ADVISORY COMMISSION ON RAKHINE STATE 6. The Government should continue to invest heavily in infrastructure, including roads, waterways, jetties, electricity, drinking water and internet provision. In order to boost tourism, the Government should ensure that the planned airport in Mrauk U is constructed. 7. In order to increase productivity, the Government should expand extension services to farmers, including mechanization, provision of quality seeds, and training in modern agricultural techniques. 8. The Government should address regulatory issues that currently constrain SMEs and family businesses. These include: 9. ○ Reforms related to lending, such as ending 1-year maximum loan terms, introducing flexibility to interest rate fixation, and providing incentives for micro-finance providers to engage with businesses in Rakhine. ○ Expansion of access to agricultural credit for all communities. ○ Removal of the Ministry of Hotels and Tourism prohibition on guesthouses and B&Bs of less than ten rooms, that presents barriers to entry for family-owned enterprises. The Government should seek to reduce red tape in order to promote business, and expand accepted documentation to receive business licenses, not least as a way to include more Muslim businesses within the formal economic sector and reduce barriers to entry. 10. To ensure that mitigation and adaptation measures are in place to counter the adverse effects of climate change, the Government should urgently step up its efforts to strengthen the capabilities of communities to adopt climate resilient options. Critical measures include the development and distribution of resilient seed varieties, crop diversification, increased water storage options, drip irrigation and strengthening the availability of climate-sensitive advisory services for farmers. The Government should also seek to improve the state’s irrigation systems through the construction of embankments. To this end, the Government could subsidize contracted cash-forwork labour. FINAL REPORT 25