Kachin is resource-rich, but with higher than average poverty levels (28.6% compared to the national average of 25.6%).  Poverty in the northern region of Shan State is even higher, with 37.4% of the population below the poverty line.

Kachin and northern Shan States have seen an estimated 113,000 people affected by renewed conflict since June 2012. Of these, 81,000 people are registered and living in camps while 10,000 are staying with host families, many of whom are facing difficulties in providing this support. More than half of the total number of people in need are located in areas beyond Government control. Although peace negotiations are proceeding and the number of security incidents has reduced, this has not resulted in significant returns.  Obstacles to returns include ongoing insecurity, landmine contamination and restricted access to basic services and livelihood.