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| ADB's office in Yangon, Myanmar [PHOTO: Special Arrangements] |
Manila: The Asian Development Bank (ADB) is resuming operations in
Myanmar, with an assistance package for social and economic development that is
designed to build a solid foundation for further reforms to alleviate poverty
and foster growth.
“This is a historic
tipping point for Myanmar,” said Stephen Groff, Vice President of Operations
for East Asia, Southeast Asia, and the Pacific. “To be sure the country is best
positioned to benefit from the resumption of donor aid, we are focusing first on
the building blocks for stability and sustainability, which will ultimately
lead to major investments in road, energy, irrigation and education projects,
as well as investments in other sectors.”
ADB’s resumption of
aid signals a new chapter in Myanmar’s re-emergence, with key reforms in
governance and the financial sector having progressed to a point where the
government can work more closely with development partners to assess the
country’s most pressing needs, and determine a pipeline of priority projects
that will help maximize opportunities resulting from the country’s
transformation.
ADB’s first major
assistance will help Myanmar develop a competitive economy by focusing on
improved public finance, trade, investment, small and medium-sized enterprises,
and financial sector development, building on significant measures the
government has already taken, including major reforms to its central bank and
trade and investment liberalization.
In rural areas, where
development has been hindered by lack of infrastructure, restrictions on land
usage, poorly developed support services, and limited access to financial
services for farmers, ADB’s funding will help develop a strategy to make
banking services more widely available. It will also identify and address gaps
in technical and secondary education access, enabling more of Myanmar’s people
to prepare for and benefit from the country’s anticipated boom.
The $512 million
loan, the first from ADB in almost 30 years, was made possible through bridge
financing provided to the Myanmar government by the Japan Bank for
International Cooperation (JBIC) on 17 January 2013. The loan will also be used
to finalize arrears clearance and sustain government efforts to revamp the
national budget process and modernize tax administration. It will also support
trade policy reforms and capacity development, improve the investment climate
and small and medium-sized enterprise development.