Escolar Documentos
Profissional Documentos
Cultura Documentos
Prepared For:
Dr. Shamsuddin Ahmad
Faculty
School of Business Administration
Prepared By:
No Name ID
1 Tahmina Hossain 1530400
2 Onirul Islam Pathan 0920548
1
Table of Content
No Description Page No
1 Introduction 1
2 Background 1
3 Government 2
4 Economy 2
5 Economic Sanction 3
11 Z- Calculated Value 10
12 Comments 11
2
Myanmar is a country in Southeast Asia, also known as Burma, its also called the Golden Land.
With an area of 676,578 km the country is almost twice the size of Germany or slightly smaller
than the U.S. state of Texas. Myanmar is bordered in north and northeast by China, in east
by Laos and Thailand, in south by the Andaman Sea and the Bay of Bengal and in west
by Bangladesh and India. With 5,881 m (19,295 ft) Mount Hkakabo Razi in Kachin state on the
border tri-point with China and India is the highest elevation in Myanmar and Southeast Asia's
highest mountain. Main rivers are the Chindwin and the Irrawaddy (Ayeyarwady) river.
Myanmar has a population of 51.4 million people (2014 census). Largest city, former capital, and
the economic center of Myanmar is Yangon, capital is since 2005 the planned city of Naypyidaw.
Spoken languages are Burmese. On this pages you will find comprehensive information about
Myanmar, or Burma in its diversity, its geography, economy, people, culture, environment,
Background:
Previously an independent kingdom, Burma was annexed by the British Empire into the colony
of India in 1886. The occupation brought social, economic, cultural and administrative changes
to the once-feudal society. The Japanese Empire invaded and occupied the country during World
From 1962 to 2011, the country was ruled by a military junta with absolute power. The name of
the country was changed in 1989 by the ruling military government, officially recognized by the
United Nations. Some national governments, such as Canada, the United Kingdom, the United
States, and much of the Burmese population do not recognize this name change, since they do
not recognize the military government. Despite multiparty elections in 1990 that resulted in the
main opposition party winning a decisive victory, the military junta refused to hand over power.
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Key opposition leader and Nobel Peace Prize recipient AUNG San Suu Kyi, has been set under
house arrest from 1989 to 1995, and was again placed under house detention in September 2000;
her supporters are routinely harassed or jailed. In 2011 the military junta was dissolved following
Government:
Type: nominally civilian government (since 29th March 2011, when Burma's military handed
over power). The new political system came into effect after an election in November 2010.
Constitution: 3 January 1974 (suspended since 18 September 1988 when latest junta took
Economy
Myanmar is one of the poorest nations in Southeast Asia, suffering from decades of stagnation,
mismanagement and isolation. The lack of an educated workforce skilled in modern technology
hinders Myanmar's economy, although recent reforms and developments carried out by the new
government, in collaboration with foreign countries and organizations aim to make this a thing of
the past. Myanmar lacks adequate infrastructure. Goods travel primarily across the Thai border
(where most illegal drugs are exported) and along the Irrawaddy River. Railways are old and
rudimentary, with few repairs since their construction in the late 19th century. Highways are
normally unpaved, except in the major cities. Energy shortages are common throughout the
country including in Yangon and only 25% of the country's population has electricity.
The military government has the majority stakeholder position in all of the major industrial
corporations of the country (from oil production and consumer goods to transportation and
tourism). The national currency is Kyat. Inflation averaged 30.1% between 2005 and 2007.
Inflation is a serious problem for the economy. In 20102011, Bangladesh exported products
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worth $9.65 million to Myanmar against its import of $179 million. The annual import of
medicine and medical equipment to Myanmar during the 2000s was 160 million USD.
In recent years, both China and India have attempted to strengthen ties with the government for
economic benefit. Many nations, including the United States and Canada, and the European
Union, have imposed investment and trade sanctions on Myanmar. The United States and
European Union eased most of their sanctions in 2012. Foreign investment comes primarily from
Natural resources: Timber, tin, antimony, zinc, copper, tungsten, lead, coal, limestone, precious
stones like jade, ruby and sapphires, natural gas, hydropower, and some petroleum.
Agriculture Products: Rice, pulses, beans, sesame, groundnuts, sugarcane, hardwood, fish and
fish products.
Industries: Agricultural processing; knit and woven apparel; wood and wood products; copper,
Economic sanctions
Department (31 CFR Part 537, 16 August 2005) and by Executive orders 13047 (1997), 13310
(2003), 13448 (2007), 13464 (2008), and the most recent, 13619 (2012). There exists debate as
to the extent to which the American-led sanctions have had more adverse effects on the civilian
From May 2012 to February 2013, the United States began to lift its economic sanctions on
Myanmar "in response to the historic reforms that have been taking place in that country."
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Sanctions remain in place for blocked banks and for any business entities that are more than 50%
owned by persons on "OFAC's Specially Designated Nationals and Blocked Persons list (SDN
list)".
The military has the majority stakeholder position in all of the major industrial corporations of
the country (from oil production and consumer goods to transportation and tourism).
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Myanmar does not enjoy good trade relations, especially with the western countries. The US
does not import anything from Myanmar. Australia and the European Union have also imposed
sanctions on the country, restricting the import of certain products. Myanmars exports fell
drastically during the global economic crisis of 2008-09. However, Myanmar is a member of the
WTO, ASEAN and BIMSTEC. It shares healthy trade relations with its neighboring countries,
including India, Thailand and China. The countrys poor infrastructure is one of the main
hindrances to international trade. The primary route of trade is across the Thai border, which is
also used to export many illegal drugs through the Ayeyarwady River. Burma has a wealth of
precious stones and gems. However, due to the infamous working conditions in the mines,
international companies refuse to import these stones. Burma has a large trade deficit that has
also crippled its economic growth. In 2007, the country imported 18,250 bbl/day and exported
only 2,200 bbl/day of oil. The total overall imports rose to $3.555 billion in 2009, from $3.388
billion in 2008 (excluding the import of smuggled products). The total overall exports fell to
$6.504 billion in 2009, from $6.677 billion in 2008 (excluding export of smuggled products).
Fabric
Fertilizer
Plastics
Machinery
Transport equipment
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Cement and construction materials
The share of Myanmars major import partners (as of 2008) is depicted in the following graph:
Natural gas
Wood products
Fish
Rice
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Clothing
The share of Myanmars major export partners (as of 2008) is depicted in the following graph:
Myanmar Imports
1001.44 USD Million from 2010 until 2015, reaching an all-time high of
1967.10 USD Million in July of 2015 and a record low of 334.20 USD Million in
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October of 2010. Imports in Myanmar is reported by the Central Statistics
Organization, Myanmar.
Myanmar mainly imports fuel, vegetable oil, vehicles, pharmaceutical products, construction
equipment, polymers, tires and machinery. Myanmar's main imports partners are China, Japan,
India, Indonesia, Germany, France and Hong Kong. This page provides - Myanmar Imports -
actual values, historical data, forecast, chart, statistics, economic calendar and news. Myanmar
Imports - actual data, historical chart and calendar of releases - was last updated on July of 2016.
10
Myanmar Trade Last Previous Highest Lowest Unit
11
Million
Z = 0.30 (DSR) + 0.25 (IR) + 0.12 (INVR) + 0.05 (MG) + 0.20 (VAREX)
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Z
4.28
4.26
4.24
4.22 Z
4.2
4.18
4.16
4.14
4.12
2010 2011 2012 2013
Figure: Z Value
(c) what the country can do to reduce the Z score (the probability of rescheduling).
Finally, give your view about whether an international FI would be willing to give a sovereign
loan to the country, the reasons for the decision, and if yes, at what rate over LIBOR.
Answer
A) Change in money supply has a great impact on trend. If we look at the chart we can see in
2012 z was higher than other years. The main reason of this change is change in money supply,
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B) From the trend we can say in 2010 and 2011 was almost same. But in 2012 it jumped to 4.27
where as it 4.17559 and 4.17507 in 2010 and 2011. In 2013 dramatically trend plunged to 4.20.
C) Burma should maintain their money supply in market. Government must take necessary
action to control money supply. If they do not do that inflation rate and interest rate will be
Analyzing all relevant data, we come to a decision that Burman that it is safe to give loan for FI.
Because GNP of Burma is upward trend. Gradually real investment is rising. Import is also
increasing day by day. So Burma needs foreign money to do import and real investment. On the
Reference:
1. https://knoema.com/atlas/topics/Economy/Financial-Sector-Monetary-
holdings-liabilities/M2-as-percent-of-GDP
2. http://www.tradingeconomics.com/myanmar/indicators
3. http://data.worldbank.org/data-catalog/world-development-indicators
4. https://knoema.com/WBWDIGDF2015Aug/world-development-
indicators-wdi-september-2015?tsId=2086480
5. http://www.cbm.gov.mm/content/central-bank-myanmar-mandalay-
branch
6. https://www.quandl.com/data/ADB/MF_GRMSM2_MMR-Myanmar-
Growth-Rates-of-Money-Supply-M2
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7. http://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/mmr/all/s
how/2012/
8. http://atlas.media.mit.edu/en/profile/country/mmr/#Imports
9. http://atlas.media.mit.edu/en/visualize/line/hs92/import/mmr/all/show/2
007.2012/
10. http://www.economywatch.com/economic-
statistics/country/Myanmar/
11. http://data.worldbank.org/indicator/FI.RES.TOTL.MO?
end=2015&start=2001
12. http://data.worldbank.org/indicator/FM.LBL.MQMY.GD.ZS?
end=2012&start=2004
13. http://data.worldbank.org/indicator/FM.LBL.MQMY.GD.ZS?
end=2012&start=2006
14. https://en.wikipedia.org/wiki/Myanmar
15. http://data.un.org/CountryProfile.aspx?crName=MYANMAR
16. http://www.tradingeconomics.com/myanmar/foreign-direct-
investment
17. http://data.worldbank.org/indicator/FI.RES.TOTL.MO?
end=2015&start=2007
18. http://data.worldbank.org/indicator/FI.RES.TOTL.MO
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