Economic and Engineering Development of Burma 1953
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NOMIC AND ENGINEER! DEVELOPMENT OF BURMA PREPARED FOE TKl LENT OF THE UNION OF BURMA VOLUME AUGUST If53 KNAPPEN TiPPETTS ABBETT MCCARTHY _ ENGINEERS m ASSOCIATION WITH PIERCE itaJAGEMENT, INC. AND ROBERT R. NATHAN ASSOCIATES, INC, u ^^^^< ' o(t, fseco ECONOMIC AND ENGINEERING DEVELOPMENT OF BURMA KNAPPEN - TIPPETTS - ABBETT - MCCARTHY ENGINEERS (KNAPPEN TIPPETTS ABBETT ENGINEERING CO.) 62 WEST 47TH STREET ERNEST F. TIPPETTS PLEASE REPLY TO NEW YORK 36, N .Y. ROBERT W. ABBETT SOUTH EAST ASIA OFFICE P.O. Box 1484 GERALD T. MCCARTHY PLAZA 7-8001 PRO ME COURT WILLIAM Z. LIDICKER RANC300N. BURMA JAMES H. STRATTON SOUTH 556 & 572 CABLE ADDRESS : "KNAPENG RANGOON" August 7th, 1953 THE HONORABLE U WIN, Minister for National Planning and Religious Affairs, Prome Court, Prome Road, RANGOON, BURMA. DEAR SIR, The Consultants take pleasure in transmitting to you the accompanying "Comprehensive Report on the Economic and Engineering Development of Burma." It is the earnest hope of all who have contributed to the preparation of the Report that it will be a trustworthy guide to social and industrial progress that will endure and strengthen through the years to come. The Consultants desire to express their thanks and apprecia¬ tion for the honor and opportunity afforded them to participate in the bold, creative, and historical measures being set in motion by the Union of Burma to secure for her people the full enjoyment of their rich resources. Respectfully yours, General Manager COMPREHENSIVE REPORT ECONOMIC AND ENGINEERING DEVELOPMENT OF BURMA PREPARED FOR THE GOVERNMENT OF THE UNION OF BURMA VOLUME I INTRODUCTION ECONOMICS AND ADMINISTRATION AGRICULTURE AND IRRIGATION TRANSPORTATION AUGUST 1953 KNAPPEN TIPPETTS ABBETT McCARTHY ENGINEERS IN ASSOCIATION WITH PIERCE MANAGEMENT, INC. AND ROBERT R. NATHAN ASSOCIATES, INC. PRINTED AND BOUND IN GREAT BRITAIN BY HAZELL, WATSON & VINEY, LTD. AYLESBURY & LONDON TABLE OF CONTENTS Letter of Transmittal u Foreword viii Page Page VOLUME I E. The Structure of the Revenue System 62 F. Banking Pohcy 67 PARTI G. Foreign Exchange and Foreign Trade Policy 72 INTRODUCTION H. Summary of Recommendations 74 CHAPTER I. RESOURCES FOR BURMA'S DEVELOPMENT CHAPTER V. ORGANIZATION FOR A. Introduction 3 COORDINATING THE PROGRAM B. Physical Geography 3 A. The Four Major Steps in Coordinating Economic Activity 76 C. Agriculture 5 B. Organization for Planning 77 D. Forests 8 C. Organization for Progranuning 78 E. Minerals II D. Staff for Planning and Programming 78 F. Water Resources 11 E. Organization and Procedure for Imple¬ G. Transportation 14 mentation of Economic and Functional H. Capital Resources 15 Pohcies 80 I. Human Resources 15 F. Organization for Progress Reporting and Expediting 81 CHAPTER II. THE TASK AHEAD G. Economic and Social Board Staff 82 A. Economic Problem and Opportunity 19 H. Summary 82 B. Development Goals 20 C. Achieving Maximum Output 28 CHAPTER VI. ADMINISTERING THE DEVELOPMENT PROGRAM D. Criteria for the Selection of Projects 31 A. The Ministries 83 E. Reaching the Goal: Planning and Execution 34 B. The Development Corporations 84 C. Other Government Corporations and Boards 86 PARTn D. Problems of Planning, Reporting and Ex¬ ECONOMICS AND ADMINISTRATION pediting 86 E. Other General Problems 87 CHAPTER in. FINANCING THE PROGRAM F. The Private and Mixed Sectors of the A. The Nature of the Problem 39 Economy 89 B. Financing Foreign Exchange Payments 41 G. Summary of Recommendations 92 C. Financing Development Expenditures within Burma 49 CHAPTER VII. MANNING THE PROGRAM D. Conclusions 57 A. The Problem of Specialized Manpower 94 B. Meeting the Problem of Skill and Knowledge 99 CHAPTER IV. CENTRAL ECONOMIC POLICIES C. Meeting the General Problems of Increasing FOR THE PROGRAM Labor Productivity on the Job 107 A. Introduction 58 D. The Need for Able Management—A Special B. Improvement in Fiscal Information 58 Problem 111 C. Fiscal Pohcy: The Level of Current Expen- E. Possible Solutions to the Management ditures 61 Problem 115 D. Fiscal Pohcy: The Level of Taxation 62 F. Summary of Recommendations 120 VI ECONOMIC AND ENGINEERING DEVELOPMENT OF BURMA PART m Page Page CHAPTER XIV. OCEAN SHIPPING AGRICULTURE AND IRRIGATION A. Coastal Steamship Services in Prewar CHAPTER VIII. AGRICULTURE and Postwar Periods 350 A. Objectives 125 B. Investigation of Needs for Steamer B. Present Agricultural Development 125 Services 350 C. National Agricultural Programs 135 C. Union of Burma Shipping Board 351 D. Increase of Agricultural Production 151 D. Conclusion 351 E. Agricultural Aims and Suggested Goals 187 F. Conclusions and Recommendations 188 CHAPTER XV. PORTS AND WATERWAYS CONSERVANCY CHAPTER IX. IRRIGATION A. Introduction 352 A. Over-all Irrigation Program 195 B. Conservancy for Seaports 352 B. Specific Projects 210 C. Conservancy for Waterways 352 C. Estimate of Costs and Benefits 240 D. The Conservancy Problem 354 D. Recommendations 241 E. Conclusions 355 PART IV CHAPTER XVI. HIGHWAYS TRANSPORTATION A. Introduction 356 CHAPTER X. TRANSPORTATION SYSTEM B. Classification 357 A. Present Situation 251 C. Existing Highway System 361 B. Interrelations 251 D. Traffic 379 C. Operating Requirements 252 E. Comparisons with Other Highway Systems 394 D. Review of Recommendations 255 F. Design Requirements 402 G. Construction Methods 408 CHAPTER XI. BURMA RAILWAYS H. Construction and Material Costs 420 A. Introduction 256 I. Maintenance 425 B. History 256 J. Materials and Testing Laboratory, Shops 426 C. Existing System 257 K. Planning and Surveys 426 D. Current Operations 261 L. Highway Administration 427 E. Requirements for Further Improvement 267 M. Highway Financing 428 F. Conclusion 278 N. Highway Code 431 0. Commercial Transport 446 CHAPTER XII. SEAPORTS OF BURMA P. Transport Commission 446 A. Introduction 281 Q. Recommended Changes in Geometries and Location 447 B. Port of Rangoon 281 R. General Recommendations 456 C. Portof Akyab 319 D. Port of Bassein 324 E. Port of Moulmein 327 CHAPTER XVII. AIRWAYS F. Port of Tavoy 330 A. Introduction 465 G. Port of Mergui 332 B. International Service 466 C. Domestic Service 470 CHAPTER XIII. INLAND WATERWAYS D. Personnel 471 A. Introduction 336 E. Air Safety, Aircraft and Workshop 475 B. Existing FaciUties and Operations 336 F. Airports, Facilities and Terminals 478 C. Operation of Inland Water Transport 338 G. FUght Control and Signal Communi¬ D. New Industry Requirements 342 cation 482 E. Personnel Training Program 348 H. Accounting and Statistics 483 F. Conclusions 348 1. Future Developments 483 G. Estimated Required Expenditures 348 J. Conclusions and Recommendations 489 TABLE OF CONTENTS vu Page Page VOLUME II CHAPTER XXI. MINERAL INDUSTRIES PARTY A. General Geology 647 TELECOMMUNICATIONS B. Economic Geology 647 CHAPTER XVIII. TELECOMMUNICATIONS C. Established Mineral Production Operations 648 D. Field Examinations, Studies and Investiga¬ A. Introduction 495 tions 649 B. Historical 495 E. Future Mineral Development 652 C. The Insurrection 497 F. Conclusions and Recommendations 683 D. The Present Situation 497 E. Telecommunications Operations, Plans and Problems 500 CHAPTER XXII. MANUFACTURING A. Review of Existing National Industry 685 PART VI B. A Survey of Industrial Possibihties for Burma 685 POWER C. An Industrial Development Program for CHAPTER XIX. ELECTRIC POWER Burma 693 A. Early Hydroelectric Investigations 557 D. Recommendations 802 B. Prewar Power System 561 E. Implementation Procedure 804 C. Existing Power Development 561 D. Initial Diesel Plants at 36 Towns 561 E. Three Large Power Plants for Immediate CHAPTER XXIII. THE DEVELOPMENT OF Development 565 SMALL-SCALE INDUSTRY F. Kalewa Mine Power Project 626 A. Importance of Small-scale Industry in the G. Other Hydroelectric Projects for Future Burmese Economy 808 Development 628 B. Policies for Development of Small-scale H. Proposed Expansion of Basic Transmission Industry 810 System 639 C. Implementation of Policies for Developmen t I. Diesel Plants for Outlying Towns 640 of Small-scale Industry 813 J. Large Hydroelectric Sites for Future Study 640 D. Summary of Recommendations 814 K. Stream Flow Measurement 640 L. Summary and Recommendations 640 CHAPTER XXIV. FORESTRY AND OTHER INDUSTRIES PARTVn A. Forestry 815 INDUSTRY B. Other Industries 818 CHAPTER XX. INTERRELATION OF INDUSTRIES A. Range of Industries 645 CHAPTER XXV. THE COORDINATED PLAN B. Common Economic Factors 645 A. Supporting Functions 822 FOREWORD AUTHORITY of Burma, submitted a written PreHminary Report This Comprehensive Report is being submitted on January 31, 1952. Subsequently, a large number to the Government of the Union of Burma as of detailed reports on specific projects have been the concluding service in the fulfillment of the con¬ submitted. Many services have been rendered relative tract dated August 8, 1951, and terminating on to specific projects; continuous engineering, consult¬ August 8, 1953, between the Government of the ing, and economic advisory services have been Union of Burma and Knappen Tippetts Abbett rendered and on occasion purchasing services have Engineering Company of New York City. As been performed. A number of Burmese technicians provided in the contract, the Knappen Tippetts have assisted in the work, and have received training Abbett Engineering Company has associated itself in various engineering and economic fields and in with Pierce Management, Inc., of Scranton, Penn¬ office procedures. No preparation of appHcations sylvania, Coal and Metal Mining Engineers, and for financing has been requested. Robert