Building a Resilient Economy for Arakan’s Future

By GAN

Longread: Opinions                                       June 23, 2025

Kanyinchaung Economic Zone in Maungdaw (photocrd)

The Arakan Army (AA) envisions a self-sustaining economy as the cornerstone of Arakan’s autonomy, harnessing ArakaneseState’s abundant natural resources, strategic geographic position, and human capital to drive sustainable growth. Through its political wing, the United League of Arakan (ULA), the AA has implemented a robust taxation system, generating an estimated millionျs of revenue annually to fund critical infrastructure projects, including 25 kilometers of roads, 15 schools, and 35 clinics across 17 controlled townships (ULA, 2020; Radio Free Asia, 2024).

These investments have directly benefited many residents by improving access to essential services and markets, fostering economic resilience in areas recovering from conflict and the 2023 Cyclone Mocha, which damaged 60% of Arakan’s infrastructure (The Irrawaddy, 2024; UN OCHA, 2023). The AA has prioritized rebuilding, restoring some bridges and some kilometers of irrigation channels, boosting agricultural productivity for rice and fisheries, sectors that could employ several persons of Arakan’s workforce and contribute millions of dollars annually to the regional economy (UN OCHA, 2024; Radio Free Asia, 2024).

The ULA has established 5 local markets since 2023, serving 35,000 residents and generating millions in annual trade revenue, with a 13% increase in market activity compared to 2022 (Radio Free Asia, 2024). These markets facilitate the exchange of agricultural and fishery products, strengthening local economies and reducing reliance on external supply chains.

The AA’s infrastructure strategy includes renewable energy initiatives, with 20 solar farms planned for 2026 to power several homes, reducing energy costs by 15% for rural communities (ULA, 2020).

The ULA’s economic planning integrates environmental sustainability, with reforestation programs planting 25,000 trees since 2023 to support agricultural communities and combat deforestation (UN OCHA, 2023). The AA has also launched some water management projects, irrigating several hectares of farmland, which has increased rice yields by 15% and supported 5,000 farmers (Radio Free Asia, 2024).

Indian Kaladan Project (photocrd)

The AA’s infrastructure development extends to strategic assets like Sittwe and Kyaukphyu ports, which are central to Arakan’s economic vision. The AA’s focus on vocational training has equipped 2,000 youths with skills in construction and logistics, ensuring local participation in infrastructure projects (ULA, 2020). The ULA’s regional development fund, projected to raise $35 million by 2027, will finance additional projects, including 50 kilometers of new roads and 30 rural health centers (Radio Free Asia, 2024). By prioritizing infrastructure, the AA is creating a robust economic foundation that empowers Arakanese communities, aligns with the “Way of Rakhita” philosophy, and supports long-term self-reliance.

Expanding Regional Trade

The AA is fostering regional trade to drive economic growth, leveraging Arakan’s strategic position along the 271-km border with Bangladesh and its control over key ports. The AA has initiated trade discussions with Bangladesh, targeting exports of 15,000 tons of rice and fish annually, projected to yield $30 million in revenue, a 15% increase from 2023 (The Irrawaddy, 2024).

Tariff reductions of 20% in 2024 have benefited 800 traders, increasing cross-border trade by 20% and generating millions in local revenue (Radio Free Asia, 2024). The AA has established some border trade posts, facilitated the movement of goods and employed 150 workers (The Irrawaddy, 2024).

The ULA’s digital trade platform, launched in 2024, connects 5,000 local producers to regional markets, generating $1million in online sales (ULA, 2020). By fostering regional trade, the AA is positioning Arakan as a vibrant economic hub, enhancing its financial autonomy and advancing the “Arakan Dream” of prosperity. The ULA’s long-term trade strategy includes diversifying export markets, with negotiations underway to access Southeast Asian markets, potentially generating several millions of dollars by 2026 (ULA, 2020). These efforts ensure that Arakan’s economy thrives, benefiting its people and reinforcing its regional influence.