"...The transformation of Burma into a fully institutionalised liberal democracy based on a market economy will be a multi-faceted process. One aspect of this must be, however, the creation of a properly functioning financial system. Financial institutions are integral to economic development. In a market economy they provide the central coordinating mechanism through which resources are allocated. At best, they do this in ways that maximise the wealth and welfare of their respective national economies. The foundations of a proper functioning financial system are transparency, accountability and the effective transmission of market signals. Burma?s existing financial system, unfortunately, possesses few of these virtues. Worse, its principal financial institutions may be little more than facades for the activity of criminals and a narco-state. Reforming Burma?s financial system, in particular the banks that make up its core, will require the privatisation of its state banks, the legitimisation of its existing private banks and the opening up of the sector to foreign competitors. Before these measures can be undertaken, however, fundamental institutional reform will be necessary. Burma must become an economy and a society ruled by law and not the whim of generals. The Burmese people must have rights to property in order to best liberate their latent skills and energy. Financial regulation must adopt practices that have been demonstrated to work elsewhere. Macroeconomic policy must leave the irrational world and enter that which reason and history teaches us can achieve all that governments are able. Burma?s political economy, in short, awaits its transformation..."