Myanmar Economy informationAbout Myanmar Economy
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high> ECONOMIC IN MYANMAR
Burma is one of the worlds impoverished states. Whilst some neighboring Asia have experienced unprecedented expansion in recent years and have become "economic tigers," Myanmar has become an economical wicker box with an estimate of per capita incomes between $600 and $800, about an eightth of that of Thailand.
Myanmar's economy continues to be largely agrarian. Myanmar is a resource-rich nation but still suffering from omnipresent governance, ineffective macroeconomic policy, bribery and peasant inequality. Myanmar is the impoverished estates of Southeast Asia; about 32 per cent of the people live in the poor. Myanmar has been rated by the UN as one of the twenty least prosperous nations in the hemisphere, with an expected per-head per annum per annum of five hundred USdollar.
Myanmar is once the wealthiest nation in Southeast Asia, with the exception of all areas of the economy, including e.g. oil and methamphetamines, illicit timber felling and methane extraction. Macroeconomic issues are linked to the mismanagement of the army and have been compounded by penalties from the West to enforce them. Over the last few years, the economy has been opened up by the Chinese authorities.
Per-hectare ('GDP'): $1,400 (2012 est.), international comparison: 205; $1,300 (2011 est.), $1,300 (2010 est.). Myanmar's per capital gross domestic product and per capital per capital are estimated very differently, with some springs saying that per capital per capital per capital is as low as $300. Scarce cash: $9,965 billion (December 31, 2012 est.), international comparison: 77; $8,652 billion (December 31, 2011 est.).
National loan portfolio: $15. 66 billion (December 31, 2011 est.), global comparison: 89; $11. 83 billion (December 31, 2010 est.). Economic experts have said that Myanmar needs to take measures to make sure the price and currency stability and to encourage non-agricultural employment and industrial export, as Thailand has done.
Municipal legislation prevents non-resident bankers from carrying out operations in the state, which must be changed in 2015 under an arrangement with the 10-member Association of Southeast Asian Nations. By November 2010, 13 international creditors had established representations in Myanmar, 10 of them from ASEAN member states.
Myanmar's denomination is Myanmar's Khat (pronounced chat), which is subdivided into 100 pya. Exchangerate: Kyoto (MMK) per US dollar: 867. CHEMPARK 6 (2012 est.); 815 (2011 est.); 5. 58 (2010 est.); 1.055 (2009); 1.205 (2008). There are 12 notes in Myanmar: 50-pyat, 1k yat, 5k yat, 10k yat, 20k yat, 50k yat, 100k yat, 200k yat, 500k yat, 1,000k yat and 5,000k yat and 10,000kyat.
Mankind in the far north of Myanmar still uses the use of saline as a means of payment. In the past, the value of the notes was so low that large quantities of notes were weighted rather than numbered. Estate agents in a small Yangon estate house are sorting bundled notes and coins that are part of an old "hawala" exchange system widely used in Asia and the Middle East, and one of the only ways to get Myanmar to make them.
Myanmar began in April 2012 with the introduction of a manageable currency system in which the currency was converted from a 8.5-k yat to a manageable variable currency pair. In June 2012, the price was 830k yat per US dollar, compared to 818kyat per US dollar on first-time application.
Myanmar's currency parity with the US Dollars has historically been around six Kayat per US Dollars since 1975, while the markets have ranged from 780 to 1,000 Kayat per Dollars in recent years, and in 2011 it was mostly around 800 Kayat per Dollars.
The then Myanmar dictatorship, Ne Win, in 1987 launched the 45-Kyat and 90-Kyat notes for the plain but confusing fact that they were separable by nine and added to his number. Favoured by the army regimes, the Chinese (mythical lion) was placed on Myanmar's notes and coinage after 1988.
Prodemonstrator waved the notes at demonstrations. Myanmar's has been dismantled (declared useless) several occasions, leading in most cases to useless cost reductions over night without being compensated. This was due to the strikes against traffickers in the illegal trade, who held back large quantities of foreign exchange outside the bank system.
Until today, Myanmar's population has little confidence in the money or banking system and decides to keep their money in the form of money, jewellery or property. Between 2001 and 2012, the formal rates of return fluctuated between 5, 75 and 6. 70-kyat per US-Dollars ('8. 20 to 7. 00 kyat per Euro).
The road price (black mark rate), however, which took the reputation of the economy into closer consideration, fluctuated between 750 kyat and 1335 kyat per US Dollars (985 to 1475 kyat per Euro). The currency parity on the subprime mortgage markets (US dollars to Kyat) is falling during the high seasons in Burma (December to January).
The Myanmar Central Bank in April 2012 pronounced that the value of the Myanmar yuan would fluctuate against the US dollars and set an opening exchange price of T 818 per US dollars. From 2012, Myanmar owe about $11 billion in international debts, while its FX reserve was just over $7 billion.
$5,448 billion (December 31, 2012 est.), global comparison: 109; $5,804 billion (December 31, 2011 est.). Myanmar President Thein Sein paid a visit to Japan in April 2012. A key objective was to get Japan to cancel debts and finance infrastructural works such as streets and footbridges in Myanmar.
Meanwhile, Japan agrees to grant $3.5 billion in debts and interest (about 60 per cent of what Myanmar owed) and restart financing for aid. Meanwhile, Japan has pushed other Naions to cancel Myanmar's debts and has given Myanmar low-interest credit. Myanmar will receive a bridging credit from the Japanese International Cooperation Corporation, the country's developing finance institution, to meet its debts with the World and Asian Developing Banks of approximately $900 million.
In 1987 Myanmar had suspended payment of its old loan, so it was no longer eligible for new credit for developing countries. As a result of the credits, more FDI would be made, already attracting more FDI from the relatively cheap economy of the state. It also paves the way for Japan to move ahead with the construction of a SEZ near the capitol, currently being prepared by a syndicate of Japan's traders Mitsubishi, Marubeni and Sumitomo.
The Asian Development Bank, for its part, announces that it will provide Myanmar with a USD 512 million credit under a similar agreement with the Japanese Bank for International Cooperation. Before 1988, Japan was Myanmar's biggest believer with US$ 6.39 billion. In Myanmar, Tota holds a 31 percent interest in Yadana, a large Myanmar development that will transport natural gaz from Andaman Sea sites to Thailand's energy hub.
It is operated by the Myanmar Petroleum and Natural gas Enterprises, Thailand's leading petroleum prospecting company PTTEP, and the US company Unocal, which was acquired by Chevron. Nippon Oils spokesperson said: "We see the policy mix and the power industry as two issues. "A Daewoo spokesperson, who recently found records in Myanmar, refused to respond to the attack, but said:
"against Myanmar, we would have counter-plans. "In addition to exploring for methane, the world' s leading suppliers of wood, forestry materials, myanmar gemstones, myanmar textile, jades and more. You only want short-term commercial interests. Aung Thu Nyein, a Thai-based Myanmar psychiatrist, said: "They don't take any notice of the life of the Burmese population.
Neighbouring Thailand is the largest consumer of Myanmar's export goods, and Thailand's companies have also made significant investments in the military-led country's agricultural and tourist sector. India, another major neighbour, is also playing out its financial strength. TCIL, an India-based telecommunications operator, and Zydus Cadila, a pharmaceuticals group, are among the companies active in Myanmar.
Russia, which has described the suppression as an "internal matter", also heralded the construction of a research centre in Myanmar in May. In 1988, the US introduced and tightened Myanmar's trading penalties in 1996 and in 2003 banished all Myanmar exports, along with a ban on new investments and the refusal of top Burmese officials' visa, as the US switched from large-scale to more selective penalties.
Penalties were tightened after the September 2007 saffron revolution killing tens of people, including stricter control over Myanmar's export and the freeze on other members of the junta's asset base. Every year the penalties came spending up for a poll before Congress and was led almost unanimously by the Republicans and Democrats in both homes.
United States bans Myanmar import, limited cash transfer, freezing property and selective jewellery with gems from the state. Mr President, the European Union has prohibited the sale of arms and the import of minerals. There were many who argue that the US penalties against Myanmar had done little. This move had little effect as the number of transactions in Myanmar by Asiatic firms in non-sanctioning jurisdictions was much higher than in the United States and US firms already operating in Myanmar at the date the penalties were applied.
South-east Asian states and Japan declined to join the US efforts to co-ordinate global penalties against Myanmar. There is also a boom in illicit business between Myanmar and China. Myanmar: Nearest Boundary of the Economy in Asia? "Myanmar is considering the construction of highways and a deep-water harbor that can carry large ships for the Dawei Industry Park, which covers more than 200 km2 in the south of Myanmar near the Thai frontier.
In the event of implementation, the industrial area is to act as a distributor platform in Southeast Asia. It also referred to the Thilawa SEZ, which is being codeveloped by Japan and Myanmar on the periphery of the country's largest town, Yangon, and is due to open in 2015. "He said, "I expect the introduction of[Japanese] technologies to increase the population' s ability to live in Myanmar.
Opinion leaders say Japan must be cautious in deciding whether to assist the Dawei SEZ, a simple approach at this time. It wants to be exporting goods from the SAR to densely populated countries such as Thailand and Indonesia. On the other hand, Japan's investments would "create employment and move technology to Myanmar," Win Shein said.
However, behind the Myanmar government's move are violent clashes with some of its minority groups, a destabilising element in their internal politics. Allegedly, the goverment wants to reduce the discontent of the minority groups by stimulating the economy and generating employment through such major ventures. However, the roadmap is only conceptional at this point, as the state has not yet secured the necessary resources - somewhere around $10 billion.
We will have to wait and see whether the feasibility of the proposed transaction is commercially sound. It warned businesses against setting up jointventures with Myanmar Crude Petroleum & Gas Company, the country's single operator in the world. However, in the case of public and commercial reform, privately held businesses are often still co-owned or held by the state.
Transparency International, a monitoring agency for the monitoring of bribery, has named Burma the most corruption-causing nation in the word, linked to Somalia, in its 2007 BAP. The New York Times, Washington Post, Los Angeles Times, Times of London, Lonely Planet Guides, The Irrawaddy, Myanmar Travel Information Compton's Encyclopedia, The Guardian, National Geographic, Myanmar Travel Information, The New Yorker, Time, Newsweek, Reuters, AP, AFP, Wall Street Journal, The Atlantic Monthly, The Economist, Global Viewpoint (Christian Science Monitor), Foreign Policy, Burmallibrary, United States.