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A Study on the Cooperation Strategy in Establishing the CPS with Myanmar economic development, economic cooperation

Author KANG In Soo, JANG Jun Young, and Daw Cho Cho Thein Series 15-04 Language Korean Date 2015.12.30

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In 2015 Korean government selected Myanmar as a new Priority ODA Partner Country. As western countries has eased the economic sanctions, Myanmar has opened its economy and made important reforms, including FX system. In addition to its strategic geopolitical location, Myanmar has abundant resources and young population which are important factors for future development.
Since Myanmar is newly selected, it is necessary to prepare Country Partnership Strategy(CPS). This study aims to provide the background information about Myanmar. As Myanmar is politically in the transition period, it is very important to understand the governance structure of Myanmar, including ODA implementing system. It is expected that National League for Democracy(NLD) will take over the political power next year. Economic liberalization is likely to be pursued more rapidly under NLD regime. Economic cooperation and investment from the western countries will increase, which will bring both more competition and more chance. Despite the political changes, the direction of economic policies is likely to be maintained.
This research has reviewed the Myanmar’s national economic development plans and economic indicators in order to figure out the ‘needs’ of Myanmar. Since the official documents occasionally do not reflect the true needs of Myanmar, the authors interviewed many local professionals, including Myanmar’s related ministries, donor agencies and local implementing institution. Basically, Myanmar’s Country Partnership Strategy should adhere to the rules and the framework that differentiates Korea’s ODA. The comparative advantage of Korea needs to be reflected. Also, the international norms, such as ownership, alignment, harmonization, mutual accountability, and managing for results should be considered. CPS should be compact and follow the guideline of International Development Cooperation Committee of Korea which emphasizes the priority areas of each CPS.
Korea needs to take the role as a ladder builder in ODA. Myanmar also wants to benchmark Korea’s economic development. However, successful experiences of Korea’s economic development should not be interpreted in a narrow sense. It does not mean just economic growth, rather it contains institutional capacity, education, and social cohesion.
The authors recommend the following as the priority areas: ①development of agriculture and rural sector, ②technical vocational education training (TVET), ③economic infrastructure, such as electricity, transportation, telecommunication, ④ capacity building of public sector. Even though the political leading party changes, the direction of Myanmar’s ODA policy is not likely to change. Union, inclusiveness, and industrialization would remain as key factors of Myanmar’s ODA. In that sense the above priority ares of Korea are still valid.  

 

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