Maintaining growth momentum
International financial assistance/funds not forthcoming for over two decades notwithstanding, Myanmar government has been trying to maintain growth momentum of its economy through short term development plans. The Myanmar government formulating and implementing short-term plans since 1992-1993 and 2008-2009 was the third year of the Fourth Five-Year plan.
According to the statement made by Hla Tun, Governor of the World Bank for Myanmar at the joint discussions of the World bank and IMF in Istanbul on October 6-7, 2009 although the growth rate slowed down somewhat compared to previous years, the momentum of the growth rates could be maintained. Owing to increase in production of agricultural and mineral products, the volumes of exports have increased year after year.
India has expressed its desire for greater economic engagement
with Myanmar. Similar sentiments have been expressed by Myanmar.
Bilateral trade between
India and Myanmar currently today stands at US$1 billion. On
July 27 Myanmar and India signed five agreements during
India visit of Senior General Than Shwe, Head of State and
Chairman of the State Peace and Development Council of the Union
of Myanmar. These are: Treaty on Mutual Assistance in Criminal
Matters; MOU regarding Indian Grant Assistance for
Implementation of Small Developmental projects; MoU on
Information Cooperation; Agreement on Cooperation in the fields
of Science & Technology and MoU on Conservation and Restoration
of Ananda Temple in Bagan, Myanmar. During General Shwe’s
meeting with Indian Prime Minister Manmohan Singh on July 27
India conveyed its commitment to continue with developmental
assistance to Myanmar.
In a Joint Statement General Shwe expressed deep appreciation
for the generous and concessionary credit facilities given by
India to finance significant infrastructure and other projects.
Projects that are currently underway under such aid assistance
include railways, road and waterway development, power and
industrial training centres, tele-communication, etc.
The Indian side agreed to consider Myanmar’s request for
assistance in the three areas namely: IT development, Industrial
development and Infrastructure development in Myanmar which will
lead to upliftment of the bilateral cooperation to a higher
level.
Strengthening multi-dimensional relationship*
"6.India
and Myanmar are close and friendly neighbours linked,
inter alia, by civilizational bonds, geographical
proximity, culture, history and religion. Apart from a
boundary that stretches over more than 1640 kilometers
and borders four North-Eastern states of India, there is
a large population of persons of Indian origin in
Myanmar. Bilateral relations are reflective of these
multifarious and traditional linkages and the two
countries live side by side as close neighbors based on
the Five Principles of Peaceful Coexistence.
7. Recalling these shared bonds of civilization, the
Head of State of Myanmar and the Prime Minister of India
expressed their commitment to further strengthen and
broaden the multi-dimensional relationship which now
encompasses a range of areas of cooperation. Enhancing
economic, social and developmental engagement will help
harness the considerable potential in India-Myanmar
bilateral relations, which would, in turn, contribute to
the socio-economic betterment of their respective
peoples.
8. Recognizing that peace and stability in the region is
essential for development and for the well-being of the
people of their respective countries, the two leaders
agreed on close cooperation between the security forces
of the two countries in tackling the pernicious problem
of terrorism. They agreed that security cooperation
should be given immediate attention since terrorists,
insurgents and criminals respect no boundaries and
undermine the social and political fabric of a nation.
Both leaders reiterated the assurance that the territory
of either would not be allowed for activities inimical
to the other and resolved not to allow their respective
territory to be used for training, sanctuary and other
operations by terrorist and insurgent organizations and
their operatives.
9. Understanding that continued cooperation will lead to
success in fighting the insurgency issue, the two
leaders agreed to strengthen cooperation and collective
efforts of the two countries along the border. In this
context, the two leaders welcomed the Home Secretary
level talks held in Nay Pyi Taw in January 2010 and the
important decisions taken in that meeting.
10. Both leaders expressed their desire for greater
economic engagement. In this context, the Prime Minister
of India conveyed India’s commitment to continue with
developmental assistance to Myanmar. The Myanmar side
expressed deep appreciation for the generous and
concessionary credit facilities given by India to
finance significant infrastructure and other projects.
Projects that are currently underway under such aid
assistance include railways, road and waterway
development, power and industrial training centres, tele-communication,
etc. The Indian side agreed to consider Myanmar’s
request for assistance in the three areas namely: IT
development, Industrial development and Infrastructure
development in Myanmar which will lead to upliftment of
the bilateral cooperation to a higher level.
11. Senior General Than Shwe and Prime Minister Dr.
Manmohan Singh welcomed the considerable enhancement of
the connectivity between the two countries. In this
context, they welcomed the progress made by M/s Inland
Waterways Authority of India towards implementation of
the Kaladan Multi-modal Transit Transport Project and
reiterated their respective Governments’ commitment to
this project. In particular, they welcomed the
finalization of the contract for port development and
Inland waterway with M/s ESSAR. It was also agreed that
the scope of the project with respect to the road
component would be revised. The road component between
Paletwa and Myeikwa on the India border would be
executed by the Myanmar Ministry of Construction with
M/s IRCON.
12. The two leaders expressed satisfaction at the
construction, maintenance and repair work by Indian
Border Roads Organization of the Tamu-Kalaywa-Kalemyo
Road connecting Moreh in Manipur to Myanmar and the
handing over of most of the segments of the TKK Road to
the Government of Myanmar.
13. To enhance road connectivity, especially through the
State of Mizoram, both leaders announced the
construction and revamping of the Rhi-Tiddim road at a
cost of more than US$ 60 million to be financed through
grant assistance from India. The Myanmar side expressed
its appreciation for this gesture.
14. Both leaders emphasized the need to enhance
cooperation in the area of agriculture. The Indian side
announced a grant of US$ 10 million for procurement of
agricultural machinery from India. The leaders expressed
the hope that this machinery will help enhance
productivity in Myanmar’s agricultural sector, which is
the mainstay of its economy. The Myanmar side also
requested for technical assistance in manufacturing of
agricultural machinery.
15. The Indian side also announced a project to set up
rice silos to facilitate disaster relief operations
particularly in the cyclone prone delta areas, with
grant in aid from India.
16. The Myanmar side expressed appreciation for India’s
generous assistance in the relief and rehabilitation
efforts that followed the devastating Cyclone Nargis
which hit Myanmar in May 2008. He noted that the
assistance from India, which included dispatch of a
large medical contingent to work in cyclone affected
areas as well as providing immediate medical and food
supplies, supply of GI sheets, 16 electricity
transformers, 20 biomass gasifiers and funds for
restoration work on the holy Shwedagon pagoda, was
timely and catered to Myanmar’s urgent requirements.
17. Both leaders identified the power sector as an area
of growing cooperation. In this context, the two leaders
agreed to cooperate in the implementation of the
Tamanthi and Shwezaye projects on the Chindwin River
Basin in Myanmar. They welcomed the involvement of M/s
NHPC in carrying out the much required additional
investigations after the signing of the MoU on
Cooperation in Hydro-power Development projects in the
Chindwin River Basin in September 2008. Subject to the
findings of these additional investigations, the two
leaders will endeavour to conclude the Memorandum of
Agreement within a year.
18. The Myanmar side conveyed their gratitude for
India’s line of credit of US$ 64 million in the
transmission lines sector to be executed through M/s.
PGCIL. Both leaders also noted the need to provide for
inter-grid connectivity between the two countries. They
agreed that the two countries shall cooperate in this
area, including generation of electricity from renewable
sources, and, where necessary, set up joint projects or
corporate entities for that purpose.
19. The Myanmar side welcomed the interest of Indian
companies in the mining sector. They promised all
necessary assistance to enable these companies to
explore such opportunities.
20. The Indian side agreed to explore possibilities for
cooperation in the field of solar energy and wind energy
in Myanmar. They also agreed to offer Myanmar, training
in related fields.
21. Cooperation in the energy sector is poised for
greater growth, especially in the area of oil and
natural gas. Both leaders emphasized the importance they
attach to energy security which has a direct bearing on
the welfare of the peoples of the two countries. They
expressed satisfaction at the ongoing bilateral
collaboration in exploration and production in Myanmar’s
petroleum sector and agreed to encourage further
investment by Indian companies both public and private,
in this sector.
22. The Myanmar side welcomed the substantial additional
investment by ONGC and GAIL for the development in the
upstream and downstream projects of Myanmar offshore
blocks A-1 and A-3 including the natural gas pipeline
under construction at Ramree in Myanmar.
23. In the field of telecom, following the successful
functioning of the official Fibre link between India and
Myanmar via Moreh, the two leaders agreed to upgrade the
microwave link between Moreh to Mandalay under a line of
credit of US$ 6 million from India. Further, a new
Optical Fibre Link between Monywa to Rhi-Zawkhathar will
also be undertaken with Indian assistance.
24. The Myanmar side thanked India for its continued
assistance through renewal of the agreement to provide
IRS-P5 and Cartosat Data through Antrix.
25. The two leaders agreed to encourage collaboration
between Myanmar and India in the area of Information and
Communication Technology.
26. Recalling India’s earlier assistance in supplying
railway rolling stock, machineries and equipments to
Myanmar, both leaders agreed to further cooperation in
the railway sector. The Indian side extended a line of
credit of US$ 60 million to procure railway equipment.
27. The two leaders noted with satisfaction that the
project being undertaken by TATA Motors to set up a
heavy turbo truck plant at Magway is proceeding well and
encouraged other Indian companies to enter into the
industrial sectors in Myanmar. The Myanmar side assured
that current investment proposals by private Indian
companies in Myanmar would be actively facilitated.
28. The two leaders welcomed the expansion of trade and
commerce between the two countries manifest in the
increase in the volume of trade to more than US$ 1
billion per annum. They agreed that trade at border
trade points should be further enhanced to boost the
immense potential that exists in bilateral trade. This
would also directly benefit the North-East States of
India.
29. Referring to the existing border trading points at
Moreh - Tamu (Manipur) and Zawkhathar-Rhi (Mizoram) as
well as the additional point agreed to be
operationalised at Avankhug-Somra (Nagaland), the two
sides agreed to put in place the necessary
infrastructure to make these points viable and business
friendly.
30. The two leaders welcomed the establishment of direct
banking links between India and Myanmar following the
signature of the correspondent banking relationship
agreement between United Bank of India and Myanma
Foreign Trade Bank, Myanma Economic Bank and Myanma
Investment and Commercial Bank for providing banking
arrangements relating to upgrading of border trade to
normal trade. They encouraged the business community to
make optimal use of this arrangement and thus enhance
direct trade transactions.
31. The two leaders encouraged to conduct business
meetings to be held alternately in both countries for
trade promotion. They noted that such measures can help
build bridges at the business level and promote business
and commercial opportunities.
32. In recognition of the close and friendly tourism
cooperation between India and Myanmar and cooperation
under the frameworks of ASEAN+India and BIMSTEC, the two
sides agreed to further promote tourist contacts. The
Myanmar side thanked India for the facilities and
courtesies being extended to Myanmar pilgrims visiting
India.
33. Both leaders welcomed the proposal for the
restoration of the historic Ananda temple in Bagan to be
undertaken with the assistance of the Archaeological
Survey of India, with the involvement of the Ministry of
Culture of Myanmar.
34. Both leaders expressed satisfaction at the ongoing
implementation of the MoU for cooperation in Buddhist
studies and the related work plan agreed to between the
Ministry of Religious Affairs of Myanmar and the Nava
Nalanda Mahavihara University. Several hundred Myanmar
Buddhist scholars and monks are currently studying in
this university in various disciplines.
35. The Myanmar side expressed gratitude to India for
its numerous HRD initiatives in Myanmar which included
setting up of the following:
• the Myanmar-India Centre for English language
Training;
• the Myanmar-India Entrepreneurship Development Centre;
• the India-Myanmar Centre for Enhancement of IT Skills;
and
• the Industrial Training Centre in Pakokku.
36. The Myanmar side also indicated that the training
offered by India under the ITEC and TCS schemes have
been valuable for scholars and Government officials in
Myanmar. The Indian side agreed to offer more
opportunities for higher studies and training in
Universities and training institutions in India to
scholars from Myanmar.
37. The Myanmar side informed the Indian side about
developments in Myanmar including the groundwork for
elections scheduled towards the end of the year. The
Indian side thanked the Myanmar side for the detailed
briefing and emphasized the importance of
comprehensively broad-basing the national reconciliation
process and democratic changes being introduced in
Myanmar.
38. While discussing international developments, the two
sides emphasized the importance of an effective
multilateral system, centred on a strong United Nations,
as a key factor in tackling global challenges. In this
context, they stressed the urgent need to pursue the
reform of the United Nations including the Security
Council, to make it more representative, credible and
effective.
39. The leader of Myanmar reiterated Myanmar’s support
for India’s bid for the permanent membership of the
United Nations Security Council. He also conveyed its
support to India’s candidature for a non-permanent seat
in the UNSC for the term 2011-2012.
40. The two leaders also emphasized the importance of
India and Myanmar to work together in the cause of
regional cooperation. The Indian leadership offered its
good wishes to Myanmar for a successful term as BIMSTEC
Chair, a responsibility that it assumed in 2009. The
Indian side welcomed participation of Myanmar at the
16th SAARC Summit as an Observer for the first time.
41. The two sides expressed satisfaction at the ongoing
cooperation between India and Myanmar under the
ASEAN-India Summit Relations and welcomed the
implementation of the ASEAN-India FTA. The Myanmar side
appreciated India’s support for building an ASEAN
Community in 2015, and to the Vientiane Action Programme
including the Initiative for ASEAN Integration and other
sub-regional growth initiatives such as Mekong-Ganga
Cooperation Initiative and EAS cooperation. Myanmar side
recognized that ASEAN-India Framework Agreement on
Comprehensive Economic Cooperation which was signed in
2003 has played a significant role in strengthening the
Dialogue Partnership. Myanmar being a natural bridge
between ASEAN and India, the Indian side reiterated its
intention of building upon the commonalities and
synergies between the two countries to advance its Look
East Policy.
42. In the above context, both leaders reiterated their
commitment to undertake the tri-lateral connectivity
from Moreh in India to Moe Sot in Thailand via Myanmar.
The Indian side agreed to take up the preparation of
DPRs for roads and causeways in Myanmar to realize this
project.
43. During the visit, the following documents were
signed;
a. Treaty on Mutual Assistance in Criminal Matters
b. MOU regarding Indian Grant Assistance for
Implementation of Small Developmental projects.
c. MoU on Information Cooperation
d. Agreement on Cooperation in the fields of Science &
Technology
e. MoU on Conservation and Restoration of Ananda Temple
in Bagan, Myanmar
44. Senior General Than Shwe thanked the President of
India and the Indian Government and people for the warm
and gracious hospitality extended to him and the members
of his delegation during their stay in India.
45. Senior General Than Shwe also extended a warm
invitation to the President and Prime Minister of India
to visit Myanmar at a mutually convenient time. The
President and Prime Minister of India thanked him and
accepted the invitation with great pleasure. The dates
for the visit would be decided by mutual consultations
through diplomatic channels."
*Excerpts
from the Joint Statement during the visit of Chairman,
State Peace and Development Council of Myanmar issued in
New Delhi on July 27, 2010 |
Both the countries expressed satisfaction at the ongoing
cooperation between India and Myanmar under the ASEAN-India
Summit Relations and welcomed the implementation of the
ASEAN-India FTA. Myanmar appreciated India’s support for
building an ASEAN Community in 2015, and to the Vientiane Action
Programme including the Initiative for ASEAN Integration and
other sub-regional growth initiatives such as Mekong-Ganga
Cooperation Initiative and EAS cooperation.
General Shwe recognized that ASEAN-India Framework Agreement on
Comprehensive Economic Cooperation signed in 2003 has played a
significant role in strengthening the Dialogue Partnership.
Myanmar being a natural bridge between ASEAN and India, the
Indian side reiterated its intention of building upon the
commonalities and synergies between the two countries to advance
its Look East Policy.
On the external front, the current account is in surplus, due mainly to surplus in the trade account. The surplus can be attributable to increases in exports and remittances from abroad. As such our foreign exchange reserves have also risen considerably. In the fiscal front, although the budget is still in deficit, the deficit is on a declining trend. We intended and were trying to have a balanced budget this year.
However, as we have to spend more for relief, rehabilitation and prevention of contagious diseases for the victims of the cyclone, as well as for Influenza A (H1N1) we expect this year's expenditure would be quite large. We are making efforts and taking necessary measures to increase revenue which we hope will help us to off-set some of the increase in expenditure. On the monetary front, supervisory and regulatory powers of the Central Bank have been strengthened and due diligence and care had been taken to ensure that the banking sector is not used for improper transactions, including money laundering and financing of terrorism.
Though Myanmar did not have developed capital or financial markets yet hence the country
did not face any direct impact of the global meltdown on its economy. However, as in this globalized world where a country cannot stand alone, there has been some indirect impact on Myanmar mainly through trade, tourism, labour (migrant workers) and remittances. The government has however taken necessary measures to prevent adverse impact on the social well being of our nationals. In his statement Tun expressed Myanmar 's readiness to cooperate with all the countries in the region in order to overcome whatever challenges international community may face in the future.
In May, 2009 at the annual meeting of the Asian Development Bank in Bali in Indonesia the head of Myanmar delegation Hla Thein Swe said that Myanmar government is trying to service its debt in a timely manner. However due to the absence of international financial assistance, for more than two decades the country sometimes face difficulty in making payments. The government has sought donor countries and international financial organizations such as ADB, to consider debt relief for Myanmar . Myanmar has been striving for its development on its own resources for more than two decades. The government has called upon the international financial organizations to resume normal relationship with Myanmar as their assistances would help in accelerating Myanmar 's development at a faster pace.
|
Myanmar's Foreign Trade
(2005-06 to 2009-1010)
(In kiat million)
|
| |
2005-06 |
2006-07 |
2007-08 |
2008-09 |
2009-10* |
| Domestic
Export |
18046.1 |
27483.6 |
32238.4 |
30363.7 |
21721.1 |
| All
Export |
20646.6 |
30026.1 |
35296.8 |
37027.8 |
25350.2 |
| Import |
9731.4 |
15341.6 |
16780.5 |
19267.0 |
14155.3 |
| All
Import |
11514.2 |
16835.0 |
18418.9 |
24873.8 |
16399.5 |
|
* (April-November) |
|
Source: CSO, Government of
Myanmar |
The government has called on the countries that have imposed economic sanctions on Myanmar , to lift the sanctions that they have imposed. What ever the outcome, Myanmar stands ready to collaborate and cooperate with international and regional organizations in order to ensure progress, prosperity and sustainable development for not only for our country, but also for region and consequently for the world, he added.
Referring to the five year plans Swe said the objective of the government is to maintain the sustainable growth momentum already achieved throughout the previous years. Agriculture remains the mainstay of our country. However, Myanmar intends to industrialize the country and as such, Industrial Zones have been established. The government is also making efforts for equitable development of the country and for narrowing the development gap to reduce poverty and uplift the living standards of the population.
For equitable development of border areas and rural areas, the government is implementing five development tasks for rural areas. The five rural development tasks are development of transport, water supply for drinking and cultivation purposes, uplift of education improvement of health care services and development of the rural economy including the agriculture and livestock breeding business.
The government is also working diligently to improve the economic, education, health and social infrastructures and to complete a road network project for reconstruction of the storm-hit areas. Myanmar has a moderate population, with abundant natural as well as capital and human resources. Regarding education sector development, expenditure on education sector has been increasing year by year. The total number of high schools, middle schools and primary schools in 2008 had increased by 200.69 percent, 67 percent and 16 percent respectively compared with 1988. The government is building more and more schools for easy access to education and to generate opportunities for the youth in rural areas.
In health sector also, the government has taken necessary steps for its development. Hospitals and dispensaries have been constructed and more skilled health staff have appointed in the hospitals. Myanmar has laid down the objectives to enable every citizen to attain full life expectancy and longevity and to ensure that every citizen is free from disease. In this respect the Myanmar government has all along been been working closely with UN agencies, International NGOs and neighbouring countries to achieve the health objectives of the country.
In order to minimize the poverty gap, the government is fulfilling the requirements of the education, health, social and economic needs of local people and giving priority to the harmonious development of all national races. Therefore, it can be said that the country made significant progress in order to fulfill the MDGs.
Sources:
(1) International Monetary Fund
(2) Annual meeting of the Asian Development Bank in Indonesia, May, 2009
(3)
CSO,
Government of Myanmar
(4) Excerpts from
the Joint Statement during the visit of Chairman, State
Peace and Development Council of Myanmar issued in New Delhi
on July 27, 2010
Update: July, 2010 |
