CNI News
6 August 2024
Because of Myanmar's political instability, although the economic system changed, it would not improve the economy, economic analysts and academics told CNI News.
Economic sector decline was not because of an economic system, but because of unstable politics. So, even though the economic system changed in order to improve the economy, it would not work, an economic analyst told CNI News.
" That Myanmar is facing economic problems now is not an economic issue. It's a political issue. The political problem adversely affects the economy. Any economic policy won't be successful while the political problem can't be solved. You want to do business, but you can't. Paddy can't be grown in upcountry. In the same way, you want to conduct border trade, but you can't go to any border area because of insecurity. So, no matter what policy is laid down, it won't work. Moreover, there are also international sanctions." he said.
While seeing an old woman buying some edible oil
According to the current situation of Myanmar, the cooperative system was the most appropriate in carrying out to improve the economy, said Sr-Gen Min Aung Hlaing, chairman of the State Administration Council (SAC) at the meeting of the Union Government held on 29th July, 2024.
Successive governments implemented various economic policies; according to the current situation of the country, the cooperative system was the most appropriate in carrying out to improve the economic sector, said chairman of the SAC.
If the cooperative system which was not successful in Myanmar was reactivated, not only would it not be successful, the black market would prevail the whole country, said business people.
Moreover, the cooperative was not an economic system, only a sector; it was necessary to know clearly the economic system was only the market economy, U Htay Aung Kyi, a banking expert, told CNI News.
While seeing a garment factory
" Mainly, the system is different from the sector. Cooperative is just a sector, not a system. System is the economic system. The economic system contains private sector, cooperative sector and state-owned sector. But one thing to say, there is capitalism that is led by the government. State capitalism is being used in Singapore." he said.
The cooperative sector produced only one percent of the GDP of Myanmar and the private sector, until 70 percent while the government sector produced nearly 30 percent.
There is no country whose cooperative system leads the country's economy; although there are some countries which are successful by the cooperative sector, the sector could produce a few percent of the GDP.
Although communist countries implemented their countries' economies by the cooperative system, because they did not succeed, they were using the market economy, pointed out economic analysts.
