The purpose of this report is to provide national- and state-level policymakers, private-sector investors, civil society, and donors with an analysis of the rural economy of Mon State and pathways to improved prosperity for its population. The analysis is based on a representative survey of rural households, which make up 73 percent of Mon State’s 2 million residents, and extensive interviews with farmers, traders, processors, local leaders, and government officials. Whereas some parts of the Mon State economy are quite dynamic, such as construction, others are stagnant and far from reaching their full potential. Furthermore, the dynamic sectors are heavily dependent on remittances from migrants to neighboring countries. The current pattern of donor investment is heavily focused on necessary infrastructure and energy investments, but with only very limited support to productive sectors, especially agriculture and fisheries. Major investments in education, both formal and vocational training, are also necessary to support the growth of a modern economy. The analysis in this report identifies options for more balanced growth, leading to a vibrant economy in which returning migrants can invest and find employment.

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