Myanmar business reforms face military obstacles

Subject

Military business interests and economic reform in Myanmar.

Significance

The National League for Democracy (NLD) wants to enable greater competition in Myanmar's business environment. Foreign attention is focused on the prospects for private sector development, privatisation of state-owned enterprises and the role 'crony-owned' conglomerates will play. However, military-owned businesses also need to be factored in -- both in regards as to whether they are 'crowding out' the private sector and whether the military itself will constrain business sector reform.

Impacts

• The military's economic interests do not cover all sectors; earlier reform may be possible in non-military areas.
• A political tussle is likely over NLD plans to rebalance public spending.
• According to its manifesto, the NLD will broaden Myanmar's tax base while lowering taxes.