Myanmar Sustainable Development Plan (2018 - 2030)

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The Government of the Republic of the Union of MyanmarMinistry of Planning and FinanceMyanmar SustainableDevelopment Plan(2018 – 2030)August 2018

CONTENTSTHE MYANMAR SUSTAINABLE DEVELOPMENT PLAN . 1ECONOMIC POLICY OF THE UNION OF MYANMAR . 6STRATEGIES & ACTION PLANS . 8PILLAR 1: PEACE & STABILITY . 8GOAL 1: PEACE, NATIONAL RECONCILIATION, SECURITY & GOOD GOVERNANCE . 8Strategy 1.1: Secure and further foster Union-wide peace .9Strategy 1.2: Promote equitable and conflict-sensitive socio-economic development throughout all States andRegions . 10Strategy 1.3: Promote greater access to justice, individual rights and adherence to the rule of law. 12Strategy 1.4: Enhance good governance, institutional performance and improve the efficiency ofadministrative decision making at all levels . 14Strategy 1.5: Increase the ability of all people to engage with government . 15GOAL 2: ECONOMIC STABILITY & STRENGTHENED MACROECONOMIC MANAGEMENT . 16Strategy 2.1: Effectively manage the exchange rate and balance of payments . 17Strategy 2.2: Reduce inflation and maintain monetary stability . 18Strategy 2.3: Increase domestic revenue mobilisation through a fair, efficient and transparent taxation system. 20Strategy 2.4: Strengthen public financial management to support stability and the efficient allocation of publicresources . 21Strategy 2.5: Enhancing the efficiency and competitiveness of State Economic Enterprises. 23PILLAR 2: PROSPERITY & PARTNERSHIP. 25GOAL 3: JOB CREATION & PRIVATE SECTOR-LED GROWTH . 25Strategy 3.1: Create an enabling environment which supports a diverse and productive economy throughinclusive agricultural, aquacultural and polycultural practices as a foundation for poverty reduction in ruralareas. 25Strategy 3.2: Support job creation in industry and services, especially through developing small-and mediumsized enterprises . 28Strategy 3.3: Provide a secure, conducive investment enabling environment which eases the cost of doingbusiness, boosts investor confidence and increases efficiencies . 29Strategy 3.4: Further reform our trade sector and strengthen regional and international cooperation andlinkages . 31Strategy 3.5: Increase broad-based access to financial services and strengthen the financial system overall . 33Strategy 3.6: Build a priority infrastructure base that facilitates sustainable growth and economicdiversification. 37Strategy 3.7: Encourage greater creativity and innovation which will contribute to the development of amodern economy . 39PILLAR 3: PEOPLE & PLANET . 41GOAL 4: HUMAN RESOURCES & SOCIAL DEVELOPMENT FOR A 21ST CENTURY SOCIETY . 41Strategy 4.1: Improve equitable access to high quality lifelong educational opportunities. 41Strategy 4.2: Strengthen health services systems enabling the provision of universal health care using a paththat is explicitly pro-poor. 43Strategy 4.3: Expand an adaptive and systems based social safety net and extend social protection servicesthroughout the life cycle. 45i

Strategy 4.4: Increase secure access to food that is safe and well-balanced . 47Strategy 4.5: Protect the rights and harness the productivity of all, including migrant workers. 48GOAL 5: NATURAL RESOURCES & THE ENVIRONMENT FOR POSTERITY OF THE NATION. . 49Strategy 5.1: Ensure a clean environment together with healthy and functioning ecosystems . 50Strategy 5.2: Increase climate change resilience, reduce exposure to disasters and shocks while protectinglivelihoods, and facilitate a shift to a low-carbon growth pathway. 52Strategy 5.3: Enable safe and equitable access to water and sanitation in ways that ensure environmentalsustainability . 54Strategy 5.4: Provide affordable and reliable energy to populations and industries via an appropriate energygeneration mix . 56Strategy 5.5: Improve land governance and sustainable management of resource-based industries ensuringour natural resources dividend benefits all our people. 58Strategy 5.6: Manage cities, towns, historical and cultural centers efficiently and sustainably . 59IMPLEMENTATION COORDINATION, PRIORITISATION & RESOURCEMOBILISATION . 62MONITORING & EVALUATION . 64CONCLUSION . 66ii

FOREWORDThe Myanmar Sustainable Development Plan (MSDP) is theexpression of our national development vision – a vision that findsresonance in the global sustainable development agenda. Currently,Myanmar has myriad sectoral, ministerial and sub-national plans.Genuine development will only come to Myanmar if, and only if, allthese plans move harmoniously and coherently under the aegis of a single national strategy. TheMSDP delivers this strategy, providing an overall framework for coordination and cooperationacross all ministries, and all States and Regions to forge a common path towards the emergenceof a prosperous, peaceful and democratic Myanmar.Peace and stability constitute one of the Plan’s three pillars and they are fundamental to thesustainment of peace. At the same time, sustainable and equitable development promotes peaceand cements stability. Under the guiding light of the MSDP, we will be able to balance ourdevelopment across many dimensions. In accordance with this new approach, major projectproposals from all line ministries and States and Regions shall be reviewed based upon theirstrategic alignment with the MSDP. A Project Bank shall also be created to facilitate the effective,coordinated and transparent implementation of these projects.Project selection at present is largely based on budgetary considerations. Although budgetaryconcerns are important, it is far more important to select and prioritize projects that are trulyneeded for the country. We should select and implement projects that bring maximum benefitto our people. In short, national projects should be designed with a holistic view, and with thewelfare of the nation in mind. Moving forward, national planning, including the implementation ofexisting projects, shall place a special focus on development sustainability and harmoniouscoordination. We, all of us, must be strategic in both thought and action if we are to realize ourown needs as well as the needs of the nation.The support of all our friends is warmly welcomed in our endeavour to achieve the goals setforth within this MSDP. We particularly depend on the entrepreneurial and ever-resilient spiritof our people and the participation of our private sector, a main driving force of inclusive andsustainable development.I invite all our people to join hands and, based on this strategic plan, to strive and achieve theirfull potential, and together deliver a brighter future in a pluralistic and prosperous nation.H.E. Daw Aung San Suu KyiState Counselloriii

uption CommissionAgricultural Development StrategyASEAN Economic CommunityAuditor GeneralAssociation of Southeast Asian NationsASEAN Trade in Goods AgreementCentral Bank of MyanmarCBM Financial Network SystemCross-Border Transport AgreementConsolidated Strategic Action PlansCentral Statistical OrganisationDevelopment Assistance Coordination UnitDistrict Administrative OfficeDevelopment Assistance PolicyDepartment of Rural DevelopmentDiagnostic Trade Integration StudyEthnic Armed OrganisationEconomic PolicyEssential Package of Health ServicesForeign Direct umerGross Domestic ProductGreater Mekong SubregionGovernment of MyanmarImplementation Committee for Suggestions on Rakhine IssueInternally Displaced PersonInternal Revenue DepartmentInclusive Township Health PlansLocal GovernmentLine MinistryMonitoring and EvaluationMyanmar Automated Cargo Clearance SystemMyanmar Development InstituteMicrofinance InstitutionMyanmar Investment CommissionMyanmar Maternal and Child Welfare AssociationMyanmar National Committee for Women

-IUNCANECCNEERNESNRPCNSPAWNTMOMOPAPRDPFMMinistry of Agriculture, Livestock and IrrigationMinistry of Border AffairsMinistry of CommerceMinistry of ConstructionMinistry of EducationMinistry of Ethnic AffairsMinistry of Electricity and EnergyMinistry of Foreign AffairsMinistry of Health and SportsMinistry of Home AffairsMinistry of InformationMinistry of IndustryMinistry of Labour, Immigration and PopulationMinistry of Natural Resources and Environmental ConservationMinistry of Planning and FinanceMinistry of the State Counsellor’s OfficeMinistry of Social Welfare, Relief and ResettlementMinistry of Transport and CommunicationsMedium Term Programme for Coordinated Aid-for-Trade ResourcesMobilisation and DeliveryMyanmar Sustainable Development PlanMyanmar Sustainable Development Plan-Implementation UnitNationwide Ceasefire AgreementNational Economic Coordination CommitteeNominal Effective Exchange RateNational Export StrategyNational Reconciliation and Peace CenterNational Strategic Plan for the Advancement of WomenNon-Tariff MeasuresOpen Market OperationProject Appraisal and Progress Reporting DepartmentPublic Finance ManagementPIPPPPPSD-APREERREPOS/R GovSDGSEESEZPublic Investment ProgrammePublic-Private PartnershipPrivate Sector Development Action PlanReal Effective Exchange RateRepurchase AgreementState and Region GovernmentsSustainable Development GoalState Economic EnterpriseSpecial Economic Zone

UNUPDJCVATWTOviState GovernmentSmall and Medium EnterpriseSmall and Medium IndustryStandard Operating ProcedureSanitary and PhytosanitarySingle Stop InspectionsUnion Supreme CourtTechnical and Vocational Education and TrainingUnion Attorney General’s OfficeUnion Coordinating Body for Rule of Law Centres and Justice SectorAffairsUnion Civil Service BoardUnion Enterprise for Humanitarian Assistance, Resettlement andDevelopment in RakhineUnion Legal Aid BoardUnion of Myanmar Federation of Chambers of Commerce and IndustryUnited NationsUnion Peace Dialogue Joint CommitteeValue Added TaxWorld Trade Organisation

THE MYANMAR SUSTAINABLEDEVELOPMENT PLANThe largest country in mainland SoutheastAsia with a population of 53 million andlocated strategically between China andIndia, Myanmar plays a significant role geographically, economically and politically in the most rapidly advancing region in theworld. Isolated, however, for much of thepast six decades, Myanmar is on, along the way embracingmany opportunities and challenges. Thecountry has experienced rapid growth inrecent years, becoming one of the world’sfastest growing economies. However,imbalances have also periodically emerged,requiring vigilance and the implementation ofanti-inflationary and other counter-cyclicalpolicies. Today Myanmar enjoys historicallylow inflation, monetary and fiscal stability,and holds amongst the lowest levels ofexternal debt in the region.As Myanmar opens up, investment and tradehave grown significantly. Trade policies havebeen, and continue to be, revised in line withregional and global commitments and inaccordancewithliberalprinciples.Investment policies likewise have beenrevised with the aim of ensuring a levelplaying field for all investors, and to create inMyanmar a favourable, predictable andfriendly investment climate.In the financial sector, a facilitator of tradeand investment, our late-comer advantagehas been evident via the emergence ofmobile-phone based financial services thatnot only cater to the existing bankedpopulation, but also greatly expands financialinclusion for the hitherto “unbanked”.Meanwhile, beneath the surface the sector1has been transformed by the application ofonline and secured systems allowing realtime settlements and securities transactions,and by the progressive implementation ofinternational prudential bank regulationssuch as the Basel Accords.Along with rapid growth, the Government ofMyanmar(GoM)attachesutmostimportance to both political and economicstability, implying peace and nationalreconciliation on the political side, as well asstrong macroeconomic management andgood governance on the economic side.Despitethestrongnecessityforinfrastructure development in the reformprocess, the GoM is committed tocontinuing prudent fiscal discipline and tomaintaining the fiscal deficit to no more thanaround five per cent of Gross DomesticProduct (GDP), while steadfastly reducingrecourse to central bank financing tonegligible levels.The GoM continues to encourage equitableand inclusive private sector development(the true and most reliable engine of growth)and many infrastructure projects are beingdeveloped through various Public-PrivatePartnership (PPP) mechanisms to facilitatethis. The GoM is encouraging its StateEconomic Enterprises (SEEs) to transforminto non-budgeted units, and then intocorporatised units that will eventually beequitised to the private sector as the GoMfocuses more on its regulatory rather thanbusiness-proprietor role. In this, the GoMrecognises that significant capacity building isrequired in delivering such outcomes.

The GoM strives to strike the right balancebetween economic and social ility. The GoM also seeks to providefor the safety and security of our people byenhancing human security in all its forms andenabling the development of both hard andsoft connectivity to help reduce the ruralurban divide in terms of access to markets,to information, to technology, to finance, toeducation, to basic infrastructure andhealthcare, amongst others.The GoM is committed to mitigating povertythroughout the country, and has developedcomprehensive strategies to address theissue, beyond simply stimulating economicgrowth. As a consequence of these efforts,poverty has already steadily declined fromnearly a third of the population in 2005, tojust over a quarter in 2009, and to below 20per cent in 2015. However, here the ruralurban divide remains stark with ruralpoverty at a still significant 23 per cent in2015, compared to an urban poverty rate ofnine per cent. Along with the steadyreduction of poverty, resilience to economicshocks has also improved, although there stillis a long way to go, as in so many other areas.Migration has played a significant role in ruraldevelopment and poverty reduction, hence,the GoM also strives to develop legal,convenient, affordable and secure channelsof migration from which not only migrantsthemselves, but also their left-behind familiesand communities, will benefit.OverviewThe Myanmar Sustainable Development Plan(MSDP) provides a long-term vision; a visionof a peaceful, prosperous and democraticcountry. Founded upon the objective ofgiving coherence to the policies andinstitutions necessary to achieve genuine,inclusive and transformational economicgrowth, this MSDP has been developed to2reinvigorate reform and promote boldaction.The product of the work of multiple agenciesand individuals in Myanmar, and the activeconsultation of a myriad of stakeholders, theMSDP has been designed as a livingdocument that presents practical andimplementable pathways toward addressingdevelopment challenges, while maximisingopportunities for the people of Myanmar torealise their full potential as individuals andcitizens.The MSDP has taken maximum advantage ofexisting sector and thematic-level plans andpolicies, and those currently being drafted. Inthis regard, the MSDP is intended to provideawhole-of-governmentdevelopmentframework that offers coherence to theseexisting strategic documents, ensuring thatthey are executed in ways that are consistentwith macro-level national developmentpriorities. Therefore, the MSDP is theintegration and distillation of existing plansand priorities. Furthermore, the MSDPmediates between local developmentalneeds and global sustainable developmentagenda by aligning MSDP action plans withglobal SDG targets.Furthermore, and unlike previous strategies,the MSDP is designed to achieve its aimsthrough coordinated effort involving publicentities, the non-profit sector, as well as theprivate sector. The tireless and passionatework of our nation’s vibrant civil society,community-based and other grass rootsorganisations and networks, will be crucial toensuring successful implementation.Some actions born from the MSDP will beachieved in months, others over many years.Likewise, as certain Action Plans arecompleted, others will emerge and takeprecedence. This will be reflected insubsequent MSDP revisions.

Cross Cutting ThemesEquity and InclusionThe GoM is fully committed to harnessingthe ‘double dividend’ i.e. the widespreaddemographic and democratic benefitsbrought about by investing in both womenand youth, and in so doing facilitating thecreation of an enabling environment in whicha greater share of our population cancontribute to national prosperity. It is forthese reasons that issues pertaining to youth,gender empowerment, equity and inclusionshall be considered cross-cutting, to bemainstreamed into all aspects of MSDPimplementation.Sustainability in all its FormsMyanmar’s rich endowment of naturalresources proffers a cornucopia of benefits,as well as some risks. The GoM recognisesthat the natural environment is thefoundation upon which Myanmar’s social,cultural and economic development may besustained. Therefore, the GoM is committedto a national development framework thatenshrines the notion of environmentalsustainability for future generations bysystematically incorporating environmentalconsiderations into the design and theimplementation of its policies and projects.The MSDP is based on the idea that withoutsound environmental governance, rapideconomic development risks furtherexacerbatingexistingenvironmentalproblems such as deforestation, mangroveloss, the illegal wildlife trade, unregulatedmineral extraction, air and water pollution,increases in waste, and climate change.Myanmar is particularly vulnerable to therisks of climate change, having experiencedwidespread natural disasters such as coastalstorms, floods and droughts. Our country’sdevelopment strategy must be sensitive tothese climatic vulnerabilities so that oursocial, economic and cultural lives are as3resilient and safeguarded as possible from achanging climate.As noted, the GoM is committed to theachievement of the SDGs with the objectiveof ensuring balance between development inthe economic, social and environmentspheres. It is for these reasons thatsustainability in all its forms shall beconsideredcross-cutting,tobemainstreamed into all aspects of MSDPimplementation. The 2030 SustainableDevelopment Agenda will be used to guideMyanmar’s achievement of the SDGs overthat same timeline.Conflict-Sensitive ApproachesMyanmar has embarked upon a journeytoward national reconciliation and Unionwide peace. All aspects of this MSDP havebeen designed to move the country forwardin this regard. In consideration of thepotential impact of development in thiscontext, it is essential that all initiatives aredesigned, implemented, managed andmonitored with the participation of allstakeholders in a conflict-sensitive manner. Itis for these reasons that conflict sensitivityand conflict-sensitive approaches shall beconsideredcross-cutting,tobemainstreamed into all aspects of MSDPimplementation.Democratic PrinciplesFoundational to all strategies and ActionPlans noted within this MSDP is recognitionof the economic dividends yielded frombeing a democracy. An end in itself and, assuch, needing no other justification, it is thecase that being a democracy brings theapplication to Myanmar the most powerfulengine of economic growth known to humanhistory. A system based on individual rightsand freedoms, democracy and itsaccompanying institutions aligns incentives,allows spontaneous solutions to problems,promotes technological advancement and

the delivery of public services according todemand, and expands choice andopportunity. In short, democracy and a focuson individual rights and the rule of law aresimultaneously the ends of policy, and thevehicles through which Myanmar may escapepoverty and achieve the prosperity ourpeople deserve. It is for these reasons thatliberal democratic norms and principles shallbe considered cross-cutting, to bemainstreamed into all aspects of MSDPimplementation.4FrameworkThis MSDP is structured around 3 Pillars, 5Goals, 28 Strategies and 251 Action Plans. Allare firmly aligned with the SDGs, the 12Point Economic Policy of the Union ofMyanmar, and various regional commitmentswhich Myanmar has made as part of theGreater Mekong Subregion (GMS) StrategicFramework,theASEANEconomicCommunity (AEC) and many others.

Box 1: The Myanmar Sustainable Development Plan Summary FrameworkA Peaceful, Prosperous & Democratic MyanmarGoal 1:Goal 2:Goal 3:Goal 4:Goal 5:Peace, NationalReconciliation,Security & GoodGovernanceEconomicStability &StrengthenedMacroeconomicManagementJob Creation &Private SectorLed GrowthHumanResources &SocialDevelopment fora 21st CenturySocietyNaturalResources & theEnvironment forPosterity of theNationPILLAR 1:PILLAR 2:PILLAR 3:PEACE & STABILITYPROSPERITY &PARTNERSHIPPEOPLE & PLANETFor each of the 5 Goals, clear strategies havebeen developed. For each strategy, ActionPlans have been identified. Action Plans areintended to be multidimensional, withsuccessful implementation requiring theinvolvement of a broad range ofstakeholders, including multiple ministriesand departments.Progress toward the Action Plans willtypically require multiple programmes,5projects and activities. Hence, each ActionPlan will require strong coordinationamongst responsible stakeholders to ensureprogress toward successful accomplishment.To the greatest extent possible, Action Planshave also been designed to encompassexisting plans and strategies. Taken together,these Pillars, Goals, Strategies and ActionPlans combine to form the MSDPImplementation Matrix.

ECONOMIC POLICY OF THE UNION OFMYANMARLaunched in July of 2016, the Economic Policy of the Union of Myanmar encapsulates the overallframework that guides Myanmar’s economic and social development. This MSDP has beendeveloped to ensure full alignment with this Policy framework.VisionThe economic policy of the Union of Myanmar is people-centred and aims to achieve inclusiveand continuous development. It aims to establish an economic framework that supports nationalreconciliation, based on the just balancing of sustainable natural resource mobilisation andallocation across the States and Regions.Objectives1. To support national reconciliation and the emergence of a united democratic federal Union.2. To achieve balanced economic development across the States and Regions.3. To create opportunities for the emergence of capable and skilled new generations for thebenefit of the country.4. To establish an economic system that can achieve and maintain positive developmentoutcomes through the participation, innovation and efforts of all citizens.Policies1. Expanding our financial resources through transparent and effective public financialmanagement.2. Improving the operations of State-owned enterprises and privatising those State-ownedenterprises that have the potential to be reformed, while promoting and assisting small andmedium enterprises as generators of employment and growth.3. Fostering the human capital that will be needed for the emergence of a modern developedeconomy and improving and expanding vocational education and training.4. Prioritising the rapid development of fundamental economic infrastructure, such aselectricity generation, roads and ports, and establishing a data ID card system, a digitalgovernment strategy, and an e-government system.5. Creating employment opportunities for all citizens including those returning from abroadand giving greater priority in the short term to economic enterprises that create many jobopportunities.6. Establishing an economic model that balances agriculture and industry and supports theholistic development of the agriculture, livestock and industrial sectors, so as to enablerounded development, food security and increased exports.7. Asserting the right of individuals to freely pursue the economic opportunities they choose,so as to enable private sector growth in line with a market economy system; formulatingspecific policies to increase foreign investment; and strengthening property rights and therule of law.8. Achieving financial stability through a finance system that can support the sustainable longterm development of households, farmers and businesses.6

9. Building environmentally sustainable cities, upgrading public services and utilities, expandingpublic spaces, and making greater efforts to protect and conserve our cultural heritage.10. Establishing a fair and efficient tax system in order to increase government revenues andprotecting individual rights and property rights through enacting laws and regulations.11. Establishing technical systems and procedures to support intellectual property rights thatcan encourage innovation and the development of advanced technology.12. Identifying the changing and developing business environment both in ASEAN and beyond,so as to enable our own businesses to situate themselves to take advantage of potentialopportunities.7

STRATEGIES & ACTION PLANSPILLAR 1: PEACE & STABILITYThe achievement of a durable peace isintegral to Myanmar’s journey towardssustainable and inclusive development.However, the MSDP recognises that a justand sustainable peace will involve addressingboth political and economic dimensionssimultaneously.Pillar 1 recognises that the generation andperpetuation of conflict is driven by mistrustbetween groups, the lack of transparent andaccountable public institutions to expressand address grievances, the exclusion andmarginalization of people from decisionmaking processes as well as pervasive senseof injustice generated by mic instability and vulnerabilityto economic shocks. Similarly, it recognisesthat durable peace is engendered andpreserved through strengthened Statecapacity to ensure security and stabi

The Myanmar Sustainable Development Plan (MSDP) is the expression of our national development vision - a vision that finds resonance in the global sustainable development agenda. Currently, Myanmar has myriad sectoral, ministerial and sub-national plans. Genuine development will only come to Myanmar if, and only if, all

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