Myanmar market Analytic 2014

Myanmar - Interim strategy note for the period FY13-14 (English)

Myanmar is embarking on a triple transition from an authoritarian military system to democratic governance; from a centrally-directed economy to market-oriented reforms; and from 60 years of conflict to peace in the border areas. These transitions offer hope to the people of Myanmar for better, safer and more productive lives and represent an opportunity for the country to resume its place as one of the most dynamic economies in Asia. If successful, these transitions together present a chance for Myanmar's transformation, but in unfolding simultaneously they also pose the risk that setbacks in any one of these realms will affect the others. Each of these transitions is complex and on their own would challenge the capacity of most states. The strategy of the World Bank Group (WBG) at this early stage of re-engagement will thus focus on programs that can support the success of these three transitions, promote poverty reduction, and pave the way for the resumption of a full country program. The WBG's re-engagement is taking place after an absence from the country spanning more than two decades, with Myanmar in arrears to International Development Association (IDA), and in the context of a very limited knowledge base. The Interim Strategy Note (ISN) covers an 18 month period, during which the WBG will work with the Myanmar government to clear the country's arrears to IDA, which as of August 2012 stood at $406.5 million. The process of IDA arrears clearance will take place in parallel and be closely coordinated with Myanmar's clearance of arrears to the Asian Development Bank and other creditors. As preparations for arrears clearance continue, an urgent government priority critical to the success of Myanmar's triple transition moving from top-down decision making to participatory approaches and bottom up planning may be financed out of a pre arrears clearance grant. The grant, which is being presented to the Board for consideration at the same time as this ISN, would finance urgent infrastructure and community needs at the village level (for example small scale irrigation, rehabilitation of schools and health centers, construction of rural access roads), using a community-driven approach in which communities in partnership with local authorities identify, plan and implement their development priorities. 

Ref:world bank