International Financial Institutions in Myanmar*s Democratic Reform

Report
INTERNATIONAL FINANCIAL INSTITUTIONS
IN MYANMAR’S DEMOCRATIC REFORM
Yin Myo Thu
Professor
Department of International Relations
University of Yangon
18 February 2014
CONTENTS
1. Introduction
2. New Myanmar Government’s National
Development Strategy, Policies & Duties
3. International Financial Institutions in Myanmar
Democratic Reform – IMF, World Bank & ADB
4. Paris Club
5. Japan Fund for Poverty Reduction (JFPR)
6. Conclusion
INTRODUCTION
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Domestic political development as reflection to
international environment
Domestic Political Development & International and
regional financial institutions
Technical assistance, debt relief & debt cancellation in
increasing reform momentum
Critical Questions
 New Myanmar Government & policy on national
development
 Major financial institutions on Myanmar reform
process
 Risky factors in financial assistance
NEW MYANMAR GOVERNMENT’S NATIONAL
DEVELOPMENT STRATEGY, POLICIES & DUTIES
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Myanmar in International arena – Myanmar Spring
Trial and error methods in internal financial
Organizations
Myanmar community and reform process - nation
building, state building & peace building
Two Wishes of People
 To live in peace
 To develop national economy
National Development Strategy
 Development for all works of life
 1st Reform – Financial Reform as priority together
with information technology & transportation
CONTINUED
NEW MYANMAR GOVERNMENT’S NATIONAL
DEVELOPMENT STRATEGY, POLICIES & DUTIES
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Three Major Duties on National Development
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Three National Development Policies
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Nation’s transition, building of new nation &
improvement of nation as a whole
Economically, socially & economically sustained
development policy
National Development & International Assistance
Capital investment & technology as underlying
factors for national development
Financial reform as priority area
CONTINUED
NEW MYANMAR GOVERNMENT’S NATIONAL
DEVELOPMENT STRATEGY, POLICIES & DUTIES
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President’s remark on importance of
international assistance in democratic transition
“Investment and assistance of one dollar in
Myanmar by the international community …for
the flourishing of democracy and the interest of
Myanmar people. So the international community
is urged to extend a helping hand to Myanmar …
so that our country with democracy still in its
infancy will not collapse”.
IMF, WORLD BANK & ADB IN MYANMAR
DEMOCRATIC REFORM
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Domestic political development as signal to resilient
country
Governance of IMF
IMF Regime in HIPCs
Voting Share of IMF or Bank as legacy of succession in
the Fund & the Bank
Before 2010 Myanmar – IMF Relations
US & EU sanction
Two Major reasons of the Bank & IMF in delaying
development efforts
Deteriorated Relations between Myanmar and the fund
CONTINUED..
IMF, WORLD BANK & ADB IN MYANMAR
DEMOCRATIC REFORM
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2004 IMF Review & Two IMF Investigation Missions
2010 Multiparty General Election as significant
Turning point in history
Abolition of multiple exchange rates
Private banks in foreign exchange transitions
CBM Law & Japan’s Daiwa Securities Group in
IMF in Myanmar Socio-economic Reform
Foundation for continued macroeconomic stability
IMF Mission Reports and Joint Assessments
CONTINUED..
IMF, WORLD BANK & ADB IN MYANMAR
DEMOCRATIC REFORM
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Importance of financial organizations in financial
market & poverty alleviation (1-3-2012)
“While encouraging the promotion of the private sector
in economy,.. Changes and reforms are also taking place
in collaboration with international organizations for the
flourishing of capital market and financial market as
well as for the emergence of conglomerates.”
IMF Remarks on Myanmar Socio-economic
Development
Out of reach to meet requirement
Myanmar as Asia next dynamic economic force
CONTINUED..
IMF, WORLD BANK & ADB IN MYANMAR
DEMOCRATIC REFORM
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Financial liberalization achievement within 30 moths
Financial & monetary stability as national
development plans
National Reform Leading Committee & 11 Work
Committees
Government’s seven tasks for socio-economic
development
Legislative Branch on Financial Liberalization
CBM Law & Micro Finance Mechanism by
Government’s ministries, NGOs & INGOs
Micro Finance Activities (4 major ministries in Micro
Finance
CONTINUED..
IMF, WORLD BANK & ADB IN MYANMAR
DEMOCRATIC REFORM
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World Bank Governance
IBRD in comprehensive risk management framework
IDA Credit of the World Bank
IDA in world’s poorest countries
2013 Telecommunication Law & international
telecommunication companies (Ooreedoo & Telenor)
World Bank Projects in Myanmar –
 Integrated Approach to the Development of ICT
Sector
 MDRI for MDGs
World Bank in eGovernment
US $ 31.5 million credit in support of MPT & ICT sector
TABLE 2 TOTAL AMOUNT OF THE WORLD BANK LOANS,
CREDIT AND GRANT TO MYANMAR
Status
Original Principal
IBRC
IDA Credit
IDA Grant
Total
33,350,000.00
1,383,950,000.00
80,000,000.00
1,497,300,000
226,056.18
114,969,707.40
0.00
115,195,763.58
33,123,943.82
1,172,417,933.66
2,822,668.99
1,208,364,546.47
0.00
142,066,920.00
77,855,820.92
219,922,740.
Repaid
30,378,965.74
415,013,556.62
0.00
445,392,522.36
Repaid by Third Party
2,744,978.08
0.00
0.00
2,744,978.08
0.00
850,829,367.55
0.00
850,829,367.55
Exchange Adjustment
0
0
0
0
Borrower Obligation
0
850,829,367.55
0
850,829,367.55
Cancellation
Disbursed
Undisbursed
Due
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World Bank in Water Supply Management
Water supply as priority for national economic
development
The Netherlands as a development cooperation
partnership for water supply
ADB Governance
ADB Experts in studying prediction on countyby-country basis
ADB Seminars, Workshops and Conferences in
Myanmar for sustainable environmental
conservation
ADB in Myanmar Country Safeguard System
(CSS)
CONTINUED..
IMF, WORLD BANK & ADB IN MYANMAR
DEMOCRATIC REFORM
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The Paris Club
Official major forum – to renegotiate official sector
debts
Paris Club Treatment – Reduction or Renegotiation
of a developing countries
Nature and Characteristic of Paris Club
International credibility in national development
project
Debt Cancellation and Restructuring – Debt SWAP
Agreement
US as key member of Paris Club (HIV/AIDS) under
USAID
JAPAN’S FUND FOR POVERTY REDUCTION (JFPR)
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Tokyo’s Policy in SEA
Government of Japan’s Debt Relief Measure on
Myanmar (26-5-2013)
National Planning as cooperating agency
ODA and Japan in developing countries –
Japan’s Yen Loan, Debt Relief, short term and
long term loan
JAPAN’S FUND FOR POVERTY REDUCTION (JFPR)
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Japan’s ODA in 2011-2013 FY - US $ 727,387
Yen Loan – 63.2 Billion approved by Hluttaw
SN
GGP Project
Project Location
GGP Amount (US$)
1
Construction of BEHS
Kyindwe Village, Kanpetlet Township, Chin State
153,379
2
Construction of BEHS
Letpaden Township, Ayeyarwady Region
112,346
3
Construction of Agricultural
Produce Transport Road
NoeKoeYwar Ma &NoeKoe San Pya Villages,
Loikaw Township, Kayah State
120,907
4
Extension of Township Hospital
Pekhon Township, Kayah State
218,912
5
Construction of Bridge
Pye Si Kyun Village, Nyaungdon Township,
Ayeyarwady Region
121,840
Total GGP (2013-2014)
727,387
INTERNATIONAL TECHNICAL ASSISTANCE TO
MYANMAR (FY 2012-2013)
Country/ Organizations
Type of Technical Assistance (including ODA &
Debt Cancellation)
Total Amount (In Donor Currency)
Japan (JICA, SEAMEO-SERCA), Swiss AID,
IFAD, SIDA
Debt Relief
Human Resource
Water Supply
ODA (Poverty alleviation, Electricity Supply,
SEZ)
JP ¥ 188.6 billion
JP ¥ 456 million
JP ¥ 1900 million
JP ¥ 51.5 billion
US AID (IRI, The Carter Center)
Sustainable Democracy Development
Electoral Process
Tilapia Fish Export to International Market
EU
Anti-Land Mine, IDP Relocation & PHC and
Primary Education
ADB (Japan Fund for Poverty Reduction)
High Way Construction (Yangon RegionKayin State on East-West Corridor &Maubin Pyapon Highway cum oversea underwater
cable)
World Bank
Capital Investment to SMEs (4 ministries Education, Fisheries, Livestock Breeding &
Agriculture )
Debt Cancellation on 25 January 2013
(Of US$ 892 million)
US $ 60.4 million
US $ 430million
France
Debt Cancellation
US $ 550 million
FRG
Banking Service Training for Private Banks
US $ 150
Euro 100 million
US $ 1.5 million
US $ 45 million
CONCLUSION
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Myanmar democratic transition – right track with right
direction
Strong support of international assistance as momentum of
transition
Importance of Sovereign Wealth – own capacity, institutional
logics & public confidence
Grant, loan and debt cancellation as breathing space
conduction
Economic experts & scholar view on Myanmar – Myanmar as
dynamic economic factor
Government responsibility in financial liberalization – tools to
control credit flows, decision in quick relinquish from
independent monetary policy
Awareness on Ponzi Financial Market
Negative impact of liberalization
International credibility in peddling democratic reform
momentum
Remarks at the 22nd WEF

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