Foreign Aid Effectiveness Management - UN

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Istanbul Plan of Action Implementation Workshop
New York, United States of America
(Oct 15-17, 2012)
Brief Report on the Implementation of the
Istanbul Programme Action for LDCs: The
Republic of the Union of Myanmar
Dr. Wah Wah Maung
Deputy Director General
Foreign Economic Relation Department
Ministry of National Planning and Economic
Development
The Republic of the Union of Myanmar
Changing Era
 All aspects of reforms: Political,
economic, social, institutional
 Practicing elements of
Democratic System
 According the speeches of the
President
 Good Governance
 Transparency
 Anti-corruption
 Check and Balance
 Utilizing Public Finance effectively and
efficiently
A series of political and economic reforms
 political dialogue with Daw Aung San Su Kyi,
 free and fair bi -election,
 release of prisoners,
 developing civil society in Myanmar,
 free discussion at the parliamentary meeting,
 invitation of the exiles back to our country, policy
consultation with multi stakeholders for the
national development,
A series of political and economic reforms
 promoting freedom of journalism and its
associations,
 peace peace talks with ethnic armed
groups
 implementing national level projects of
rural development and poverty reduction
 conducting macroeconomic reforms
First Stage of Reform Process
Focus more on political reforms: Peace
Talk, Bi election, Release of prisoners
Focusing on good governance,
Clean government
Institutional reforms
Second Stage of Economic Reform
Second Stage
Economic
Reform
• Focusing more on Economic and
Administrative Reforms
• Rule of Law
• Close cooperation, coordination and
collaboration among the ministries, regional and
local governments
Our Vision
 actively engaged in building a new, modern, developed and
democratic nation
 necessary to strengthen systematic market economic system
 to accelerate the pace of economic development
 getting out of poverty trap
Our economic policies
Sustaining Agriculture towards
Industrialization and All round Development
Balance and proportionate development
among States and Regions
Inclusive growth for entire population
correctness of statistics and statistical
systems
Changing planning system
 We have changed out from centralized to decentralized one.
 Regional plans are formulated by regional and local governments
 Our ministry is also finalizing 5 years Plan (from 2011-12 to
2015-16)
 also planning to draw National Comprehensive Development
Plan ( NDCP- 2011-2030)
National Planning
Plans and
projects
proposed by
Ministries
• Sectoral Plan
Plans and
projects
proposed by
State and
Regional
Governments
• Regional Plan
For the formulation of National
Development Plan
National
• Organizing Regional Workshops in States and Regions
• Public Consultation for their
Development
Plan
needs and inputs for the
plan formulation
• National level workshop will be organized after all
regional level workshops have been convened.
Future National Plans
2 Annual Plans already approved by the parliament
• 2011-12 Annual Plan and 2012-13 Annual Plan
Now, our ministry is formulating 5 years national plan,
expect to submit next parliamentary session
• 5 years national plan ( 2011-12 to 2015-16)
Comprehensive National Development Plan (Long term
development plan)
We also have a plan for long term
development.
• With long term national vision
20 years or 30 years National Plan
• Duration: 2011 -2030
Quick wins for short term
 But, quick wins are also important.
 Poverty intended to reduce 2 % per year
 Short term therapy ?
 Matching short term plan/ program of donors
as well as project duration and type of support
with our priority areas and regions
Sustaining Agriculture towards
Industrialization and All round Development
 Since our economy is based on agriculture sector, it is necessary
to maintain for the momentum of agriculture to fulfill world
food security
 Sharing our agricultural products to the global community.
Moreover, it will also provide national food security as well as
for the rural development and poverty reduction
 Since 70 % of our population residing in the rural area and 50
percent of the people are engaging in those agricultural activities.
 Apart from that, according to the development experiences of
different countries, it cannot be developed without
industrialization process. That is why we are establishing Special
Economic Zones for promoting industrial sector.
Focusing balanced and equitable
growth
 Since our country is a Union Nation, it is necessary to focus
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balanced and equitable growth among the states and regions.
development paradigm has already shifted
we need to focus human development to improve the quality of
life
inclusive growth for entire population to realize people-centered
development
Human development index of Myanmar
Quality data
 Correct ing our statistical system for ensuring quality data which
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reflect the real situation.
National census in 2014
To implement all those policies, it is necessary to nurture human
resources and establish education process
To create new institutions, use new technologies, cope with their
environment, and alter their patterns of behaviour
We need an education system that improves the capabilities of
individuals and capacity of institutions.
Trade and Investment as the engine of
growth
 Business laws, rules and regulations for the company registration
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are being amended and improve for the faster processes.
Some laws, rules and regulations are to be amended and some laws
will be enacted
Foreign Direct investment Law amended
Revised Foreign Investment Law and it will create more economic
opportunities and business friendly environment.
Special Economic Zone Law, Dawei SEZ Law
Necessary law such as Competition Law, Consumers Protection
Law are also under process.
Stakeholders for Development
Government
Public
International
Organization ( IO)/
International Nongovernmental
Organization
( INGOS)
Private sector
Non Governmental
Organization, Civil
Society
Organization
Trade and investment policies reforms
 Changes in trade and foreign exchange policies were aimed at
transforming the economy from a state sector dominated
socialist economic system to a market-oriented economic
system.
 The role of the private sector in external trade was expanded
sharply.
 Border trade expended.
 Import, export licensing and Company registration procedures
are eased
Banking Sector
 Interest rate
 Taxation policies
 Managed float: Exchange rate
 Banking sector reforms: More private banks, more financial
services are allowed
 Technical Assistance: IMF, WB
 Capital Market Development: Daiwa
Exports, Imports and Duties
Sr.
Particular
2011-2012
( Million kyat)
2012-2013
(April-June)
( Million kyat)
1.
Domestic Export
8266.2
2081.6
2.
All Export ( including re-export)
9135.6
2223.4
3.
Import
8325.6
1901.9
4.
All Import ( includes draw-back
items)
14130.1
6635.3
5.
Custom Duties
( Normal Trade)
115372.4
79368.0
6.
Custom Duties
( Border Trade)
14130.1
6635.3
7.
Custom Duties (All)
129502.5
86003.3
Investment
 A total of 456 foreign enterprises in 12 sectors from 31
countries were permitted with the total pledge amount of
USD 40424.07 million up to 2012, March.
 China is the 1st leading investor
 Thailand and Hong Kong are taking place in 2nd and 3rd
respectively.
 power sector - 40.30%,
 oil & gas sector- 38.31 %
 mining sector- 7.75%
Program for the Poverty Reduction
 To achieve the MDGs
 Institutional mechanism for eight tasks
(a) Development of agricultural production sector
(b) Development of Livestock sector
(c) Development of rural productivity and cottage industries
(d) Development of micro saving and credit enterprises
(e) Development of rural cooperative tasks
(f) Development of rural socio-economy
(g) Development of rural energy
(h) Environmental conservation.
Reducing the half of poverty line in
2015.
 We have set our target to reduce the half of poverty line in
2015.
 Currently it is now 26% is below the poverty line
 trying to reduce until 16 % in 2015.
 In that case, we need more cooperation not only from
regional community but also from global community.
Aid Effectiveness
Aid effectiveness is also emphasized after the
openness of our economy.
Since our international relation has been
improved, we received more aid, grants from
the donors community.
We also would like to build the trust with international
community as well as we ourselves would like to have
aid effectiveness for our national aim of poverty
reduction.
Sources of Finance: Consideration for the best allocation of the
sources of finance
Own
Budget
Foreign
Direct
Investment
Source
of
Finance
Aid
Grant
Loan
Sources of finance
Grant
Aid
Loan
Foreign Aid Effectiveness
Paris Declaration on Aid Effectiveness
Ownership
Mutual
accountability
Managing for
results
Alignment
Harmonization
Aid Effectiveness Mechanism
Now we have already formed Central
Committee on Aid effectiveness chaired by the
President.
Under the Central committee, we have working
committee as well as National Socio-economic
Advisory Council (NSAC) which comprises
Academicians, private sectors and civil society.
Matching between Needs & Grant/ Aids
Previously, foreign grants and Aids are donor driven
There was coordination weakness and failure among
donors, between government agencies and donors
• Overcoming coordination weakness and failure
Therefore, we need to provide projects and plans to
reflect our people’s wants needs and close
coordination with donors community
• Reflecting our people’s wants needs
Aid Effectiveness Management
Institution
Central
Committee
on Effective
Aid
Management
Working
Committee on
Effective Aid
Management
National
Economic and
Social Council
(NESC)
Ministries/
Local and
Regional Govts
Donors
Community/
IOs
Private
sector/ Civil
Society
Academicia
ns
Aids Effectiveness
 formed Central Aids Effectiveness Management Committee
which is chaired by the President to utilize the aids, grants and
loans effectively and efficiently.
 We also have formed Socio-economic Advisory Council which
includes civil society organizations, private sectors and
academicians.
 Planning Commission also has been formed to systemically
implement the projects and to ensure balance growth among the
regions.
Cooperation with regional economy
as well as international economy
 We are ready to cooperate
 now closely working with ADB, IMF, World Bank and WTO
 And we are also closely working with UN organizations and its
affiliates and INGOs for the rural development and poverty reduction
in Myanmar.
 We very much welcome the removal of economic sanctions from EU
and US.
As a member in the family of nations,
 Myanmar will be participating more actively in the activities
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of the United Nations in various fields.
Standing as a responsible and respectable nation on the world
stage
take the challenges of the 21st century in a bold and resolute
manner
Myanmar should be viewed from a different and new
perspective
It is also necessary for us to be able to work in a more
conducive and favourable environment than never before.
Implementation of Istanbul plan of
actions
 Reforms: in line with the Implementation of Istanbul plan of actions
 government is taking ownership and leadership for our own
development.
 An integrated approach is also applied with the participation of all
stakeholders including international community.
 Peace and security, development and human rights are also
promoted by conducting political, economic and institutional
reforms
 committed to carry on for the sake of our people as well as to
achieve MDGs and to actively contribute towards the maintenance
of international peace and security.
Appreciation to
UN
 Looking forward closer cooperation with
United Nations for Normal Country Program
in Myanmar and many thanks for the Human
Development Initiatives and technical
assistances that contributes towards national
development of Myanmar.
Thank you for your kind
attention!
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