The Myanmar Economy

In southeastern Asia, there is a country called Myanmar, or Burma. The country have enough natural resources and educated public to make one good economy. After the national democratic election happened in April 2012, pro-democracy leader Aung San Suu Kyi 's party formed a new administration, Myanmar has embarked on an ambitious program of sweeping reforms to integrate its economy with the global system, as well as solving internal economic problems, there should be no doubt that this administration intends to improve the well-being of Myanmar’s population.

Given the current rather miserable state of Myanmar’s economy, reform should be carried out fast, but before any specific policies, we should ensure the stability of the economy. Not only because the stability is one of the qualitative performance standards of economy, if a country’s economy can easily become unstable during reform, no policy can perform normally. The unstable economy of Myanmar is caused by multiple issues: unpredictable inflation, fiscal deficits, an overvalued exchange rate of Burmese Kyat, distorted interest rate regime, unreliable statistics, and an inability to reconcile national accounts.

Specifically, unpredictable inflation decreases

Now the administration has better support nationwide and internationally, so they have more confidence to proceed reform, without fear of domestic military influence. The market and price level policies in Myanmar are mainly controlled or influenced by military presence, which cause unfair resource distribution among state owned companies, private sector firms, and farmers, it can also cause price level of goods to change frequently and unpredictably. In the year 2011, agriculture’s contribution to GDP is about 43%, and 66% of the population are rural based, so clearly the agriculture sector need more