Question

In: Economics

how do you think this will impact upon Myanmar's economic growth trajectory going forward what are...

how do you think this will impact upon Myanmar's economic growth trajectory going forward what are the risks here?

refer   http://www.chegg.com/homework-help/decades-southeast-asian-nation-myanmar-formerly-known-burma-chapter-3-problem-6cdq-solution-9781259686696-exc

Solutions

Expert Solution

The return of democracy and the victory of Aung San suu kyi will enhance the economic reforms in the country that will create employment for the people, competency based presence in the international market and attract FDI for the infrastructure development. Further, the presence of democracy and fair election will bring back the investors and consumer’s confidence at the domestic level and from the FIIs also (foreign institutional investors). It will also be facilitated by the removal of economic sanctions from the major economic powers across the world. IMF and world Bank will also help the country in infrastructure development, trade liberalization and construction of different projects among the others that benefit different stakeholders in the economy. All these progressive developments will start putting the country achieve its economic targets.
Though, it attracts following risks also:
1.   Industries in nascent stage in the country may not get the protection they require to grow
2.   Vulnerability towards the exploitation by the big MNCs
3.   Lack of regulatory framework can create anarchy in the society
4.   Rule of majority, can ignore the best interest of the minorities in the economy.


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