Analysis of Economic and Political Reforms in Myanmar and China

This case study provides an in-depth analysis of the economic and political developments in Myanmar and China. It begins by examining Myanmar's economic reforms since 2010, including the shift away from military dictatorship, the impact of infrastructure limitations, and the government's efforts to liberalize the economy through currency reforms and privatization. The study also explores the role of foreign direct investment (FDI) in Myanmar's economic growth and the political transition following the 2015 elections. Furthermore, the case delves into China's continued economic growth, projecting future GDP based on consumer consumption and the influx of FDI. The case also examines the influence of changing consumer behavior, particularly within the growing middle and upper-income populations, and the impact of online shopping platforms such as Alibaba's Tmall and Taobao on the buying habits of Chinese consumers. Overall, the study provides a comparative perspective on the economic and political landscapes of both nations and their respective development trajectories.

Economic and political
development
A case study of Myanmar and China

Political and economic reform in
Myanmar
• The case clearly indicated the economic reforms that were witnessed by
Myanmar since the year 2010
• The nation was ruled formerly ruled by military dictatorship since the year 1960s
which critically stagnated the economic capabilities of the same
• The lack of rail links and roads between Myanmar and the neighboring countries
like China, India and Thailand also affected the rate of growth of the nation
• After the 2010 elections the government led by Thein Sein aimed at removing
restrictions from the press and allowed opposition parties in contesting by-
elections
• The government abandoned fixed rates for Myanmar’s currency with the
objective of encouraging the fall of the value of Kyat

Political and economic reform in
Myanmar
• The maximization of the exports and inward FDIs would enable Myanmar in
reforming the economic structure of the same
• The economic reforms that were undertaken by Sein through the privatization
of state owned enterprises encouraged the business developments
• Myanmar’s economic reform might be noted as liberalization and stable
political transition
• the privatization of the different departments would enable the government in
maximizing the engagement of the entrepreneurs through reduction of
stringent policies and tariffs
• The growth of FDIs would enable the nation in developing infrastructural and
technological facilities contributing to the improvements in the rate of GDP

Political and economic reform in
Myanmar
• The further improvements in the economy would be based on collaboration
with the other nations with the objective of ensuring technological growth
• In this relation, the nation might face significant impediments relating to the
lack of bilateral trade agreements which might affect the rate of operations
of the venture while operating in the different markets
• In November 2015, as the opposition party under the rule of Anug San Suu
Kyi won by 81% of the seats of the parliament in Myanmar which would
bring forth liberalization through the economic and political reforms
• The economic reforms would enable the nation in enhancing the growth of
industrialization and commerce

Will China continue to be a growth marketplace?
• The unprecedented growth of China will continue till 2050 as per the
expected growth of the consumption rate
• The nation’s GDP is estimated to grow by 5.5% till 2020 due to the
enhanced consumption rate of the consumers
• Many foreign companies invested for their unprecedented growth in
the economy as China provided with facilities such as low cost
production
• The growth of the FDIs in the nation was however interrupted by the
cultural differences between the Chinese markets and the work
culture of the companies

Will China continue to be a growth marketplace?
• If China will go from 17 million to 200 million middle and upper
income population, there will be significant changes in the buying
behaviors
• The changing lifestyle of the Chinese people would change the
situation that is being reflected through the case of Best Buy
• The increased rate of middle and upper income population would
boost their buying behavior which will thereby increase the rate of
sales of the overpriced commodities

Will China continue to be a growth marketplace?
• The ownership of Alibaba over Tmall and Taobao would enable
customer communication with the direct sellers which might increase
the influence of western based online shopping culture
• The enhanced buying experience through maximized rate of
communication would enable the Chinese buyers in developing online
buying habits influenced of western based online shopping culture