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World Bank takes aim at Myanmar mil



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World Bank takes aim at Myanmar military over economic woes 

AFP Bangkok, 14 November 1999.   The World Bank has blamed
Myanmar's military for the country's stagnant economy, telling its 
ruling generals political and human rights reform are the solution 
to achieving prosperity on a par with its neighbours, it was reported. 

Copies of the scathing assessment were delivered secretly to 
Yangon's generals and democratic opposition leader and Nobel 
laureate Aung San Suu Kyi by a special representative of UN chief 
Kofi Annan last month. 

The leaked document, the conclusions of which were published in 
the International Herald Tribune Saturday, is based on an examination 
of Myanmar's economy that received "unusual cooperation" from the junta. 

Its findings are critical of the military's economic management, pointing 
an accusing finger at the generals rather than Asia's financial crisis as the 
main source of the country's economic malaise. 

It says the country is facing the same economic woes it did a decade ago 
when the current junta took power, and that no progress has been made. 

The junta's current policies are likely to exacerbate poverty and devastate 
national cohesion, it adds. 

The World Bank's findings stand in contrast to Myanmar's official policy, 
and that of some Asian governments, that a firm economic base can and 
must be achieved before the country can risk giving its people more 
political freedoms. 

The document represents continued cooperation between the World Bank 
and the United Nations, who last year are reported to have unsuccessfully 
offered the junta one billion dollars in aid to open dialogue
with Aung San Suu Kyi's opposition, the Tribune said. 

It was delivered to the generals last month by UN special envoy Alvaro 
de Soto. A representative of the World Bank joined de Soto's mission. 

The UN envoy met with the junta's powerful first secretary Lieutenant 
General Khin Nyunt and twice with Aung San Suu Kyi, who heads the 
National League for Democracy (NLD). 

The NLD under Aung San Suu Kyi won 1990 polls in a landslide, but 
has been denied power by the military. 

The junta has so far declined to comment on the leaking of the secret report. 

***************************

[FOLLOWING IS A SECTION FROM THE WORLD BANK REPORT OF 
OCTOBER 1995,  "MYANMAR: POLICIES FOR SUSTAINING ECONOMIC 
REFORM".  AT THE TIME, THE REPORT SEEMED MUCH STRONGER  
AND MORE  OPEN IN ITS CRITICISM OF THE BURMESE MILITARY 
THAN THE BANK'S  PREVIOUS PUBLIC DOCUMENTS, BUT THE 
CRITICISM WAS STILL LIMITED ESSENTIALLY TO ECONOMIC 
POLICY. FROM THE ABOVE AFP WIRE,  IT SEEMS THAT THE 
FORTHCOMING  REPORT (TO BE PUBLISHED BY THE END OF 
THE YEAR ACCORDING TO THE UN SECRETARY- GENERAL) 
GOES MUCH FURTHER IN ITS CRITICISM AND PROPOSALS 
FOR REFORM, AND SPECIFICALLY INCORPPORATES THE 
POLITICAL AND HUMAN RIGHTS  DIMENSIONS]-- DA



MYANMAR: POLICIES FOR SUSTAINING ECONOMIC REFORM

WORLD BANK REPORT No.14062-BA

October 16, 1995

Country Operations Division
Country Department I
East Asia and Pacific Region


                            EXECUTIVE SUMMARY
                                    
                              F. CONCLUSION

50.    The Government's ongoing economic reform program has
changed many facets of the Myanma economy. To achieve the goals
of expanding exports, encouraging agriculture, and promoting
private-sector and foreign participation in economic activity,
several new laws and regulations have been instituted. However,
this report concludes that the pace of economic growth is still
not rapid enough to compensate for the economic stagnation of the
preceding quarter century, and its sustainability is uncertain.
The current reform efforts are, therefore, unlikely to push the
Myanma economy to a higher growth path on which the bulk of the
population would enjoy substantially better living standards.

51.    For a sustained growth response to emerge, this report
concludes that economic reforms need to be deepened and extended
in several policy areas.  The most urgent need is to restore
macroeconomic stability so as to establish the basis for
sustained growth.  In this context, the report's central
recommendation is for a nominal devaluation of the official
exchange rate.  Adjusting the exchange rate is essential to
tackling the unsustainably large macroeconomic imbalances with
regard to the fiscal deficit and the current account gap. These
distortions in macroeconomic policies, particularly the
overvalued exchange rate and the deep cuts in non-military public
expenditures, also have adverse distributional impacts. Unless
they are addressed, it will be impossible to reduce poverty and
achieve social development.  Substantial gains in economic
efficiency would also result if the ban on private-sector exports
of paddy and rice were eliminated, and the scope of government
paddy procurement were reduced.  Reforming these paddy policies
would help to reduce poverty and enhance equity because they
imply large income transfers from the rural poor to the urban
elites (including the military). Regarding private-sector
participation, SEs [State Enterprises] still enjoy significant
advantages in their access to key inputs and, thus, are also
favored by foreign investors in establishing joint ventures.
Hence, steps to establish a "level playing field" between SEs and
domestic private businesses should be a priority. Finally, if the
role of the SE sector in the economy and its adverse fiscal
impact are to be reduced, reforms would need to go further or be
reoriented in several areas, including price liberalization,
managerial and financial autonomy, and privatization.   

 ...............................................................

These paragraphs are taken from the 150-page report whose main
headings are:

1. POLICY REFORMS AND MACROECONOMIC ISSUES 

2. CHANGES IN THE INCENTIVE SYSTEM

3. STATE ENTERPRISE REFORM AND PRIVATE SECTION DEVELOPMENT

BIBLIOGRAPHY

ANNEXES

STATISTICAL APPENDIX


Internet ProLink PC User

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<html>
World Bank takes aim at Myanmar military over economic woes <br>
<br>
AFP Bangkok, 14 November 1999.&nbsp;&nbsp; The World Bank has 
blamed<br>
Myanmar's military for the country's stagnant economy, telling its <br>
ruling generals political and human rights reform are the solution <br>
to achieving prosperity on a par with its neighbours, it was reported.
<br>
<br>
Copies of the scathing assessment were delivered secretly to <br>
Yangon's generals and democratic opposition leader and Nobel <br>
laureate Aung San Suu Kyi by a special representative of UN chief <br>
Kofi Annan last month. <br>
<br>
The leaked document, the conclusions of which were published in <br>
the International Herald Tribune Saturday, is based on an examination
<br>
of Myanmar's economy that received &quot;unusual cooperation&quot; from
the junta. <br>
<br>
Its findings are critical of the military's economic management, pointing
<br>
an accusing finger at the generals rather than Asia's financial crisis as
the <br>
main source of the country's economic malaise. <br>
<br>
It says the country is facing the same economic woes it did a decade ago
<br>
when the current junta took power, and that no progress has been made.
<br>
<br>
The junta's current policies are likely to exacerbate poverty and
devastate <br>
national cohesion, it adds. <br>
<br>
The World Bank's findings stand in contrast to Myanmar's official policy,
<br>
and that of some Asian governments, that a firm economic base can and
<br>
must be achieved before the country can risk giving its people more 
<br>
political freedoms. <br>
<br>
The document represents continued cooperation between the World Bank
<br>
and the United Nations, who last year are reported to have unsuccessfully
<br>
offered the junta one billion dollars in aid to open dialogue<br>
with Aung San Suu Kyi's opposition, the Tribune said. <br>
<br>
It was delivered to the generals last month by UN special envoy Alvaro
<br>
de Soto. A representative of the World Bank joined de Soto's mission.
<br>
<br>
The UN envoy met with the junta's powerful first secretary Lieutenant
<br>
General Khin Nyunt and twice with Aung San Suu Kyi, who heads the <br>
National League for Democracy (NLD). <br>
<br>
The NLD under Aung San Suu Kyi won 1990 polls in a landslide, but <br>
has been denied power by the military. <br>
<br>
The junta has so far declined to comment on the leaking of the secret
report. <br>
<br>
***************************<br>
<br>
[FOLLOWING IS A SECTION FROM THE WORLD BANK REPORT OF <br>
OCTOBER 1995,&nbsp; &quot;MYANMAR: POLICIES FOR SUSTAINING ECONOMIC 
<br>
REFORM&quot;.&nbsp; AT THE TIME, THE REPORT SEEMED MUCH STRONGER&nbsp;
<br>
AND MORE&nbsp; OPEN IN ITS CRITICISM OF THE BURMESE MILITARY <br>
THAN THE BANK'S&nbsp; PREVIOUS PUBLIC DOCUMENTS, BUT THE <br>
CRITICISM WAS STILL LIMITED ESSENTIALLY TO ECONOMIC <br>
POLICY. FROM THE ABOVE AFP WIRE,&nbsp; IT SEEMS THAT THE <br>
FORTHCOMING&nbsp; REPORT (TO BE PUBLISHED BY THE END OF <br>
THE YEAR ACCORDING TO THE UN SECRETARY- GENERAL) <br>
GOES MUCH FURTHER IN ITS CRITICISM AND PROPOSALS <br>
FOR REFORM, AND SPECIFICALLY INCORPPORATES THE <br>
POLITICAL AND HUMAN RIGHTS&nbsp; DIMENSIONS]-- DA<br>
<br>
<br>
<br>
<font face="Courier New, Courier">MYANMAR: POLICIES FOR SUSTAINING
ECONOMIC REFORM<br>
<br>
WORLD BANK REPORT No.14062-BA<br>
<br>
October 16, 1995<br>
<br>
Country Operations Division<br>
Country Department I<br>
East Asia and Pacific Region<br>
<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EXECUTIVE SUMMARY<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
F. CONCLUSION<br>
<br>
50.&nbsp;&nbsp;&nbsp; The Government's ongoing economic reform program
has<br>
changed many facets of the Myanma economy. To achieve the goals<br>
of expanding exports, encouraging agriculture, and promoting<br>
private-sector and foreign participation in economic activity,<br>
several new laws and regulations have been instituted. However,<br>
this report concludes that the pace of economic growth is still<br>
not rapid enough to compensate for the economic stagnation of the<br>
preceding quarter century, and its sustainability is uncertain.<br>
The current reform efforts are, therefore, unlikely to push the<br>
Myanma economy to a higher growth path on which the bulk of the<br>
population would enjoy substantially better living standards.<br>
<br>
51.&nbsp;&nbsp;&nbsp; For a sustained growth response to emerge, this
report<br>
concludes that economic reforms need to be deepened and extended<br>
in several policy areas.&nbsp; The most urgent need is to restore<br>
macroeconomic stability so as to establish the basis for<br>
sustained growth.&nbsp; In this context, the report's central<br>
recommendation is for a nominal devaluation of the official<br>
exchange rate.&nbsp; Adjusting the exchange rate is essential to<br>
tackling the unsustainably large macroeconomic imbalances with<br>
regard to the fiscal deficit and the current account gap. These<br>
distortions in macroeconomic policies, particularly the<br>
overvalued exchange rate and the deep cuts in non-military public<br>
expenditures, also have adverse distributional impacts. Unless<br>
they are addressed, it will be impossible to reduce poverty and<br>
achieve social development.&nbsp; Substantial gains in economic<br>
efficiency would also result if the ban on private-sector exports<br>
of paddy and rice were eliminated, and the scope of government<br>
paddy procurement were reduced.&nbsp; Reforming these paddy 
policies<br>
would help to reduce poverty and enhance equity because they<br>
imply large income transfers from the rural poor to the urban<br>
elites (including the military). Regarding private-sector<br>
participation, SEs [State Enterprises] still enjoy significant<br>
advantages in their access to key inputs and, thus, are also<br>
favored by foreign investors in establishing joint ventures.<br>
Hence, steps to establish a &quot;level playing field&quot; between SEs
and<br>
domestic private businesses should be a priority. Finally, if the<br>
role of the SE sector in the economy and its adverse fiscal<br>
impact are to be reduced, reforms would need to go further or be<br>
reoriented in several areas, including price liberalization,<br>
managerial and financial autonomy, and privatization.&nbsp;&nbsp; <br>
<br>
 ...............................................................<br>
<br>
These paragraphs are taken from the 150-page report whose main<br>
headings are:<br>
<br>
1. POLICY REFORMS AND MACROECONOMIC ISSUES <br>
<br>
2. CHANGES IN THE INCENTIVE SYSTEM<br>
<br>
3. STATE ENTERPRISE REFORM AND PRIVATE SECTION DEVELOPMENT<br>
<br>
BIBLIOGRAPHY<br>
<br>
ANNEXES<br>
<br>
STATISTICAL APPENDIX<br>
<br>
</font><br>
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