Myanmar new GovernmentBurma's new government
It gave the Federal Reserve more autonomy and granted cell phone licenses to international telecommunications operators.
But since Aung San Suu Kyi's National League for Democracy (NLD) won the 2015 election, the pace of change has been as unimpressive as the financial markets. Official crackdowns blocked most of the building work in Yangon in the first year of the administration. Nearly two years later, on 26 February, the federal administration published a paper concretizing these concepts with no less than 238 actions to stimulate the local economies, from the improvement of the judicial system to the reform of state companies.
At one of the smallest taxes in the wolrd of only 6.4% of GNP, the state can hardly allow itself to provide them. Myanmar is at the bottom of the ranking of the WB, just above Liberia but below Sudan. In order to reduce the budget deficits, the federal budget relies less on the Federal Reserve to fund the deficits and more on debt.
For its part, the Federal Reserve, fearing that its balances are already overloaded, has led privately-owned institutions to writedown non-performing credit. Supporter of the regime argues that 50 years of segregation and 20 years of penalties are difficult to undo and that the former regime has already adopted all simple reform.
However, as Mrs Suu Kyi herself says, the State Adviser has made ending the many ethnical uprisings in Myanmar a topprioritisation. Politicians deplore that while the former regime would consult with techno-crats, the NLD avoids outcasts. After trying for five years to help Americans make investments in Myanmar, he closed his lawyer's offices early last week.