Fighting between pro-democracy militias and Myanmar’s military has raged since 1948 but intensified after a 2021 coup that overthrew the democratically elected government. In all of Myanmar’s ethnic provinces, ethnic resistance groups, often supported by the People’s Defense Forces, are fighting military forces while siding with the exiled National Unity Government. During this conflict, civilians are bearing the brunt of the violence, as more than 3.3 million people are homeless and at least 3-4 million have fled the country. Shan State, however, stands out as the worst case, where civilians are not only suffering under the Burmese army but also under the Shan State Army and the United Wa State Army (UWSA). While many people in Myanmar are facing a harsh reality, residents of Shan State are enduring more abuse from ethnic groups they claim to protect. These residents not only face threats of violence but also face great economic pressure, making life unbearable.
45-year-old Nang Seng Aung explained the heavy tax imposed by armed groups: “If you have a family working abroad, the armed groups take part of the money they send home.” He went on to list the major taxes they face: “Concrete house: 7,500,000 kyat per year, bamboo house: 1,500,000 kyat, big truck (16 wheels): 15,000,000 kyat, small truck (6 wheels): 5,000,000 kyat, bicycle…” phones, buffaloes, cows, and pigs there is a tax. Unable to bear such financial burdens or pay for basic needs, Nang Seng Aung said, “In the end, we had to sell everything at a cheap price and come to Thailand.”
Sai Kungdala, a 48-year-old Shan man, arrived at a refugee camp in Thailand with his wife and two children, recounting the hardships that forced them to flee. “After the military takeover, the price of goods doubled, but our daily wages have not changed,” he explained. “Sometimes, the employer pays us half for yaba pills (methamphetamine) and half in cash.” By 2024, the economic downturn had become so severe that employers began paying workers only for drugs. This has left ordinary working people in the dire situation of having to sell methamphetamine just to buy food. “However,” said Sai, “the price of ya was very low—only 200 kyat per pill—and it was hard to sell because everyone already had it.”
The Shan State Army – North (SSA-N) and its political wing, the Shan State Progress Party (SSPP), are headquartered in Wan Hai, Kesi Township, central Shan State, while the United Wa State Army (UWSA) and its arm Its political party, the United Wa State Party (UWSP), is based in Bang Sang, in northern Shan State, near the border with China. The SSA and the UWSA are the two most powerful armed groups in Myanmar, maintaining a long-standing ceasefire agreement with the border coalition government. For decades these groups have collaborated with the Burmese military in business, trade, and mining while being given wide freedom to operate large criminal enterprises, including opium plantations and factories producing methamphetamine (Yaba) and heroin. Some say the UWSA is the biggest drug trafficking organization in the world.
The UWSA’s relationship with China, based on a history of contact with the Burmese Communist Party, has greatly strengthened its military and economic capabilities. China provides the UWSA with advanced weapons, including helicopters, anti-aircraft systems, and armored vehicles, as well as training and economic investment. In areas controlled by the Wa, Mandarin serves as the lingua franca, and Chinese money, infrastructure, and technology dominate local systems. This close relationship positions the UWSA as a key player in maintaining stability in Shan State, a region strategically important to China’s Belt and Road Initiative and energy security.
With the support of China and its powerful military, the UWSP acts as an actor for a quasi-independent state. Both the Burmese military and the Chinese Communist Party view the UWSA as a working partner. Although the main objective of the UWSA is to preserve its independence, it maintains a cease-fire agreement with the government and sometimes acts as an enforcement force, opposing certain armed ethnic groups that threaten the interests of the government. The UWSA also plays an important role in Beijing by ensuring security on the Sino-Myanmar border and promoting a favorable investment climate. Ironically, the UWSA operates a large arms manufacturing plant, whose main customers are armed groups fighting the Burmese government—a government that is now a client of China. This complex interplay of alliances highlights the complex dynamics of power, business, and conflict in Shan State.
Many residents of Shan State report being taxed by the Shan State Army-North (SSA-N) and the United Wa State Army (UWSA). When it comes to conscription, they face the requirements of as many as three armies—the UWSA, the SSA-N, and the Burma Army—each of which needs its sons and daughters to go to war. The constant threat of loss and violence, combined with economic collapse and the spread of drugs, is driving Shan people to Thailand in record numbers. The humanitarian situation inside Myanmar continues to deteriorate, and the number of displaced people in Thailand in need of assistance is increasing daily. Unless the three forces somehow get rid of each other (unforeseen situation), or a diplomatic solution emerges, the problem will get worse.
Further Studies in E-International Relations
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