ABSTRACT

The economic experience of Myanmar (formerly Burma)1 is often contrasted with neighbouring Thailand. Since the Second World War, the economic policy positions of these two countries have been radically different and policies with respect to international trade and investment have been central to this difference. Whereas Thailand has welcomed globalization, opening its economy to greatly expanded trade and foreign investment, Myanmar has adopted an ultra-cautious, almost closed economy stance. The outcome for Thailand has been rapid growth and declining poverty, along with some instability. For Myanmar, the result has been stagnation and continued impoverishment. In 1960, all of the countries of Southeast Asia were poor. Out of Indonesia, the Philippines, Thailand and Malaysia, only one – Malaysia – had an average income per person greater than US$500 at 2002 prices. In 2002, only one of these countries still had an income per capita below this threshold. That was Myanmar. Leaving aside the Indo-China states of Vietnam, Cambodia and Laos, which were devastated by war and then by communism, Myanmar is the poor performer of Southeast Asia.