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It was found that agriculture has\ncontributed significantly to economic growth in terms of product, but the higher incomes\nresulting from increased production have neither fully benefited the cultivators nor\ncontributed to capital formation as a consequence of existence of leakages. In the past, as\npart of the process of agricultural development, there grew up a plural society in which a\npowerful minority of foreign races had established control over key sectors of the\neconomy such as trade, transport, industry and finance. The result was that the Myanmar\nthemselves just barely participated in the economic progress of the country. Increased\nimports of consumer goods then benefited the economically better off foreign element of\nthe population, concentrated in the urban sector of the country. At present, a few\nprivileged and propertied people replaced the foreign races of the past in controlling\nproduction and trade. Most imports are also neither relevant nor useful for the agricultural\npurpose but only to satisfy the urban consumers and the well to do. So the agriculture\nsector failed to play its proper role in its classical sense in that most of the surplus\nproduced domestically, instead of contributing to capital formation, has been drained\naway to foreign countries in exchange for cheap consumer and other personal use goods.\nOut of a wide range of crops exported, only export of pulses and beans are significant\nmainly due to liberalization of production and trade. Rice export has been severely\nrestricted so that it curtailed whatever contributions it could have made in terms of capital\nformation. The liberalization of rice trade was in reality characterized by inconsistencies\nand flaws that it was not able to implement effectively yet. Most institutions have not yet\nbecome the pro-market institutions for they have to stand and serve for the strengthening\nof the centrally controlled system, and the mechanism and administration of the\ngovernment. The UMFCCI is an obvious example. Despite \"liberalization\", the\ngovernment still plays a dominant role in the provision of farm inputs and other activities,\nbut fails to provide adequate farm inputs and necessary services and assistance, with theresult of slow growth of yields for most crops. Most export eamings have been drained\naway by leakages for import of irrelevant and ineffective items for capital formation. In\nthis sense, the agriculrure sector, despite providing considerable sum of export earnings,\nfailed to play its classical role in contributing to economic development.\nMost farmers and laborers migrated from agriculfure but mostly to foreign countries to\nwork for a living, rather than to domestic industrial sector mainly because no better\nemployment opportunities exist domestically. The out-migration of farmers was therefore\ncontnbuting to the development of other countries. For rnigration to contribute to the\ngrowth of Myanmar economy, the growth of SMEs was noted to be essential. So far, the\npotential factor contributions and market contributions of agriculture (in terms of export\nand domestic supply) have been highly constrained by inefficient policies and plans and\ninstifutions.\nThe present state of Myanmar agriculture is such that only the pulses and beans among\nthe crops were successful in production and export. The fishery sub-sector were relatively\nmore successful in production and export, and was able to contribute to the growth of its\nsector as well as national economic development in terms of increased earnings in foreign\nexchange and capital formation mainly because of 100% privatization of the sub-sector\nand proper play of market forces. Giving too high priority to increase rice cultivation\nalone with focus on maximization of output was identified as the cause for low real\nincomes despite significant increase in production. The import-substitution\nindustrialization which was largely financed by the export earnings mainly from\nagriculture and frsheries (and now gas) has drained away the hard-earned foreign\nexchange. The declining land-man ratio, fragmentation and degradation of land,\ninadequate supplies of inputs and loans or credits will need immediate attention to check\nthe sector\u0027s stagnation or possible deterioration. 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  1. Yangon University of Economics
  1. Yangon University of Economics
  2. Doctor of Philosophy (PhD)

The Role of Agriculture Sector in Economic Development of Myanamar (1988/89-2002/2003) (Thida Htoo, 2007)

https://meral.edu.mm/records/8754
https://meral.edu.mm/records/8754
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Title
Title The Role of Agriculture Sector in Economic Development of Myanamar (1988/89-2002/2003) (Thida Htoo, 2007)
Language en
Publication date 2007-01-01
Authors
Thida Htoo
Description
The role of agriculture sector in economic development of Myanmar for the 1988/89-
2002103 period was analyzed with the purpose of outlining the agricultural contributions
to national economic development of Myanmar. It was found that agriculture has
contributed significantly to economic growth in terms of product, but the higher incomes
resulting from increased production have neither fully benefited the cultivators nor
contributed to capital formation as a consequence of existence of leakages. In the past, as
part of the process of agricultural development, there grew up a plural society in which a
powerful minority of foreign races had established control over key sectors of the
economy such as trade, transport, industry and finance. The result was that the Myanmar
themselves just barely participated in the economic progress of the country. Increased
imports of consumer goods then benefited the economically better off foreign element of
the population, concentrated in the urban sector of the country. At present, a few
privileged and propertied people replaced the foreign races of the past in controlling
production and trade. Most imports are also neither relevant nor useful for the agricultural
purpose but only to satisfy the urban consumers and the well to do. So the agriculture
sector failed to play its proper role in its classical sense in that most of the surplus
produced domestically, instead of contributing to capital formation, has been drained
away to foreign countries in exchange for cheap consumer and other personal use goods.
Out of a wide range of crops exported, only export of pulses and beans are significant
mainly due to liberalization of production and trade. Rice export has been severely
restricted so that it curtailed whatever contributions it could have made in terms of capital
formation. The liberalization of rice trade was in reality characterized by inconsistencies
and flaws that it was not able to implement effectively yet. Most institutions have not yet
become the pro-market institutions for they have to stand and serve for the strengthening
of the centrally controlled system, and the mechanism and administration of the
government. The UMFCCI is an obvious example. Despite "liberalization", the
government still plays a dominant role in the provision of farm inputs and other activities,
but fails to provide adequate farm inputs and necessary services and assistance, with theresult of slow growth of yields for most crops. Most export eamings have been drained
away by leakages for import of irrelevant and ineffective items for capital formation. In
this sense, the agriculrure sector, despite providing considerable sum of export earnings,
failed to play its classical role in contributing to economic development.
Most farmers and laborers migrated from agriculfure but mostly to foreign countries to
work for a living, rather than to domestic industrial sector mainly because no better
employment opportunities exist domestically. The out-migration of farmers was therefore
contnbuting to the development of other countries. For rnigration to contribute to the
growth of Myanmar economy, the growth of SMEs was noted to be essential. So far, the
potential factor contributions and market contributions of agriculture (in terms of export
and domestic supply) have been highly constrained by inefficient policies and plans and
instifutions.
The present state of Myanmar agriculture is such that only the pulses and beans among
the crops were successful in production and export. The fishery sub-sector were relatively
more successful in production and export, and was able to contribute to the growth of its
sector as well as national economic development in terms of increased earnings in foreign
exchange and capital formation mainly because of 100% privatization of the sub-sector
and proper play of market forces. Giving too high priority to increase rice cultivation
alone with focus on maximization of output was identified as the cause for low real
incomes despite significant increase in production. The import-substitution
industrialization which was largely financed by the export earnings mainly from
agriculture and frsheries (and now gas) has drained away the hard-earned foreign
exchange. The declining land-man ratio, fragmentation and degradation of land,
inadequate supplies of inputs and loans or credits will need immediate attention to check
the sector's stagnation or possible deterioration. Genuine policy reforms to address these
issues together with encouraging research and education and extension services will be
required to increase the role of agriculture in economic development of Myanmar.
Thesis/dissertations
Yangon University of Economics
Professor Daw Tin Hla KYi
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