Political, Legal And Technological Environment

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Introduction Myanmar is at a pivotal crossroad. Authoritarianism had given way in 2011 to political and governmental reforms. A peace process was implemented to help end ethnic tensions and communal conflicts to unify the country. The government is moving aggressively towards a market economy after years of isolation. These initiatives are transforming Myanmar into an open market economy. (Appendix 1) The global community is excited about Myanmar’s political and economic reforms and is keen to support Myanmar’s process of change and opening. Myanmar has begun to attract foreign direct investment (FDI) and reintegrate the country into the global economy. Its domestic industries are also modernizing and industrializing. This report…show more content…
The Asian Development Bank (ADB) expects Myanmar to grow at 7 to 8 percent annually for the next decade. Stabilizing the kyat currency in 2012 through a single managed float is addressing currency reforms. Inflation controls, access to finance and sustainable budgets are being facilitated. The introduction of an independent central bank is underway and will strengthen the financial sector. Legal and regulatory apparatus are established along with increasing tax breaks for foreign businesses and provision of greater access for FDI. Essential public services are being improved. Governance and corruption issues are addressed. Myanmar realized the FDI potential of special economic zones (SEZ) and had three SEZs created and under development. The SEZs allow for foreign investments to setup manufacturing, high tech industries and to export products internationally. The SEZs offer investors favorable policies on labor, duties, customs and utilities. One such SEZ is the Thilawa project near Yangoon and is attracting investment due its proximity to Yangoon, skilled labor and existing port infrastructure. Economic development is fueling growth in the financial and legal sectors. However, Myanmar’s financial and legal institutions are still underdeveloped. Trade credit, credit provision and financing remain rudimentary, impacting the ease and cost of doing business in Myanmar. The government is developing its legal system to encourage

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