Rakhine State is one of the least developed areas of Myanmar, with a diverse ethnic and religious population. It was ranked as the country’s second poorest region in the 2009-2010 Integrated Household Living Condition Survey with an estimated 43.5% of the Rakhine population livings below the poverty line, compared to the national average of 25.6%.

Inter-communal violence that erupted in Rakhine State in June and October 2012 resulted in the displacement of at least 138,800 people and affected another 36,000 people in isolated, remote villages.  Restrictions on movements imposed after the 2012 violence have significantly limited access to markets, livelihoods and basic services such as education and health care.  Ongoing tensions, the absence of a meaningful reconciliation process and little or no prospects for returnsare contributing to ongoing high levels of tensions as well as sporadic incidents elsewhere in the country and in the region.