Question

This discussion explores the political and economic reforms in Myanmar that are changing the nation’s future. For decades, Myanmar languished under a brutal military dictatorship. With its economy at a virtual standstill thanks to corruption and poor management, Myanmar, despite its wealth of natural resources, became one of the poorest countries in the world at a time when its neighbors were experiencing rapid economic growth. Sanctions by the United States and the European Union imposed in response to the corrupt behavior of government leaders exacerbated the country’s plight. Since 2010, however, under the leadership of new president Thein Sein, the situation is improving. Political and economic reforms have allowed for the freer elections, the release of political prisoners, privatization of state-run enterprises, and the encouragement of foreign investment. While it will be some time before Myanmar can catch up with its neighbors, there is reason for optimism. Discussion of the case can revolve around the following questions. Discuss the following questions with your classmates. Before you begin, make sure to read the full closing case text from Chapter 3. QUESTION 1: Reflect on how military dictatorships like the one in Myanmar hamper economic development. Discuss the consequences of this type of political system. QUESTION 2:Since 2010, Myanmar’s new president has implemented a series of political and economic reforms. How will these reforms change the nation? What do they mean for the country’s citizens?

Answer 1

Hi

I do not have access to the full material, so will answer with certain keywords which you can use in your answer:

(a) Dictatorships often end up curbing free enterprise and initiative, as it becomes very difficult to freely participate in any economic activity, as a producer or the consumer. Further, military dictatorships cause inefficiency in the system as the power is wielded by certain individuals and institutions such as Judiciary, bureaucracy are not strong enough and often have rampant corruption and rent-seeking behaviour. Further, the state run monopolies or private firms (if present are prone to crony capitalism) are inefficient in production of key resources. Also, taxation structure is often regressive and the middle class is heavily taxed.

(b) Political and Economic reforms allow citizens the choice and increase competition, both in economic and political spheres. For the nation, these changes often result in some form of a democratic government structure, prone to populist policies and a liberalised and open economy, linked to the world economy through trade and having more private enterprises, i.e. Privatisation and Globalisation

Hope this helps.