Myanmar lose a bit of Oomph? Why its long-term growth rate has slowed? The answer is clear; "International sanctions not fully removed yet."

1. Myanmar’s Constitutional &
Economic Reform Process
Khaing Sape Saw

2. PART 1
Myanmar Constitutional Reform Process
PART 2
Economic Reform Process

3. PART 1
Myanmar Constitutional Reform Process

4. Myanmar’s Constitution Milestones
1947
1974
2008

5. Myanmar: 1948–present
Union of Burma 1948–62
Socialist Republic of the Union of Burma1962–1988
Union of Myanmar 1988–2011
Republic of the Union of Myanmar 2011~

6. Titles of the head of state:
chairmanship of executive councils
• 1948–1962: President of the Union of Burma
• 1962–1974: Chairman of the Union Revolutionary
Council
• 1974–1988: President of the Socialist Republic of the
Union of Burma
• 1988–1997: Chairman of the State Law and Order
Restoration Council
• 1997–2011: Chairman of the State Peace and
Development Council
• 2011–: President of the Republic of the Union of
Myanmar

7. General Aung San
Myanmar’s revolutionary, nationalist,
founder of Myanmar army, and considered
to be the Father of Myanmar.

8. Union of Burma 1948~ 1962
Sao Shwe Thaik
1948~1952
1947
Constitution
U Ba U
1957
U Win 1962
Maung
U Nu
Democratic Rule

9. 1947 Constitution
• The 1947 constitution was used from the
country's independence in 1948, to 1962.
• aspiring to a 'loose' federation, was seen as a
separatist movement insisting on the
government honoring the right to secession in
10 years provided for by the 1947
Constitution.

10. Socialist Republic of the Union of Burma
1962–1988
1974
Constitution
One Party
rule
system
Burmese Way to
Socialism
General Ne Win
U San Yu
!981~1988

11. 1974 Constitution
• Approved in a 1973 referendum, the 1974
constitution was the second constitution to be
written. It created a unicameral legislature
called the Pyithu Hluttaw (the People's
Assembly), represented by members of the
Burma Socialist Programme Party. Each term
was 4 years.

12. 1974 Constitution
• The national government consisted of three
branches: judicial, legislative and executive.
The legislative branch was a bicameral
legislature called the Union Parliament,
consisting of two chambers, the 125-seat
Chamber of Nationalities (Lumyozu Hluttaw)
and the Chamber of Deputies (Pyithu
Hluttaw), whose seat numbers were
determined by the population size of respective
constituencies.

13. Economic policies: 1962–1988
• nationalized economy
• a policy of autarky ; the economic isolation
from the world.

14. Union of Myanmar 1988–2011
U Sein
Lwin
U Aye
Ko
U Maung
Maung
1988

15. Union of Myanmar 1988–2011
18 September 1988 ~ 30 March 2011
The State Law and Order Restoration Council (SLORC)
State Peace and Development Council (SPDC )
Chairman: Senior General Saw Maung(1988 to 1992)
Chairman: Senior General Than Shwe (1992 to 2011)
SLORC changed its name in 1997 to the State Peace
and Development Council (SPDC).

16. (Daw) Aung San Suu Kyi
• A Myanmar opposition politician
• A chairperson of the National League for
Democracy (NLD)
• A Representative of Pyithu Hluttaw for Kawhmu,
the lower house of the Myanmar parliament,
( since April 2012)
1990 – the government held free election for the
first time. In the 1990 general election, the NLD
won 59% of the national votes and 81% (392 of
485) of the seats in Parliament. The 1990 election
results were invalidated by the Electoral Laws
enacted in March 2010.

17. Republic of the Union of Myanmar 2011~
The President
the head of
executive/ The
head of Pyidaungsu
(union) government
Our President U Thein Sein was elected in March 2011.
Approval by the Pyidaungsu Hluttaw .
elect the Union government ministries

18. Republic of the Union of Myanmar 2011~
Types of government Presidential republic with a bicameral
legislature.
BRANCHES OF GOVERNMENT
Executive The President is the head of state and head of
government.
Legislative Pyidaungsu Hluttaw: bicameral : two houses
upper house Amyotha Hluttaw (House of
Nationalities) :224-seat 168 are directly elected and
56 are appointed by the Burmese Armed Forces
lower house Pyithu Hluttaw (House of
Representatives): 440-seat 330 are directly elected
and 110 are appointed by the armed forces.
Judiciary The highest court in the land is the Supreme Court,
consisting of two (2) Chief Justices.

19. Legislative Structure
elected from
Regions and States
Pyidaugsu Hluttaw
/Parliament
Amyotha Hluttaw
House of
Nationalities
224 Seat
directly
elected
168
Defense Services
personal
56
PyiThu Hluttaw
House of
Representative
440 Seat
directly elected
330
Defense
Services
personal
110
elected on the basic of
township population
Nominated by the
Commander-in-Chief of
the Defense Services

20. Formation of Courts at Different Levels under Judiciary Law,2010

21. Sovereign state powers: Separation of Power
Division of Power
Judiciary Executive
Legislative
Union/Pyidaugsu
Hluttaw
Region Hluttaw
State Hluttaw
Self-administered
Division /Zone
7
7 6

22. Separation of POWER: Check and Balance/
Check and counter check
Judiciary
POWER
Executive
POWER
The administrative organs
Pyidaungsu regions State Self-admin
zone
The highest court: the
Supreme Court
British-era laws
Parliament : bicameral
two houses : upper house
Lower house
Legislative

23. Pyithu Hluttaw: The highest organ of the State
Enact ; New
Laws
Pyithu Hluttaw Legislative power
State Council
Pyidaugsu
Hluttaw
Region
Hluttaw
State
Hluttaw
self-administered
Division /Zone

24. Myanmar parliament
parliament name
Pyidaungsu Hluttaw / Assembly of
the Union
Structure of parliament Bicameral
Chamber name
Pyithu Hluttaw / House of
Representatives
Related chamber (for
bicameral parliaments)
Amyotha Hluttaw / House of
Nationalities
Dates of election / renewal 7 November 2010
Purpose of elections
Elections were held for all the seats
in the House of Representatives.
Number of registered electors
Voters
29'021'608
22'421'123 (77.26%)

25. Political Reform
Democratic Rule 1948–62
One Party Rule 1962–1988
•Burma Socialist Programme Party
 Military Rule 1988–2011
Union Solidarity and Development Party
(USDP) 2011-

26. Period political system economic system
1) 1948-62
(1958-60)
parliamentary democracy system
(AFPFL)
Military caretaker government
A mix of nationalism,
socialism market
Same as above
2) March 1962 to
(1964-74)
(1974-88)
Socialist military
revolutionary council of the Military
Myanmar way to socialism under
military rule one party system
(BSPP)
nationalization and Myanma
way 1988
command economy, self-reliance
isolation
same as above except for re -
acceptance of ODA loans and
partial
reforms
3) Sept 1988 to
2011
military rule (SLORC/SPDC) transition toward a market –
oriented economy in the first
half of the 1990s.
4) 2011~ present parliamentary democracy
system Presidential
republic with a bicameral
legislature
a market –oriented economy
Overview on the political & economic System

27. Constitutional Remark
1947
1974
2008
Constitution referendum; Multi-party
system
Constitution referendum;
but one party system
Urgently Drawn , Lacking political
party registration systematically

28. PART 2
Economic Reform Process
2012-15

29. “We will open doors, make reforms and invite
investments as necessary for development of
the nation and the people.”
President U Thein Sein

30. A reform bridge linking
Ongoing programs : a 20-year long-term plan: drawing up in
consultation with parliament for the country’s economy to grow on a par
with the dynamic Asian economies.
The National
Comprehensive
Development Plan
Economic
Reforms
long-term
Short-term
2012 ~ 2015: identifying key parameters of the reform process
Myanmar to become a modern, developed and democratic nation
by 2030.

31. Economic Reforms
Objective
• A reform bridge linking the ongoing programs of
government to the National Comprehensive 20-
year long-term Development plan.
• to develop more detailed sectoral and regional
plans.
• A guide for building cooperation with
development partners and international bodies
to obtain mutual benefits.
• focuses on potential focusing on immediate
actions or “quick wins” : implementing to bring
tangible and sustainable benefits to the
population.

32. Economic Reforms
• targeting in the medium term
• macroeconomic policies to promote inclusive
growth, stability
• poverty reduction
• Sectoral policies,
• line ministries and departments
• contributing to people-centered development

33. Economic Reforms
• *inclusive growth; social, cultural and environmental
aspects of development,
• national harmony and regional development, and
improving governance.
• strategies for Myanmar to reposition in the
international community through strategic engagements
with neighboring economies,
• the ASEAN Economic Community (AEC),
• the Greater Mekong Sub-region and the rest of the
world.
• the required changes in the magnitude and composition
of public expenditure and sources of financing.

34. Economic Reforms
• details policies on synchronizing the division
of labor for devising necessary reforms
between parliament and other key
stakeholders,
• developing an effective aid management
framework,
• consultative mechanisms with civil society
actors.
• implementation, monitoring and evaluation.

35. Economic Reforms
1. Fiscal and Tax Reforms
1.1. Budgetary reforms
• To ensure sound public financial management and
reduce fiscal deficits
• budgetary allocation to a policy-based and tax
inclusive fiscal regime.
• enhance streamlining of various revenue flows,
• unifying annual budget within a medium term
framework and
• moving towards effective management of hard budget
constraints,
• while phasing out soft budget constraints currently
given to the state economic enterprises.

36. Economic Reforms
• 1.2. Tax Reform
• simplifying the current tax system, starting with
replacing the commercial tax
• with a general sales tax at a single rate, with at most
one reduced (or zero) tax rate for basic food items.
• Raising the exemption threshold for income tax would
make it easier to administer.
• a gradual shift in relative emphasis from direct to
domestic indirect taxation; value-added tax, reforming
excise tax.

37. Economic Reforms
2. Monetary and Financial Sector Reforms
• macroeconomic stability and strong economic
growth depend in large part on a shift from
direct to indirect instruments of monetary
policy and the creation of an efficient,
competitive and stable financial sector.

38. Economic Reforms
2.1. Central Bank Autonomy
• reducing inflation and facilitating growth.
• the finalization of the new central bank law
that will grant operational autonomy and
accountability to the Central Bank of
Myanmar.

39. Economic Reforms
• 2.2. Bank Lending Regulations
• allowing commercial banks to lend for terms
of longer than one year while enabling
mortgage finance to get started.
• the use of moveable assets as collateral for
lending will be permitted and encouraged.

40. Economic Reforms
• 3. Liberalization of Trade and Investment
• exchange rate unification,
• the AEC targets and objectives for 2015 will be
an important driver of further reforms and
some further feasible quick wins.

41. Economic Reforms
• 3.1. Import Liberalization
• the adoption of a managed float system, it is important
to move as quickly as possible to eliminate the linkage
between export receipts and import licensing.
• currency appreciation pressures and provide broader
benefits to Myanmar producers and consumers.
• ease exchange restrictions by allowing foreign
currency purchases for car imports and for health and
travel expenses abroad.
• a plan to gradually remove all exchange and other
non-tariff restrictions on imports

42. Economic Reforms
• 3.2. Investment Liberalization
• Environmental and social guidelines for foreign
investment
• the foreign investment law and citizens’
investment law will eventually be merged to
provide a single investment framework in line
with AEC goals.
• ensuring improving of actual investment climate
• considerably reduced on transaction costs
associated with heavy regulations

43. Economic Reforms
• 4. Private Sector Development
• 4.1. Regulatory Reform
• ensure that transaction costs will be minimized for
domestic small- and medium-sized enterprises (SMEs)
throughout the business chain;
• starting from regulations for business start-ups, dealing
with construction permits, employing workers,
• registering property, accessing credit, protecting
investors, paying taxes, trading across borders,
• enforcing contracts .

44. Economic Reforms
• 4.2. Tourism
• Tourism is a relatively quick window of opportunity
available from the recent development of Myanmar as
a prime tourist destination.
• Change regulation on the current visa requirements
and the procedures for both tourists and businesses.
• Consideration should be given to moving quickly to
significantly simplified arrangements, such as those
currently in place within the ASEAN countries.
• upgrade airports and its facilities to provide better
access of international flights and other means of
transport for these tourists.

45. Economic Reforms
5. Food Security and agricultural growth
• agricultural growth is critical for inclusive
development; Given a high percentage of
agricultural contribution to GDP and
employment in the country
• growth strategies towards helping improve
the welfare and income of farmers.

46. Economic Reforms
agricultural growth Strategies ; continue…
•Increasing extension services and government loans,
removing barriers throughout the supply chain.
•improving productivity of rice sector (through improved seed
quality, better agronomic practices, optimized fertilizer and
input dosages, and integrated pest management);
• promoting dry season diversification into high-value
horticulture, fresh fruits, poultry and small livestock by both
small farmers and landless; improving water management at
the farm level through low-cost micro-irrigation and
expanding micro-finance activity in rural areas.

47. 47
Rich Natural Resources
Natural Gas
Resources
Forest
Land Resources
Fishery Resources
Gold
Other Mining
Products
Copper
Precious Gem Stones

48. Economic Reforms
• 6. Extractive Industries Transparency
Initiative
• Myanmar has huge natural resources but
international experience clearly shows that
such resources can as often be a curse as a
blessing.
• In order to ensure that the extraction of
natural resources produces real benefits for
people.

49. Economic Reforms
7. privatization
• improve valuations in future privatizations of
SEEs. further privatization of SEEs will
enhance the government’s target on deficit-reduction.

50. Economic Reforms
• Economic Stability and Growth
• According to the IMF, inflation has decreased
from a double-digit rate in 2009-2010 to 6.4% in
2011,
• and it is likely to even decrease further to around
4.2% in 2012.
• mainly due to the combined effects of falling
global food prices and a surplus of agriculture
produce;
• 2012 ; achieved a reduction of the budget deficit,
declining from 6.0% to 5.5% of GDP;

51. Economic Reforms
• Economic Stability and Growth
• Myanmar's economy grew at 7.3 percent in 2012/13.
• The main drivers of growth were increased gas
production, services, construction, foreign direct
investment, and strong commodity exports.
• The economy is projected to grow at 7.5 percent in
2013/14 and rising to 7.8 percent in the medium
term owing to continued increase in gas production,
increased trade and stronger performance in
agriculture.
Source: the world bank

52. Economic Reforms
• Economic Stability and Growth; continue…
• Once an ongoing assessment of the business
climate in Myanmar has been completed, it
will be possible for the government to develop
a comprehensive action plan for improving
the overall business environment, which will
become a cornerstone for the emergence of a
vibrant private sector.

53. Myanmar lose a bit of Oomph?
Why its long-term growth rate has slowed?
• International sanctions not fully removed yet.

54. Thank You