Following the coup d’état initiated on February 1, 2021, a total of 1,384 people had died and 11,289 had been arrested as of December 31. Between February 1 and December 10, the military launched 7,053 attacks against civilians and citizen forces, an increase of 664% compared to 2020 (ALTSEAN 2022/01/05, 1, 4). Of 593,000 internally displaced people (IDP), 223,000 have become displaced following the coup (OCHA 2021, 17).
Although the coup was a military decision, the cause can be explained by civilian military relations. That is, the civilian government led by Daw Aung San Suu Kyi neglected the military, and there were periodic emotional confrontations between the leaders of each faction. The military, acted out of a desire to regain its own status and function as a patriotic group defending the federal Union, even if it relied on force. However, the division of the society and the conflict between the people were not explicit like the military claimed, so their use of the political intervention justification to seize control of the government seems absurd.[1]
If the military's previous three political interventions of 1958, 1962 and 1988 occurred across a continual political decline and state of low national development, then the military coup of 2021 is a reactionary attempt to return the country to the past in a completely new political and social direction. If a formal representative system is set up through a general election in August 2023, Myanmar will return to a military-oriented society, and there will be heavier social and political costs involved in the country's reconstruction compared to now.
The military's regressive behavior in the process of Myanmar's normalization does not only mean political decline. It will expose the structural problems and bring about a crisis in all sectors of society. Myanmar has already become a failed state under the half-century of military rule, but the military wants to rebuild its traditional dynasty that gives it reign over the people. The country has reached an inflection point where the crises of the past will be repeated.
2. Adding Insult to Economic Injury: The Effects of a Coup Perpetrated by a Military Overwhelmed by the COVID-19 Pandemic
From 1988 until March 2011, the military government announced that average annual economic growth was double digit, but nobody believed this. In the junta, the personnel in the Central Statistical Organization distorted the numbers out of fear of offending their superiors and losing their jobs. This behavior was a very important characteristic of bureaucratic society. The Thein Sein's administration (2011-2016) promoted the establishment of an accurate statistical system in accordance with its drive to erase the chronic maladies of the country's bureaucratic society and push for reform and opening up.
This tendency of the military to distort reality appears to be experiencing a revival. For example, on December 7, 2021, Minister Aung Naing Oo of the Ministry of Investment and Foreign Economic Relations claimed that Myanmar's GDP growth rate of -18% was unreliable data from those opposed to the regime. He claimed that the real GDP growth was -8 to 9%, and that post-pandemic growth would exceed the IMF's forecast of 2.5% (Duangdee 2021/07/26; Nitta 2021/12/10; World Bank 2021/07/23). Other major institutions forecast Myanmar's economic growth for 2022 at -4 to 5%, also deviating from the Minister's predictions.
Contrary to the claims made by Minister Aung Naing Oo, Myanmar's economic recession following the coup has been serious, increasing the possibility that the people's standard of living will regress to the level that it was under the previous military government. According to the UNDP, the biggest factor impacting household income since February 1, 2021 has been the coup (75%), followed by the pandemic (25%) (UNDP 2021, 35).
Between the end of 2019 and July 2021, 3.2 million people lost their jobs due to the pandemic, with millions more being forced to reduce their working hours (ICG 2021, 8). Since shortly after the coup, the value of the kyat (MMK) has declined against the US dollar, falling 33% between January and November 2021 (OCHA 2021, 14). The international community has sounded the alarm over the crisis in Myanmar. UNDP warned that by the beginning of 2022, nearly half of Myanmar's population of 55 million, or 25 million people, are expected to be living below the national poverty line, a return to pre-2005 living standards (UNDP 2021/12/01).
These warning signs are expected to be exacerbated by the falling exchange rate. The Central Bank of Myanmar sold a total of $88 million USD on six occasions in December 2021 alone to mitigate exchange rate fluctuations (GNLM 2021/12/25). At the time of this writing, the exchange rate has not skyrocketed (see figure). However, in December 2021, the government imported 35 tons of paper for banknotes from Uzbekistan to cover military expenditures and reduced tax revenue. If the amount of money in circulation increases, it will guarantee inflation. The previous military government also frequently increased the amount of currency it issued and circulated without considering market conditions.[2]