General Framework of Study

It is well known that agriculture dominates the Burmese economy. It contributes 35-45 per cent of GDP (in value added), provides employment for 60-70 per cent of the labour force, and accounts for 70-90 per cent of the country's export earnings. An assessment of agricultural development in Burma reveals two major developments (Mya Than 1980). The first took place during the colonial period (1860s to 1940/41). From a state of subsistence economy before the annexation, Burma was transformed into the largest exporter of rice and rice products. The main driving force was the area expansion in lower Burma. However, the dynamic and educative effect was lacking because with commercialization agrarian class relations deteriorated, and the benefits of agricultural development were channelled out of the country.

After independence came the period of static and stagnant agriculture, which lasted for more than a quarter of a century (from late 1948 to the first half of the 1970s). The performance of rice production was poor: there was no substantial increase in productivity or in volume. World War II, the post-independence unrest, and the lack of adequate institutional factors (such as land reform, credit system, and pricing policy) and incentives, together with the absence of any substantial change in technology, contributed to the poor agricultural production at that time.

The second epoch of agricultural development occurred recently. Soon after the start of the Second Four-year Plan (Second FYP) in 1974/75, there was a breakthrough in yield per acre and production of paddy. The contributing factors include favourable weather conditions, the introduction of high-yielding variety (HYV) seed programmes, along with improved techniques and farmers’ positive response to the government campaign — “Whole Township Special Rice Production Programme” — successfully launched by the government during the second half of the Second FYP. The introduction of the technology package consisted mainly of HYV seeds, increased utilization of chemical fertilizers, improved transplanting methods, and better weed control practices. In 1978/79, twenty-three townships took part in the campaign and in 1982/83, the number of participating townships increased to eighty-two.