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Myanmar's Important Position to Enhance Regional Connectivity

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Myanmar's Important Position to Enhance Regional Connectivity Myanmar’s Important Position to Enhance Regional Connectivity TEXT Presentation at International Conference to Commemorate the 20th Anniversary of ASEAN-India Cooperation, Chulalongkorn University, Bangkok, 20-21 September 2012 Tin Htoo Naing Yangon institute of Economics Myanmar • The new government, in office since April 2011, has ushered in a new era for Myanmar. • It is the first democratically elected government to come to power through general elections in five decades. • The government has put in place measures to achieve positive changes in political, economic and social spheres in line with the market conditions and international circumstances. • The genuineness of the democratic reforms carried out by the new government is widely questioned. • Some observers generally accept that the reforms have been genuine and are likely to be irreversible, but believe that the rush to reform may possibly cause burnout in Myanmar because the financial, technical and managerial capacity of the government institutions and all stakeholders fall behind the pace of reforms. • In politics, although it cannot be said that political conflicts and struggles for democracy that have been locked in many years of stalemate have been resolved, cooperation on the common grounds has become a possibility based on the concept of unity in diversity. • In the ethnic affairs, negotiations have been carried out with almost all the nationality organisations that have been engaged in armed insurrection for decades and most of them have resulted in preliminary agreements and successes while some racial strife remain and delay the reform process. • In the economic sphere, development ideologies and strategies are also to be altered in accordance with the change of government system. Table 3.1 Myanmay SWOT Analysis Strength Weakness Abundant natural resources (agriculture, Macroeconomic instability associated gas, oil, minerals, precious stones) with a number of policy inconsistencies Less population pressure on land (Land- and weak institutions population ratio is relatively high.) Low saving and investment rates Half of arable land area fallow Lack of implementing capacity and Abundant trainable labor force with basic governance issue education Underdeveloped banking and financial Well connected to major Asian market: system ASEAN, China and India High dependence on natural resource Strategic location: Geopolitical extraction and agriculture sector importance for regional connectivity as Poor infrastructure, institutional and the tri-junction of East Asia, Southeast business environment Asia and South Asia High poverty, low HDI, low income and Benefit of late comer in development: can high outmigration rate leapfrog Lack of comprehensive approaches and Significant foreign exchange reserves appropriate funding to human capital formation Absence of accurate and reliable economic data to provide exact diagnostics of the economy Opportunity Threat Regional hub for multimodal Resource Curse: lack of balancing transportation and a potential supply route economic growth and environmental bypassing the Malacca Strait sustainability Sole land-bridge between two giant Danger of Dutch disease economies; China and India Social and Spatial inequality High potential to be a ‘food basket’ and Increase in corruption ‘energy source’ for Asia Political instability and ethnic insurgency Huge industrial potential for FDI from International pressures and economic ASEAN and global supply chains sanctions Strong influence of China Source:J.P. Verbiest and Tin Htoo Naing (2011), ASEAN 2030 Study, Asian Development Bank Institute Reviewing Myanmar Strategic Potential Bangladesh Bangladesh 156 Mil 60 Million Laos 7 Mil $242 Bil $57.5Bln Laos $15 Bil Total Population Total GDP(ppp) 22,,793793 MillionMillion US$13,203 Billion 4141%% of World’s Population 17% of World GDP World Fact book, 2011 and UMFCCI Source: UMFCCI • Connectivity • Myanmar is of geopolitical importance for regional connectivity with its location at the tri-junction of East Asia, Southeast Asia and South Asia, and a potential central hub for exchange of goods, services and technology. • Underdeveloped infrastructure and unfavorable institutional and business environment seriously limit participation of the economy into regional and global networks. • The cross-border connectivity plays a very important role in this scenario. ACCESS ROAD TO NEIGHBOURING COUNTRIES FROM MYANMAR (1) ASIAN HIGHWAYS (32) countries - 141000 km (2) ASEAN HIGHWAYS (10) countries - 37070 km (3) GREATER MEKONG SUBREGION, GMS-HIGHWAYS (6) countries , (9) corridors (4) BIMSTEC HIGHWAYS (5) INDIA-MYANMAR-THAI TRIPARTITE HIGHWAY (6) INDIA-MYANMAR, THAI-MYANMAR, BANGALARDESH -MYANMAR BILATERAL HIGHWAYS (7) GMS, EAST-WEST ECONOMIC CORRIDOR HIGHWAYS (8) GMS, NORTH-SOUTH ECONOMIC CORRIDOR HIGHWAYS Source: Ministry of Transport, Myanmar GMS Connectivity: 220000662200115511999922 RRooaaddss Telecommunications Power Transmission Line Source: ADB Current Status of Projects along Asian Highways • ASIAN Highways in Myanmar, AH1, AH2, AH3 and AH14, most of the routes are either overlapping or contiguous with other Highways. Myawady to Thingannyinaung of about (18)km is already upgraded to AH class III Standard, with the Grant Aid of Thai Government. Kyaikhto to Mandalay, including Payagyi-Yangon section of about 893 km is already upgraded to AH standard with the Government budget and Private sectors by B.O.T basis. -The last section of Kalay/Kalewa to Tamu of about (150)km was upgraded to the intermediate road class, with (5.5) meter carriageway width, with the grant aid of India Government, still need to upgrade AH standard. Ministry of Transports • AH2 starts from Thai-Myanmar border cities of Maesai-Tachileik to meet the AH1 at the city, Meiktila via Kyaington and is about (807)km. -Tachileik to Kyaington section of about (164)km is upgraded to AH class III standard by B.O.T. -Kyaington to Meiktila section of about (643)km is under upgrading to AH class III standard by Construction units from Public Works, MOC, with Government budgets and (79)km is already upgraded . • AH3 (93)km, the section between Kyaington and Mongla, the city at the border of Myanmar and China, is upgraded to two lanes bituminous paved road, but still need to improve to get AH class III standard. • AH14 (453)km, with AH class III standard, is operated by B.O.T scheme. Construction of new bridges and culverts in the places of old bridges and culverts along the AH in accordance with the AH design loading. Strategic Location Kunming Chennai Dawei Southern Economic Corridor & Indian Ocean Gateway MEKONG-INDIA ECONOMIC CORRIDOR Myanmar is placed on the Northern Corridor, North-South Economic Corridor and East-West Economic Corridor and, Southern and Western Corridors. Although East-West Economic Corridor known as EWEC connects eastern ASEAN countries, Western Corridor and Southern Economic Corridor are the key base to establish Mekong-India Economic Corridor (MIEC) by extending the Souce: ADB link to Dawei of Myanmar. • India-Myanmar-Thailand Trilateral Highway project under the Mekong-Ganga cooperation initiative that started in 2005 is also a vital one to improve cross border connectivity between India and Myanmar - 1360 km, US$ 700 million, runs from Moreh in India to Maw Sot in Thailand through Bagan in Myanmar. • The road from Moreh to Mae Sot via Bagan includes part of East-West Economic Corridor (EWEC) in Myanmar, particularly Myawaddy- Mawlamyine section and part of No.1 Asian Highway (AH 1). India-Myanmar-Thailand Trilateral Highway Asian Highway Standard Road Bago-Meiktila, Rainwater makes part of AH1 in the route muddy Myanmar, is and blocks the drive advantageous to be part of TH. Myitha Bridge … Old and Narrow Bridge Too Narrow to Pass Across Up and Down Vehicles … • India-Myanmar Friendship Road: Among the several projects, completion of the 160km India-Myanmar Friendship road in 2001 on Myanmar territory, connecting Kalewa, Kalemyo and Tamu with Moreh was very imperative sub-regional integration between two countries. • With the grant-aid of the government of India, Kaly-Tamu road was completely upgraded and opened in Feburary 2001. • Tamu-Kyigone-Kalemyo section of about 82 miles and 4 furlongs was also completed in September 2009. • Kyigone-Kalewa section of about 17 miles and 4 furlongs has been still under maintenance by the India side although it was planned to be completed by the first half of 2010. • Tiddim-Rhi-Falam road: Engineers and surveyors from Border Road Organization of India and Public Works of Myanmar had prepared detailed Project Report (DPR) of upgrading Tiddim-Rhi-Falam road since 2006. • A technical team from India also visited to consult with the Myanmar government with regards to the Tiddim-Rhi-Falam road upgrading project in 2008. • Again, a delegation from two countries conducted a reconnaissance survey in 2009 and India allocated USD 60 million for the respective project. • At present, the draft MOU for the project is underway to realize the upgrading project. Railway Lines of International Importance in Myanmar Existing lines Mandalay-Yangon = 617 km Mandalay-Lashio = 313 km Mandalay-Kalay = 539 km Bago-Thanbyuzayat = 270 km Missing lines Kalay-Tamu = 127.4 km** Lashio-Rueli = 141.8 km** Thanbyuzayat-Three Pagoda Pass = 110 km** ** The route lengths of missing lines are referred from feasibility reports Source: Ministry of Rail Transportation Indian-Myanmar Rail link (Kalay-Tamu) The missing length between
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