Myanmar has chaptered a new course of political system with the adopting new Constitution in 2008. The general election was held in 2010 and consequently, a parliamentary government has evolved. The new government put its strongest commitment to chart a new direction through an ambitious set of reforms with the vision of comprehensively modernizing Myanmar economy and re-integrating the country with the globe.

The Government of Myanmar, under the leadership of President U Thein Sein, has initiated the distinct and much needed reforms soon it took office in March 2011. It launched the first stage of reform called political reforms and inclusiveness and national reconciliation that has made fruitful outcome of peace and mutual understanding amongst the national tribes. It was paralled by economic and social reforms to uplift the living standard of people and administrative reforms of public sector towards good governance and clean government. Recently, the government of Myanmar has taken into account to drive private sector development as the fourth reform because private sector accounted more than 80 percent of Myanmar economy. This stage will place a great emphasis on concrete institutional infrastructure and regulatory framework in terms of business, trade, investment and logistic issues.

As economic development is the essential factor for the emergence of full democratic nation, the Government of Myanmar has laid down four economic policies of “sustaining agricultural development towards industrialization and all round development, balanced and proportionate development among states and regions, inclusive growth of the entire populations and quality of statistics and statistical system”. Thenceforward implementation of these policies has been come out as operations.

It is also recognized that high poverty incidence shows in rural area and thus the government sets the agenda of poverty reduction and rural development as a national strategy with the aim to halve poverty rate by 16% in 2015 which was 26% in 2010. The government also targets to sustain the economic growth and increase per capita GDP. The core strategies are: development of agricultural productivity, development of livestock breeding and fisheries, development of rural small-scale productivity, development of micro saving and credit association, development of cooperative tasks, development of rural socio-economy and development of rural energy and environmental conservation.

In order to maintain the development momentum Myanmar has gained and to further promote the country’s socio-economic development, Myanmar has formulated and implemented short-term and annual economic plans. Additionally, as prevalence of macroeconomic stability is fundamentally important as well as efficient mobilization and allocation of financial resources play an essential role in achieving sustainable economic growth and development, the Government of Myanmar has taken bold steps of reforms.

Significant reforms in financial, monetary and banking sectors which are conducive to economic reforms have also been materialized. It includes the adoption of the managed float exchange rate system in April 2012, unification of exchange rate, enactment of the new Foreign Exchange Management Law through which all restrictions on the current payments and transfers for international transactions are lifted, rewriting the banking laws, enhancing the payment system, promoting capacity building in the financial sector, facilitating broader access to finance and improving the budget system and taxation of the country. In the insurance market of Myanmar, necessary reforms such as liberalization of the existing restrictions, enactment of laws in conformity with international standards, establishment of a reinsurance organization and insurance training schools are being taken to emerge insurance business which will lure foreign investments.

Accepting the requirement of increased local and foreign investment, foreign investment law (FDI) to ensure a stable and predictable environment for inward investors has been passed by Parliament and drafting of overhaul of the law on Special Economic Zones (SEZs) is in the process. To materialize the SEZs, the Government has formed the SEZs Management Working Committee for the respective SEZs. Dawei Special Economic Zone includes multi-purpose economic development activities such as deep-seaport, industrial estate, etc. Dawei deep-seaport is situated on Mekong-India Economic Corridor (MIEC) and also GMS Southern Economic Corridor. It is gateway of Southeast Asia countries to South Asia, Africa, Gulf countries and European countries.

A comprehensive investment climate assessment is planned by the World Bank to guide broader reforms for private sector development. Regarding the private sector development, the Government of Myanmar will emphasize the effective supply chain management to promote the global competitiveness and the global market access for domestic producers. Furthermore, the fourth stage will also encourage the development of small and medium enterprise (SMEs) through supporting the development of micro-finance institutions. A SMEs Development Bank was established to facilitate SME financing and infrastructure and service sector development will be enhanced through engaging the Private Public Partnership (PPP).

To support agricultural development, new land law giving titles to farmers and encouraging the development of fallow land for agricultural use and a new microfinance law to improve access to finance were passed by the Parliament. These laws are key instruments to support industrialization. While focusing on development of key infrastructures like energy, transport and telecommunications, sectoral plans for these critical areas are currently prepared with the support of WB and ADB. Long-term, medium-term and annual economic plans have also been set up with the growth targets.

Soon, the Framework for Economic and Social Reforms (FESR) has identified with emphasis on agro-based industrial development, equitable sharing of resources among the regions and states of the country, promoting local and foreign investment, effective implementation of people-centered development and poverty reduction. It is the short-term framework and set ten focused areas: finance and revenue, relaxation of restrictions on trade and foreign investment, development of the private sector, education and health sectors, food security and development of the agriculture sector, transparency in government, the mobile phone and internet systems and development of the basic infrastructure. Key measures under FESR include: land reform, improvement of access to credit and creating job opportunities.

In compliance with the FESR and closer cooperation with relevant government bodies, Ministry of National Planning and Economic Development is currently formulating the National Comprehensive Development Plan - NCDP (2011-2031) which composes of the Regional Comprehensive Development Plan and Sectoral Development Plan. This is a macro level long term plan in the fulfillment of national vision and goals. The NCDP functions on bottom up planning approach which will encourage the participatory, transparency, accountability and inclusiveness of related stakeholders. Therefore, the Government of Myanmar welcomes the public consultations and feedback which will represent the needs and desire of grassroots people.

In order to ensure tangible outcome of short term development, Ministry of National Planning and Economic Development is finalizing the First-Five Year Plan (2011-12 to 2015-16) in cooperation with regional authorities and government agencies. This basically aims to improve the living standard of entire population, it emphasizes on the poverty reduction and rural development, achieve MDGs and other human development objectives and full implementation of ASEAN Economic Community by 2015.

The FESR also outlines strategies for Myanmar to reposition herself in the international community through strategic engagements with neighbouring economies; ASEAN Economic Community (AEC), the Greater Mekong Sub- region (GMS), ACMEC and Free Trade Area (FTA) Partners like China, Japan, Korea, India, Australia and New Zealand. Such kind of Regional Comprehensive Economic Partnership (RCEP) negotiated to start by ASEAN and FTA cohorts is a step towards integration into global economy. The objectives of RCEP is to achieve a modem, comprehensive, high-quality and mutually beneficial economic partnership agreement among the ASEAN Member States and ASEAN’s FTA Partners.

Under 3 pillars of ASEAN Connectivity, Myanmar is actively participating in the fields of telecommunication, transportation, aviation, energy, education, culture, etc. In the context of ASEAN Economic Community measures, reduction tariff lines of customs tariffs of existing rate to zero to zero by respective year, building necessary infrastructures like rail transportation, motor roads to facilitate free flow of goods, giving labour and social amenities, social insurance and social assistant, etc. are being taken in coordination with relevant ministries.

For safeguarding the rights of worker in having good relations between employer and workers and making safe workplace or obtaining the rights fairly, rightfully and quickly by settling the dispute of employer and worker justly, “The Settlement of Labour Dispute Law” has been enacted in March 2012.

The Labour Organization law and rules have been enacted aiming at having good industrial relation cooperating between employers and workers and increasing the productivity. A total number of 529 worker and employer organizations have been formed under the Labour Organization Law up to now. It includes Township Labour organizations and some federations formed according to trade.

The Government has been cooperating with the partners in private sector to enhance the skill development of workers. On the other hand, the Employment and Skill development Law will be approved soon. As a result, the skill development of workforce can be performed more effectively than before.

Myanmar has been participating in ASEAN Finance Cooperation, integrating into the region’s banking and insurance markets. Myanmar has also been taking part in ASEAN Capital Market Forum, while it is making efforts to develop a capital market within the country.

Being a member of ASEAN, GMS, CLMV and ACMECS, Myanmar has ample opportunities to promote bilateral trade between member countries. 8 priority areas including trade and investment facilitation, agricultural cooperation, industrial and energy cooperation, transparent linkages, tourism cooperation, human resource development, public health and environment are set and cooperating among ACMECS member countries. Now, Myanmar is taking role as leading country in agriculture cooperation sector. From April 2012 to January 2013, investments from ACMECS countries are being engaged in 66 industries and 257 companies had registered in line with Myanmar Companies Act in Myanmar.

It has been nine years since the adoption of the Vientiane Declaration which has give birth to CLMV cooperation mechanism to strengthen the coordination and cooperation among sub-region. As one of the member countries of CLMV, Myanmar is participating energetically in cooperating sectors namely policy coordination, trade and investment facilitation cooperation, transport cooperation, agriculture, industrial and energy cooperation, tourism cooperation, human resource development cooperation.

At present, EU and the United States have eased or lifted economic sanctions and restrictions imposed against Myanmar. As a result, many international businesses are exploring investment and business opportunities in Myanmar. Myanmar businessmen are also preparing to resume exports to EU and US market. During the visit of President H.E. U Thein Sein to the United States, two agreements namely Trade and Investment Framework Agreement between the Government of the Republic of the Union of Myanmar and the Government of the United States of America and Investment Incentive Agreement between the Government of the Republic of the Union of Myanmar and the Government of the United States of America were signed to improve bilateral economic and investment relations.

In recognition of Myanmar efforts to reform, WB, ADB and some members of the Paris Club assisted Myanmar in clearing its arrears to the international financial institutions in January 2013, in coordination with these debtors and Japan Bank for International Cooperation.

Myanmar is in the process of unprecedented democratic changes. The new government is undertaking both political and economic reforms with a view to peace and stability and for socio-economic development of the country. Thus, with the successful transition, Myanmar is poised to fully reintegrate herself into global economy contributing peace and stability and economic growth to the regional and beyond in the very near future.