Burmese Economic Reform Requires Political Change: Expert

by Mizzima News
Thursday, 17 January 2008 00:00

Only a change in the political system will usher in economic reforms because the economy is in the vice like grip of the Burmese military, said a Burmese economic expert.

According to the Heritage Foundation and Wall Street Journal's economic freedom listing, Burma, which has been ruled by successive military governments for decades, is ranked near the bottom.

In the 2008 index of economic freedom, which is based on the assessment of 10 areas of the economy, Burma is listed as the 153rd country that enjoys 39.5 percent economic freedom.

Dr. Khin Maung Kyi, a retired Burmese economic expert based in Singapore, said the Burmese economy is largely controlled by the military junta and that accounts for the failure and instability of the economy.

He added that in order to improve the economy, greater freedom is needed, and that requires a change in the political system.

"There is no way to improve the economy of Burma, except by changing the political system. Unless that is done we will see more unpredictable problems as the economy is unstable," Khin Maung Kyi said.

According to the index report, Burma's economy is defined by severely low economic freedoms, with five of 10 areas, at least 35 points below the world average.

"Burma will not develop effectively without serious economic reforms," added the report.

Another factor that the Burmese economy suffers from is the lack of rule of law that can guarantee investment freedom, financial freedom, property rights, and freedom from corruption, the report said.

"The almost complete lack of a judicial system forces domestic and foreign companies to negotiate directly with the government to resolve disputes. Foreign investment is adjudicated in each instance with no clear guidelines for investors," added the report.

Khin Maung Kyi said the Burmese military junta, however, would be reluctant to implement any type of reforms in fear that it might endanger their political power.

"We all know this government [military junta] will never want to usher in any reforms, not even by negotiation or pressure because they do not want to lose their power," Khin Maung Kyi said.