The war between pro-democracy resistance forces and Myanmar’s military has raged since 1948, but intensified significantly after the 2021 coup that toppled the democratically elected government. Across Myanmar’s ethnic states, ethnic resistance organizations, often backed by the People’s Defense Forces, are fighting junta forces while aligning with the National Unity Government in exile. Amid this conflict, civilians are bearing the brunt of the violence, with more than 3.3 million people internally displaced and at least 3 to 4 million having fled the country. Shan State, however, stands out as a particularly dire case, where civilians suffer not only under the Burma Army but also at the hands of the Shan State Army and the United Wa State Army (UWSA ). While most people in Myanmar face a grim reality, residents of Shan State are facing renewed abuses at the hands of ethnic militias who claim to protect them. These residents face not only threats of violence, but also overwhelming economic pressure, making life unbearable.
Nang Seng Aung, 45, describes the heavy taxation imposed by armed groups: “If you have family working abroad, the armed groups take half of the money they send home. » She then listed the heavy taxes they face: “Concrete house: 7,500,000 kyats per year, bamboo house: 1,500,000 kyats, big truck (16 wheels): 15,000,000 kyats, small truck (6 wheels): 5,000,000 kyats…” Even bicycles, telephones, buffaloes, cows and pigs are taxed. Unable to bear such financial burdens or afford basic necessities, Nang Seng Aung said: “Eventually, we had to sell everything cheaply 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 army took power, the price of goods doubled, but our daily wage remained the same,” he explained. “Sometimes the employer would pay us half in yaba (methamphetamine) pills and half in cash. » By 2024, the economic collapse has worsened to the point that employers have started paying their workers exclusively in drugs. This left ordinary workers in the desperate position of having to sell meth just to buy food. “However,” Sai said, “the price of yaba was very low – only 200 kyats per pill – and it was difficult to sell because everyone already had yaba.”
The Shan State Army-North (SSA-N) and its political wing, the Shan State Progress Party (SSPP), are headquartered in Wan Hai village, Kesi township, in central Shan State, while the United Wa State Army (UWSA) and its political wing, the United Wa State Party (UWSP), is based in Bang Sang, northern Shan State, near from the border with China. The SSA and UWSA are two of Myanmar’s most powerful armed groups, maintaining a long-standing ceasefire with the government that borders on an alliance. For decades, these groups collaborated with the Burmese military in business, trade and mining while enjoying great freedom to run large-scale criminal enterprises, including opium plantations and factories. producing methamphetamine (Yaba) and heroin. Some claim that the UWSA is the largest drug trafficking organization in the world.
The UWSA’s ties to China, rooted in historic ties to the Communist Party of Burma, have significantly 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 Wa-controlled areas, Mandarin serves as the lingua franca, and Chinese currency, infrastructure, and technology dominate local systems. This close relationship positions the UWSA as a critical player in maintaining stability in Shan State, a geopolitically crucial region for China’s Belt and Road Initiative and energy security.
With the support of China and its powerful military, the UWSP functions as a quasi-state actor with almost complete autonomy. The Burmese military and the Chinese Communist Party view the UWSA as a pragmatic ally. Although the UWSA’s primary goal is to preserve its autonomy, it maintains a ceasefire with the government and occasionally acts as a stabilizing force, countering certain armed ethnic organizations that threaten the government’s interests. The UWSA also plays a key role for Beijing in providing security along the China-Myanmar border and fostering a favorable investment climate. Ironically, the UWSA operates a vast arms manufacturing industry, whose main customers are ethnic armed organizations fighting the Burmese government – a government that remains a customer of China. This complex interplay of alliances highlights the complex dynamics of power, business and conflict in Shan State.
Many Shan State villagers report being taxed by both the Shan State Northern Army (SSA-N) and the United Wa State Army (UWSA). When it comes to conscription, they face demands from three armies – the UWSA, the SSA-N and the Burma Army – each requiring their sons and daughters to serve on the front lines. The constant threat of loss and violence, compounded by economic collapse and widespread drug addiction, is driving record numbers of Shan toward Thailand. The humanitarian situation in Myanmar continues to deteriorate, while the number of displaced people in Thailand in need of assistance increases every day. Unless all three armies somehow stand aside (unlikely scenario) or a diplomatic solution is found, the crisis will only get worse.
Further reading on international electronic relations