Myanmar
Executive Summary
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
Myanmar embarked on a new development path since the new civilian Government took office in 2011. A number of reforms were introduced regarding state enterprises’ privatization trade liberalization and increased market openness to investment which resulted in considerable economic growth in recent years. To pursue this trend the Government is expected to undertake further reforms with a priority given to policies in support of private sector activity which is a key driver of economic growth and socioeconomic development.
Conclusion
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
After enduring economic political and social instability the recently convened civilian Government of Myanmar has set the country on a new development path. A number of reforms were introduced in order to accelerate the country’s economic growth and development. However Myanmar remains one of the least developed countries in the world. Achieving the country’s economic and development goals requires the Government to undertake further reforms consistent with its recent measures. In particular it is important to support the activities of the private sector as the achievement of development goals is inextricably linked to the success of the private sector.
Facilitating business activity
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
Fostering socioeconomic development requires strong private sector performance. The private sector is crucial to poverty reduction improvements in people’s lives inclusive growth better access to critical goods and basic services and increased tax revenues. This is because in most countries the private sector can often have a more direct immediate impact than the government in addressing issues of poverty and underdevelopment. To operate effectively a business needs employees; therefore the private sector is a major generator of employment opportunities and reliable incomes. The private sector is also a key driver of economic growth through its contribution to a country’s GDP. A growing economy favours the expansion of businesses as well as competition among them. This pushes businesses to innovate and adopt new technologies in order to become more productive. Rising productivity not only generates higher returns for firms but also has potential to increase wages of their employees consequently improving people’s lives. Profitable private sector activity also increases the government budget through growing tax revenues which enables the government to allocate more money for improving such fundamentals as human and physical capital of the country. Additionally the largescale production of essential goods and services helps keep their prices down consequently increasing the real effective incomes of poor people. Numerous development institutions have already acknowledged the importance of the private sector’s role in the inclusive development process and strive for its promotion in developing countries worldwide.
Acknowledgements
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
This publication is an output of the Myanmar Business and Development Week a series of technical seminars and workshops for both the Government and businesses which was jointly organized by the ESCAP Secretariat the ESCAP Business Advisory Council the United Nations Inter-Agency Cluster on Trade and Productive Capacity and the Union of Myanmar Federation of Chambers of Commerce and Industry in Yangon Myanmar from 23 to 27 September 2013. A number of lecturers from various development agencies participated in the Week and contributed to the publication.
Preface
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
This publication was prepared by the Trade and Investment Division of Economic and Social Commission for Asia and the Pacific (ESCAP). The central purpose of the publication is to provide policymakers business communities development organizations and other interested parties with a thorough overview of the private sector environment in Myanmar today. The publication outlines the challenges faced by businesses in Myanmar elaborates on the nature of the challenges and why they are significant and offers a set of recommendations to improve the business environment in order to foster greater development of the private sector and indeed the country as a whole.
Effective trade policies
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
The private sector’s development is strongly influenced by applicable trade policy thus finding the right trade policy is vital for the private sector’s successful performance. Trade policy regulates the flows of goods and services produced by local businesses across the borders of different countries. Initially trade policy was used as a tool to protect local producers from foreign goods and services by strictly regulating or even forbidding imports. But after World War II a less protectionist approach of international trade was adopted giving rise to freer movement of goods and services. In 1947 23 countries signed the General Agreement on Tariffs and Trade (GATT) aiming for freer trade among the member states. During the following years the number of member states significantly increased and more trade concessions were successfully negotiated. In 1995 countries decided to institutionalize these negotiations and founded the World Trade Organization (WTO). Currently most of the countries worldwide are members of this organization which demonstrates their preference to the policy of freer trade across borders.
Attracting foreign direct investment
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
Foreign direct investment (FDI) can be defined as cross-border investment by a resident in one economy with the objective of obtaining a lasting interest in another economy. A foreign investor can be an individual an incorporated or unincorporated public or private enterprise (e.g. a transnational corporation) a government or a subsidiary of an enterprise outside the home country of the enterprise.
Introduction
Main Title:
Business and Development in Myanmar
Dec 2015
Chapter
Myanmar has a population of 51.4 million and is the second largest country in South-East Asia with an area of 676578 sq. km. The country is rich in natural resources and fertile terrain with large agricultural areas. Myanmar is strategically located between two giant markets China and India which enables it to benefit from the resurgence of economic growth in Asia and the Pacific which is likely to be the most prosperous region in the world in the next decade. Thus the country has much untapped potential for future growth and development.
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