The Economy of Myanmar (Burma)

Myanmar is one the poorest countries in the world. In 2005, its GDP per capita is roughly $97 the lowest in the world. In the 1960s, it is the richest nation in the ASEAN region under the British rule. It was once the biggest exporter of rice. Economists and other different organizations identify the main cause of the country’s very slow economic growth to severe government control and ineffective economic policies. The banking crisis that hit the country in 2003 resulted to the closing of 20 major banks causing economic downfall. Myanmar has no sufficient infrastructure and educated manpower to sustain foreign investments and growth. With the exceptions of main cities, most roads are unpaved and require major reconstruction. Inflation, energy resources, foreign investing also requires immediate development.

Rice remains as major agricultural product consuming around 60% of the country’s total cultivated area. With the help of the International Rice Research Institute (IRRI) Myanmar has produced about 52 new rice varieties from 1966 to 1997 resulting to increased in rice production. Some of the finest rubies in the world are found in Myanmar due to its high degree of saturation and hue. Its “Valley of Rubies”, the Mogok region is known for its exceptional pigeon’s blood rubies and blue sapphires. The country produces almost 90% of the world’s rubies; Thailand buys majority of the produced gems in Myanmar including jade, pearls, and sapphires. Major trading partners of the country include Thailand, China, Singapore, India, Japan, Malaysia, and South Korea.