Economy
Kayah State has a primarily extraction-based economy. The main crop is rice, mostly irrigated, with other important crops including millet, maize, sesame, groundnut, garlic, and vegetables. Mineral products include alabaster, tin, and tungsten. Valuable woods such as teak and pine were once produced, but the forests have largely been stripped bare by illegal logging authorized by the Tatmadaw (Burmese military). The hydroelectric power plant at Lawpita Falls outside of Loikaw is of strategic importance, as it supplies over 20% of Myanmar's total electrical power.
Kayah State has theoretical tourist potential, if the political situation is resolved. The state has rugged mountains, river streams, lakes and waterfalls; however, transport and communication are difficult. At present, Kayah State is open to outsiders by permit only, which can be difficult to obtain depending on the current military situation. Even with a permit, usually only a 25 km (16 mi) radius around Loikaw is allowed. The central government effectively controls only Loikaw and parts of the western half of the state. 16 January 2012
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