-wage employment in the off-farm sector, the current low levels of educational attainment need to improve dramatically. Among five dimensions of well-being (food consumption, housing, clothing, healthcare, and education), households are least satisfied with the adequacy of education. Because improvements in education take time and will come too late for many school leavers over the coming decade, attention should also be given to literacy and vocational skills training opportunities, such as rubber tapping, construction, carpentry, and mechanical and electrical repair. International migration, especially to Thailand, will continue to be an important source of income (directly and through consumption linkages) for many years, quite possibly decades, to come. Efforts should be made to improve migrant safety and welfare through insurance, language training, and education on Thai law and worker rights. 13 1. Introduction The present document reports on work undertaken as part of the Myanmar component of the Feed the Future Innovation Lab for Food Security Policy (FSP) program. It presents a comprehensive analysis of the economic livelihoods of households in rural Mon State, based on data from the Mon State Rural Household Survey (MSRHS). The overall goal of the FSP program is to promote inclusive agricultural productivity growth, improved nutritional outcomes, and enhanced livelihood resilience for men and women through improved policy environments. The specific objectives are twofold: (1) to address evidence gaps for informed policy debate and formulation, and (2) to foster credible, inclusive, transparent, and sustainable policy processes. Both of these objectives entail integrating knowledge and actions at the regional and national levels for comprehensive and effective evidence-based policies. Within this framework, FSP-Myanmar conducted the MSRHS in Mon State to deliver microlevel evidence in support of both objectives (1) and (2). This survey was conducted in May–June 2016 from a rural- representative sample of households and complemented by a community survey at the village or ward level. It collected detailed information on all income-generating activities of households and individual household members, household consumption, household assets and living conditions, and the services household members have access to. Following the twofold objectives of the FSP, this dataset forms the basis for a two-pronged study leading to two documents. First, the statistical analysis of the MSRHS dataset provides a comprehensive picture of the economic opportunities and constraints that Mon rural residents are facing, based on numerical evidence generated from representative data. This serves to directly address objective (1) of the FSP to fill policy- relevant evidence gaps. The results of this statistical analysis are reported in the present document. In addition to the present document, which is focused on the results of statistical analysis, a sister document was drafted to bridge the gap between the hard evidence generated from the MSRHS analysis and the requirements of the policy process. This sister document, titled “Revitalized Agriculture for Balanced Growth and Resilient Livelihoods: Toward a Rural Development Strategy for Mon State,” was designed to serve as the basis for informed policy discussions in the context of a transparent policy process. The remainder of the present report is organized as follows: Section 2 presents the data and methodology, Section 3 background information on Mon State, Sections 4 and 5 general information on households and their economic activities. Section 6 provides detailed information on all agricultural activities, including rice and rubber farming but also other crops, as well as livestock. Section 7 details off-farm or nonagricultural livelihoods such as wage work or salaried work, as well as self-employed activities in all sectors from fishing to commerce. Section 8 details the role of migration and remittances in Mon incomes. Finally, Section 9 provides information on household consumption, perceptions of well-being, and risk-coping strategies such as saving behavior. Section 10 concludes. 2. Data and methodology This report is based primarily on analysis of data collected through a survey of rural livelihoods. The survey comprised a community questionnaire, which collected general information about a sample of 143 communities (each usually a single village), and a household questionnaire, which collected detailed socioeconomic information about a sample of 1,627 households within those communities. The data were 14 collected over nearly eight weeks in the months of May and June 2015 and analyzed in the fall of that same year. Throughout the report, we complement household survey results with information culled from secondary sources. This section describes in detail the survey methodology as well as the methodologies used for analysis. 2.1 Sample design and implementation The sampling relied on a stratified two-stage design. The sampling frame for the Mon State Rural Household Survey (MSRHS) was based on preliminary data and maps from the 2014 Population and Housing Census of Myanmar. Given the survey objectives, the sampling frame was limited to the rural households in Mon State. The primary sampling units selected at the first sampling stage were the census enumeration areas (EAs), which are segments defined within the village tracts and wards for the purposes of data collection for the 2014 census. The original frame from the 2014 Myanmar census included 2,256 rural EAs for Mon State, with an average of 132 households per EA. Auxiliary information was used to classify the village tracts in Mon and help select the appropriate sample for a study focusing on household income-generating activities and livelihood strategies. The stratification design was based on the predominant activities in each EA. We focus on four primary activities of interest: rice farming, rubber farming, orchards, and marine fishing. Each EA was classified into one of four strata according to which of these four activities was predominant. A sample of 35 EAs per stratum was selected, to ensure a reasonable dispersion of the sample within each stratum. Within each activity stratum, substrata for high and low activity levels were defined. EAs were oversampled from areas with high levels of our primary activities of interest to ensure large enough sample sizes of households performing those activities (the oversampling is corrected for with sample weights to avoid bias). This led to a tentative sample size of 140 EAs and 1,680 households, with 420 sample households per predominant activity stratum (12 per EA). This sample size provides a reasonable level of precision for the indicators by activity, especially because many sample households will be involved in more than one activity. For example, rice farming is found in all the sampling strata. During fieldwork, small modifications to the tentative sampling framework had to be made to account for unforeseen circumstances. Seven EAs were replaced or dropped from the sample for security reasons (presence of armed groups or banditry). In addition, three EAs turned out not to be marine fishing areas as originally expected, and were resampled. Further, small numbers of fisher households prompted us to add five EAs in marine fishing areas during fieldwork, so as to increase the likelihood of obtaining significant estimates in the analysis. The final sample included 143 EAs (Table 2.1). All of these modifications were accounted for in the weighting scheme. 15 Table 2.1 Allocation of sample enumeration areas and households for Mon State Rural Household Survey by activity stratum Stratum Predominant activity Total Sample enumeration areas Sample households 1 Marine fishing 41 469 2 Orchards 32 361 3 Rubber 35 395 4 Rice 35 402 Total 143 1,627 Represented population (number of rural Mon residents) 1,195,321 Source: All data in this table, and in the other tables and figures in this paper, come from the 2015 Mon State Rural Household Survey, unless otherwise specified. We selected 12 households in each selected EA. Households were selected at random, excluding only those who did not participate in any way in any activity of interest for the purpose of our survey. Finally, a number of households could not be interviewed or provided incomplete responses and thus had to be dropped entirely from the dataset. This led to a final sample size of 1,627 households. The final distribution of the sample EAs and households is shown in Table 2.1. A more detailed explanation of the sample design and weighting procedures for the MSRHS is presented in Appendix A. This final dataset is representative of the 1.2 million people living in rural Mon State. 2.2 Community questionnaire In each of the sampled EAs, we collected general information using a community questionnaire. The questionnaire was administered in public areas to a selected group of up to six official respondents, usually including prominent village figures, such as village leaders, religious leaders, youth group or women’s group representatives, and so on. Gender-diverse groups were selected where possible. The community questionnaire focused principally on villagewide infrastructure (roads, electricity, waterways, and so on) and the availability of services (banking, schooling, and the like). It also collected information on local projects and programs, both public and private. Additional sections of the questionnaire included questions about the environment and natural disasters, conflict, land, and prices. In total, the survey took three to five hours to administer. In addition, the community survey collected the Global Positioning System (GPS) location of all medical, religious, and educational facilities, as well as marketplaces and major water points. The questions in the community questionnaire referred to the village where the interview took place, regardless of EA boundaries. EAs are not administrative units, and their boundaries do not correspond to administrative boundaries. The community questionnaire is meant to capture the living environment of the interviewed households; therefore, it would not be appropriate to restrict responses to the geographic boundaries of EAs, which are meaningless to local inhabitants. 16 2.3 Household questionnaire The household questionnaire was administered to 12 households in each of the 140 sample EAs. In each household we interviewed one primary respondent (usually the head of the household, but another member could answer in the head’s place if necessary). The household questionnaire collected complete demographic information on household members, as well as information on their education, health, and occupation. In addition to current household members, it also recorded details about migrants, both short- and long-term. Major sections of the survey were devoted to agricultural and nonagricultural income-generating activities. Separate sections recorded information on rubber, rice, other permanent crops, and other annual crops. Livestock rearing was given a separate section as well. Among nonagricultural activities, we separated salaried labor, wage work, nonagricultural business, and resource extraction activities into separate sections. Information on fish capture activities was also separated from other resource extraction activities, so as to collect information with greater detail. For each of the activities above, we took care to gather detailed information about labor use and input costs. We also recorded other sources of income, such as remittances, transfers, gifts and donations, and so on. All together, these sections allow us to determine household incomes with great precision. The survey also recorded detailed information on expenditures of households and the assets they own (including land). Finally, the survey gathered information on housing, living conditions, and shocks. 2.4 Data cleaning and analysis Data were collected on paper forms and then digitized using Census and Survey Processing System (CSPro) software. All questionnaires were entered twice independently, to ensure that digital files reflected the true answers collected on paper. Files were then compiled into .dta format to facilitate analysis with Stata software. The survey included a number of open-ended questions that did not restrict respondents to any particular set of answers, such as household member occupation, grain varieties used in production, and so on. After the data were collected, these answers were compiled, classified into categories, and recoded according to the new classification. In addition, many categorical questions allowed for an open-ended response in case the prespecified category choices were not sufficient (“Other, specify:”). These answers were also compiled and assigned new codes in the clean version of the data. In addition to recoding work, data cleaning also made sure to correct aberrations, impossible values, inconsistencies between sections, and so on. Certain households had to be dropped because of missing information. At the end of this process, the final sample size was 1,627 households (out of the original 1,680), with 7,262 members. 3. Characteristics of Mon State 3.1 Geography and Administrative Divisions Mon State is located in the south of Myanmar, bordered by Bago region to the north, Kayin (also spelled Karen) to the east, and Tanintharyi to the south (Figure 3.1). It also shares a short southeastern border with 17 Thailand. Mon is a coastal state, flanked to the west by the Andaman Sea. At 12,000 square kilometers, it is among the smaller states of Myanmar, but with about 2 million inhabitants, it is relatively densely populated. Its proximity to Yangon and Thailand contribute to its economic importance. Mawlamyine is the economic capital and the largest city in Mon State. With 300,000 people, it is also the fourth largest city in Myanmar. Administratively, Mon State is divided into two districts: Thaton in the north and Mawlamyine in the south. A larger portion of rural households are located in the district of Mawlamyine (55.2 percent) than in Thaton (44.5 percent). The next administrative level is the township, of which there are 10. In some cases we present statistics at the township level. Table 3.1 shows the number of households we interviewed in each of the townships. The number of households per township varies substantially, reflecting the size of rural population (Mawlamyine township is primarily urban and thus mostly not covered by our sample). Table 3.1 Number of sampled households per township (ordered from north to south) Township Number of households Percentage Kyaikto 230 14.14 Bilin 160 9.83 Thaton 175 10.76 Paung 183 11.25 Mawlamyine 25 1.54 Chaungzon 183 11.25 Kyaikmaraw 188 11.56 Mudon 130 7.99 Thanbyuzayat 134 8.24 La Mine* 89 5.47 Ye 130 7.99 Total 1,627 100 Note: * La Mine is a subtownship of Ye but was its own unit in our survey’s sampling frame. 18 Figure 3.1 Map of Mon State and townships . 19 3.2 Climate, Topography, and Agroecology The climate of Mon State is tropical monsoon (type Am in the Köppen classification). Temperatures average 26.3°C and vary little throughout the year: the lowest monthly average is 24.2°C (January) and the highest is 29.0°C (April).2 The seasons are defined by the monsoon cycles: the state gets about 4,000 mm (4 meters) of rainfall per year, a quarter of which falls in August. In contrast, average rainfall in January is 5.1 mm. Most of the central and western parts of the state are part of a coastal floodplain. Elevation rises as one moves east toward the mountainous Kayin State. Based on this topography, we defined three agroecological zones: coastal areas, lowlands, and uplands (Figure 3.2). Coastal areas were defined as those within 4 kilometers of the coastline. The rest of the state was split between lowlands (elevation of less than 14 meters) and uplands (elevation of more than 14 meters). Each enumeration area in the sample was assigned geospatial information collected during fieldwork using GPS units. More households live in the lowland agroecological zone (45.2 percent) than in coastal or upland zones (16.9 percent and 37.9 percent, respectively). We use these categories throughout the report to inform the remainder of the analysis. 2 Climate data from Canty and Associates. 2016. Weatherbase database. Accessed April 24, 2016. www.weatherbase.com. Rainfall and temperature data refer to Mawlamyine. http://www.weatherbase.com/ 20 Figure 3.2 Survey locations by agroecological zone Note: HH = household. 3.3 Infrastructure and Public Services The community questionnaire asked about access to the village and to key infrastructure and services such as paved roads, electricity, and so on. This section will provide a brief overview of the state of the most relevant key services and infrastructure items in rural Mon State. 21 By and large, rural Mon residents live in villages that are easily accessible by road (Table 3.2). The majority (95 percent) of households in the survey live in a village accessible by a paved road, though only 87 percent of villages are accessible by car in the monsoon season. Monsoon season rains not only decrease accessibility but also increase travel time. This effect, however, is small on average: travel time to the nearest urban center increases on average by 7 minutes in monsoon season. But for a small percentage (6 percent) of rural Mon residents, the increase is more than 30 minutes. Table 3.2 Village access Characteristic Value Percentage with paved road 95% Percentage accessible by car in dry season 94% Percentage accessible by car in monsoon 87% Average travel time to closest urban center—dry season 33 mins Average travel time to closest urban center—monsoon season 40 mins Percentage with increased commute during the monsoon season > 30 minutes 6% Table 3.3 shows the prevalence of the availability of certain services in rural Mon State. Public transportation is limited: only one-fifth of villages (21 percent) have public transportation to reach the closest urban area. Only 61 percent of villages have a medical facility of any kind (rural health center, public hospital, private hospital, or private clinic). Of the 39 percent without local access to a medical facility, 91 percent have to travel to the township capital for medical services, some even farther. The far distances rural residents of Mon State have to travel to receive medical care put an onerous burden on households with sick family members, who may need to take time off of work to accompany their sick or injured relative to a treatment facility. The lack of publicly provided transportation options adds to the hardship by indirectly increasing the cost of medical care. Table 3.3 Access to services (percentage of villages surveyed) Service Percentage with access Public transportation 21 Medical facility 61 Primary school 80 Secondary school 37 Public electricity 51 Private electricity 56 At least one cell phone provider 97 The majority of households (80 percent) live in a village that has a primary school, but only 37 percent live in a village with a secondary school. Educational attainment in Mon State is therefore greater than 50 percent for primary school completion but drops off significantly for secondary school completion (see Section 4.2). Electricity is available to 51 percent of households through public provision and 56 percent through private provision. Taken together, 81 percent of households live in a village with access to either public or private provision of electricity, or both. Rural households have electricity connections at much lower rates (see Section 4.4). 22 The recent liberalization of the telecom sector has expanded cellular access in Mon State, with 97 percent of households living in a village with functioning access to one or more carriers. 3.4 Economy No official gross domestic product (GDP) estimates are available at the state level. Through estimation, we computed that the economy of Mon State is dominated by services, with agriculture and industry contributing smaller shares to GDP. Using national data, we obtained a crude estimate as follows: First, we computed per-worker contribution to GDP for each sector (agriculture, industry, services) at the national level. Applying those figures to the Mon State sectoral employment figures (46 percent in agriculture, 13 percent in industry, 36 percent in services), we can estimate the contribution of each sector to total GDP in the state. This procedure gives estimates of about 70 percent of GDP from services, 16 percent from industry, and 14 percent from agriculture. The accuracy of such figures depends on whether national-level per-worker GDP contribution is a good approximation of Mon State per-worker GDP contribution.3 For agriculture, the two main crops are rice and rubber. Besides those two, notable agricultural activities include orchards, horticulture, and some production of pulses. While less common, these activities have become relatively more lucrative in the recent past. Chapter 6 of this report provides a detailed analysis of agricultural activities. Industry in the state is mostly based on the processing of agricultural output, primarily rubber but also paper and sugar. Some mining exists in the state as well, with production of tungsten and antimony. The coastal areas, Ye in particular, support a sizable fishing industry, with associated processing of fish products. 3 Calculations courtesy of Tim Dobermann from the International Growth Center. 23 4. Household Characteristics This section describes the general characteristics of households in rural Mon State, including demographics, ethnicity, education, and health. The end of the section also provides statistics on the living standards of households in our sample. Throughout the section, we present statistics for different household types, disaggregated by administrative area, geographic location, gender, landownership, or income (among other criteria). 4.1 Household Characteristics and Demographics Rural Mon State is ethnically diverse, with three dominant ethnic groups: Mon (35.3 percent), ethnic Burmese (or Bamar) (36.3 percent), and Kayin (16.3 percent) (Table 4.1). The remaining 12 percent includes Pa-o, Tamil, and others. These proportions vary geographically: the Mon are a majority in the coastal areas (55 percent), and the Kayin represent more than one-third of the population in the uplands, closer to Kayin State (36.4 percent). These ethnicities correlate with the language spoken at home, though our survey also shows that a majority of household heads can speak Burmese (81.5 percent). While the state is ethnically diverse, it is very homogenous in terms of religion. Buddhism is the dominant religion in rural Mon State, with more than 90 percent of household heads identifying as Buddhist, consistently across all agroecological zones. Basic household characteristics vary little across the different zones (Table 4.1). The average household size is 4.38 people, and household heads are on average a little more than 50 years old. A high percentage of households are headed by females (23.2 percent), likely reflecting the high propensity of male heads to migrate. Landlessness is high—almost 60 percent of households do not own any agricultural land—and it is highest in the lowlands (62.4 percent landless). The population in Mon is relatively mobile. Within our sample, approximately 16.9 percent of household members were born outside of the village where their household is located. Among them, 34.4 percent were household heads, 21.9 percent were spouses (indicating they may have migrated for marriage), and the remainder are mainly children or grandchildren (20.8 percent and 9.8 percent, respectively). Some children belong to families that moved together, while others are children of migrant parents, usually cared for by grandparents. 24 Table 4.1 Household characteristics in Mon State, by agroecological zone Characteristic All households Coastal Lowland Upland Average household size 4.38 4.65 4.31 4.33 Percentage female-headed 23.2% 21.1% 25.4% 21.6% Average age of household head 52.38 52.06 53.11 51.64 Average age (all members) 29.6 29.0 30.1 29.4 Mean dependency ratio* 0.84 0.95 0.88 0.75 Percentage with Buddhist household head 94.3% 98.3% 91.1% 96.4% Percentage without agricultural land 59.0% 61.0% 62.4% 54.0% Ethnic group of household head Mon 35.3% 55.9% 34.6% 27.0% Kayin 16.3% 4.8% 9.7% 29.3% Bamar (Burmese) 36.3% 33.8% 37.0% 36.4% Other 12.2% 5.6% 18.7% 7.4% Number of households in sample (unweighted) 1,627 346 587 633 Note: * The dependency ratio is the ratio of number of members aged 0–14 or 65 and older to the number of those aged 15–64, within each household. The majority of those members who have moved have done so from within Mon State (Figure 4.1). Most commonly they came from villages/wards in the same township (35.4 percent) and other townships in Mon State (21.9 percent). The second most common pattern involves moving from neighboring states, predominantly the Bago (12.4 percent) and Ayeyarwady (10.3 percent) regions. As we will see in the rest of the report, a large fraction of households have members (or former members) that have migrated away, most of whom left in search of job opportunities. Figure 4.1 Origin of household members who were not born in the village they were surveyed in Our sample shows that there is a steep drop-off in population between the 10–14 age bracket and the 15–19 age bracket, particularly among male household members (Figure 4.2).4 The sample counts more females 4 Starting from the 5–9 age group, the ratio of males to females is less than 1. While this disparity can easily be explained by migration for older age groups, migration is a less likely explanation for children 5–14. It may be the case 0 5 10 15 20 25 30 35 40 Ya n go n R e gi o n B ag o R eg io n A ye ya rw ad y R e gi o n K ay in S ta te O th er S ta te in M ya n m ar Th ai la n d A n o th er vi lla ge /w ar d in t h is to w n sh ip A n o th er t o w n sh ip in M o n S ta te O th er P e rc e n ta ge Where person lived before moving to village (%) 25 (54.6 percent) than males, most likely due to migration. Almost half of households have one or more former household members that are currently (nonseasonal) migrants, most of whom are males (55 percent). This phenomenon contributes to the high share of female-headed households reported in Table 4.1 (23.2 percent). The propensity of young residents to migrate may also explain the relatively high dependency ratio (0.84 on average, and as high as 0.95 in the coastal zone). Figure 4.2 Population pyramid of rural Mon State, 2015 Source: Mon State Rural Household Survey, May–June 2015. 4.2 Educational Attainment and Employment Educational attainment is an important predictor of potential earnings, while the level of school enrollment among school-age children is an important indicator of the future human capital of a country. In rural Mon State, almost 23 percent of children between 5 and 16 years old were not enrolled in school in 2015, and almost 1 in 10 (9.3 percent) has never attended a formal school (Table 4.2). While this level of exclusion is an improvement over that of previous generations (among whom 1 in 4 adults never attended school), it is still a matter of serious concern. Males are slightly more likely to have never attended school (10 percent of males versus 8.6 percent of females among current school-age children). Among the current population older than 16, a little more than half have completed primary school, and about 1 in 20 has completed high school. that there is a preference to migrate with male children due to their future income-earning potential. It may also be possible that this discrepancy is the result of a sample size insufficient to get a clean distribution. Under 5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 69 70 to 74 75 to 79 80 to 84 85 to 89 90 to 94 95 to 100 A g e G ro u p s 80 70 60 50 40 30 20 10 10 20 30 40 50 60 70 80 Number of People in Thousands Males Females Source: Mon State Rural Household Survey, May-June 2015 Mon State Rural Male and Female Population by Age, 2015 26 Table 4.2 Educational attainment by gender, for population older than 16 Educational attainment By gender (percentage) All (percentage) Male Female No formal schooling 23.8 26.2 21.9 Less than primary completion 23.3 20.9 25.2 Completed primary 20.3 19.1 21.2 Some secondary school 21.7 23.9 20.1 Completed high school 6.6 6.9 6.3 Completed tertiary degree 4.4 3.0 5.4 Educational achievement varies geographically. In Thaton district, the adult literacy rate (among those older than 16) is 84.4 percent, slightly higher than in Mawlamyine district (76.1 percent). Female-led households have a lower literacy rate (65.3 percent) than male-headed (80.4 percent). The coastal area has a slightly lower literacy rate than other zones (74.7 versus 77–79 percent). The pattern of lower literacy in the coastal zone will likely continue in future generations because the zone also has a below-average rate of school-age educational enrollment (73.1 percent). 4.3 Health According to the 2014 census, average life expectancy in Mon State is 71.7 years, around the global average but lower than the regional developing-country average. Based on survey data, about 78 percent of children younger than five in rural Mon State have received a vaccination, leaving 22 percent of children younger than five unvaccinated. At the time of the survey, about 16.5 percent of rural households reported that one member had been ill within the last 30 days. Chronic illness is common among 10.9 percent of family members and much higher among those older than 65 (37.6 percent). Female-headed households have slightly higher rates of illness (20.8 percent) and reported a higher rate of chronic illness for all members and for those older than 65 (14.8 percent and 39.6 percent, respectively). Chronic illness is more common in Mawlamyine district (12.7 percent) than in Thaton (8.6 percent). The disparity is greater for those 65 and older, who are almost twice as likely to be suffering from a chronic illness in Mawlamyine than in Thaton (46.4 percent and 23.7 percent, respectively). Landless households have higher rates of chronic illness for those older than 65 (41.3 percent), compared with landed households (33.8 percent). 4.4 Housing Conditions More than 90 percent of households in Mon State report owning the dwelling they live in (90.4 percent). Only 84.8 percent of households own a plot of land (agricultural or residential), which means that upwards of 5 percent do not own the land on which their dwelling is located, perhaps because the dwelling is located on a family member’s plot. The rental market is seemingly limited in Mon State, with only 1.2 percent of households living in a rented dwelling. The remainder of dwellings are borrowed or subsidized. 27 The average number of rooms in a dwelling is 1.2 and the majority of households (77 percent) live in a dwelling that has between 1 and 2 rooms, excluding the bathroom and kitchen (Figure 4.3). Since the average number of household members is 4.4, this indicates cramped living conditions. Figure 4.3 Distribution of household dwellings by number of rooms, excluding kitchens and bathrooms More than half of the dwellings in rural Mon State have roofs made of improved materials (57.3 percent), defined as corrugated sheet metal, tile, or concrete (Figure 4.4). The rate is slightly higher in the southern district of Mawlamyine (63.5 percent) than in northern Thaton (49.7 percent). We also computed these figures separately for the bottom three consumption quintiles (49.5 percent) and the top two (65.9 percent). The percentage of households with improved toilet facilities, defined here as a covered pit with a water seal or better, is quite low (39.3 percent). Once again, households in Mawlamyine and those in the top two consumption quintiles have higher rates of improved housing characteristics, with approximately 44 percent of Mawlamyine households and 44 percent of upper-quintile households using improved toilet facilities, versus 33.4 percent of Thaton households and 35.8 percent in the lowest three quintiles of consumption. Figure 4.4 Households with improved roofing and sanitation facilities, by district and income Rural Mon State residents have made improvements to their dwellings over the last five years by switching from inferior to longer-lasting and better-protecting materials. The use of thatch, leaves, or palm as the primary material for roofs has decreased from 46.4 percent in 2010 to 36.5 percent in 2015, while the use of 35% 42% 16% 5% 2% 1 2 3 4 5+ 0 10 20 30 40 50 60 70 Mawlamyine Thaton Bottom 60% Top 40% All P er ce n ta ge o f h o u se h o ld s Roof Toilet 28 corrugated sheet metal roofs has increased from 46.3 percent to 58.9 percent (Figure 4.5). The use of wood and “other” materials has also decreased slightly. Figure 4.5 Type of roofing used in dwelling Access to electricity is much higher in rural Mon State (55.5 percent) than the national rural average (18 percent).5 Overall, electrification has increased by 85 percent compared with five years prior to the survey, and it has done so across all subgroups (Figure 4.6). This rate is expected to continue to increase given the Ministry of Electric Power’s National Electrification Plan, which calls for attaining 100 percent electrification by 2030. Donor funding has also been secured for a project that upgrades a gas-fired power plant in Thaton. However, some disparities exists with respect to access to an electrical connection. Approximately 48.3 percent of households in Thaton, where the main power plant is located, have an electrical connection, whereas the rate in Mawlamyine is 61.3 percent (Figure 4.6). Similar disparities exist between households in the top two expenditure quintiles versus those in the bottom three. Figure 4.6 Access to electrical connection in the household, by district and income level 5 International Energy Agency. 2015. World Energy Outlook Electricity Access database. Accessed April 25, 2016. http://www.worldenergyoutlook.org/resources/energydevelopment/energyaccessdatabase/. 0 10 20 30 40 50 60 70 Thatch/leaves/palm Wood Corrugated sheet Other P e rc e n ta ge o f h o u se h o ld s 5 years ago Now 0% 10% 20% 30% 40% 50% 60% 70% Mawlamyine Thaton Bottom 60% Top 40% AllP e rc e n ta ge o f h o u se h o ld s Five years ago Now 29 Figure 4.7 Main source of lighting The expansion of rural electrification has had implications for improved lighting (Figure 4.7). The majority of households reported candles as their main source of lighting in 2010 (58.4 percent), which were overtaken by electricity in 2015. Solar power also grew as a source of lighting, from 1.3 percent five years ago to 10.8 percent in 2015. Figure 4.8 Main source of drinking water in the household In contrast to dramatic improvements in access to electricity, there has been only limited change in water access over the last five years (Figure 4.8). Of all households, 7.3 percent had indoor or outdoor piped water in 2010, versus 9.9 percent in 2015. The majority of households report sourcing their drinking water from private wells (65.2 percent) and public wells (12.5 percent). We are unable to determine the health implications of the latter two water sources. 5. Household Activities, Incomes, and Assets 5.1 Overview In order to compare the income profiles of households in Mon State, the entire sample was first ranked from top to bottom by income level per household member, and then divided into five groups of equal size 0 20 40 60 80 Electricity Solar power Candles Other Percentage of households 5 years ago Now 0 20 40 60 80 Piped water (inside) Piped water (outside) Private well Public well Other Percentage of households 5 years ago Now 30 (quintiles). The quintile of sample households with the highest per capita income is quintile 5, and the lowest quintile 1. The median annual income in Mon State for the year prior to the survey was 1,612,000 Myanmar kyats (MMK), or about US$1,375. The range of incomes across rural households varies widely. Households in the highest income quintile, for example, earned a median income 3.2 times greater than the median for the whole sample, and even more on a per capita income basis (Figure 5.1). Households in the lowest income quintile reported a median income equivalent to just 17 percent of the sample median. Figure 5.1 Median income, by per capita income quintiles (participating households only) Note: Excludes households with reported negative income. 5.2 Location and Household Incomes Income profiles also vary by geographic location (Table 5.1). Mawlamyine district has a higher proportion of households in the top two income quintiles than does Thaton district (22–24 percent, compared with 15–21 percent). Thaton district has a higher proportion of households in the lowest quintile. Perhaps due to access to the fishing and shipping industries, the coastal agroecological zone has a lower rate of households in the lowest income quintile and a higher rate in the top quintile (15 percent and 24 percent, respectively). The opposite pattern is found in the upland agroecological zone, where only 16 percent of households are in the top quintile of income and 23 percent are classified in the bottom quintile. 71 240 400 650 1,425 413270 1,095 1,700 2,598 5,196 1,612 0 1,000 2,000 3,000 4,000 5,000 6,000 Q1 Q2 Q3 Q4 Q5 All Th o u sa n d s o f M ya n m ar k ya ts Per capita Total 31 Table 5.1 Share of households in income quintiles, by location characteristics Location Share of households in quintile (percentage) Q1 Q2 Q3 Q4 Q5 All District Mawlamyine 18 19 17 22 24 100 Thaton 25 17 22 21 15 100 Agroecological zone Coastal 15 21 19 21 24 100 Lowland 21 17 18 22 22 100 Upland 23 19 20 21 16 100 Households in the lowest income quintile are more likely to be female-headed (29 percent) or headed by a member with no formal education (42 percent, compared with the sample average of 32 percent) (Table 5.2). Households in the top income quintile are less likely to be headed by family members with no formal education (24 percent). Having a tertiary degree–holding family member further reinforces the relationship between educational attainment and household income. Households in the top income quintile are four times as likely to have a family member with a tertiary degree as are households in the bottom quintile (19 percent versus 5 percent). Average household size does not vary greatly across income quintiles, although it is slightly smaller for the top income quintile. It is not surprising that households in the two upper income quintiles have higher-than-average rates of improved toilet facilities, 42 percent and 57 percent, respectively, compared with the average of 39 percent. The upper two income quintiles also have access to electricity at higher-than-average rates, 60–72 percent, compared with the Mon average of 56 percent. Table 5.2 Household characteristics, by per capita income quintile Characteristic Share of households by quintile (percentage) Q1 Q2 Q3 Q4 Q5 All Head characteristics Median age 53 51 51 53 52 52 Female 29 20 21 23 23 23 No formal schooling 42 36 29 29 24 32 Highest level of education in household is tertiary 5.0 4.4 9.5 12.8 19.2 10.2 Average household size 4.4 5.0 4.5 4.3 3.8 4.4 Housing characteristics Improved toilet 32 33 33 42 57 39 Electricity 46 46 53 60 72 56 Own agricultural land 40 39 32 44 55 42 In rural Mon State, agriculture is an important source of livelihoods, with nearly 50 percent of households earning income from farming. Households in the middle income quintile own agricultural land at lower-than- 32 average rates, 32 percent compared with the sample average of 42 percent, and those in the top quintile are more likely to own agricultural land (55 percent) than the average. 5.3 Income Sources and Livelihood Strategies Households in rural Mon State derive livelihoods from a variety of income sources including agriculture (rice, rubber, orchards, and other annual crop and livestock farming), remittances, nonfarm enterprises, wage labor, fishing, salaried earnings, resource extraction, and other sources.6 In this section we describe the contribution of these different income sources and how households combine them into livelihood strategies. Households in rural Mon State average a little more than two income-generating activities (Figure 5.2). One- third of households participate in only one form of income generation, 36 percent participate in two activities, and 29 percent participate in three or more activities. Figure 5.2 Distribution of number of income sources Households in the bottom quintile participate in fewer activities than the average, 1.7, whereas households in the top two quintiles are more diversified, participating in 2.2–2.4 activities on average (Figure 5.3). 6 Other sources are a mixture of pensions, lottery winnings, donations, and gifts received. These sources were lumped together to emphasize their impermanence. 2% 33% 36% 20% 9% 0 1 2 3 4+ 33 Figure 5.3 Average number of income sources and household size, by income quintile The five most common income sources are wage labor, remittances, nonfarm business, rice farming, and other sources (Figure 5.4). While 49 percent of households in the top income quintile receive money from remittances, only 15 percent in the bottom income quintile do so, indicating the importance of migration as a strategy to improve household income. Nonfarm enterprises also increase in prominence as we move up the income quintiles, increasing from 17 percent in quintile 1 to 37 percent in quintile 5. Wage labor is the most frequent income source for households that fall in the middle income quintiles (53–55 percent for households in quintiles 2 and 3). Due to constraints on land use that emphasize rice farming, it is not surprising that this is a fairly consistent activity across all income quintiles, though there is slightly greater participation among the highest-income households (29 percent) and the lowest participation is among middle-income households (12 percent). Credit, donations, and gifts are also a fairly consistent source of income across quintiles, with an average of 16 percent of households. The other income sources have participation rates of 12 percent or less. Participation rates across quintiles are fairly consistent for livestock farming, other crops, and rubber farming, with an average of 12 percent, 10 percent, and 9 percent, respectively. Orchard farming is more prominent among both the lowest income quintile and the highest, 12 percent and 15 percent, respectively. It is possible that the bottom-quintile households have invested in orchards and will realize higher incomes once their trees reach maturity. Households in the top quintile fish at a rate 80 percent greater than average (18 percent), whereas households in the bottom quintile have fishing rates 53 percent lower than average (5 percent) (Table 5.3). Salaries are a rare income source among the bottom two quintiles but are 30–60 percent greater than average among the top three quintiles, ranging from 10 percent to 12 percent of households. Resource extraction is not a popular income source among all household quintiles, but it employs a larger share of households in the lower income brackets. 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 Q5 In co m e so u rc es p er m em b er H o u se h o ld s iz e Livelihood strategies Household size Strategies/Household size 34 Figure 5.4 Share of households participating in income-generating activity, by income quintile Note: Households with negative or zero income were not included (approximately 3 percent of households). Table 5.3 Difference of quintile average from sample average (percentage) Income source Q1 Q2 Q3 Q4 Q5 Wage labor -10 31 25 0 -43 Remittances -57 -9 5 20 44 Nonfarm enterprises -42 1 -6 19 29 Rice farming -12 -5 -40 9 46 Credit and other sources 4 -5 -23 2 19 Livestock -7 4 -2 3 4 Orchard farming 14 -44 -5 -7 39 Other annual crops -3 -16 -22 24 14 Fishing -53 -37 12 0 80 Rubber farming -22 -26 10 16 21 Salaried labor -90 -35 37 30 60 Resource extraction 23 64 29 -52 -56 While it is important to know the prominence of the different livelihood strategies, more context is needed to understand how much these strategies contribute to household income. Assuming a dominant livelihood strategy to be one from which a household derives more than 50 percent of its income, we present the 0 10 20 30 40 50 60 1 2 3 4 5 6 P er ce n ta ge Income quintile per capita Wage labor Remittances Nonfarm enterprise Rice farming Credit and other sources Livestock Orchard farming Other annual crops Fish Rubber farmers Salaried earnings Resource extraction Q1 Q2 Q3 Q4 Q5 All 35 share of households with a majority of their income from different strategies by income quintile in Figure 5.5. It is important to note that livestock, salaried labor, annual crops, rubber farming, orchard farming, resource extraction, and other sources (credit, donations, and gifts) each constitute the dominant livelihood strategy for less than 5 percent of rural Mon households. Because the share of households that participate in these activities is higher than the share of those that derive a large portion of income from them, we can infer that these activities make up supplementary income for many households. Figure 5.5 Percentage of households with majority income from various sources, by income quintile Wage labor, remittances, and nonfarm enterprises are prominent, with 59 percent of households reporting receiving the majority of their income from one of these sources. Approximately 24 percent of all households receive 50 percent or more of their income from wage labor, but this source is more prominent among households in the lower income quintiles (31–37 percent). While households in the top two quintiles are more likely to receive income from remittances (41–49 percent), it is a dominant source of income for only half of those who receive it (20–21 percent), serving as supplementary income for the remainder. Fishing and rice farming are more likely to be dominant sources of income for households in the top quintiles (17 percent and 19 percent, respectively) than for other quintiles. Nonfarm enterprises are the dominant income source for 17 percent of households, and this share stays relatively constant across quintiles. For the whole sample, the largest share of income comes from agricultural (crop) production (24 percent), followed by remittances (22 percent), nonfarm businesses (18 percent), wage labor (14 percent), and fishing (11 percent) (Figure 5.6). However, the composition varies greatly by income quintile. Wage labor makes up almost half of total income (46 percent) for the lowest income quintile, but drops to just 4 percent for the top quintile. Fishing income has the opposite pattern, accounting for just 4 percent of total income for quintile 1 but 14 percent in quintile 5. Remittances make up about 11–17 percent of total income for the bottom three quintiles but increase to 23–25 percent for the top two. Nonfarm businesses consistently make up 15–19 percent of income across the quintiles. 0 5 10 15 20 25 30 35 40 1 2 3 4 5 6 P er ce n ta ge Income quintile per capita Wage labor Remittances Nonfarm enterprise Rice farming Fishing Credit and other sources Salaried labor Annual crops Rubber farming Orchard farming Resource extraction LivestockQ1 Q2 Q3 Q4 Q5 All 36 Figure 5.6 Composition of total income by income quintile Note: For ease of interpretation, negative income was removed from the calculations in this figure. As a share of agricultural production income, rice farming fluctuates from one quintile to the next (Figure 5.7). Households in the bottom income quintile have higher landownership rates and receive a greater percentage of their income from rice farming than do those in quintiles 2 and 3. The number increases again for quintile 5, which also has a higher-than-average rate of landownership and percentage of income received from rice farming. All other income sources from agricultural production make up a low and fairly constant share of income across quintiles, ranging from 3 to 4 percent, though, like rice production, their share is also slightly higher among households in quintiles 1 and 5. Figure 5.7 Composition of agricultural income by income quintile Note: For ease of interpretation, negative income was removed from the calculations in this figure. 0 20 40 60 80 100 1 2 3 4 5 All P er ce n ta ge o f to ta l i n co m e Income quintile, per capita Agricultural production Remittances Nonfarm enterprise Wage labor Fishing Salaried labor Credit and other Livestock Resource extraction 0 5 10 15 20 25 30 35 1 2 3 4 5 All P er ce n ta ge o f to ta l i n co m e Income quintile, per capita Rice Annual crops Rubber Fruit 37 In summary, households in Mawlamyine district are more likely to be classified in the upper quintiles than households in Thaton district, as are those in the coastal agroecological zone compared with the other zones. Households in the upper income quintiles have higher educational attainment and greater access to improved housing characteristics, such as electricity, plumbing, and roofing. Four distinct patterns emerged from the livelihood strategies and incomes. First, agricultural production, remittances, nonfarm enterprises, and wage labor are the largest sources of income for households and have the highest rates of participation. Second, households in the upper two income quintiles have slightly more diversified livelihood strategies than the average household. They are heavily reliant on remittances and slightly more reliant on income from agricultural production and fishing. Third, the bottom three quintiles participate in and receive the majority of their income from wage labor. Last, nonfarm enterprises are a steady source of income across all income quintiles. 5.4 Landownership and Tenure Arrangements Agricultural landownership varies greatly among the different regions of Mon State (Table 5.4). Nearly 59.5 percent of households in Mon have no agricultural land, but this ranges from 73.2 percent in Chaungzon township to 38.5 percent in Mudon township. Of those households with agricultural land, the average area of holdings is 7.3 acres (median 5.0 acres), but again, this varies greatly across townships, ranging from almost 10 acres in Ye and Thanbyuzayat in the south to a little more than 2 acres in Mawlamyine township. There is little difference between the area of agricultural holdings owned and the area cultivated, an average difference of just 0.1 acres. Table 5.4 Agricultural landholdings by township (north to south) Township Households owning agricultural land (percentage) Average area of agricultural land owned (acres) Median area of agricultural land owned (acres) Average area of agricultural land operated (acres) Kyaikto 34.6 6.7 4.0 6.1 Bilin 38.1 5.6 3.5 5.6 Thaton 34.5 7.1 4.0 7.4 Paung 36.6 6.6 5.0 6.9 Mawlamyine 28.0 2.3 1.5 2.3 Chaungzon 26.8 5.3 4.0 5.2 Kyaikmaraw 51.1 7.3 5.0 7.2 Mudon 61.5 8.3 6.0 8.0 Thanbyuzayat 51.2 9.9 6.0 9.4 La Mine 52.2 8.6 6.0 8.8 Ye 34.6 9.3 6.4 8.7 Mon State overall 40.5 7.3 5.0 7.2 Note: Includes land rented in and omits land rented out. 38 Table 5.5 Agricultural landholdings by agroecological zone Zone Households owning agricultural land (percentage) Average area of agricultural land owned (acres) Median area of agricultural land owned (acres) Average area of agricultural land operated (acres) Coastal 38.6 10.3 6.0 9.9 Lowland 37.3 6.6 5.0 6.6 Upland 45.5 6.9 4.0 6.8 Mean and median landholdings are higher in coastal areas (Table 5.5). Median landholdings are lowest in the upland zone, where landownership rates are slightly higher than the state average but still less than half of all households. We compute the Gini coefficient, one of the most widely used summary measures of inequality, for landholdings. The Gini coefficient can vary between the extremes of 0 (everyone has the same amount of land), and 1 (one person has all the land). The estimated Gini coefficient of landownership in Mon State is 0.76, reflecting the highly unequal distribution presented in Table 5.4. The coefficient increases marginally to 0.77 when operated holdings (those borrowed or rented in) are included, indicating that rather than offsetting the unequal distribution of land, borrowing and leasing have a slightly negative redistributive effect. The Gini coefficient for the distribution of agricultural land (excluding landless households) is less extreme but still fairly high, at 0.53. To help interpret this coefficient, Figure 5.8 displays the Lorenz curves for landownership. It shows that the top 20 percent of households own 56 percent of all agricultural land, compared with just 2 percent of land owned by the bottom 20 percent of households. The top 40 percent of households own more than 75 percent of all agricultural land while the bottom 40 percent own less than 10 percent. This coefficient would likely be larger still if large plantations were included in our survey. Figure 5.8 Lorenz curves for landownership 39 Table 5.6 Number and area (acres) of holdings by land use type Item Parcel type Residence Paddy field Rubber plantation Orchard Other crops Virgin/vacant /forest land All land Mean area of land owned per household 0.2 6.0 5.5 3.5 3.6 5.2 2.5 Median area of land owned per household 0.1 5.0 3.0 2.0 1.5 1.5 0.3 Mean area of land rented/borrowed/leased in per household 0.1 4.8 3.9 1.2 1.0 1.2 1.2 Median area of land rented/borrowed/leased in per household 0.1 4.0 1.0 1.0 0.5 0.5 0.1 Mean area of parcels operated by operating households 0.2 5.8 5.4 3.3 3.1 4.8 2.3 Median area of parcels operated by operating households 0.1 5.0 3.0 1.5 1.5 1.5 0.2 Share of parcel type in total number of parcels (percentage) 59.2 16.3 14.5 4.0 3.7 2.0 100.0 Share of parcel type in total land area (percentage) 4.9 39.4 36.4 5.9 4.3 4.1 100.0 Share of parcel type in total parcel area owned (percentage) 82.7 84.3 96.6 87.0 81.5 89.4 85.3 Maximum area of parcels owned per household 5.0 67.0 90.0 60.0 30.0 70.0 90.0 Respondents reported six major land use types: residence, paddy field, rubber plantation, orchard, other crops, and virgin/vacant/forest land. The average area of land owned, accessed via other tenure arrangements, and operated, per household, by parcel type, is reported in Table 5.6. In each case, the mean is calculated using the number of households owning or operating each type of land. There is little difference in the average area of parcels owned for rubber and rice (about 6 acres each) although, interestingly, the median area of rubber plantations is considerably smaller than that of paddy fields (5 versus 3 acres). Parcels owned are generally larger on average than parcels accessed through other tenure arrangements. Residences account for the majority of parcels (59 percent), followed by paddy fields and rubber plantations (39 percent and 36 percent of total area, respectively). The majority of land (85.3 percent) is owned outright. Among agricultural land use types, the share of land accessed through tenure arrangements other than ownership (that is, rented, borrowed, or shared in) ranges from 3.4 percent to 18.5 percent, and is highest for farmers of “other annual crops.” The maximum 40 area of parcels owned by landowning households is quite low, reaching an upper limit of 90 acres for rubber (Table 5.6). Somewhat surprisingly, purchase is the most important form of land acquisition, accounting for between 40 percent and 64 percent of land acquisitions across all land use categories, followed by inheritance (Table 5.7). Seventeen percent of households access residences or land for rice cultivation by renting in or borrowing, but only 3 percent access land for rubber cultivation in this way. Very little sharecropping occurs, even for rice, and parcel acquisition by state grant is relatively insignificant. Table 5.7 Means of parcel acquisition by parcel type Means of acquisition Parcel type Residence Paddy field Rubber plantation Orchard Other crops Virgin/vacant/forest land Mon as a whole Given by local state 3.9 1.8 3.7 2.8 4.3 3.7 3.7 Inherited 29.5 30.5 25.7 33.4 34.0 24.0 28.6 Purchased 48.4 49.6 62.2 50.5 40.4 64.3 50.9 Received as gift 0.7 0.2 1.7 1.1 0.0 0.0 0.7 Occupied 0.9 0.4 4.1 2.0 1.6 0.0 1.7 Rented in/borrowed 16.6 17.3 2.7 9.2 19.7 8.1 14.3 Sharecropped in 0.1 0.2 0.2 1.1 0.0 0.0 0.2 Land tenure security is an important issue in Myanmar. Two-thirds of land parcels are reported to have some form of documentation that confers land use rights or indicates a history of land use. This figure is highest for agricultural parcels, at 76 percent. However, among agricultural land parcels, only 25 percent are covered by Form 7, a document introduced in 2012 that confers relatively secure, transferrable use rights, and 11 percent by Form 105, the land use right document that preceded Form 7. The primary form of documentation to show land use rights is either tax receipts (45 percent) or contracts (29 percent). Only 10 percent of residential parcels are covered by a house grant (ain grant), the most secure form of tenure for homestead land (Table 5.8). Of households with agricultural land who do not yet possess Form 7, 87 percent had yet to begin the application process to obtain one. Of these households, 47 percent reported that they did not know it was required, 22 percent that there was no need, and 18 percent that they did not know how to do so. 41 Table 5.8 Share of households possessing documents conferring user rights, by parcel type and document type (percentage) Parcel type Form 7 Form 105 Contract Tax receipt House grant Other Does not know Total Residence 1.3 1.9 36.4 48.2 10.9 0.6 0.3 100 Agriculture 24.9 10.7 19.9 41.5 0.9 1.2 0.9 100 All parcels 13.0 6.3 28.5 44.9 6.0 0.9 0.5 100 The total number of parcels owned by surveyed households has changed little between the time of the parcel’s original acquisition and the time of the survey (Table 5.9). The total number of residences increased from 1,276 to 1,505, up 11 percent. The number of plots devoted to rubber grew from 180 to 365 (an increase of 85 percent). There was little change in the number of plots devoted to orchards. The number of plots used as paddy fields fell by 10 percent. The biggest decline in plot numbers was for vacant/virgin/forest land, which contracted by 91 percent. The largest number of plot conversions were from vacant/virgin/forest land to residences (43 percent of all plot use changes), followed by vacant/virgin/forest land to agriculture (31 percent of all plot use changes). Expansion of the area under rubber cultivation was thus implicated in a substantial reduction in vacant/virgin/forest landholdings, while construction of new residences reduced the area of agricultural land and, to a lesser extent, vacant/virgin/forest land. Table 5.9 Parcel use change from original to current Parcel use Original use Use five years ago Current use Number of parcels Share of parcels (%) Mean parcel size (acres) Number of parcels Share of parcels (%) Mean parcel size (acres) Number of parcels Share of parcels (%) Mean parcel size (acres) Residence 1,276 50.7 0.4 1,501 59.6 0.4 1,505 59.8 0.2 Paddy field 446 17.7 5.6 417 16.6 6.1 409 16.3 6.3 Rubber plantation 180 7.2 4.9 275 10.9 5.5 365 14.5 5.6 Orchard 109 4.3 3.2 110 4.4 3.6 97 3.9 3.6 Other crops 72 2.9 3.1 76 3.1 3.1 90 3.6 2.9 Vacant/virgin /forest land 404 16.1 2.9 115 4.6 2.9 41 1.6 4.1 Total 2,519 100 2.3 2,519 100 2.5 2,519 100 2.5 Average parcel size declined from 2.5 to 2.3 acres, driven primarily by the growth in the number of residential parcels of smaller average size (from 0.7 to 0.4 acres) (Table 5.9). Interestingly, the average size of paddy parcels increased, from 5.5 to 6.4 acres, as numbers of individual paddy parcels fell, suggesting a degree of nascent consolidation taking place. The average size of rubber plantations grew slightly (from 5.0 to 5.4 acres), even as parcel numbers increased. Conflicts were reported to have occurred over usage rights for only 3 percent of parcels. Of these, 91 percent had been resolved at the time of the survey. Conflicts were slightly more prevalent in Chaungzon and Kyaikmaraw townships (6 percent and 5 percent of parcels, respectively) than elsewhere, and conflicts 42 over residential plots were marginally more common than over other types of land. There was little difference in prevalence of land use conflicts by ethnic group. 5.5 Other Assets 5.5.1 Large Assets We define large assets as motor vehicles, boats, mills, and land and buildings used for nonagricultural business, excluding housing. Of the households surveyed, 90 percent own two or fewer large assets, with a little more than half of households (52 percent) owning no large assets at all. Motorbikes are by far the most common type of large asset owned, with 36 percent of rural Mon households possessing at least one (Table 5.10). Households owning agricultural land are almost twice as likely as households without agricultural land to own a motorbike (51 percent versus 26 percent). Households with agricultural land also have higher levels of ownership of large agricultural assets, such as tractors and power tillers, than those without agricultural land. As would be expected, coastal households and those engaging in fishing have higher levels of boat ownership than nonfishing households and those located further inland. Cars are the most expensive large asset owned, costing approximately MMK 6,766,000 (US$5,775) on average. Motorbikes and small motorized boats are relatively more affordable, averaging MMK 924,000 and MMK 705,000, respectively. Table 5.10 Prevalence of asset ownership by asset type and household characteristics (percentages) Type of asset owned Coastal Lowland Upland Households with agricultural land Households without agricultural land Fishing households All households Motorbike/scooter 41.3 33.1 37.5 50.7 25.9 32.2 36.3 Land used for nonagricultural business 12.4 7.4 14.5 24.3 0.7 0.4 10.1 Small boat, motorized 14.6 2.4 3.1 5.0 4.3 32.8 4.6 Tractor 3.3 3.2 1.6 4.9 0.8 2.8 2.5 Car 5.0 1.6 2.3 3.9 1.3 3.1 2.4 Building used for nonagricultural business 1.5 3.5 0.9 4.4 0.6 0.5 2.2 Power tiller 1.5 2.8 0.7 4.4 0.2 0.0 1.9 Small boat, not motorized 4.8 2.0 0.5 1.9 1.9 13.2 1.9 Trawlarjee 2.0 1.4 1.4 2.8 0.4 0.0 1.4 Three-wheeled motorized vehicle 1.6 1.3 1.2 1.8 1.0 0.0 1.3 Large boat, motorized 3.5 0.9 0.3 1.6 0.8 6.8 1.1 Other motorized transportation 1.2 0.9 0.8 1.1 0.8 1.5 1.0 Mill 0.0 0.3 0.2 0.7 0.0 0.0 0.3 Truck 0.4 0.1 0.2 0.3 0.1 0.0 0.2 Note: A trawlarjee is a rudimentary motorized vehicle consisting usually of a tractor engine mounted onto a cart or trolley. 43 Remittances play an important part in facilitating the purchase of large assets, particularly for those households who reported having a migrant member at the time of the survey (Table 5.11). Contributions from remittances to the purchase of large assets are greatest for motor vehicles, agricultural machinery, and investments in nonagricultural business. For example, more than one-third of households with a migrant member reported that purchase of cars and motorbikes had been funded mainly by remittances, and more than half of households with a migrant who had purchased a tractor reported that remittances accounted for part of the purchase costs. This indicates that remitted incomes are spent on both productive and nonproductive assets. Boats, however, are rarely purchased using remitted incomes, perhaps suggesting that fishing is not considered to be a high-potential investment opportunity. In addition, remittances play a large role in financing home construction, which we return to in Section 8.5. We devote an entire section of this report, Section 8, to the role of migration and remittances in the Mon economy. Table 5.11 Contribution of remittances to the purchase of large assets in households with migrants (percentage of households reporting) Type of asset owned Extent of contribution None at all A small part The majority Car 54.5 9.1 36.4 Motorbike/scooter 54.2 12.5 33.3 Building used in nonagricultural business 56.3 18.8 31.3 Tractor 47.6 23.8 28.6 Other machinery for nonagricultural business 33.3 33.3 22.2 Power tiller 72.2 11.1 22.2 Land used for nonagricultural business 74.4 9.0 15.4 Other motorized transportation 87.5 0.0 12.5 Trawlarjee 66.7 22.2 11.1 Small boat, motorized 70.8 20.8 8.3 Three-wheeled motorized vehicle 58.3 41.7 0.0 Small boat, not motorized 80.0 20.0 0.0 Large boat, motorized 100.0 0.0 0.0 Mill 100.0 0.0 0.0 Total 60.2 14.0 26.0 Note: A trawlarjee is a rudimentary motorized vehicle consisting usually of a tractor engine mounted onto a cart or trolley. Ownership of large assets increased substantially over the preceding five years, up from an average of 1.1 to 1.9 large assets per household (Table 5.12). Increases in asset ownership occurred at roughly equal rates for the bottom 60 percent and the top 40 percent of households by income, though households in the top 40 percent own 0.4 more assets than those in the bottom 60 percent. When broken into expenditure quintiles, the bottom quintile owned an average of 1.7 large assets in 2015, compared with 2.1 for the top quintile. 44 Table 5.12 Change in large asset ownership during the last five years, by expenditure group Expenditure group Mean number of large assets owned per household in 2010 Mean number of large assets owned per household in 2015 Increase in mean number of large assets owned per household (percentage) Lowest 3 quintiles 1.0 1.7 70.0 Highest 2 quintiles 1.3 2.1 60.0 All 1.1 1.9 68.3 5.5.2 Small Assets The most common small assets owned in Mon State are lamps (84 percent), followed by locks (63 percent), televisions (61 percent), and mobile phones (58 percent) (Table 5.13). Overall, nonelectronic durable goods such as household furniture and cooking equipment are the most common type of small asset owned, with 95 percent of households owning at least one type of durable good. Coastal households own on average more electronic and nonelectronic durable goods, electrical and entertainment products, and fishing gear than upland and lowland households. Households with agricultural land are more likely to own small assets than households without agricultural plots, especially manual and mechanical agriculture implements, vehicles, durable electronic goods, and entertainment products. Table 5.13 Prevalence of asset ownership by small asset type and household characteristics (percentage) Type of asset owned Percentage of households owning, by household group All households Coastal Lowland Upland Owns agricultural land Does not own agricultural land Durable goods (nonelectronic) 98.4 94.0 95.0 95.5 94.8 95.0 Electrical communication and entertainment products 87.7 80.5 79.6 86.2 76.7 80.6 Durable goods (electronic) 46.0 42.2 35.9 46.0 35.3 39.6 Agricultural implements (manual) 31.3 37.2 35.4 57.3 20.9 36.1 Gold 33.9 30.9 33.6 35.9 29.0 31.8 Fishing and forestry gear 48.9 26.7 27.5 32.9 28.7 30.5 Agricultural implements (mechanical) 9.4 15.7 14.8 25.7 6.2 14.3 Vehicle/transportation 7.3 10.1 9.5 17.1 4.6 9.9 There is a significant difference in small asset ownership across consumption expenditure quintiles (Table 5.14). Durable nonelectronic goods are the most widely owned small asset, with 91 percent ownership in the first quintile and 99 percent in the fifth quintile. In the fifth quintile, 95 percent of households own electronic communication and entertainment products, compared with only 60 percent in the first quintile. This is mainly driven by television and cell phone ownership. Agricultural implements, both mechanical and manual, are more widely owned in the top quintiles. Vehicles, on the other hand, which include bicycles, carts, and trishaws (three-wheeled vehicles), have even ownership over the top four quintiles. 45 Table 5.14 Share of households owning small assets, percentages, by consumption expenditure quintile Type of asset owned Q1 Q2 Q3 Q4 Q5 All quintiles Durable goods (nonelectronic) 91.1 92.5 95.4 96.6 99.2 95.0 Electrical communication and entertainment products 59.4 72.9 85.9 89.1 94.9 80.6 Durable goods (electro