Investment of Natural Resource Rents for Development in Myanmar

Abstract

The main objective of this paper is to analyse the resource management issues in macroeconomic perspective for Myanmar. We identify various gaps to improve the overall performance of the economy and provide a benchmarking for translating the resources to promote sustainable consumption as well as saving and investment behaviour in the economy. Our focus is on fiscal rule management and its assessment to help policy makers diagnose existing issues hindering economic growth despite extractive industry investment. The identification of weaknesses and strengths of resource management unfolding the bottlenecks will be helpful to suggest the viable policies. Linking tax collection to effective forecasting and planning for revenue volatility due to commodity prices is essential for government spending calculations in a resource dependent economy (thus linking precepts 7, 8 and 9 of the Natural Resource Charter). The private sector’s role in bringing forth capital and innovation into the extractive economy are analysed in this context so as to ensure that economic diversification is also encouraged.