CNI News
15 Jan 2023
Although Myanmar has raw materials and land, the country cannot produce finished goods because of the lack of precise and sound policies, according to businessmen.
Production of finished goods from raw materials requires sound and stable economic policies that can attract foreign investment, Entrepreneur U Aung Pyae Sone told the CNI.
He said, "Our country has not been able to produce finished goods from raw materials not because of the lack of technicians, investment and machines but because of the lack of sound economic policies. If we had sound policies, technicians and investment from around the world can come to us. When they come, they will bring machines. All these three are interconnected. We have always pointed out the lack of sound policies. When a government took office,it adopted policies and rules. Laws are already in place. When a new government took office, it abolished policies and rules adopted by the previous government and replaced them with new ones. No technicians and investment will come to Myanmar. So, if we have sound economic policies for 30 or 50 years that will be implemented by any governments that take office, we will be able to produce finished goods.
Due to government policy changes, the flow of foreign investment to most auto companies and the manufacturing sector has come to a halt, he added.
A tissue factory. (GETTY IMAGES)
In order to produce finished goods, it is necessary to allow scholars to work on their own initiatives and to form organizations to nurture scholars who can give advice on government policies by offering international scholarships, Myanmar economic observers pointed out.
Although there are many scholars in Myanmar, they are not allowed to work on their own initiatives and it is difficult to produce finished goods, an economist told the CNI.
He said, "During the term of former president U Thein Sein, the government established the Myanmar Development Institute (MDI) and offered international master's degree courses for researchers. The institute gave advice on government policies. Now, the institute has almost been ruined. There are bodies which give advice on government economic policies like the Korea Development Institute in Korea and Trade & Economic in Japan. They carry out in-depth research. We need to establish such institutions. No government ministries can prevent them from criticizing government policies and they have a say over government policies. In Myanmar, scholars cannot give advice on government policies because they might be sacked. We need to establish an institute like the MDI with scholars."
An auto factory. (GETTY IMAGES)
Some local businessmen try to produce finished goods but their attempts have been delayed by the lack of market, technical assistance and authority, according to entrepreneurs.
Although Myanmar is an agricultural country, it has to export agricultural products as raw materials as it has not been able to produce finished goods. If the country could produce finished goods, the market for Myanmar products would be expanded and it would be beneficial for farmers.
Economists said that electricity supply plays an important role in production of finished goods.
