Economic Development, Planning and the Myanmar Economy
This section covers development, planning and features of the Myanmar economy, which the exam tests through indicators, structural change and policy evaluation. You must distinguish economic growth from development and apply indicators to real cases.
Core rules
- Economic growth is a rise in real output. Development is broader: it includes income, health, education, employment, inequality and living standards.
- GDP per capita measures average output, not distribution. The Human Development Index combines income, life expectancy and schooling.
- Development indicators include poverty rates, literacy, infant mortality, access to electricity and clean water, and the Gini coefficient.
- Structural change moves resources from agriculture to industry and services. Planning sets targets and coordinates public investment, but targets may fail because of weak institutions, poor data or external shocks.
- Myanmar’s economy relies heavily on agriculture and rural employment, with important roles for natural gas, garments, tourism, FDI and border trade. Reforms since 2011 expanded openness, but challenges include infrastructure gaps, credit access, informal work and vulnerability to shocks.
- Development policy should consider linkages, skills, institutions and sustainability, not only GDP growth.
Worked example
A country’s GDP per capita rises from 1,000 to 1,200, a 20% increase. But if schooling falls, life expectancy stagnates and inequality rises, HDI may improve little. A garment factory raises exports and GDP, but development gains depend on wages, worker safety, skills transferred and links to local suppliers. If most workers are informal, measured employment may overstate stable, productive jobs.
Traps
Do not equate growth with development; do not use GDP per capita as a distribution measure; do not ignore the informal sector; do not assume a plan’s targets are achievements.