Burma – The Next Asian Tiger?
“Think Again,” according to Jared Bissinger of Foreign Policy.
A few notable excerpts:
“Contrary to the stated goal of promoting the country’s development, many of the reforms are in fact enabling the “oligarch-ization” of Burma. The old ways of doing business will influence Burma’s economic trajectory for decades, much as they have elsewhere in Asia.”
“‘Burma’s problem is that it lacks capital.‘ Yes, but… the fundamental problem isn’t a lack of capital, but an economy that is inefficient at putting it to productive uses.”
“The foreign investment that Burma will receive most of is the kind it needs the least: resource investment. This type of investment tends to create little direct employment.”
“Unfortunately for Burma, countries that have relied on primary product exports tend to grow more slowly than countries like the Asian tigers due to unequal investment in other parts of the economy, a concept known as Dutch Disease.”
~ by responsiblenomad on January 9, 2013.