"Myanmar, which is emerging from decades of isolation, is poised to accelerate its economic growth on the back of its abundant labor force, rich natural resources, and geographical location. But the country faces many development challenges to achieve strong and inclusive growth. To take advantage of its rich potential and endowments, Myanmar can also use its strategic location between the People?s Republic of China and India, and act as a conduit between South and Southeast Asia. In order to sustain its growth momentum in the long run, Myanmar should aim for a growth trajectory that is inclusive, equitable, and environmentally sustainable. This special report assesses the country?s strengths and weaknesses and highlights the challenges and risks. The key lies in prioritizing the actions to surmount the challenges and introducing the requisite reforms."...Executive summary: "...The course of Myanmar?s future growth can be guided by three complementary development strategies: regional integration, inclusiveness, and environmental sustainability. Furthermore, given the myriad challenges the country faces and the limited resources at its disposal, the interventions can be prioritized and reforms sequenced for the maximum benefits.   Key development agendas include the following:  • Provide macroeconomic stability. A stable macro environment provides a foundation for investment and long-term growth. Key elements of sound macroeconomic policy include low and stable inflation; a sustainable fiscal position; and a flexible, market-based exchange rate.... • Mobilize resources for investment. Increased domestic and foreign savings are critical to meeting the enormous requirements of the private and public sectors. In addition, higher government revenues (e.g., taxation] and more efficient financial intermediation will also help to provide sustainable financing for development.... • Improve infrastructure and human capital. The removal of structural impediments in the key areas of education, health, and infrastructure can provide a basis for human capital development and improve connectivity.... • Diversify into industry and services, while improving agriculture. Broadening the economic base beyond primary industries can raise productivity and value addition. Yet agriculture, fisheries, and resource industries are not to be neglected as they contain considerable potential for expansion.... • Reduce the state?s role in production. A further reduction in the government?s ownership and control of productive activities can help spur competition and increase investment by creating a level playing field.... • Strengthen government institutions. Economic transformation can be supported by effective government institutions, although building institutions and their capacity may take time. Attention might focus on nurturing administrative and regulatory systems; managing resources; and, most importantly, enhancing the capabilities of government personnel throughout the system.