Wednesday, January 31, 2007

Comparative Advantage of Burma

What comparative advantage does burma can have?

Obviously, its main comparative advantage should be producing natural resource for neighboring countries.
Burma is a resouce-rich country, but its economic is always instable. Inflation and multiple official exchange rates cause overvalue the Burmese kyat and distorted interest rate. Burma has been suffering from economic sanction that is mostly ban on trades or financial seervice by US since 2003, because Burma government having prominent humanrights problem. Industires related with oil, gas, mining and timber is productive. In manufacturing and services, there is shortage of infrastructure. Its main trade was perfoermed with Thailand, China and India. Its exports and tourism could be comparative advantage in future, if Burma can collect invesment for it.

https://www.cia.gov/cia/publications/factbook/geos/bm.html#Econ

Recent News( Jan 16, 2007)

Myanmer is going to sell China oil company oil/gas exploration rights at three deep-sea blocks off the oil-rich country's western Rakhine coast. On the other hand, US drafted Security Council Resolution was vetoed by both China and Russia. The production will be shared among the China National Petroleum Corporation (CNPC) and the Myanmar Oil and Gas Enterprise under the Ministry of Energy. The total area of the production 10,000 square-kiloneters. Recently, Burma tends to have relaionship with neighbering countries such as Singapore too.

>In my opinion, maybe, without political settlement of US economic sanction, investment for other industries in this country will be difficult to be achieved.

http://www.zeenews.com/znnew/articles.asp?rep=2&aid=348147&ssid=51&sid=BUS