An Inward Looking Economy In Transition

This account and analysis of economic development in Burma since 1962 sheds light on the economics of socialism in a very poor inward-looking economy especially after the mid-1970s. The study examines the evolution of development planning, recent macroeconomic developments, and the composition, pattern and direction of foreign trade, including the balance of payments and external debt. It also analyses the principal economic sectors, especially agriculture and industry, and gives a brief assessment of social developments and future prospects.

For many years Myanmar operated an inward-looking economic system built on import substitution. Ultimately this policy failed, leaving behind inefficient state economic enterprises and widespread poverty. Political unrest in 1988 led a newly installed military government to liberalize the economy, opening it to foreign investment and private participation in trade. This move towards a market economy was in line with world-wide trends, but political instability forced the country to follow a course different from neighboring countries. By analyzing economic policies and performance across the economic spectrum, this book presents an overall picture of economic development in Myanmar between 1988 and the early 2000s. The authors synthesize both macro and micro level data to overcome some of the limitations of unreliable national statistics, and show how the government attempted to deal with two key issues it faced. The first was how to reform the inefficient socialistic economic system in conformity with a market economy, and the second was how to develop the agricultural and underdeveloped economy to alleviate mass poverty.

First published in 1984, Michael Beenstock develops in The World Economy in Transition an original, stimulating and accessible analysis of the world economy in its many aspects, and this second edition includes a chapter on the International Banking Crisis in line with the author’s Transition Theory. The book embraces numerous strands of economic debate as the author provides a powerful and original thesis which focuses on the changing economic relationship between developed and developing nations as well as between manufacturing and primary producing sectors. The analysis also extends to international trade, commodity markets, international finance, energy and economic history. The book discusses, in addition to Transition Theory, other global approaches to the subject, including technology diffusion, long waves, commodity price effects and the oil price hikes, and the insights of Transition Theory are also applied to the historical experience of the British economy, concluding with an evaluation of policy implications.

There are a number of excellent studies by eminent Myanmar economists as well as scholars from abroad covering different post-war periods and/or various aspects of development in Myanmar. What this book does is to bring them altogether, as it were, under one roof by recasting bits and pieces of their work according to the author’s own understanding. In doing so, a holistic approach was adopted in order to have a well-rounded account of developments over the past fifty years or more. In addition, an attempt has also been made to present the major developments at different periods of time between 1948 and 2000 in a simple, but not over simplified, reader-friendly format so as to reach as wide an audience as possible. It is the author’s ardent wish that not only students and policy-makers, but Myanmar people in all walks of life will read the book, discuss it, and work together for a better future.

The process of globalization can be seen in the increase of: trade interdependence, the importance of global multinational corporations, mobility and volatility of capital flows (with dangers demonstrated by the recent Mexican crisis). This globalization creates both dangers and new opportunities, both winners and losers. The parallel growth of regional blocs is equally hazardous, particularly for countries left outside the regional blocs. The book, with contributions by eminent experts, describes the impact of both globalization and regionalization and the relationship between these two dominant trends.

An incomparable introduction to Burma's political and economic history written by one of the premier economic historians of Southeast Asia.

Much attention has focused on the ongoing role of economics in the prevention of armed conflict and the deterioration of relations. In The Political Economy of Transitions to Peace, Galia Press-Barnathan focuses on the importance of economics in initiating and sustaining peaceful relations after conflict. Press-Barnathan provides in-depth case studies of several key relationships in the post-World War II era: Israel and Egypt; Israel and Jordan; Japan, the Philippines, and Indonesia; Japan and South Korea; Germany and France; and Germany and Poland. She creates an analytical framework through which to view each of these cases based on three factors: the domestic balance between winners and losers from transition to peace; the economic disparity between former enemies; and the impact of third parties on stimulating new cooperative economic initiatives. Her approach provides both a regional and cross-regional comparative analysis of the degree of success in maintaining and advancing peace, of the challenges faced by many nations in negotiating peace after conflict, and of the unique role of economic factors in this highly political process. Press-Barnathan employs both liberal and realist theory to examine the motivations of these states and the societies they represent. She also weighs their power relations to see how these factor into economic interdependence and the peace process. She reveals the predominant role of the state and big business in the initial transition phase ("cold" peace), but also identifies an equally vital need for a subsequent broader societal coalition in the second, normalizing phase ("warm" peace). Both levels of engagement, Press-Barnathan argues, are essential to a durable peace. Finally, she points to the complex role that third parties can play in these transitions, and the limited long-term impact of direct economic side-payments to the parties.

Market liberalization in Myanmar began in 1988 and had some unanticipated consequences. As farmers began to operate in a context with greatly reduced government control, there was an explosion in the production of green gram, which became extremely popular as an export crop. However, market liberalization in the industry surrounding this new export-oriented crop gave rise to growing economic disparities, largely determined by access to land, capital and credit. Ikuko Okamoto explores these issues through a detailed case study of Thongwa Township, a place east of Yangon (Rangoon) in the major green gram producing region in the country. She shows that farmers responded quickly to policy changes and made maximum use of new opportunities, even in a country where socialist policies had previously limited such opportunities. She also traces the consequences for different social groups in rural Myanmar, and shows that traders benefited the most from the new arrangements, and landless laborers the least. Her research offers important insights into the transition from a socialist to a market-based economy, and local-level responses to market incentives. It also shows that the success or failure of new crops in a peasant economy largely depends on whether the crop is compatible with the initial resource endowment.