Country Report Myanmar January 2011

Outlook for 2011-12: Policy trends

Although it is possible that technocrats may be appointed to important positions in a new cabinet, there is unlikely to be any immediate improvement in the quality of economic policymaking in the post-election period. In terms of fiscal policy, the government is likely to continue to focus on spending heavily on the military, and it will do little in the way of implementing policies to support households and businesses. The military regime's already extensive business links are set to grow further, and corruption will remain pervasive, with little transparency in the issuance of business licences and permits. The regime's recent emphasis on privatisation appears to be intended to provide members of the junta and their business associates with the opportunity to gain control of formerly state-owned assets, rather than to introduce genuine competition.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
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