New Lending Must Address Challenges on Burma’s Road to Development

On 11 October, Japan announced that it would be resuming loans to Burma. It also hinted that it will assist the heavily indebted country in clearing its arrears and establishing good financial standing with international financial institutions, such as the World Bank and the Asian Development Bank.

Japan will be forgiving US$3.7 billion or about 60% of the total $6 billion debt Burma owes; it is also planning to use bridge loans by Japanese banks to help clear Burma’s $900 million of arrears with the World Bank and the Asian Development Bank. Japanese Finance Minister Koriki Jojima stated, “Japan is planning to resume its full program in Myanmar with yen loans to help support Myanmar’s sustainable economic development…at the earliest possible timing next year.” He further explained that Japan’s development priorities in Burma would focus specifically in the areas of electricity and road rehabilitation, rural development and improvement of port facilities.

At this moment in time, Burma’s re-entry into the world economy, specifically the ability to take loans from institutions such as the World Bank, the Asian Development Bank and Japan itself, carries great risk. The type of projects to be funded, the rate of investment, the sectors in which investment will take place, the presence of monitoring mechanisms, and the decision-making process are just some of the factors that will determine the long-term outcome of international financial support […]

Concerns and Recommendations Regarding Peace Funds

While peace funds are well intentioned, the governance of them has some shortcomings. Burma groups are concerned that they have the potential to undermine the agenda for a comprehensive peace process and engender more harm than the projected benefits.

This position paper outlines a collective message to the Peace Donor Support Group, especially to Norway and the World Bank given that they are moving ahead with their peace fund initiatives, as well as other proponents including the Burma government and its concerned agencies, the implementing NGOs, private firms and consultants […]

World Bank returns to Burma amid criticism

After leaving over suspended debt repayment in the late 1980s, the World Bank officially returned to Burma, also known as Myanmar, in early August. It signed off $85 million in grants, but no loans will be approved until the $400 million Burma still owes to the Bank are cleared. Concerns remain that the Bank is failing to engage constructively and transparently with civil society […]

IFIs must “engage with the Burmese people”

Over 20 civil society groups from Burma, also known as Myanmar, have written to the heads of the IMF and World Bank requesting that the IFIs involve grass roots actors in their newly revived activities in the country and that their operational policies “guarantee maximum transparency, accountability, social inclusiveness and safeguards”. International NGO Human Rights Watch has also written to Bank president Robert Zoellick calling on the Bank to “actively engage with the Burmese people” and ensure that “no one who engages with the Bank shall face reprisals” […]

World Bank: Emphasize Civil Participation in Burma

The World Bank should promote civil society participation in proposed development programs in Burma, Human Rights Watch said in a letter to the World Bank released today […]

Opportunities and Pitfalls: Preparing for Burma’s Economic Transition

The Burma Project/Southeast Initiative has published Opportunities and Pitfalls: Preparing for Burma’s Economic Transition, a report by Yuki Akimoto.

Opportunities and Pitfalls covers key topics addressed at the conference regarding Burma’s prospective economic transition and the role of IFIs. The report contains case studies of other countries that have dealt with IFIs and their prescriptions for development, highlighting issues and circumstances that Burma shares with those countries.

Forward-looking and accessible, this report promises to stir practical debate about how Burma should manage the challenges of working with IFIs when these institutions become fully engaged there […]

Multilateral Development Banks and Burma: A Resource Book from the Bank Information Center

Multilateral development banks, or MDBs, are a significant source of economic assistance for developing countries. MDBs lend tens of billions of dollars to low and middle income countries each year. In the Asia-Pacific region, the Asian Development Bank (ADB) loans $5 to 6 billion a year to its borrowing countries. If and when the MDBs decide to resume engagement with Burma, they could be a very large source of financial support for Burma’s development agenda.

Many of those in the movement to promote democracy in Burma have engaged in debates and discussions about whether or not economic assistance should be extended to the military regime. The Resource Book is meant to help expand this discussion to include the issue of multilateral assistance from MDBs […]