[The Irrawaddy] Myanmar Free, but at What Cost?

The IMF has ostensibly saved Myanmar from economic calamity, but was it 

worth it?

December 20th, 1998

Economic liberalisation and increased foreign investment embedded within the IMF’s recent loaning 

arrangement has led to significant stabilisation of Myanmar’s oil industry, while greater trade diversification 

with other regions like Europe has allowed for reduced risk in Myanmar’s economy. While a small start, 

Myanmar has much to celebrate about.


However, detractors have raised a few issues with the loaning agreement. The erosion of economic sovereignty,

with Myanmar giving up executive control over core economic zones (SEZs), banking regulation, and oil 

trade (via CLEAR and IMF oversight). Furthermore, forcing Myanmar to have 15% of its trade demarcated in 

the Euro in 5 years’ time has weakened control over capital flows of the nation, with currency reform becoming

less effective in affecting the circulating money supply. Some have called this economic imperialism and 

neo-colonialism, but it's hard to criticise a policy that keeps your bellies full.


Myanmar has been saved, but at what cost?

Location: Ayeyarwady, Myanmar (Burma)

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