Download Brief Report on the Implementation of the Istanbul Programme

Istanbul Plan of Action Implementation Workshop
New York, United States of America
(Oct 15-17, 2012)
Brief Report on the Implementation of the Istanbul
Programme Action for LDCs: The Republic of the
Union of Myanmar
Paper presented by
Dr Wah Wah Maung
Deputy Director General
Foreign Economic Relations Department
Ministry of National Planning and Economic Development
Republic of the Union of Myanmar
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Brief Report on the Implementation of the Istanbul
Programme Action for LDCs: The Republic of the Union
of Myanmar
Part I: Country Background
1.1 Myanmar is the largest country in mainland Southeast Asia with a total
land area of 261228 square miles (676577 square kilometers). It stretches 582
miles (936 kilometers) from east to west and 1275 miles (2051 kilometers) from
north to south. It shares borders with China on the north and northeast with the
length of 1370 miles, Lao PDR with the length of 148 miles and Thailand with
the length of 1310 miles on the west and southeast, and Bangladesh with the
length of 148 miles and India with the length of 832 miles on the west and
northwest. With a long coastline of around 2800 km, which provides access to
sea routes that would facilitate regional trade, it has potential to serve as a land
bridge between the PRC, South Asia and Southeast Asia. Myanmar is famous of
rich in natural resources including arable land, forest resources, minerals,
natural gas, fresh water and marine resources.
1.2 Myanmar’s location is geo-strategic, being situated at the tri-junction of
South Asia, South-east Asia and East Asia, bordering some of the fastest
growing economies such as China, India and Thailand. The topography of
Myanmar can roughly be divided into three parts: the Western Hills Region
(Western Yoma), The Central Valley Region (the broadest valley of the main
river Ayeyawady) and Eastern Hill Region (Shan Plateau). The climate of
Myanmar is roughly divided into three seasons: summer, rainy season and cold
season. So it can be said that Myanmar is situated in the economically strategic
position where it can enjoy three different seasons which rain falls from region
to region, providing the condition to grow the variety of crops.
1.3 Agriculture sector dominates the economy which accounts 40 % of GDP
and 60 to 70 % of employment. The majority of the people (about 66 %) live in
rural area. The country's population is 60 million, around a third of which aged
between 15 and 29 years. Per capita income is nearly 1000 USD and the growth
rate is 5.4 % in 2011. The Asian Development Outlook 2012 (ADO 2012)
projects 6% GDP growth for Myanmar in FY2012, up from an estimated 5.5%
in FY2011. Myanmar’s economic prospects are bolstered by recent policy
reforms and projected increases in gas exports.
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Part II: Reforms in Myanmar
Introduction
2.1 The Government of Republic of the Union of Myanmar, the elected
government assumed the administrative power on 31st March, 2010. The
administrative and economic systems are changing in our country and now we
have central and local governments. At the first year of the government term, it
was focused on political reform but since this is the second year of the
government term, it is especially centered on administrative and economic
reforms. It is balanced between political and economic reforms to be more in
line and harmonized with the development objectives. So that creation of new
political culture is crucial to nurture matured democracy.
Political Reforms: Creating new political culture
2.2 After new government has taken office about 18 months ago, the
Parliament, the Judiciary, the Armed Forces, the national races, political parties,
civil societies and the people at large have been taking tangible irreversible
steps in the democratic transition and reform process. Leaving behind a system
of authoritarian government where in the executive, legislative and judicial
powers were centralized; we have now been able to put in place a democratic
government and a strong, viable parliament following a practice of check and
balance. The legislative body has also been progressive well and functioning
more effectively at each session and the parliament has now been able to adopt
landmark laws through the democratic practices. It is emphasized for the good
governance, clean government and transparency.
2.3 Despite the challenges, it can be witnessed that significant progress and
considerable developments already took place in the country. These include
granting of amnesties to prisoners; the coming back with dignity of the exiled
political forces; the successful convening of 2012 by-elections in a free, fair and
transparent manner, the abolition of censorship of media, the fourth estate;
freedom of internet access; the establishment of workers' and employers'
organizations and increased participation of the people in the political process.
2.4 At the current stage of the political process, it can be observed that the
emergence of democratic characteristics such as increasing of participation from
different political forces and their mutual tolerance, the nobility, expansion of
the scope of political participation of representation and the accountability. It
has been strengthened to foster a new political culture of patience and dialogue
by the government and other stakeholders.
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Policy Reforms
2.5 For the implementation of the Istanbul Programme Action for LDCs, our
vision and economic policies are set up as follows;
The vision of our nation is to actively engage in building a new, modern, developed and democratic
nation
 to integrate world economy
 necessary to strengthen systematic market economic system
 to accelerate the pace of economic development
 to get out of poverty trap
2.6 To realize our vision, four economic policies are strongly focused and it
is shown as follows:
 Sustaining Agriculture
Development
towards
Industrialization
and
All
round
 Balance and proportionate development among States and Regions
 Inclusive growth for entire population
 Correctness of statistics and statistical systems
2.7 The planning system is changed from centralized to decentralized
planning. Regional plans are primarily formulated by regional and local
governments. Our ministry formulate annual plans, 5 years Plan (from 2011-12
to 2015-16) based on regional plans and sectoral plan with the inputs of States
and Regional governments and ministries.
2.8 We also have a plan for long term development. With long term national
vision, National Comprehensive Development Plan (NDCP- 2011-2030) will
also be formulated in near future. For the formulation of National
Comprehensive Development Plan, we have already organized Regional
Workshops in States and Regions for the Public Consultation of their needs and
collecting inputs for the plan formulation. National level workshop will be
organized after all regional level workshops have been convened.
2.9 Although we need to run for the long term, quick wins are also important
to achieve for the poverty reduction and rural development. With the intention
of poverty to reduce 2 % per year, short term therapy is necessary to inject the
economy and job creation. Matching between short term plan and program of
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donors as well as between project duration and type of support are necessary to
harmonize with our priority areas and regions.
Sustaining Agriculture
Development
towards
Industrialization
and
All
round
2.10 Since our economy is based on agriculture sector, it is necessary to
maintain for the momentum of agriculture for our people as well as to fulfill
world food security. We would like to share our agricultural products to the
global community. It will provide not only national food security but also for
the rural development and poverty reduction. This policy is set up because of
70 % of our population residing in the rural area and 50 percent of the people
are engaging in those agricultural activities. Apart from that, according to the
development experiences of different countries, it cannot be developed without
industrialization process. That is why we are establishing Special Economic
Zones for promoting industrial sector.
Focusing balanced, equitable and inclusive growth
2.11 Since our country is a Union Nation, it is necessary to focus balanced and
equitable development among the states and regions. Development paradigm
has already shifted towards human development. We need to focus human
development to improve the quality of life of our people. Inclusive growth for
entire population can also be realized people-centered development in our
nation. Human development index of Myanmar is to be improved with the
objective.
Correctness of statistics and statistical systems
2.12 Correcting our statistical system for ensuring quality data which reflect
the real situation is very important to formulate our national plans. National
census will be taken place in 2014 with the collaboration with UNFPA. We
have to be consistent with the international statistical system which is the most
fundamental to the research, policy making and decision making.
2.13 To implement all those policies, it is necessary to nurture human
resources and establish quality education process. Creation of new institutions,
initiatives of new technologies, coping with the environment and alteration of
their pattern of behaviours are crucial. Therefore, it is urgently needed to
establish an education system that improves the capabilities of individuals and
capacity of institutions.
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Conducting Macro Economic Reforms
2.14 To stabilize the economy, monetary policy and fiscal policy are changed
to conduct macro economic reforms to facilitate the businesses for their
benefits. A series of fiscal and monetary policy reforms such as removal of
export tax, allowing more export items, reducing bank rate, developing and
deregulating of banking businesses are already reformed. To facilitate
international payment system, banking reforms will be conducted and we will
make necessary arrangement for the access of skilled labour. It has a plan to
develop to develop money market and financial market with the collaboration of
Daiwa Corporation Co. Ltd, Japan.
2.15 As trade and investment are regarded as the engine of growth, the
policy reforms on that area are being conducted. Business laws, rules and
regulations are being amended and improved for the faster processes which
aimed at transforming the economy from a state sector dominated socialist
economic system to a market-oriented economic system. The role of the private
sector in external trade was expanded sharply in the country and border trade
is also expended. Import, export licensing and Company registration procedures
are eased. Allowing more export items and reducing export and import tax also
make attraction to export more.
2.16 Banking Sector is also developed for better quality services. It is also
necessary to develop capital and financial market. Interest rate is also reduced
for the inducement of investment and taxation policies are also changed.
Managed float of the exchange rate was also successful for the transformation
of exchange rate unification. Banking sector reforms were conducted for more
private banks, more financial services which are needed to allow for easier
international payment system. Technical Assistance from IMF and World Bank
can also support for the reforms if banking sector as well as for the public
financial management. For the Capital Market Development, the technical
assistance will be provided by Daiwa International Corporation.
2.17 Since legal systems are crucial for enabling business environment,
necessary laws, rules and regulations are being drafted and will be enacted in
the near future. Foreign Direct Investment Law has been already amended and
revised Foreign Investment Law and it will create more economic opportunities
and business friendly environment. For the industrialization, Special Economic
Zone Law and Dawei SEZ Law already enacted by giving special incentives to
invest in Myanmar. Competition Law, Consumers Protection Law are also
under process. Many infrastructure projects are necessary to implement in
Dawei SEZ. Closer linkages with neighbors would better enable Myanmar’s
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businesses to participate in regional markets, as well as global production
chains.
Investment
2.18 A total of 456 foreign enterprises in 12 sectors from 31 countries were
permitted with the total pledge amount of USD 40424.07 million up to 2012,
March. China is the 1st leading investor and Thailand and Hong Kong are
taking place in 2nd and 3rd respectively. 40.30% of total FDI concentrate in
power sector, 38.31 % in oil & gas sector and 7.75% in mining sector
respectively.
Exports, Imports and Duties
2.19 According to the country’s improving situation, the trade volume is
increasing. It has been liberalized trade,
Exports, Imports and Duties
Sr.
Particular
2011-2012
( Million kyat)
2012-2013
(April-June)
( Million kyat)
1.
Domestic Export
8266.2
2081.6
2.
All Export ( including re-export)
9135.6
2223.4
3.
Import
8325.6
1901.9
4.
All Import ( includes draw-back
items)
14130.1
6635.3
5.
Custom Duties
( Normal Trade)
115372.4
79368.0
6.
Custom Duties
( Border Trade)
14130.1
6635.3
7.
Custom Duties (All)
129502.5
86003.3
The program for the Poverty Reduction
2.20 The new government also introduced poverty reduction and rural
development programme. Since 70% percent of the people are residing in rural
area, it is prioritized for improving livelihoods for rural populace. According to
the Action Plan, Central committee, State and Division level committee for the
rural development and poverty reduction are formed and being implemented.
The Central Committee on poverty reduction and rural development is headed
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by the President and there are eight subcommittee based on specific task for
poverty reduction. There are altogether eight tasks to implement and it can be
shown as follows;
(a) Development of agricultural production sector
(b) Development of Livestock sector
(c) Development of rural productivity and cottage industries
(d) Development of micro saving and credit enterprises
(e) Development of rural cooperative tasks
(f) Development of rural socio-economy
(g) Development of rural energy
(h) Environmental conservation.
2.21 For the Rural development programs, currently we are cooperating with
NGOs and INGOs. We organized a workshop in which being participated by
INGOs and respective ministerial officials to avoid overlapping in the projects
areas and for the facilitation of these projects. Making people to be convenience
of food, shelter, clothing is fulfilling the basic human rights and we keep it as
our priority.
2.22 In our country, vast majority of the populations are residing in rural area
and agricultural production for farmers are tried to be improved for the better
livelihood of rural populace. Micro Finance and Micro Credit will be arranged
for them. We have set our target to reduce the half of poverty line in 2015.
Currently it is now 26% is below the poverty line and we are trying to reduce
until 16 % in 2015. In that case, we need more cooperation not only from
regional community but also from global community.
2.23 International tourist arrivals rose by 26% in FY2011, partially in response
to political and economic reforms. Because of the improving relations with EU
and US, economic sanctions are already eases and our exporters can have
accessible for the market and GSP. So that it can lead to even higher levels of
trade and investment.
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Aid Effectiveness
2.24 Aid effectiveness is also emphasized after the openness of our economy.
Since our international relation has been improved, we received more aid, grants
from the donors community. We also would like to build the trust with
international community as well as among ourselves would like to have aid
effectiveness for our national aim of poverty reduction. We have formed
Central Aid Effectiveness Management Committee which is chaired by the
President to utilize the aids, grants and loans effectively and efficiently. Under
the Central committee, we have two bodies: Working Committee on Aid
Effectiveness Management which comprises Ministries/ Local and Regional
Governments and National Economic and Social Council (NESC) which
includes civil society organizations, private sectors and academicians. Planning
Commission also has been formed to systemically implement the projects and
to ensure balance growth among the regions.
2.25 We are working closely with the donors community as well as with the
consultation of Socio-economic Advisory Council. Matching between Needs &
Grant/ Aids is also an important task for aid effectiveness. Previously, foreign
grants and Aids are donor driven. So that, there was lack of coordination and
failure among donors as well as between government agencies and donors. To
overcome coordination weakness and failure, we need to provide projects and
plans to reflect our people’s wants needs and close coordination with donor
community and reflecting our people’s wants and needs.
Aid Effectiveness Management
Institution
Working Committee
on Effective Aid
Management
Central
Committee on
Effective Aid
Management
National Economic
and Social Council
(NESC)
Ministries/ Local
and Regional
Govts
Donors
Community/ IOs
Private sector/
Civil Society
Academicians
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III. Conclusion
3.1 To summarize, the necessary tasks that are to be in line with the
Istanbul implementation plan are as follows;
 Developing domestic economy
 Ending conflicts with ethnic groups
 Enhancing Peace and stability in the border areas and regions
 Developing infrastructure in those areas
 Creating more economic and job opportunities
 Establishing industrial zones
 Building model villages and integrated farming
 Delivering public services is a top priority in fragile states if these states
are to make progress towards the Millennium Development Goals
(MDGs).
 Inviting more foreign investment ( electricity generation, rice production,
Fisher, hotel and tourism)
 Stabilizing macro-economy and creating more economic and job
opportunities
 Effective aid management
 Rule of Law
 Regional Cooperation: ASEAN, BIMSTEC, GMS, ACMECS, East Asia
Summit
 Integration with international community ( UN, ADB, World Bank,
International Monetary Fund, EU and other super powers as well as
emerging powers)
3.2 Although we have already moved rightly, we have a lot of challenges to
move forward. According to the comment of Mr. Craig Steffensen, ADB’s
Thailand Country Director, said that “Myanmar is making a lot of the right
moves to revitalize its economy, laying a foundation for further foreign
investment and commodity exports with currency changes, land reforms and tax
incentives,”. For Myanmar, to ensure growth is sustainable and benefits all of
the country’s people, the government will have to accelerate reforms and
enhance investment in education, health and infrastructure. Therefore, human
resource is badly needed in Myanmar.
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3.3 Myanmar is now ushering in a new era. As a member in the family of
nations, Myanmar will participate more actively in the activities of the United
Nations in various fields. Standing as a responsible and respectable nation on
the world stage, the challenges of the 21st century will be taken in a bold and
resolute manner. At the same time, it is equally important that Myanmar should
be viewed from a different and new perspective. It is also necessary for us to be
able to work in a more conducive and favourable environment than never
before.
3.4 In conclusion, the reforms which are being conducted in Myanmar are in
line with the Istanbul plan of actions and these actions are taken by the
government with ownership and leadership for our own development. An
integrated approach is also applied with the participation of all stakeholders
including international community. Peace and security, development and human
rights are also promoted by conducting political, economic and institutional
reforms and it has been committed to carry out for our people as well as to
achieve Millennium Development Goals (MDGs) and to actively contribute
towards the maintenance of international peace and security.
References:
 ADB Development Report ( ADO 2012)
 Explore Myanmar: The Golden Land of Trade and Investment
Opportunities, published by Ministry of Commerce, 2011.
 Istanbul Programme Action for LDCs, Fourth United Nations Conference
on the Least Developed Countries, Istanbul, Turkey, 9-13 May 2011
 Policy Review on Myanmar Economy, Bangkok Research Centre, IDEJETRO
 Selected Monthly Indicators, Central Statistical Organization, July, 2012
 Speech of President U Thein Sein which is delivered at the 67th United
Nations General Assembly
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