The Asian Development Bank (ADB) returned to Myanmar in 2012 following an absence of almost 25 years. Since then, ADB has made strides in building relationships and dialogue with the government, civil society, and the private sector; providing knowledge and capacity-building support; resuming lending operations and building a significant operational program. ADB has established a strong country presence with offices in Nay Pyi Taw and Yangon. ADB, as the only international development agency with main office in Myanmar’s capital, has secured a sizable increase in concessional funding available to Myanmar. Winfried Wicklein, Country Director of ADB, discusses some of the opportunities and challenges in Myanmar’s historic transition, and ADB’s role in supporting that process.
European Times: What are some of the key factors creating the path to accelerated economic growth of the country?
Winfried Wicklein: Myanmar has strong potential for broad economic expansion. It has abundant natural resources, a young population, a sizable and largely untapped market, and wide-ranging investment opportunities. The country is strategically located at the crossroads of Asia, with about 40% of the world’s population in neighbouring countries. Myanmar is undertaking major reforms toward a market-based economy. As a result, Myanmar’s economy is growing rapidly, at an annual average of over 8% over the past three years. In fact, this year Myanmar has been the fastest growing economy in Asia. Growth is backed by infrastructure development, foreign direct investment, natural resource exports, manufacturing, and a robust service sector including tourism. The positive outcome of the 2015 elections has boosted investor and consumer confidence, and the expected lifting of US sanctions and renewal of US GSP trade preferences will obviously have a positive impact on the economy.
European Times: What are ADB’s forward strategy and plans for Myanmar?
Winfried Wicklein: Myanmar is at a critical point in its development. It is important for the government to build solid socio-economic foundations in this formative period, and ADB is excited to be a steadfast partner in this journey. ADB is developing a new country strategy (2017-2020), which will support the government in achieving inclusive and sustainable development. We plan to focus our operations on strengthening infrastructure and connectivity, developing human capital, promoting reform and structural change, and attracting investments. Clearly, infrastructure – particularly energy, transport, and urban – will remain a mainstay of ADB’s operations. We also plan to support activities to enhance education and skills, as well as to support rural development. We will also work on important themes such as environment and climate change, gender equity and regional integration. All of these efforts will, we hope, play some part in helping Myanmar to reach its enormous potential.
European Times: Can you give an indication of ADB’s financial resource commitment to Myanmar?
Winfried Wicklein: ADB will expand annual sovereign concessional lending for projects from about $150 million to $350 million from 2017, with a strong focus on infrastructure and job creation. ADB is also expanding its lending, equity investment and guarantees to the private sector in Myanmar’s infrastructure and finance sector. In addition, ADB provides significant technical assistance to the government on a grant basis, focusing on advisory services, capacity building and knowledge products.
