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A new country is being built in India’s neighbourhood? Own ID card, tax system and police also deployed in Rakhine

July 7, 2026 by Uma Shankar

The formation of new countries in the world is often discussed after wars or freedom movements. In recent years, something similar has been seen happening in India’s neighboring country Myanmar. The Rakhine state here is no longer just a conflict zone, but is becoming a region which is gradually establishing itself as a separate administrative unit. There has been a long-running conflict between the Myanmar army and the rebel organization Arakan Army.

In this battle, Arakan Army has controlled most parts of Rakhine. Now it is not only fighting on the strength of weapons, but is also taking steps like collecting taxes, issuing identity cards, running local administration and enforcing its laws.

This is the reason why questions are being raised whether Rakhine can take the form of a new country separate from Myanmar in future? This matter is not limited to Myanmar only. Rakhine shares its border with Bangladesh and its coastline is connected to the Bay of Bengal.

Arakan Army captured these areas

Arakan Army has completely taken control of Chin, Kachin, Magwe, Sagaing, Ayeyarwady and Bago of Myanmar and Bangladesh. In these areas, common citizens are living their lives under the control of Arakan Army. To control crime, Arakan Army has set up a system here.

Where did this matter start?

In 2009, Rakhine’s Buddhist community formed the Arakan Army, demanding greater autonomy. After 2016, the conflict between Myanmar Army and Arakan Army intensified. During this period the Rohingya community had to migrate on a large scale. After the army took power in 2021, the Arakan Army further increased its strength.

Now the organization is trying to make Rakhine a separate political entity. Its chief Tun Myat Naing has set the target of ‘completely free Arakan’ by 2027. In recent months, the military strength of the Arakan Army has also increased significantly due to the acquisition of drones and modern weapons.

  • The Arakan Army has claimed control over most parts of Rakhine state.
  • The organization is running tax collection, identity card and local administration in many areas.
  • Till now no country has recognized Rakhine as an independent nation, but the situation is changing rapidly.
Myanmar Rakhine Arakan Army (2)

Why does it want to become a separate country? (Getty Images)

Who will decide the future of Rakhine?

It is being said that in the coming time, it will be decided what will be the future of Rakhine, not only Myanmar will play a role in this, but the strategy of neighboring countries like India, China and Bangladesh will also be important. If the interests of these countries collide or they support different sides, the politics of the entire region can change.

Although no country has yet recognized Rakhine as an independent nation, the way the Arakan Army is running parallel rule on the land has certainly intensified the international debate on this possibility.

Who can rule Rakhine?

The United League of Arakan (ULA) is a major political organization in Rakhine State of Myanmar, considered the political wing of the Arakan Army (AA). If Rakhine becomes a separate political entity in the future, the strongest contender will be the Arakan Army.

The Arakan Army has also started its administration in the areas it has captured. It is collecting taxes from the people, running its own courts and providing many services like government system. Not only this, it is also trying to create its own banking system, so that it does not have to depend on the economic system of Myanmar’s military government.

Is Rakhine becoming a separate country?

At present Rakhine is officially a state of Myanmar. No country in the world including the United Nations considers it a separate nation. However, the situation on the ground appears different. Arakan Army has pushed back the Myanmar Army from many areas and has now started taking over the civil administration there.

Myanmar Rakhine Arakan Army

What is necessary for the recognition of the country? (Getty Image)

How is it working like a separate country?

The Arakan Army is no longer just a rebel or military organization. In the areas under his control, he has set up a government-like system. It is collecting taxes from the local people, issuing identity cards and administrative documents.

Apart from this, it is also running its own judicial system to settle local disputes. In some areas, education and health services are also being run through its administration. For this reason, many experts consider the areas under the control of the Arakan Army to be a ‘state within a state’.

How does one get recognition for a new country?

If a region declares itself a new country, it does not automatically become a recognized country in the world. For this he has to fulfill many important conditions. First of all, that area should have its own permanent population, fixed boundaries and a government that can administer it.

After this the most important step is to get recognition from other countries. When other countries start accepting it as an independent nation, then its international identity becomes stronger.

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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