A Gloomy Christmas in Rangoon

By AUNG THET WINE

Every year as Christmas approaches, Naw April Paw, 50, of Ywa-ma, a village on the outskirts of Rangoon, looks forward to holding a prayer meeting at her home and offering food to all who attend. This year, however, she won’t be able to be so generous.

Naw April Paw made the difficult decision not to hold her annual Christmas gathering after her 27-year-old son informed her that the aluminum factory where he works in Malaysia had been closed due to slowing demand. With no immediate prospects of finding a new job, he told her that from November, he would have to stop sending the remittances that have been her chief means of support.

“God wants me to pray in remembrance of His Holy Birthday at church this year,” she says in a soft voice and with her eyes closed, resigning herself to her misfortune, even as she expresses dismay that it would befall a devout Christian like herself.

But Naw April Paw is not the only Christian in Burma whose plans to celebrate the holidays have been dampened by the impact of the deepening global economic downturn. Nor are Christians alone in feeling at a loss, as a traditionally upbeat shopping season takes a turn for the worse in Burma’s commercial capital.

For Rangoon’s business community, Christmas is first and foremost an opportunity to launch major promotions to boost end-of-year sales. This year, however, retailers say that consumers aren’t responding to sales and discounts as they have in the past.

The gloomy economic situation has affected sales of everything from clothing to electrical appliances and jewelry. Businesses in the service industry, such as restaurants and travel agencies, are also struggling to attract customers.

“Last year at Christmas, sales were pretty good,” said a sales clerk at Rangoon’s famous Tun electronics store. “This year is a different story. Sales haven’t come to a standstill, but I would say that they’re about half what they were at this time last year.”

At a well-known gold shop in Rangoon, sales staff said that there were fewer customers on weekdays, and that most people who came in on weekends were not buying but just checking prices.

A sales assistant at the Seingayhar shopping center in Rangoon’s Latha Township also said that discounts and other promotions have done little to increase sales volume.

“Business is very slow these days,” she said. “We launched a big sale recently, but it didn’t have any effect. Salespeople in the garment and clothing stalls are just sitting around waiting for customers.”

Economic observers say that the decline in retail sales is directly attributable to the falling price of Burma’s major agricultural exports, which are normally harvested at this time of year.

“This should be a good month for us,” said a gold trader from Rangoon’s Shwebontha Street. “Most gold shops and retail outlets rely on demand from rural farmers, who usually have money to spend after the harvest season. But now the collapse of rice and bean prices is hurting us, too.”

Even high-end products such as computers and digital cameras, which are normally sold mainly to members of Rangoon’s small and relatively wealthy middle class, are selling poorly this year.

At a showroom for Canon cameras located near Aung San Stadium, a sales clerk said that deep discounts have done little to lift sales: “Last year, we could sell 6 to 10 cameras on daily basis, but this year is much slower.”

KMD, a well-known computer and IT store, has also seen falling sales, despite receiving a slight boost from an unexpected source.

“The only thing keeping us going right now is spending by staff from international NGOs working on Cyclone Nargis relief and recovery projects,” said a KMD salesperson.

Earlier this month, Burma’s prime minister, Gen Thein Sein, acknowledged that the country was facing economic challenges, although he downplayed the extent of the damage being inflicted on the local economy by worsening conditions in the rest of the world.

At a meeting in the ruling junta’s capital of Naypyidaw on December 2, Thein Sein demanded stronger efforts to develop the country’s key agricultural sector and increase production and exports of other major money-earners.

According to official statistics presented by Thein Sein, exports have fallen significantly since last year: Beans and pulses saw a 5.4 percent decline; fisheries products were down by 17 percent; manufactured goods slipped 15.9 percent; and natural gas, the single largest source of foreign earnings, dropped 18.2 percent.

Although the effects of the global downturn are spreading throughout the Burmese economy, they are most directly felt by farmers, who say they are just treading water.

“Rice paddy is selling for around 200,000 kyat (US $170) for a hundred baskets. This is just enough to cover production costs,” said a farmer in Kyaungkone, a village about 37 km west of Rangoon.

“Farmers growing beans and pulses have it even worse,” he added. “They are drowning in debt.”

With the global economy facing even greater uncertainty next year, many Burmese farmers are wondering how much more turmoil they can possibly withstand. Like Naw April Paw, who vowed to save her money so she can hold her Christmas prayer meeting next year, they may soon find themselves at the limits of their strength.

For Naw April Paw, however, there is no doubt about how she will get through the hard times ahead. In her soft voice, she prays, “Oh, Lord, give me the strength to save so I can honor Your Birthday next year.”