BRASILIA-DF

SHIS QI 05 - Cj 20 - Cs 20 - Lago Sul

 
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Country Basic Facts

 

ECONOMIC POLICY

In order to achieve sustained economic development to commensurate with its rich natural resource endowment, Myanmar launched a wide-ranging economic policy change in 1988. Centralized planning policy was replaced by a market-oriented economic policy and a number of economic reform measures were initiated. The salient reform measures taken are:-

  1. decentralizing central control,

  2. encouraging private sector development,

  3. abolishing price controls and reducing subsidies,

  4. allowing direct foreign investment,

  5. initiating institutional change,

  6. initiating the new financial management system,

  7. streamlining taxes and duties,

  8. promoting exports, streamlining export and import procedures,

  9. diversifying exports through introduction of new products and emphasizing on semi-processed goods,

  10. improving infrastructure support,

  11. restructuring wages and prices,

  12. allowing farmers to cultivate crops of their choice and to process, transport and trade freely,

  13. allowing state enterprises, co-operative societies and private entrepreneurs to claim and utilize fallow and cultivable waste land up to 5000 acres for the enhancement of agriculture, livestock and fishery production.

Some fundamental measures include removal of price controls, liberalization of trade, replacement of import substitution, industrialization policy by an outward-looking export promotion policy, enhancing the role of the co-operative and private sectors, encouragement of both domestic and foreign investment and the promulgation of the Union of Myanmar Foreign Investment Law in November 1988. The basic rationale behind the Law are promotion and expansion of exports, exploitation of natural resources requiring heavy investment, acquisition of high technology, opening up of employment opportunities and achievement of regional development.

With a view to harmonizing the new economic system with the financial system, reform of the banking system has been initiated. The Myanmar Investment and Commercial Bank Law, the Central Bank of Myanmar Law, the Financial Institutions of Myanmar Law and the Myanma Agricultural and Rural Development Bank Law were enacted in 1989 and 1990.

The State Law and Order Restoration Council has formulated and is currently implementing a Short Term Plan from 1992-93 to 1995-96. The main thrust of the plan outlines are to step up production and exports in order to achieve complete economic recovery as quickly as possible and to speed up the development of the economy. Priority has been given to the development of productive sectors such as agriculture, livestock and fishery sector. Emphasis has also been given for enhanced production of processing and manufacturing mining sectors by promoting more effective utilization of existing capacities. Moreover, efforts are being made to promote exports not only of traditional items but also new export commodities and to enhance foreign exchange earnings from services.

The result of the economic reform measures are clearly reflected on the growth rate of the gross domestic product (GDP), which was 5.4 per cent in 1989-90 and 6.7 per cent in 1990-91 after three years of negative growth during 1986-87 to 1988-89. Although the GDP declined by 0.6 per cent in 1991-92 because of devastating floods which had an adverse impact on the agricultural sector, the economy bounced back in 1992-93 with a growth rate of 9.7 per cent.

This momentum is being carried over to the years 1993-94, with growth rate of 6.0 per cent, and provisional actual growth rate for 1994-95 is set at 7.5 per cent. A growth rate of 9.8 per cent is estimated for 1995-96. The high growth rate achieved in 1992-93 was enabled by equally satisfactory growth rate of mutually related variables such as investments and exports. Investments increased by 14.4 per cent in 1992-93 and 16.5 per cent in 1993-94, while the total value of exports increased by a substantial rate of 22.7 per cent in 1992-93, 17.8 per cent in 1993-94 and 27.8 per cent in 1994-95.

 

 

 


 

 
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