Myanmar : Power Transmission and distribution losses
The government’s ambitious reform agenda is commensurate with
the catching up necessary to align policies with current international
practice after long period of isolation. These reforms are outlin...
the Framework for Economic and Social Reform, which sets out policy
priorities until 2016 and guiding principles for longer-term development
plans. The goal is higher, inclusive, and sustainable growth and reduced
poverty, as 26% of the country’s 60 million people live in poverty.
The framework identifies 10 priorities: (i) fiscal and tax reform,
(ii) monetary and finance sector reform, (iii) trade and investment
liberalization, (iv) private sector development, (v) improvements in
health and education, (vi) food security and agricultural growth,
(vii) governance and transparency, (viii) mobile telephony and internet,
(ix) infrastructure investment, and (x) efficient and effective government.
While many of the reforms will take considerable time, several areas
could yield results over the next 2–3 years. One is the underdeveloped
finance system, in which credit to the private sector amounts to only 8%
of GDP. Allowing greater participation by private banks and with prudent
regulation, easing both controls on interest rates and restrictions on
lending would boost private sector access to credit.
Implementing important new laws on land ownership, labor, and
foreign investment, as well as measures to simplify business registration,
will improve the business environment. Relatively quick improvements
to infrastructure would include rehabilitating roads, upgrading power
systems to reduce transmission and distribution losses (Figure 3.27.8),
and developing a sound regulatory framework for independent power
producers and public–private partnerships.
Tourism has substantial potential to spur employment and inclusive
growth, especially with simpler visa requirements. In agriculture, which
contributes 36% of GDP and the majority of employment, near-term
measures to improve access to finance and inputs, implement small
irrigation projects, and expand agricultural extension would shore up
inclusive growth and food security.
Source: Ministry of Electric Power.