MYANMAR BUSINESS SURVEY: DATA ANALYSIS AND POLICY IMPLICATIONS •
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Agribusiness and food industries
Enhance access to finance for purchasing machinery and equipment that will increase the productivity of workers; Foster business and technology incubators and develop tools for technology-based development; Encourage partnerships between academic institutes and the private sector. Academic institutions can access to funds while firms can access talented innovators; Partner with firms overseas in order to gain much-needed capital, technology and management practices, all of which would improve productivity of local firms.
The Government has recognized the fact that the agribusiness and food industries a key strategic sector in the equitable and inclusive development of Myanmar. The survey revealed several characteristics in the sector. They are dominant industries in rural areas while contributing to the national economy through exports of agro-products. The average age of firms in this sector is older than that of firms in other sectors, confirming its status as a traditional industry of Myanmar. Whereas the firm sizes in this sector are relatively larger than in other sectors, agribusiness and food industries appear to be less profitable. The sector relies on relatively low-cost informal lenders who are available in rural areas. Some special interventions in this sector may be appropriate for enhancing its exporting contribution as well as rural development. The following policy options are proposed: • Enhance productivity through the adoption of advanced agricultural technologies and knowhow while investing in rural infrastructure; • Encourage agribusiness and food industries to obtain international quality certificates or to meet such standards for enhancing market access; • Foster export-oriented agribusinesses through conducting trade promotion measures, such as trade fairs, exhibitions or foreign missions (for detailed measures, see Abe and others, 2012, p. 161); • Introduce formal lending schemes among rural agribusinesses to provide low-cost loans.
Corruption Although reforms such as an Anti-Corruption Law and an Anti-Corruption Commission have been attempted, the problem of corruption remains widespread (Transparency International, 2014a). This survey shows that corruption still tops the list of the most severe obstacles faced by firms in Myanmar. The survey specifically reveals that bribery is more common among larger firms as well as firms in extractive industries and firms in certain geographic locations. Although the legal and administrative enforcement is a necessary part of the anti-corruption effort, it is unlikely to be sufficient. Policies that target the root causes are more likely to be effective. A few examples are suggested below: • Reduce excessive regulation across the board as part of creating a business enabling environment. Empirical evidence from this survey suggests that red tape is being used to extract bribes from more successful firms; • Streamline the administrative procedures for business permits, licences and registration. This includes simplifying the process, codifying requirements and keeping discretionary powers of public officials to the necessary minimum; • Improve training and incentives for public officials and inspectors to make them less susceptible to bribery; • Enhance accountability of public officials by introducing modern management practices in the bureaucracy; • Create a transparent process for licences in the extractive industries sector. Inspections to ensure adherence to environmental laws should not be ignored. 68