Three Choices for Myanmar

At the end of her visit to Myanmar, Secretary of State Hillary Clinton indicated that IMF and the World Bank will send consultation missions to Myanmar soon for the purpose of supporting its efforts for economic reform and the promotion of economic growth. The two intergovernmental financial institutions are likely to prescribe a standard set of principles for Myanmar, viz., setting the prices right with good governance, openness and liberalization.

If these were recommended, but not being imposed as the conditinality to receiving financial assistance from the international community, Myanmar will at least has three choices to make. Namely, A: open up, B: liberalization, C: protection and regulation.

In this situation, if Myanmar chooses A, she will have limitation in dictating its own policies. If Myanmar chooses B, she will encounter fierce competition from external market forces. If Myanmar chooses C, she will defeat her intentions for economic reform and the promotion of economic growth. Therefore, the best approach for Myanmar is to adopt a combination of A, B and C. But, the key to this approach is Myanmar's human resources capacity.