Myanmar's constitutional and economic reform Process

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Information about Myanmar's constitutional and economic reform Process
News & Politics

Published on October 21, 2014

Author: khaingsapesaw



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

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