[{"bbox": [96, 153, 1135, 314], "category": "Text", "text": "The action will focus on providing financial and technical support to MSMEs to invest in environmentally sustainable technologies and improve their practices in clean water, energy efficiency, waste treatment, occupational safety and health (OSH) and food standards. Given the low electrification rate and power outages, renewable energy is of outmost importance for rural population and MSMEs; increasing their resilience to shocks through increased autonomy, as well as their economic viability and ability to reduce the carbon footprint. Hence, they can become more competitive, providing better opportunities for the actors along agricultural value chains."}, {"bbox": [96, 338, 1135, 552], "category": "Text", "text": "For economic viability, the sustainability and responsible practices (e.g. quality standards) targeted through Specific Objective 2 (Inclusive Growth) will be complementary to activities under Specific Objective 1 (Sustainable Livelihoods), embedding synergies from the outset (both within and between components). In addition to increasing productivity at farmer level, the action aims to step up the support by consolidating local agricultural value chains to enhance economic resilience. This will drive inclusive growth of vulnerable smallholder farmers, as well as overall long term sustainable development of MSMEs. As local economic resilience is the main objective¹, the value chains affected by the action are mainly for domestic markets, although if potential for export exists it can be supported."}, {"bbox": [96, 577, 1135, 630], "category": "Text", "text": "The Action will be implemented in areas which are affected by conflict and by climate change, but will also seek to link these areas with local economic growth centers."}, {"bbox": [96, 656, 1135, 817], "category": "Text", "text": "The engagement with civil society, incl. women's human rights organisations and those representing persons with disabilities (DPOs), and local actors will be crucial to support the Myanmar people's hopes for sustainable and equitable development, as the European Union does not recognise the military regime. The private sector will be essential in building sustainable livelihoods of the rural and peri-urban populations living in vulnerable situations and socio-economic difficulties and offering improved working conditions and environmentally sustainable production."}, {"bbox": [96, 842, 1135, 896], "category": "Text", "text": "As the conflict has spread all over Myanmar and is not only limited to rural frontier areas, a conflict-sensitive approach is essential and due diligence of actors, especially private ones, are required."}, {"bbox": [96, 922, 1135, 1003], "category": "Text", "text": "The action foresees partnering with international and local organizations with experience in supporting livelihoods and inclusive growth practices in Myanmar in response to the military takeover. The action foresees using the Direct Management approach as well as Indirect Management approach."}, {"bbox": [96, 1027, 1135, 1160], "category": "Text", "text": "This Action proposes to build on the achievements of two initiatives: the Livelihoods and Food Security Fund (LIFT), of which the EU is a longstanding partner and which has demonstrated its strong relevance in the current context; and the Responsible Business Fund, set up by the Denmark Embassy, which has achieved strong results. This Action will be implemented in synergy with ACT-61326 \"Securing Energy Needs and Transition of Rural areas in Myanmar (SENTRUM)\" (Special Measures 2022)."}, {"bbox": [85, 1218, 323, 1249], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [247, 1283, 397, 1311], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 1374, 1135, 1429], "category": "Text", "text": "The Council Conclusions of 22nd of February 2021, guiding EU engagement in Myanmar, stressed the need for continued support to the population of Myanmar and to avoid legitimizing the regime."}, {"bbox": [96, 1453, 1135, 1562], "category": "Text", "text": "Two years after the military takeover of the 1st of February 2021, a **peaceful resolution of the conflict is not likely in any close future**. The military has executed a total of 3,465 people since February 2021, and 17,740 political prisoners are currently under detention (as of the 5th of May 2023)². 151 people have been sentenced to death, and political prisoners have been executed for the first time in 30 years."}, {"bbox": [85, 1603, 1143, 1628], "category": "Footnote", "text": "¹ Foreign Direct Investment which would substantially upgrade the value chain is not foreseen in the near-to-medium term future."}, {"bbox": [85, 1626, 276, 1646], "category": "Footnote", "text": "² https://aappb.org/?lang=en"}, {"bbox": [1038, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 4 of 27"}]