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Myanmar's two decades of partial transition to a market economy : a negative legacy for the new government

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  • Kubo, Koji

Abstract

Despite more than two decades of transition from a centrally planned to a market-oriented economy, Myanmar’s economic transition is still only partly complete. The government’s initial strategy for dealing with the swelling deficits of the state economic enterprises (SEEs) was to put them under direct control in order to scrutinize their expenditures. This policy change postponed restructuring and exacerbated the soft budget constraint problem of the SEEs. While the installation of a new government in March 2011 has increased prospects for economic development, sustainable growth still requires full-scale structural reform of the SEEs and institutional infrastructure building. Myanmar can learn from the gradual approaches to economic transition in China and Vietnam, where partial reforms weakened further impetus for reforms.

Suggested Citation

  • Kubo, Koji, 2012. "Myanmar's two decades of partial transition to a market economy : a negative legacy for the new government," IDE Discussion Papers 376, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper376
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    Cited by:

    1. Koji Kubo, 2017. "Impacts of Foreign Exchange Auctions on the Informal Market Rate in Myanmar," Global Economic Review, Taylor & Francis Journals, vol. 46(2), pages 189-202, April.
    2. Kubo, Koji, 2014. "Deposit dollarization in Myanmar," IDE Discussion Papers 473, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Tingying Chen & Haitian Lu & Rong Chen & Lina Wu, 2021. "The Impact of Marketization on Sustainable Economic Growth—Evidence from West China," Sustainability, MDPI, vol. 13(7), pages 1-24, March.
    4. Cullen Hendrix & Marcus Noland, 2015. "Myanmar: Cross-Cutting Governance Challenges," Working Papers id:6676, eSocialSciences.
    5. Masato Abe, 2014. "Growing Through Manufacturing: Myanmar’s Industrial Transformation," ARTNeT Working Papers 145, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    6. Khin Nwe & Keisuke Kawata & Yuichiro Yoshida, 2018. "Recent Political Change in Myanmar and Its Impact on her Economic Growth," Asian Economic Journal, East Asian Economic Association, vol. 32(1), pages 39-54, March.
    7. Kubo, Koji, 2015. "Transition from black to official markets for foreign exchange in Myanmar," IDE Discussion Papers 511, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    Myanmar; Transition to market economy; Economic policy; Government economic enterprises; Transition; State economic enterprises;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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