July 24, 2012
Eurasia Review
Burma hopes to overtake neighbors Laos and Cambodia in terms of average income per person within two to three years, as the country embraces political and economic reforms, Burmese Industry Minister Soe Thein said Monday.
“I hope we will have higher average income per person than Laos and
Cambodia by 2014-15. It is possible,” he said in an interview with RFA’s
Burmese service.
Soe Thein was answering a question on his expectations for the Burmese economy in the next five years.
Burma: Pagodas and temples in present-day Pagan (Bagan), the capital of the Pagan Kingdom
Burma is languishing with a gross national income per capita of U.S.
$379.60, based on U.N. figures in 2009, the lowest among its fellow
member states in the Association of Southeast Asian Nations
(ASEAN)—Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines,
Singapore, Thailand, and Vietnam.
Laos has a per capita income of U.S. $1,130 while Cambodia has U.S. $830, based on 2011 figures by the World Bank.
The gross national income per capita is the dollar value of a
country’s final income in a year, divided by its population. It reflects
the average income of a country’s citizens.
A nominally civilian government that took over power in Burma in
March last year after decades of harsh military rule and financial
mismanagement is implementing democratic and economic reforms that have
led the international community to ease sanctions on the country.
As part of economic reforms, President Thein Sein’s government, with
the help of the International Monetary Fund, launched a managed float of
its kyat currency in April to help normalize and unify its multiple
exchange rates.
Foreign investment law
The country’s parliament is also discussing a foreign investment law,
which reports say will spell out new tax exemptions, land-use terms,
legal structures, and incentives for foreign companies.
“Our existing law [on trade] are already good. But to be able to
compete with [neighboring] ASEAN [countries] and to protect the people,
to protect our environment, we are drafting the new law,” Soe Thein
said.
“Actually it was already discussed at the parliament in the first
session, and now this is going to be discussed again,” he said.
When asked when the much awaited law will be approved, he said, “It doesn’t matter, it will be done at some point.”
“Even if this is not done yet, the existing foreign direct investment
law is not bad at all. We can apply it for now. When the new law is
approved, we can enjoy better benefits.”
Soe Thein said Burmese authorities will treat foreign companies on an
equal basis based on market forces even though Burma has been close to
China for decades especially under military rule.
“This is a market economy. Local partners will choose. If we consider
efficiency, let’s say if you buy something, you choose a good product.
In business, you have to choose the best partner,” he said.
Asked whether foreign investments are flowing into Burma rapidly in
line with reforms, he said there could be a significant rise early next
year.
“We are going to have it. For now, we are still in the process of
discussing. I myself have been discussing many times already. It will be
a lot more progress by the beginning of next year, I think. Meanwhile,
there is some increase.”
Jobs
On potential employment benefits, the minister said some 110,000 jobs
had been created over the last year with a potential for one million
jobs when the government enters into peace with ethnic armed rebel
groups.
“When the peace process is done, we will have more job opportunities
in the [ethnic] regions [through the efforts of] international donors.
Creating jobs is considered the number one criteria. We choose factories
that can provide more jobs. Eventually we will have up to a million
[jobs].”
The government has struck ceasefire agreements with several ethnic
armed groups but their leaders said that the ceasefire is just the first
step of a process that must include political solutions.
Clashes have been reported regularly in Shan state, Karenni state,
Karen state and most notably in Kachin state, where rebels have not
reached a truce despite several rounds of negotiations.
Reported by Kyaw Kyaw Aung. Translated by Khim May Zaw. Written in English by Parameswaran Ponnudurai.
2 comments:
Every ASEAN country is leaving us behind in economics? We must do something about it.
I don't believe that Burma can do it by year 2014.
It is too early to overestimate or to be high optimistic.
Don't forget Burma has 60 millions people, more than Cambodia 60/14=4 times or more.
Post a Comment