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MINISTRY OF AGRICULTURE AND IRRIGATION MINISTRY OF LIVESTOCK AND FISHERIES MINISTRY OF COOPERATIVES THE DEVELOPMENT STUDY ON SUSTAINABLE AGRICULTURAL AND RURAL DEVELOPMENT FOR POVERTY REDUCTION PROGRAMME IN THE CENTRAL DRY ZONE OF THE UNION OF MYANMAR FINAL REPORT AUGUST 2010 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) SANYU CONSULTANTS INC., TOKYO, JAPAN RD JR 10-052 PREFACE In response to a request from the Government of Myanmar, the Government of Japan decided to conduct a study, the Development Study on Sustainable Agricultural and Rural Development for Poverty Reduction Programme in the Central Dry Zone of the Union of Myanmar, and entrusted the study to the Japan International Cooperation Agency (JICA). JICA selected and dispatched a study team headed by Mr. Kosei HASHIGUCHI of Sanyu Consultants Inc. and composed of members from the said consultancy company between May 2006 and August 2010. The team held discussions with the officials concerned of the Government of Myanmar and conducted field surveys at the study area. Upon returning to Japan, the team conducted further studies and prepared this final report. I hope that this report will contribute to the promotion of the development programmes identified therein and to the enhancement of friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials concerned of the Government of Myanmar for their close cooperation extended to the study. August 2010 TAKASHIMA Izumi Vice-President Japan International Cooperation Agency August 2010 Mr. TAKASHIMA Izumi Vice-President Japan International Cooperation Agency Tokyo, Japan Letter of Transmittal Dear Mr. TAHASHIMA, We are pleased to submit herewith the Final Report on the Development Study on Sustainable Agricultural and Rural Development for Poverty Reduction Programme in the Central Dry Zone of the Union of Myanmar. This Report presents the development programmes of the target Central Dry Zone (CDZ) area formulated with the advices and suggestions of the authorities concerned of the Government of Japan and your Agency. Also incorporated were comments made by the national steering committee members chaired by the Ministry of Agriculture and Irrigation during the technical discussions on the draft final report, which were held at Nay Pyi Taw in June 2010. The overall goal of this Study lies in providing a design for action plans for the purpose of comprehensively promoting poverty reduction and regional development targeting the CDZ of the Union of Myanmar. The Study has been conducted in partnership with and by guidance from the concerned three ministries of Agriculture and Irrigation, Livestock and Fisheries, and Cooperatives. The process of this Study centered on the following which themselves are the objectives of the Study: 1) To formulate Action Plans with practically applicable measures to the CDZ for reducing poverty, focusing on the livelihood of those who live in the area, and 2) To develop capacity of formulating plans and implementing projects for counterparts, extension workers, farmers and targeted communities in the target area. To attain the above objectives, this Study was carried out in a phasing manner divided into two; namely, Phase I dealt mainly with situation analysis, participatory workshops, formulation of the draft Development Programme and identification of some potential pilot projects, and Phase 2 undertook the preparation and mobilization of the pilot projects and its implementation, and presented the final version of the Development Programme upon feed-backing all the lessons therein. The Phase I study was commenced in May 2006 and completed at the mid of March 2007, and the Phase II study started in June 2007 and ended with the presentation of this final report. We wish to take this opportunity to express our sincere gratitude to your Agency, the Ministry of Foreign Affairs and relevant authorities of the Government of Japan. We also wish to express our deep gratitude to the Ministry of Agriculture and Irrigation, Ministry of Livestock and Fisheries and Ministry of Cooperatives in the Union of Myanmar for the close cooperation and assistances extended to us during our surveys and study. Very truly yours, HASHIGUCHI Kosei Team Leader of the Study Team PHOTOS OF THE STUDY AREA The Study Area holds a vast area, extending latitudinally about 560km, longitudinally about 130km. Though most of the areas extend in plains, there are hills as shown in the photo, heights of which range often over 100m or so. In this vast space, natural conditions like precipitation, topography, soils etc. diversely vary, so do inhabitants’ livelihoods. Rainfall pertinent to dry zone Climatic character of arid and semi-arid areas lies not only in the scarcity of rainfall but its pattern is also highly variable with sites in an area giving serious impact on spot crop yields. Instability of rainfall is not confined on time sequence but it occurs on horizontal space. Under this situation, straight forward investment may result in vain and here risk-hedged activities should be pursued as development strategy. i Upland farmlands are called Ya in Myanmar where pulses and beans, and oil crops have long been cultivated by the CDZ population, which can not grow well in wet areas. The Central Dry Zone produces as much as 40 - 90% of whole pulses and beans produced in Myanmar except for black gram (this is cultivated in Delta area), and about 70 – 90 % of whole oil crops also produced in Myanmar. Except for Bago Hills and its surrounding areas, most of the lands in Central Dry Zone are quite plain where one can see relatively intensive agriculture. A typical intensive agriculture can be seen in paddy cultivation areas, some of which are even equipped with irrigation facilities. Such very intensive paddy cultivation is found along the Ayeyarwady Rive and its tributaries. ii PHOTOS FOR PILOT PROJECTS A Demonstration Plot with Crop Calendar: This is one of A Paddy dryer (Legaing Village): Using rice husk, they are now d emonstration plots of Integrated Crop Management (ICM). The drying pre-monsoon paddy which is usually harvested during the chart was produced by Magway divisional MAS office. onset of rainy season, thereby needing drying. C hick Pea Seed Regeneration with An Improved Seeder (Magyi Extension Materials produced by Kyaukse Township: Crop Village): With the seeder they can try line planting and save seed calendar on the back and leaflets, photos, manual, one-point b y about two thirds. illustration (folded), and even MP-4 player. Goat Raising (Mingan Villlage): 5 she-goats are provided to each Pig Revolving (Legaing Village): 2 pigs are provided to the 1st beneficiary of a group, and they have to revolve same 5 generation beneficiaries, and they are required to hand over same she-goats to the second generation beneficiaries. 2 pigs to the 2nd generation beneficiaries. iii Knitting Production (Ma Gyi Sauk Village): Altogether 50 Embroidery Promotion (Ma Gyi Sauk Village): 10 persons were m embers come up to the 5 knitting machines, and skilled trained on this embroidery, fetching added value on, e.g. longyi, members transfer the technology to their peers besides. shirt, pillow, etc. A Children’s Nutrition Improvement Center (North Pabe A Paddy Husk Bio-gas Power Generation (Mon Taw Gyi village): Children are provided nutritious food at this centre and Village): Bio-gas from charcoaled husk can run diesel engine, a t the same time washing-hand, etc. are taught. thereby generating electricity forthe 380 households there. A Kick-off Workshop for Launching Pilot Project (at Mandalay): A Stakeholder M&E Tour: Over 40 donor/government Over 80 concerned officers were invited to this workshop for stakeholders participated in the M&E tour, to whom one of arriving consensus between the Team and them. village representatives presents their achievement. iv EXECUTIVE SUMMARY Executive Summary 1. INTRODUCTION 1.1 The CDZ is located in the central part of the Union. The Zone has merely 700 - 1,000mm of annual precipitation since south-westerly monsoon blown from Bengal Bay is intercepted by the mountain range of Rakhine that runs nearly south to northward at the western border of the Union. Rainfall is concentrated in a few months of rainy season with erratic duration and with wide annual deviation in annual precipitation. This meteorological character not only very often brings about droughts with crop failure but casual intense showers during mid rainy season also result in floods in the watershed of Ayeyarwady River. Such climatic casualty makes environment of agricultural production as major means of livelihood of the population unfavorable as compared to that of other parts of the Union. 1.2 What’s more, such state has further been exacerbated by other unfavorable factors such as pressure of increasing population versus migration of labor population in the form of seasonal outflow of workforce for piecemeal and deterioration of natural resources. Further increase of poverty-prone population is threatened unless relevant countermeasures are taken. With a view to ameliorating such undesirable state, the Government of the Union of Myanmar requested the Government of Japan to conduct a study on comprehensive agricultural and rural development in the CDZ. Upon this request from the Government of the Union of Myanmar, JICA dispatched a preliminary and appraisal mission in February 2005, and the Scope of Works (SW) was agreed and signed on November 16, 2005 between the two governments. The Study commenced in May 2006 and completed in August 2010. 1.3 The overall goal of this Study lies, as stated in the Scope of Works (SW), in providing a design for action plans for the purpose of comprehensively promoting poverty reduction and regional development targeting the CDZ of the Union of Myanmar. The whole process of this Study therefore centers on the following, which themselves are the objectives of the Study: 1) To formulate Action Plans with practically applicable measures to the CDZ for reducing poverty, focusing on the livelihood of those who live in the area, and 2) To develop capacity of formulating plans and implementing projects for counterparts, extension workers, farmers and targeted communities in the target area. 1.4 In early 2006, SANYU Consultants Inc. of Japan was contracted by JICA to carry out the Study. The Study Team first arrived at Yangon on May 14, 2006 and began phase 1 field surveys. The Team has conducted necessary surveys and studies agreed in the SW during the first year’s survey period, and presented a draft version of the action plan, a sort of master development plan of the CDZ. Then, from phase 2 survey onward, pilot projects had been commenced centering on poverty reduction by dealing mainly with 4 sectors of agriculture, livestock, cottage industry and living environment improvement. All the planned activities under the pilot projects had been completed by the end of February 2010, and lessons were fed-back in refining the action plan of the CDZ. With these works having been successfully completed, this Final Report is presented. 2. DEVELOPMENT AND POVERTY OF THE UNION 2.1 Although economic growth in early 1990s had been weak, it achieved high rates of growth, 6 - about 10% per annum, during the period from around 1992/93 to mid 1990s. In 1997 the Country joined ASEAN anticipating much foreign investment by this occasion, however, it ended up in overall failure as affected by Asian economic crisis occurred in the same year. The GDP growth rate resulted in 5.7% in 1997/98 followed by 5.8% in 1998/99. Then the GDP growth rate showed a sudden surge in 1999/2000 at 10.9%, and has been marking high growth ratio over 10% to date. The average JICA 1 MOAI

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Chick Pea Seed Regeneration with An Improved Seeder (Magyi. Village): With the Executive Summary. JICA. 1. MOAI .. 0.387 for the 6 villages where pilot projects were carried out in FY 2007/08. Average . utilize the development framework, the entry point is the Budget Estimation Meeting held in.
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