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POLIC
IES
F OR
BREAKING BUSINESS AS USUAL
SH
Fostering competitiveness and a dynamic
AR environment for private sector growth
E D
P
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O
SP
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ITY
IN
M
YAN
ARM
ALL
ABOARD
Policies for shared prosperity in Myanmar
This Policy Note was prepared by:
Charles Schneider (Senior Operations Officer) and
Sjamsu Rahardja (Senior Trade Economist)
with inputs from Tenzin Dolma Norbhu (Program Coordinator)
under the guidance of Mona Haddad (Practice Manager, Trade and Competitiveness).
ALL
ABOARD
Policies for shared prosperity in Myanmar
Breaking business as usual:
Fostering competitiveness and a
dynamic environment for private sector growth
BREAKING BUSINESS AS USUAL
Fostering competitiveness and a dynamic
Market-based reforms and the opening up of trade and investment initiated over the past four years have had a
environment for private sector growth
positive impact on growth in Myanmar. These have enhanced private sector participation and increased the role of
exports in the economy. Reforms have included streamlined business entry procedures, reduced export and import
licensing requirements, and enhanced public-private partnerships and dialogue.
Promoting private sector competitiveness and inclusion in Myanmar have enormous potential to drive job creation,
economic diversification, and structural transformation. This would involve improving the investment climate with
an emphasis on transparency and predictability; reducing trade costs and strengthening connectivity for economic
integration; enhancing public-private partnerships; and strengthening institutional capacity to drive the reform pro-
cess. The ongoing peace process calls for careful sequencing of reforms, starting with reducing the costs of doing
business and engaging in trade; consulting with local communities; and supporting vulnerable groups adversely
affected by economic changes.
Context and opportunities for change
Myanmar has the opportunity to revitalize private
sector led growth. The latter was hampered by
decades of economic isolation and state control. The
provision of key goods and services have been largely
dominated by a handful of businesses based on con-
cessions and protection from the state at the expense
of opportunities for smaller businesses and entrepre-
neurs. This was compounded by a historically opaque
and non-transparent regulatory system that promoted
“crony capitalism” in the form of preferential access to
factors of production, including in the exploitation of
non-renewable resources.1
Multiple bureaucracies, licensing regime, and state-led
industrialization in trade undermined competitiveness
and Myanmar’s ability to diversify its productive sectors This context warrants continued efforts at opening
beyond agriculture and natural resources. The political up the regulatory environment and break business
economy of vested interests has prolonged rent seeking as usual.3 The World Bank Group Doing Business
activities that cause firms to comply with market Report, in which Myanmar ranked 167th out of 189
distorting or unnecessary regulations. The incidence of economies in 2016, points to several challenges in
corruption as measured by bribe payments is one of this regard, including: (i) the lack of financial services
the highest in the region.2 and the low levels of financial inclusion;4 (ii) the lack of
clarity on rules and procedures for obtaining, keeping
and transferring land use rights; (iii) burdensome market
entry procedures; and (iv) weak investor protections
and contract enforcement.
1 Please see Policy Note on “Participating in change: Public 3 Aside from regulatory constraints, the WBG ICA finds that
sector accountability for all.” the top four most-mentioned obstacles for firms are access
2 WBG, “Myanmar Investment Climate Assessment 2014” to finance, access to land, access to electricity, and access to
skilled workers.
4 Please see Policy Note on “Financing the future:
Building an open, modern and inclusive financial system.” 1
Myanmar’s 2016 Ranking in 10 Doing Business Indicators (out of 189 Economies)
Indicator Rank Indicator Rank
Starting a Business 160 Protecting Minority Investors 184
Dealing with Construction Permits 74 Paying Taxes 84
Getting Electricity 148 Trading Across Borders 140
Registering Property 145 Enforcing Contracts 187
Getting Credit 174 Resolving Insolvency 162
Source: Doing Business 2016 Report – Overall Ease of Doing Business Ranking 167/189
Myanmar ranks 187th in the Doing Business survey The potential for Myanmar’s private sector to expand
for enforcing contracts due to the time and cost of foreign trade and investment is enormous, given
resolving commercial disputes through the court growing market access, and its strategic location
system and because of the lack of alternative dispute including proximity to China, India and ASEAN. Yet
resolution mechanisms. The Government is preparing Myanmar faces higher trade costs than its neighbors.
an Arbitration Law to provide an alternative dispute res- Myanmar ranks 145th out of 160 countries in the World
olution mechanism to speed up contract enforcement. Bank logistics performance index (LPI). Compared to
Registering property in Myanmar is a cumbersome and other ASEAN members, coherence and efficiency in
expensive process taking 85 days, 6 procedures, and customs clearance processes in Myanmar is still low,
costing 5.1 percent of the property value. In addition, it causing high lead time in logistics and undermining
is not very easy for businesses to exit, where Myanmar competitiveness in labor cost of manufacturing. Quality
ranks 162 out of 189 on Resolving Insolvency. The of logistics services and the efficiency of international
Enterprise Survey carried out in 2014 as part of the freight handling in Myanmar are also behind coun-
Investment Climate Assessment identified business tries in ASEAN. Only 40 percent of freight shipments
inspections as a constraint in the eyes of the private in Myanmar arrived according to quality standards (in
sector due to the numerous inspections carried out time and not damaged), compared to 70 percent in
by different government agencies in an uncoordinated Indonesia and 83 percent in Thailand. These severely
fashion. hamper Myanmar’s external competitiveness and its
ability to engage in global value chains.
2
Since the removal of sanctions and the opening The ongoing peace process offers further opportu-
up of the economy, exports remain dominated by nities to expand private enterprise and investments.
natural resources, in particular gas, with limited The history of armed and ethnic conflicts has prevented
scope for job creation and linkages to domestic the private sector in border and conflict-affected
sectors. Gas accounts for around 40 percent of areas from benefiting from economic opportunities in
merchandize exports and therefore remains a big driver Myanmar’s urban areas. Lack of transparency in the
of Myanmar’s trade fortunes. Myanmar’s trade has extraction and sale of natural resources from conflict-af-
almost entirely been confined to its neighbors though it fected areas (e.g. jade and timber) have not only led to
is gradually beginning to diversify. China and Thailand loss of national revenues,5 but also impacted negatively
account for around three quarters Myanmar’s exports, on the environment and local communities. Conflict has
which are largely driven by gas. International sanctions also led to arbitrary taxation and confiscations of prop-
have meant that Myanmar’s current trade pattern— erties, which have further inhibited private enterprise.
focused mainly on South Asia and East Asia—does not The period ahead offers a real opportunity to decisively
reflect its true potential. address these issues.
Vertical linkages between foreign and domestic
firms could be an important driver of domestic
enterprise growth. This would require addressing
low labor productivity and skills. Of the approximately
127,000 registered enterprises in Myanmar, 99 percent
are classified as SMEs and an additional 600,000 are
informal enterprises—with around 70 percent of the
labor force working as casual laborers, self-employed,
or unpaid family workers. These enterprises are typi-
cally less efficient, less amenable to economies of
scale, and thereby constrained in establishing vertical
links with foreign companies.
5 Please see Policy Note on “Participating in change: Public
sector accountability for all.”
3
Recent developments
Myanmar has taken important steps since 2011 access to telecommunications services. The penetra-
to open up to foreign trade and investment. The tion rate (mobile phones per 100 people) went from less
Government liberalized foreign exchange controls than 10 percent in February 2014 to 50 percent as of
which were previously used to restrict trade. As a 2015.
result exports grew by 11 percent per year from 2011
to 2014 and FDI continues to expand. It also removed Gradual economic liberalization has attracted sig-
trade license requirements for about 4,000 products nificant foreign investor interest since 2011. Major
in 2015; simplified company registration procedures multinationals involved in light manufacturing industries
(Doing Business 2016 report); passed a new Foreign are investing in Myanmar and expanding their opera-
Investment Law 2012 (which allows 100 percent foreign tions. Foreign Direct Investment (FDI) commitments
ownership except in activities that are restricted or rose very sharply in 2014/15. Commitments went from
prohibited through implementing regulations); passed around US$3.2 billion in 2013/14 to around US$8 billion
the Myanmar Citizens Investment Law in 2013; and in 2014/15. Approximately 40 percent of this was driven
promulgated the Special Economic Zones Law of 2014, by investment commitments in the gas sector, which
which provides a framework for SEZs and generous tax picked up rapidly following agreement on 20 Production
incentives for investing in them. Sharing Contracts in 2014/15. Commitments in tele-
communication and manufacturing sectors (20 percent
The liberalization of the telecommunications each) also grew rapidly, totaling in excess of US$1.5
market has led to a rapid expansion of critical billion each in 2014/15.
services. Two foreign investors, Ooredoo Myanmar
and Telenor Myanmar, won operating and spectrum
licenses in June 2013 following an open competition.
A Telecommunications Law was passed in October
2013, with operating licenses formally awarded in
January 2014. Both operators launched their services
in August-September 2014. The resulting competition
and investment in the telecommunications sector have
contributed to falling costs and rapidly increasing
4
The recent increase in investment in the manufac- Vietnam). Whilst there is an excess demand for skilled
turing sector is reflective of the positive signals workers, Myanmar is well placed to grow its low-skill,
created by the overall trajectory of reforms initiated labor intensive, manufacturing sector, which is vital for
in recent years. The opening up of Myanmar’s economy job growth.
has attracted foreign investments in manufacturing which
accounted for 2/3 of the number of newly approved FDI Myanmar has strong potential to promote agri-busi-
projects in 2014/15. A large share of these were in the ness6 and tourism clusters as drivers for poverty
garments and footwear sectors. Investors are looking reduction. Most poor people in Myanmar live in rural
to diversify from increasingly higher cost locations in areas. Myanmar has a comparative advantage in
China, Vietnam, and Indonesia. The garment industry is rice, beans and pulses, and aqua-culture products.
estimated to employ about 250,000 workers, or about Introduction to better technology in processing and
7 percent of Myanmar’s labor force (Labor Force Data, better logistics can add value of Myanmar’s agriculture
EIU). Domestic investors are also seeking to develop products and improve income for farmers. Myanmar
garment factory industrial parks, primarily in Yangon, can leverage its cultural heritage and quality of nature
and the opening of the Thilawa Special Economic to develop the tourism sector through infrastructure
Zone outside Yangon indicates demand from investors and destination management with strong linkages with
for well situated industrial locations with good power, local economies (horticulture farming, handicrafts) and
water and transportation infrastructure. services (hospitality industries, tour operators).
The growing interest in manufacturing, which is
key for transforming the economy, is also driven by
Myanmar’s competitive labor costs. Labor costs in
Myanmar are far lower than those of Vietnam (monthly
wages are around US$100 compared with US$181 for
Vietnam according to ADB) and its labor force is large
and growing—between 2015 and 2025, it will grow 9
percent to 35.1 million, (compared with 4.4 million for
Laos and 10.4 million for Cambodia, and 60.7 million for
6 Please see Policy Note on “Growing together: Reducing rural
poverty in Myanmar.”
5
Regional experiences and lessons
Countries in the East Asia region – one of the most Vietnam has over the past 25 years steadily adopted
dynamic in terms of investment and intra-regional reforms geared at establishing and strengthening
trade – offer important lessons and experiences market institutions. These were initiated as part of its
for Myanmar. Malaysia, Thailand and Vietnam in Doi Moi Policy (economic reforms) that began in 1986.
particular had characteristics that resonate with To promote greater private sector participation in the
Myanmar’s own starting point. Vietnam for example economy, the government in 1990 adopted a Private
underwent a significant transformation from a closed, Enterprise Law to provide for a legal basis for private
state-dominated economy to one in which both the company operations. In 2005, this was replaced by the
private domestic and foreign invested manufacturing Enterprise Law, which brought State Owned Enterprises
sector plays a major role in driving growth and exports. (SOEs) under the same legislative framework, even
Malaysia had a large exposure to natural resources though SOEs still benefit from some preferential access
(gas) and relied heavily on the forestry sector (rubber, to factors of production.
palm oil) to generate exports. Thailand successfully
leveraged its comparative advantage in agriculture, In parallel, efforts were under way to equitize over 4,000
used labor intensive manufacturing for industrialization, State Owned Enterprises to make space for private
and developed tourism for service sector growth. sector growth. Additional reforms in 2014 resulted in the
revision of key laws, including the Enterprise Law, the
Investment Law and the Bankruptcy Law. Vietnam has
successfully attracted investment from leading inter-
national electronics and information technology com-
panies. Investors commonly cite Vietnam’s geographic
proximity to global supply chains, relative political and
economic stability, expected benefits from completion
of the Trans-Pacific Partnership (TPP) agreement, and
an increasing desire to diversify their manufacturing
base in Asia as reasons for investing there.
6
Vietnam has also established a strong public-private Successfully exploiting openness to trade and
dialogue to promote regulatory reform for the business foreign investment has however also required
environment. This is carried out primarily through the extensive investment in infrastructure. Malaysia
“Vietnam Business Forum”, which enables the private provides a good example of this through Public Private
sector to provide feedback on reforms needed and on Partnership. For example the port of Tanjung Pelepas
implementation. This is also complemented by annual was developed through a 30percent joint venture with a
surveys to collect private sector feedback on the multinational company (Maersk Line). It is a deep sea-
business environment across Vietnam’s 63 provinces. port currently handling around 9 million TEUs (20-foot
The Provincial Competitiveness Index compiles pri- equivalent containers) in-and-out (throughput). The
vate sector feedback on transparency, efficiency, and port is directly linked to an expressway, FTZ, and by rail
effectiveness of business rules and regulations in all of to South Thailand.
the country’s provinces. The results are published and
discussed between local authorities and the private In Thailand and Vietnam, the authorities invested in port
sector to identify reform priorities. The results have facilities to relieve pressures on urban areas, an issue
also incentivized provinces to implement reforms and that is also relevant to Myanmar. Thailand for example
improve their rankings. opened port Laem Chabang 90 kilometers south of
Bangkok after the river port in Bangkok became fully
Openness to trade and foreign investment has been congested. Laem Chabang links up well with manufac-
a major element of inclusive growth in Malaysia, turing areas in Bangkok through highway and railway
Thailand and Vietnam. All three countries attracted connections. It is now among the world’s top 25 busiest
high levels of FDI thanks to both trade-related and ports. In Vietnam, Ho Chi Minh City (HCMC) also has
behind the border reforms, a number of which were river ports similar to that in Yangon. Due to the rapid
part of commitments they signed up to under WTO urban development of HCMC, the government devel-
or ASEAN membership. These in fact helped to push oped a new port terminal outside of the city (Cat Lai
through difficult reforms aimed at promoting competi- and Saigon Premier Container Terminal) with imme-
tion, including on public procurement, property rights, diate access to highways have enabled efficient freight
competition law, and state enterprise restructuring, all transportation to hinterland areas and nearby industrial
of which are relevant to Myanmar today. zones.
Malaysia and Thailand have improved their investment
climates over the years and rank 18th and 49th in the
Doing Business 2016 report, respectively. They have
adopted de-facto relatively open policies towards
foreign expertise working in business services, logis-
tics and distribution, health and education services.
Business and logistics services have become integral
to global manufacturing value chains as they connect
different production locations and stages (design,
components making, and final assembly). Malaysia
and Thailand also have developed world class health
services that link to their tourism sectors. They are also
establishing links between domestic and foreign uni-
versities to develop tertiary education services.
7
BREAKING BUSINESS AS USUAL
Fostering competitiveness and a dynamic
environment for private sector growth
Policy options
Improved investment climate with emphasis on affairs, financial reporting and audit requirements for
transparency and predictability: The regulatory companies, share capital and capital raising matters,
regime needs to be overhauled to lower barriers and duties of directors and winding up of companies. A
improve certainty for the private sector to conduct key issue addressed in the law that affects investment
activities and to avoid regulatory capture that ruins in the country is the definition of a foreign company
trust. While Myanmar has shown remarkable progress provided in the law. Currently, a single share owned
in improving the business environment, it could benefit by a foreign investor classifies a company as foreign,
from further efforts to level the playing field and allow thereby restricting land ownership. The law seeks to
for greater competition. Transparency and predictability establish a threshold investment amount by foreigners
in rules also imply less discretion, which can increase in a local company before it is classified as a foreign
opportunities for corruption and rent seeking. company. This will allow foreign equity investment
in local companies without requiring joint-venture
This could be enabled through the adoption and imple- arrangements and enable Myanmar companies to
mentation of several fundamental pieces of legislation raise equity capital from abroad. This provision will also
that would help establish the foundations of a strong enable foreign participation in future capital markets
business enabling environment. The Investment Law is once established. Another key law is the Arbitration
a key law, which unifies the Foreign Investment Law and Law, which would strengthen contract enforcement by
the Myanmar Citizens Investment Law to provide a level provided alternative dispute resolution, which is faster
playing field for investors, ensure adequate investor and less costly.
protections to provide greater confidence, and provide
mechanisms for the settlement of disputes between Strengthen connectivity and promote greater
investors and the government if they do occur. As part economic integration: Myanmar’s proximity to large
of this reform, the Government should streamline pro- markets in China, India and ASEAN is advantageous
cedures related the investment approval process and to promoting exports and attracting investment. Almost
remove the Myanmar Investment Commission’s role in 60percent of Myanmar’s approved FDI originated from
the approval process. ASEAN in 2014/15, largely from Singapore. China (incl.
Hong Kong) accounted for 15percent of approved FDI.
The Companies Law will be another important piece of The start of the ASEAN Economic Community (AEC) at
legislation as it will regulate how companies are formed the end of 2015 provides an opportunity for Myanmar
and managed. The draft law contains provisions on to catch up with its more developed ASEAN neighbors,
key matters such as the registration of companies, through expansion of regional trade and investment.
the management and conduct of companies’
8
But this will require improved trade competitiveness While international buyers are increasingly
through trade facilitation reforms, including interested in sourcing products from Myanmar,
investments in logistics and promoting local attention can be given to strengthen the capability
economic potentials along key economic corridors. of Myanmar producers to meet higher standards.
Better connectivity and logistics are key to expanding The approach to this should not be introduction of
trade and private sector growth, including for Myanmar’s Myanmar’s own standard and testing for compliance
outer regions and border areas. Customs clearance by the private sector. Instead, efforts can be directed
practices need to be rationalized by automating to promote awareness for better product quality and
procedures and reducing face-to-face document facilitate upgrading of worker skills. Myanmar can also
submissions. Customs processes should also have explore ways to increase capabilities of its private sector
more certainty in valuation and use of risk management to access technology through imported intermediate
for inspection as already practiced by other countries goods, foreign expertise and foreign service providers,
in ASEAN. Issuance of import certificates can be and promoting linkages with FDI. Development of
streamlined, reducing multiple visits by traders. To financial sector in Myanmar to support private sector’s
harness commitment for reforms, Myanmar can take demand for financing instruments is also important part
advantage of commitments in ASEAN Economic of the agenda.7
Community and consider implementing the WTO Trade
Facilitation Agreement. Myanmar can improve logistics by tackling
congestions at ports and better linking local
Reforms in tariff and non-tariff measures are economic potentials with markets. The priority can
necessary to remove redundancy, improve economic be on improving the productivity of existing the existing
efficiency and promote regulatory coherence. port in Yangon by improving the navigation system and
Although Myanmar’s commitments in ASEAN economic improving the pricing regime to allow higher turnover
integration helped lower average effective tariff, the of cargo and vessels. Another priority is to establish
tariff structure for non-ASEAN partners are dominated clear guidelines for private bonded warehouses, which
by “nuisance” tariffs, of 1percent and 1.5percent, can significantly help manufacturing in Myanmar to
which are too small to be justifiable, too costly for better organize their supply chains. Myanmar can
Customs to monitor and can potentially be used for also facilitate further public and private investments
rent seeking to change tariffs. In July 2015 Myanmar in freight through rail and inland waterways, which will
introduced important reforms as it removed import reduce congestions on roads, and development of
license requirements for 4,000 products (out of 10,000 infrastructures such as container depots and logistics
product lines). This can have a significant impact on parks for consolidating freight. Local economic
economic efficiency as manufacturers and traders can potentials (tourism, agri-business, light manufacturing)
reduce time to get their products. This reform can also can be further unlocked by linking them to vibrant
lead to disciplining the use of non-tariff policies mainly economic corridors through well targeted infrastructure
for protecting consumers, the environment, health, and development and private investments. With Special
safety. Economic Zone law, Myanmar can strengthen the
implementing regulations and establish an agency to
facilitate public-private investments.
7 Please see Policy Note on “Financing the future: Building an
open, modern and inclusive financial system.”
9
Capacity to engage in evidence based policy formu-
lation can be strengthened, including consultations
with relevant stakeholders. Myanmar is moving into
an exciting era of greater democracy which also means
greater public participation in policy debate on private
sector development. Capacity of institutions, govern-
ment and think tank organization, to engage in evidence
based dialogue can be improved. This would require
improvement in collection and publication of relevant
data such as trade by Harmonized System classifica-
tion, micro level firm data, and FDI data, all for public
access. There is also a need for institutional capacity
building for government agencies in policy analysis and
consultations with stakeholders.
It is also important to recognize the need to
sequence reforms to promote inclusiveness in
developing private sector, particularly in conflict
areas or among ethnic minorities and vulnerable
groups. History of armed conflicts around extraction
and trade of extractive resources calls for safeguard
for vulnerable populations from expropriation, environ-
mental degradation, or poor working conditions. Trade
One important channel to promote connectivity is development plans in ethnic areas could recognize the
also through the further development of Information tension-creating potential of large projects and include
and Communications Technology. This could be use- proactive consultations with ethnic minorities in their
fully enabled through: (i) approval and adoption of the early design. Support for local ethnic communities,
Telecommunications Sector Master Plan and the e-Gov- particularly women, could be made available to com-
ernment Master Plan; (ii) approval of the law estab- pensate groups that stand to lose from trade-induced
lishing the independent Myanmar Communications changes. Improving procedures and facilitation for local
Regulatory Commission and amendments to the communities to engage in border trade can also help
Telecommunications Law 2013; and (iii) approval and strengthen trust and support for trade.
adoption of the Spectrum Roadmap. These actions will
help put in place a credible, consistent and clear policy, The table on the next page proposes short-term (within
legal and regulatory framework for the ICT sector in 1 year) and long-term (within 3-5 years) policy options
Myanmar which is needed to ensure that Myanmar can for the next five years (2016-2020) to help deliver on
leapfrog to the digital age in an inclusive manner. the above objectives of an improved investment cli-
mate with emphasis on transparency and predictability;
Strengthen institutions responsible for reform pro- improved connectivity with emphasis of reducing trade
cess: Strengthening existing institutions to provide costs and leverage economic potentials; a strengthened
leadership over the reform process is a significant policy framework to benefit from greater economic
driver of reforms. The government established the integration; strengthened institutions responsible for
Task Force for Business and Trade Promotion in August reform process; promoting inclusiveness from trade
of 2014 under the auspices of the President’s Office and investment related projects.
to play a coordinating role in the reform process and
to operate the government secretariat as part of the
Myanmar Business Forum public-private dialogue pro-
cess. This Task Force would benefit from a stronger role
and mandate to ensure that the needed inter-ministerial
coordination takes place to effectively move the reform
process forward in an open and participatory manner.
10
Objectives Short-term options Long-term options
Pass the Investment Law, Companies Implement investment policy reforms.
Law, and Arbitration Law. Much progress Streamline investment approval process,
has been made in preparing these funda- develop investor grievance mechanism
mental laws and their passage would and rationalize investment incentives.
Establish help to instill confidence of investors in
necessary the market reform process.
regulatory
infrastructure Implement reforms to improve business Carry out reforms in the Companies Law
with emphasis on enabling environment, including prior- to ensure improved corporate govern-
transparency and ities highlighted in the Doing Business ance. Support efforts to raise awareness
survey: protecting minority investors by of good corporate governance practices
predictability of
way of the Companies’ Act and working through education and promotion.
investment rules with the Securities and Exchange
and regulations Commission on corporate govern-
Support development of alternative
ance; enforcing contracts by instituting
dispute resolution. Strengthen media-
commercial arbitration; streamlining
tion and arbitration capacity and ensure
procedures for construction permits.
implementation of international.
Improved Approval and adoption of the Telecommunications Sector Master Plan and the
e-Government Master Plan, and the Spectrum Roadmap.
connectivity with
emphasis of
reducing trade Improve efficiency of freight handling in Map out and implement corridor devel-
Yangon ports by revamping the night opment to promote linkages between
costs and leverage navigation system in Yangon river and growth centers with local economic
economic allow customs clearance process to take activities, particularly in rural and border
potentials place 24 hours 7 days /week. areas.
Lock in reform plans in trade facilitation (transparency in rules, certainty in cargo valu-
ation, use of electronic platform for document clearances, use of risk management for
Strengthen policy inspection) through ASEAN Economic Community and World Trade Organization Trade
Facilitation Agreement (TFA).
framework to
benefit from
Simplify tariff structure and rationalized Raise awareness and technical capability
greater economic non-tariff policies to improve economic of Myanmar financial sector in providing
integration efficiency and promote regulatory trade finance instruments (short-term
coherence. financing, L/C issuance and confirma-
tion, trade credit insurance).
Hold Plenary Myanmar Business Forum
to be chaired by the President to
Strengthen strengthen the voice of the private sector
institutions in the public-private dialogue process.
Enhance role and capacity of the
responsible for Task Force for Business and Trade
reform process Promotion as a mechanism for prior-
itization of reforms and coordination of
implementation.
Promote Establish precedence of consultations Review practices in trade of extractive
inclusiveness with local ethnic communities in the products to ensure benefits are also
design phase of trade and investment locally distributed and provide trainings
from trade and projects, particularly in conflict-sensitive for vulnerable groups (women, unskilled
investment related areas. workers) to increase capabilities and tap
projects greater trade opportunities.
11
BREAKING BUSINESS AS USUAL
Fostering competitiveness and a dynamic
environment for private sector growth
References
WBG, Doing Business Report 2016
WBG, Myanmar Investment Climate Assessment 2014
WBG, Diagnostic Trade Integration Study (forthcoming)
12
ALL
ABOARD
Policies for shared prosperity in Myanmar
GROWING TOGETHER FINANCING THE FUTURE BREAKING BUSINESS AS USUAL ENERGIZING MYANMAR CLOSING THE GAP PARTICIPATING IN CHANGE
Reducing rural poverty Building an open, modern and Fostering competitiveness and a dynamic Enhancing access to Expanding access to Promoting public sector
in Myanmar inclusive financial system environment for private sector growth sustainable energy for all social services accountability to all
“This Policy Note is part of a series entitled All Aboard! Policies for shared prosperity in Myanmar”
CLOSING THE GAP GROWING TOGETHER BREAKING BUSINESS AS USUAL
Expanding access to Reducing rural poverty Fostering competitiveness and a dynamic
social services in Myanmar environment for private sector growth
FINANCING THE FUTURE ENERGIZING MYANMAR PARTICIPATING IN CHANGE
Building an open, modern and Enhancing access to Promoting public sector
inclusive financial system sustainable energy for all accountability to all
BREAKING BUSINESS AS USUAL
Fostering competitiveness and a dynamic
environment for private sector growth
ALL
ABOARD
Policies for shared prosperity in Myanmar
The World Bank Myanmar
No.57, Pyay Road
61/2 Mile, Hlaing Township, Yangon,
Republic of the Union of Myanmar.
www.worldbank.org/myanmar
www.facebook.com/WorldBankMyanmar
myanmar@worldbank.org