Presentation Transcript

1. International Financial Institutions in Myanmar’s Democratic Reform

   Yin Myo Thu Professor Department of International Relations University of Yangon 18 February 2014
2. contents 1. Introduction 2. New Myanmar Government’s National Development Strategy, Policies & Duties 3. International Financial Institutions in Myanmar Democratic Reform – IMF, World Bank & ADB 4. Paris Club 5. Japan Fund for Poverty Reduction (JFPR) 6. Conclusion
3. introduction Domestic political development as reflection to international environment Domestic Political Development & International and regional financial institutions Technical assistance, debt relief & debt cancellation in increasing reform momentum Critical Questions New Myanmar Government & policy on national development Major financial institutions on Myanmar reform process Risky factors in financial assistance
4. New Myanmar Government’s National Development Strategy, Policies & Duties Myanmar in International arena – Myanmar Spring Trial and error methods in internal financial Organizations Myanmar community and reform process - nation building, state building & peace building Two Wishes of People To live in peace To develop national economy National Development Strategy Development for all works of life 1st Reform – Financial Reform as priority together with information technology & transportation
5. ContinuedNew Myanmar Government’s National Development Strategy, Policies & Duties Three Major Duties on National Development Nation’s transition, building of new nation & improvement of nation as a whole Three National Development Policies Economically, socially & economically sustained development policy National Development & International Assistance Capital investment & technology as underlying factors for national development Financial reform as priority area
6. ContinuedNew Myanmar Government’s National Development Strategy, Policies & Duties President’s remark on importance of international assistance in democratic transition “Investment and assistance of one dollar in Myanmar by the international community …for the flourishing of democracy and the interest of Myanmar people. So the international community is urged to extend a helping hand to Myanmar … so that our country with democracy still in its infancy will not collapse”.
7. IMF, World Bank & ADB in Myanmar Democratic Reform Domestic political development as signal to resilient country Governance of IMF IMF Regime in HIPCs Voting Share of IMF or Bank as legacy of succession in the Fund & the Bank Before 2010 Myanmar – IMF Relations US & EU sanction Two Major reasons of the Bank & IMF in delaying development efforts Deteriorated Relations between Myanmar and the fund
8. Continued..IMF, World Bank & ADB in Myanmar Democratic Reform 2004 IMF Review & Two IMF Investigation Missions 2010 Multiparty General Election as significant Turning point in history Abolition of multiple exchange rates Private banks in foreign exchange transitions CBM Law & Japan’s Daiwa Securities Group in IMF in Myanmar Socio-economic Reform Foundation for continued macroeconomic stability IMF Mission Reports and Joint Assessments
9. Continued..IMF, World Bank & ADB in Myanmar Democratic Reform Importance of financial organizations in financial market & poverty alleviation (1-3-2012) “While encouraging the promotion of the private sector in economy,.. Changes and reforms are also taking place in collaboration with international organizations for the flourishing of capital market and financial market as well as for the emergence of conglomerates.” IMF Remarks on Myanmar Socio-economic Development Out of reach to meet requirement Myanmar as Asia next dynamic economic force
10. Continued..IMF, World Bank & ADB in Myanmar Democratic Reform Financial liberalization achievement within 30 moths Financial & monetary stability as national development plans National Reform Leading Committee & 11 Work Committees Government’s seven tasks for socio-economic development Legislative Branch on Financial Liberalization CBM Law & Micro Finance Mechanism by Government’s ministries, NGOs & INGOs Micro Finance Activities (4 major ministries in Micro Finance
11. Continued..IMF, World Bank & ADB in Myanmar Democratic Reform World Bank Governance IBRD in comprehensive risk management framework IDA Credit of the World Bank IDA in world’s poorest countries 2013 Telecommunication Law & international telecommunication companies (Ooreedoo & Telenor) World Bank Projects in Myanmar – Integrated Approach to the Development of ICT Sector MDRI for MDGs World Bank in eGovernment US $ 31.5 million credit in support of MPT & ICT sector
12. Table 2 Total Amount of the World Bank Loans, Credit and Grant to Myanmar
13. World Bank in Water Supply Management Water supply as priority for national economic development The Netherlands as a development cooperation partnership for water supply ADB Governance ADB Experts in studying prediction on county-by-country basis ADB Seminars, Workshops and Conferences in Myanmar for sustainable environmental conservation ADB in Myanmar Country Safeguard System (CSS)
14. Continued..IMF, World Bank & ADB in Myanmar Democratic Reform The Paris Club Official major forum – to renegotiate official sector debts Paris Club Treatment – Reduction or Renegotiation of a developing countries Nature and Characteristic of Paris Club International credibility in national development project Debt Cancellation and Restructuring – Debt SWAP Agreement US as key member of Paris Club (HIV/AIDS) under USAID
15. Japan’s Fund for Poverty Reduction (JFPR) Tokyo’s Policy in SEA Government of Japan’s Debt Relief Measure on Myanmar (26-5-2013) National Planning as cooperating agency ODA and Japan in developing countries – Japan’s Yen Loan, Debt Relief, short term and long term loan
16. Japan’s Fund for Poverty Reduction (JFPR) Japan’s ODA in 2011-2013 FY - US $ 727,387 Yen Loan – 63.2 Billion approved by Hluttaw
17. International Technical Assistance to Myanmar (FY 2012-2013)
18. Conclusion Myanmar democratic transition – right track with right direction Strong support of international assistance as momentum of transition Importance of Sovereign Wealth – own capacity, institutional logics & public confidence Grant, loan and debt cancellation as breathing space conduction Economic experts & scholar view on Myanmar – Myanmar as dynamic economic factor Government responsibility in financial liberalization – tools to control credit flows, decision in quick relinquish from independent monetary policy Awareness on Ponzi Financial Market Negative impact of liberalization International credibility in peddling democratic reform momentum Remarks at the 22nd WEF