Myanmar is in need of a structural transformation from an agrarian economy to one based more on a mix of modern activities, including manufacturing and services. Modernising the agricultural sector by building linkages to complementary non-agricultural activities – an “agricultural value chain” ...

Chapter 1. Overview: opportunities and challenges for Myanmar Chapter 2. Myanmar's structural transformation starts with agricultural modernisation and rural development

Myanmar is in need of a structural transformation from an agrarian economy to one based more on a mix of modern activities, including manufacturing and services. Modernising the agricultural sector by building linkages to complementary non-agricultural activities – an “agricultural value chain” approach – could set in motion this process of structural transformation. Furthermore, given Myanmar’s level of economic development, its large rural population and the weight of agriculture in the economy, a development strategy that puts agriculture and rural development at its core has the potential to make a significant positive impact for millions. This third report of the Multi-dimensional Review of Myanmar synthesises the findings and recommendations from the first two reports according to the following priorities as defined by stakeholders in Myanmar: supporting the agri-food sector’s ability to respond to market demand for quality products; introducing innovative models of delivering extension services and training to upgrade agronomic and technical skills; providing the conditions for a vibrant financial system that meet the needs of rural areas; strengthening land rights; engaging citizens in the policy making process; and managing and maximising the benefits of emigration from rural areas.

Building on an initial assessment of constraints to development in Myanmar (Volume 1, ISBN 9789264202078), this second volume provides analysis and policy recommendations in three key areas: structural transformation, education and skills, and financing development. It finds that Myanmar faces a crucial few years to shape growth towards a higher, more sustainable and equitable trajectory. To succeed, it will require a transformation of the economy from an agrarian base reliant on small-scale agriculture at present towards a broad range of modern activities. Building up the right skills in the workforce will be essential to support this structural transformation. Myanmar's transformation will also depend upon how effectively the country can mobilise and allocate the financial resources needed to support its development, which could amount to as much as an additional 5-10% of GDP on average over the next two decades.

This assessment shows that Myanmar’s success in achieving growth will depend on developing the institutional/social capital necessary for economic/financial stability, to ensure the rule of law, to achieve environmentally sustainable development, and creating an enabling private sector environment.

Thailand is a fast emerging country that aspires to become a high-income economy by 2037. Strong growth has enabled the country to join the group of upper-middle-income economies in the early 2010s and to perform well in many areas.