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Beyond Economic Liberalization: New Policy Challenges for Myanmar

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Beyond Economic Liberalization: New Policy Challenges for Myanmar 2016/17 Knowledge Sharing Program with Myanmar Sharing Program 2016/17 Knowledge 2016/17 Knowledge Sharing Program with Myanmar: Beyond Economic Liberalization: New Policy Challenges for Myanmar 2016/17 Knowledge Sharing Program with Myanmar 2016/17 Knowledge Sharing Program with Myanmar Project Title Beyond Economic Liberalization: New Policy Challenges for Myanmar Prepared by Korea Development Institute (KDI) Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Prepared for The Government of the Republic of Myanmar In cooperation with Ministry of Planning and Finance (MOPF) Ministry of Labour, Immigration and Population (MOLIP) Ministry of Agriculture, Livestock and Irrigation (MOALI) Program Directors Kwangeon Sul, Executive Director, Center for International Development (CID), KDI Siwook Lee, Professor of KDI School of Public Policy and Management, Former Executive Director, CID, KDI Project Manager Sang-Woo Nam, Senior Research Fellow, Center for International Development (CID), KDI Project Officer Dahyun Noh, Research Associate, Division of Policy Consultation, CID, KDI Senior Advisor Won-dong Cho, Former Presidential Secretary for Economy of the Republic of Korea Principal Investigator Wonhyuk Lim, Professor, KDI School of Public Policy and Management Authors Chapter 1. Wonhyuk Lim, Professor, KDI School of Public Policy and Management Chapter 2. Gyungtae Kim, President, Korea Statistics Promotion Institute Chapter 3. Soobong Uh, Professor, Korea University of Technology and Education Chapter 4. In Park, Visiting Fellow, Korea Institute for Rural Development Jeong-Youn Kim, Visiting Fellow, Korea Institute for Rural Development Aung Zay Hlaing, Assistant Director, MOALI English Editor Seoul Selection Government Publications Registration Number 11-1051000-000770-01 ISBN 979-11-5932-229-7 94320 979-11-5932-227-3 (set) Copyright ⓒ 2017 by Ministry of Strategy and Finance, Republic of Korea Government Publications Registration Number 11-1051000-000770-01 2016/17 Knowledge Sharing Program with Myanmar: Beyond Economic Liberalization: New Policy Challenges for Myanmar Preface Knowledge is a pivotal driver of growth and the fruit of all endeavors dedicated to socio-economic development. Accordingly, knowledge sharing has become an essential tool in strengthening nations’ capacity to design and execute policies and programs. On the global front, the UN is making efforts through its Sustainable Development Goals (SDGs) to underscore the role of both knowledge and knowledge sharing in tackling sustainable development issues and in establishing and enhancing global partnerships. Indeed, knowledge laid the foundations for Korea’s remarkable transformation from a poor agro- based economy into an industrialized nation with an open and democratic society. And the process, though arduous, has enabled Korea to accumulate invaluable and practical lessons not found in conventional textbooks. Now, as a global economic leader, Korea is working with the international development community and partner countries to identify key development challenges and solutions by sharing its tangible know-how and experience. The Knowledge Sharing Program (KSP) was initiated in 2004 by the Ministry of Strategy and Finance (MOSF) and is implemented by Korea Development Institute (KDI). The program plays a vital role in further expanding knowledge sharing as well as in strengthening government partnerships with low to high income economies. As of this year, 940 research studies have been conducted with 59 partner countries. And in 2016, KSP policy consultations and capacity building workshops were organized with 28 partner countries including new partner countries such as Jordan and the Sub-Saharan Africa Partnership for Skills in Applied Sciences, Engineering and Technology (PASET). The 2016/17 KSP with Myanmar was undertaken by MOSF and the Ministry of Planning and Finance (MOPF) of the Republic of the Union of Myanmar to support the formulation of the “Beyond Economic Liberalization: New Policy Challenges for Myanmar”. To that end, KSP and Myanmar engaged in a range of collaborative efforts including exchanging development experiences, conducting joint studies, and designing a policy action plan in line with the country’s development targets. It is with great optimism for the future of Myanmar that the results of the 2016/17 KSP are presented. I firmly believe that KSP will serve as a stepping stone to further elevate the mutual learning and economic cooperation between both our countries, and hope it will positively impact Myanmar’s attainment of its goals for sustainable development. I wish to convey my sincere gratitude to Senior Advisor Dr. Won-dong Cho, Principal Investigator Prof. Wonhyuk Lim as well as project consultants Mr. Gyungtae Kim, Prof. Soobong Uh, Dr. Jeong- Youn Kim and Dr. In Park for their extensive contributions. I am also grateful to Executive Director Dr. Kwangeon Sul, Project Manager Dr. Sang-Woo Nam, Project Officer Ms. Dahyun Noh and all members of the Center for International Development (CID) for their hard work and dedication to this program. Lastly, I extend my warmest thanks to the Myanmar collaborates, Ministry of Planning and Finance (MOPF), Ministry of Labour, Immigration and Population (MOLIP), Ministry of Agriculture, Livestock and Irrigation (MOALI) and related agencies, project coordinators, and participants for their steadfast effort and support. Joon-Kyung Kim President Korea Development Institute (KDI) Contents 2016/17 KSP with Myanmar ............................................................................................... 013 Executive Summary ......................................................................................................... 017 Chapter 1 Socioeconomic Development Strategy for Myanmar Summary ....................................................................................................................... 030 1. Introduction ............................................................................................................ 033 2. Historical Perspectives ............................................................................................... 035 2.1. Industrial Revolution: Three Explanations ............................................................. 035 2.2. Catch-up Strategies of Western Latecomers ........................................................... 036 2.3. Challenges for Non-Western Latecomers ............................................................... 037 3. Myanmar’s Current Socioeconomic Status ..................................................................... 041 3.1. Overview ........................................................................................................ 041 3.2. Political and Economic Transition ......................................................................... 048 3.3. Development Challenges ................................................................................... 051 4. Myanmar’s Agricultural Development .......................................................................... 053 4.1. Status of Agricultural Sector ............................................................................... 053 4.2. Evolution of Agricultural Policies ......................................................................... 059 4.3. Policy Challenges .............................................................................................. 068 5. Myanmar’s Industrial Development ................................................................................. 075 5.1. Status of Industrial Sector ................................................................................... 075 5.2. Evolution of Industrial Policies ............................................................................ 080 5.3. Policy Challenges .............................................................................................. 087 6. Conclusion .............................................................................................................. 092 References ..................................................................................................................... 098 Appendices .................................................................................................................... 104 Chapter 2 Strengthening the Role and Status of CSO by Improving Survey Methodologies in Myanmar Summary ....................................................................................................................... 114 1. Introduction ............................................................................................................ 116 1.1. Background ..................................................................................................... 116 1.2. Research Areas ................................................................................................. 118 2. Official Statistics of Myanmar ..................................................................................... 120 2.1. Official Statistics - Current Status and Issues at Stake ............................................... 120 2.2. Strategic Direction for Myanmar’s Official Statistics ................................................. 128 3. Korea’s Experience in Statistical Development ................................................................ 147 3.1. Korea’s Experience in Official Statistics Development ............................................... 147 3.2. Evaluation
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