Multi-dimensional Review of Myanmar: Volume 2. In-depth Analysis and Recommendations

2017-05-09, by OECD, from OECD Development Centre

Abstract: OECD Development Pathways is a new series that helps developing countries to identify and overcome binding constraints to more equitable and sustainable growth. Multi-Dimensional Country Reviews take into account policy interactions and the country-specific policy environment through three phases. The first phase comprises an initial assessment of the binding constraints to development. The second phase involves an in-depth analysis of the main issues resulting in detailed policy recommendations. The third phase is designed to support government’s efforts in developing strategies and implementing policy recommendations.

Building on an initial assessment of constraints to development in Myanmar (Volume 1), this second volume provides analysis and policy recommendations in three key areas: structural transformation, education and skills, and financing development. It finds that Myanmar faces a crucial few years to shape growth towards a higher, more sustainable and equitable trajectory. To be sustainable, growth also needs to be more equitable and inclusive.

In order to succeed, it will require a transformation of the economy from an agrarian base reliant on small-scale agriculture at present towards a broad range of modern activities, and institutional and social capital will be vital to achieving stable and sustainable growth. Institutional improvements will be essential to address Myanmar’s current lack of human and physical capital. The macroeconomic stability, rule of law, environmentally sustainable development, as well as enabling environment for private initiatives are also emphasized.  Building up the right skills in the workforce will be essential to support this structural transformation.

Myanmar’s transformation will also depend upon how effectively the country can mobilize  and allocate the financial resources needed to support its development, which could amount to as much as an additional 5-10% of GDP on average over the next two decades.

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