An interesting article examines the relevance of regulatory reform for emerging economies. The specifics of the Myanmar situation do not obscure for us more general lessons applicable to many other countries. Here are some highlights to make you want to read the article in full:
"The technocratic chicken or egg? Myanmar suffers from the proverbial chicken or the egg problem: the country needs a sound regulatory and economic base to induce, enable and create technocrats to add value to Myanmar's rudimentary and primary industry-focused political and economic system, but Myanmar lacks the technocrats to actually create a friendly environment for technocrats. Since 1988, military leaders have intentionally weakened Burmese education, spreading out university campuses to prevent the agglomeration of students necessary for proper activism and civil disobedience."
The author also draws up a list for priority areas for change, where regulations must be reformed: "Extensive work is required on drafting sophisticated new laws. As of this writing, Myanmar has a seriously outdated foreign investment law (FDI law), outdated food and drug laws, outdated private enterprise and banking laws, no securities laws, no environmental laws, no mergers and acquisitions (M&A) laws, no derivatives and no commodities exchanges. There are no or very weak environmental, competitive, judicial, legislative, financial, labour, securities, banking and corporate regulatory institutions. So even if there were appropriate laws in place, enforcement and oversight would be all but impossible. Bribery and corruption are reported to be widespread in the country."
Action is urgently required, the article pleads for regulatory reform on the basis that it can prevent a new form of colonialism by foreign companies "carving up the country without regard to environmental, labour, displacement, human rights or domestic capacity issues."
"The technocratic chicken or egg? Myanmar suffers from the proverbial chicken or the egg problem: the country needs a sound regulatory and economic base to induce, enable and create technocrats to add value to Myanmar's rudimentary and primary industry-focused political and economic system, but Myanmar lacks the technocrats to actually create a friendly environment for technocrats. Since 1988, military leaders have intentionally weakened Burmese education, spreading out university campuses to prevent the agglomeration of students necessary for proper activism and civil disobedience."
The author also draws up a list for priority areas for change, where regulations must be reformed: "Extensive work is required on drafting sophisticated new laws. As of this writing, Myanmar has a seriously outdated foreign investment law (FDI law), outdated food and drug laws, outdated private enterprise and banking laws, no securities laws, no environmental laws, no mergers and acquisitions (M&A) laws, no derivatives and no commodities exchanges. There are no or very weak environmental, competitive, judicial, legislative, financial, labour, securities, banking and corporate regulatory institutions. So even if there were appropriate laws in place, enforcement and oversight would be all but impossible. Bribery and corruption are reported to be widespread in the country."
Action is urgently required, the article pleads for regulatory reform on the basis that it can prevent a new form of colonialism by foreign companies "carving up the country without regard to environmental, labour, displacement, human rights or domestic capacity issues."
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