A. Background

Myanmar is the largest country in mainland Southeast Asia, stretching over 2,000 km from north to south. It has a total land area of 676,577 sq. km (261,228 sq. miles). It shares a total of 5,858 km of international borders with five nations — China, Laos, Thailand, India, and Bangladesh — and has over 2,800 km of coastline. It is twice the size of Vietnam and more than a quarter larger than Thailand.

There are three forest-covered mountain ranges running from north to south — the Rakhine Yoma, the Bago Yoma, and the Shan Plateau. These mountain chains divide the country into three major river systems — the Ayeyarwady, the Sittang, and the Thanlwin. Fertile cultivable lands exist mainly along the valleys between the mountain chains and the delta of the Ayeyarwady, an area of 240 km by 210 km.

Although Myanmar is situated in the monsoon region of Asia, its climate is greatly modified by its geographical position and topography. Droughts or floods are rare and incidences of natural hazards such as cyclones and earthquakes are few and far between. The coastal regions receive about 5,000 mm of rain annually, while the delta region receives nearly 2,500 mm of rain annually. In the Dry Zone, the average rainfall is less than 1,000 mm and in some places as low as 500 mm, resulting in significant soil moisture deficiency throughout those areas. The mean temperature ranges from 32°C in the coastal and the delta areas to 21°C in the northern lowlands.

Myanmar is basically an agricultural country. And for an agricultural country like Myanmar, which relies rather heavily on the monsoon rains, climatic changes and the economic environment affecting agriculture can impact the economy significantly. The agriculture sector accounts for over 40 per cent of gross domestic product (GDP) and provides employment to about 65 per cent of the labour force. Moreover, as much as two-thirds of the processing and manufacturing sector is agro-based and exports are dominated by agricultural products.