CNI News
3 August 2024
If the cooperative system which was not successful in Myanmar was reactivated, not only would it be unsuccessful, black market might also cover the entire country, an economic analyst told CNI News.
According to the current situation of Myanmar, the cooperative system was the most appropriate in carrying out to make the Myanmar's economy develop, said Sr-Gen Min Aung Hlaing, chairman of the State Administration Council at the meeting of the Union Government held on 29th July, 2024.
"Myanmar's economic sector is now quite damaged. The SAC might implement the cooperative system without doing thorough research into the effects of the system. The prices of rice, for example, have been designated. But now there has been a shortage of rice supply. I ordered to send some rice to me. But they told me that they had run out of rice because of difficult transportation and so on. In fact, they have a lot of rice. But they don't want to sell it. Even in the current situation, the black market has already grown quite a bit. If the cooperative system is implemented, the black market will cover the whole country." said an economic analyst.
Successive governments implemented various economic systems and according to the current situation of the country, in carrying out to improve the economic sector, the cooperative system was the most appropriate, said chairman of the SAC.
While seeing a cooperative shop
The cooperative system is being used only in the SMEs in other countries and if Myanmar did so, it might be convenient, said economic analysts.
There is no country which uses the cooperative system to lead the economy of the whole country; although communist countries - China and Vietnam implemented the cooperative system, because they didn't succeed, they are using the market economy, an economic analyst told CNI News.
" Politics may be socialist or communist. But the economy is just the market economy. The cooperative is the business in which people with the same desire work together. The people all over the country - they can't have the same desire among them in any way. There two kinds of cooperatives and one is producers cooperative association and the other, the consumer cooperative association. The producers cooperative association is being used in other countries as well. But the consumers cooperative association, depending on the profits it won, give households how much rice or edible oil with quotas. What the association give you might not match with what you need. What it give you the quality might not match with what you want. The system was not successful at all. So, it was broken. I wonder why they want to reactivate the unsuccessful system in the past." he said.
The cooperative enterprise was able to produce only one percent of the Myanmar's GDP and private sector produced 70 percent of the GDP.
