In 2015, the World Bank Group (WBG) completed its first full country strategy, Country Partnership Framework (CPF), for Myanmar since 1984. This CPF comes at a time of great opportunity for Myanmar. Over the three-year period covered in the CPF, the reforms begun in 2011 have the potential to bear fruit in bringing Myanmar into a new era of peace and prosperity and stronger participation internally and on the international stage.
The CPF outlines how the global knowledge, financing, and convening services of the World Bank Group can support Myanmar and its people in transforming their country, reducing extreme poverty and boosting shared prosperity.
The CPF outlines how the global knowledge, financing, and convening services of the World Bank Group can support Myanmar and its people in transforming their country, reducing extreme poverty and boosting shared prosperity.
The CPF draws on the findings of the Systematic Country Diagnostic carried out by the World Bank Group in 2014, lessons learned from implementation since the WBG re-engagement in 2012, and extensive consultations with a wide range of stakeholders conducted in 2014.
The CPF focuses on three areas:
Reducing rural poverty. At least 70 percent of Myanmar’s poor live in rural areas, reducing poverty and boosting shared prosperity will entail increasing access to essential services, economic opportunities and markets. The WBG expects to provide support to help increase agricultural incomes and productivity, rural electrification, community-driven investments in local infrastructure and services, improve Ayeyarwaddy River navigation and flood control, and reduce vulnerability to shocks.
Investing in people and effective institutions for people. Successful empowerment and inclusion will depend on citizens who are able to make a better future for themselves and on transparent institutions that allow people to do so. The WBG expects to provide targeted support to help Myanmar approach universal access to and improve the quality of essential social services, especially health and education and, over time, skills development to empower people to participate in a growing economy. The WBG also expects to provide support for state institutions to deliver services effectively, including at the local level. This support is expected to contribute to improved governance in selected sectors as well as more broadly for the citizens of Myanmar.
Supporting a dynamic private sector to create jobs. Reducing poverty and boosting shared prosperity will entail diversification beyond extractive-based industries to inclusive growth that creates jobs. Increased openness and integration will result in higher growth as labor reallocates to more productive sectors and trade drives innovation and productivity. The WBG will seek to foster inclusive growth and a vibrant private sector that will create jobs through investments and support for markets, trade and modern financial institutions.
The CPF covers a period of three years, coinciding with the IDA 17 period. It will include a performance and learning review, planned for late FY16, to allow for mid-course adjustments based on changes in country context, a review of lessons learned, and the availability of new data.
The WBG is contributing to informed debate and decision-making on development policy within a rapidly changing Myanmar by periodically bringing most recent economic data and analysis on development issues to government policy makers, think tanks, civil society and citizens. The WBG is also undertaking analytical and diagnostic works on agricultural and energy sector, poverty assessment and trade.
Since 2013, the WBG has released a number of reports, including its first Myanmar Economic Monitor which looks at macroeconomic developments and reforms implementation, the Public Expenditure and Financial Accountability Assessment which provides a snapshot of the condition of Myanmar's public expenditure, procurement and financial accountability systems, and the Investment Climate Assessment which reviews the main bottlenecks to private investment and job creation in Myanmar.
IFC, the WBG’s member exclusively focused on private sector development, invests in companies and advises government on business reforms to support the private sector and to create jobs. IFC provides financing and capacity building to local banks and financial institutions including Myanmar Oriental Bank and Yoma Bank so that they can meet small and medium enterprises’ needs, such as trade finance, loans, and microfinance. IFC’s first investment in the country was a US$2 million loan to set up ACLEDA MFI Myanmar Co. to help address the significant demand for financing from small enterprises and people. Operating from early 2013, the new microfinance institution is expected to provide loans to more than 200,000 people – mostly micro and small businesses run by women – by 2020. In addition, IFC is also helping the Central Bank of Myanmar improve its financial infrastructure. This will help banks serve their clients better, with diversified products and services.