Economic policy of National League

[brelief@xxxxxxx]

Subject: Economic policy of National League for Democracy Yangon, Union  of Myanmar

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Economic policy of National League for Democracy Yangon, Union of Myanmar

   ISSUED AT END OF NLD CONGRESS MAY 26TH THROUGH 28TH 1996      PREAMBLE
On the eve of the 1990 elections, the NLD has issued a manifesto on its
stand on the Social, Political and Economic problems in the country   in
general. Our attitude toward Economic matters was also expressed   there. An
11 points short term measures to be taken immediately as well as a    sector
by sector long-term plan were stated in the manifesto.  
   It has now been six years since the elections and the SLORC has,
declaring    a Market Oriented Economic System, done some changes within the
country   and, with an effort to attract foreign investment, formed the
Myanmar   Investment Commission. It has promulgated Laws it felt necessary
for the   introduction of foreign investment and declared an "Open Door
Policy".   There have also been much efforts to attract foreign investment. 
   However, the ( comparatively ) lack of foreign investment or the wait
and see stance of foreign investment is evident.  Therefore, as the NLD
feels it is time for a new analysis of the entire   situation, social,
political and economic, we have here drawn a revised   manifesto based on:   
a) the draft of our ( general ) attitude/stance; 
(b) our position stated in the election manifesto regarding the short and
long term Economic policy and  (c) further proposals put forward by
individual experts of the NLD. 

(A) INITIAL TASKS    
1.1     Priority is to be given to the reduction of prices and the
stabilisation of the currency and job security.  
1.2     To effectively manage the State Budget and establish reasonable
Budgetary and Financial policies.  
1.3     To reassess the rates of exchange between Myanmar and Foreign
currencies and make the necessary phase by phase changes with  the help of
the IMF and the IFC.  
1.5     Import priority will be accorded extra energy, transport vehicles
and  goods conducive to the reduction of consumer prices.  
1.5     To strive to expand the variety of Export items.  
1.6     To reassess Investment Laws and make the necessary amendments and
annulments in the laws in order to attract foreign investment.  
1.7     To reschedule External Debt while, at the same time, seek more
foreign aid for the rehabilitation of the country. To strive to   obtain
loans and grants from the World Bank and the International   Monetary Fund.  
1.8     To reassess Laws, Rules, and  Regulations which restrict and limit
Business and make necessary amendments or annulments.  
1.9     To review the present structure of taxation of private   enterprises.  
1.10    The Various sectors of the Economy must be based on a fully Market
Oriented Economic System. Particular encouragement will   be given to
expedite Private Enterprise.  
1.11    To permit Export Subsidies at the present for the short term and to
utilise a Multiple Exchange Rate for a short term if necessary.      

(B) PHASE BY PHASE IMPLEMENTATION OF ECONOMIC OBJECTIVES    
2.1     To Privatise or to return to their former owners, Nationalised
Enterprises in the Industrial, Construction, Energy, Mining,   Services
Sectors, etc,.  
2.2     To incorporate in the State Constitution that Private Enterprise
shall not be Nationalised.  
2.3     Permits to be granted for Private and Joint Venture enterprises to
develop and do business in Gems and Mining.  
2.4     To liquidate and abolish all Nationalised enterprises except for
those that will cause immediate retrenchment and create an   unemployment
problem.  To review and amend the Investment and Organisational Structure of
such Enterprises that can not be immediately liquidated and to   strictly
curb all unnecessary expenditures.  
2.5     To give the people security by taking full responsibility for all
currencies officially circulated.  2.6     To make the widest possible use
of modern techniques and   technology in the fields of Public Relations,
Agro-based    entereprises, Trade & Commerce and Education for the
development of    the country.      

(C) TRANSPORT AND COMMUNICATION    
3.1     Emphasis shall be placed on expansion and renovation of the
Transport   and Communication sector to expedite and facilitate the flow of
goods and commodities with a view to reduction of prices.  3.2     Emphasis
shall be placed on priorities to expand the   communications in regions
where development has been slow.      

(D) STANCE ON AGRICULTURAL LAND      
4.1     Landlordism shall be prohibited. The peasants shall have the   right
to own or transfer farmland.  4.2     On one hand, the peasant shall have
the security of the minimal    bench price for produce which remunerates him
for his   cost of living and the cost of production in line with the market
system. On the other hand, adjustments must be made for   a relation between
domestic and international prices.  4.3     Permission will be granted for
freedom in cultivation, storing,    milling, transportation and sales of
produce.  
4.4     The Agricultural Banking system will be expanded with a view to
making short and long term loans and provision of grants   for the
maintenance of arable land.  
4.5     Emphasis shall be given to the reclamation of fallow land.  
4.6     Aid and encouragement will be provided for the easy access to   and
cultivation of high-yield varieties.  
4.7     The State shall do utmost to establish more Fertilizer Factories for
the sufficiency of fertilizer. Widespread education campaigns   shall be
carried out to promote the systematic and effective use   of fertilisers and
pesticides in an environmentally friendly   manner.  
4.8     Priority shall be given to development of modern agricultural
machinery.  
4.9     To promote production of Export-oriented produces other than   only
rice and Industrial crops.  4.10    To permit land grants to the private
sector for development of   the agricultural sector and fallow and free land
for the   cultivation of long-term crops.  
4.11    Emphasis to be placed on obtaining modern expertise. To increase the
number of persons with modern expertise.  
4.12    To revise the law on Nationalisation of Farmland, the law on crop
rotation and the law on protection of the rights of the peasant.  
4.13    To increase the area of farmland under irrigation. To expand large
and small scale reservoirs and irrigation systems in all   ways possible and
to seek foreign aid if necessary for this    purpose.  
4.14    To develop water resources for cultivation and human purposes.    To
spread techniques and expertise. To expand different   levels of expertise
from various sources to obtain energy in   the rural areas.
(E)     STANCE ON FOREST AND FORESTRY PRODUCTS    
5.1     The State shall administer Environmental Conservation, Prevention of
deforestation and Conservation of Forests.  
5.2     A systematic approach for domestic use of Forests and forestry
Products shall be carried out.  5.3     Systematic implementation of Timber,
Extraction of Teak and   other Hardwoods and Export to be carried out in
consultation and   analysis with experts.  
5.4     Control of Soil Erosion to prevent deforestation, Reforestation,
Systematic establishment of protected forests to be implemented   on a long
term basis.  
5.5     Expansion and review of cultivation and distribution of timber for
domestic and industrial use.  5.6     Contact with various international
organisations for modern    techniques and expertise for the upgrading of
technology,    machinery and equipment necessary for the Forestry Sector.  
5.7     To establish observable rules and regulations for the right of
local private users, Industries which depend upon the Forests,   Industry
and Forestry workers to utilise Forestry products.  
5.8     To carry out, according to the laws, the necessary requirements for
the Export, Domestic distribution and Production of   Finished Products from
Timber that is produced by Private   developers and Privately owned saw-mills.

CONCLUSION     
>From the ( former ) Soviet Union to Myanmar, it is quite clear  that there
can be no progress when the state monopolises the  national economy.
Implementation of such a system will curtail Political and Social
freedoms. When the people have to submit to the authorities in  all matters,
it corrupts the authorities as well as it lowers the  dignity of the people.
The NLD will strive to alleviate as much  as possible, the burden of taxes
borne by the people. The aim is  to establish a society in which  government
interference in the  various aspects pf individual life is kept to a
minimum. A regular Market Mechanism is required for a Market Oriented System
to  flourish and for that there must be a Rule of Law within the  country. A
state of genuine competition can only occur when  there is a Rule of Law
within the country. Genuine  competitiveness can only occur when there is a
Rule of Law and an  equitable judicial system. In the absence of this,
people  who do not have the protection of the law; who are aggrieved and
distrust the judicial system, tend to go outside the law. On the obverse
side, domestic experience notes that this produces   the Rule of Persons in
which authorities give preferential  treatment to relatives and associates,
giving rise to Cronyism. This is why the NLD believes that emphasis must be
given to first   establishing a firm Legal-Judicial Structure in order to
develop  a Market Oriented System. It will be noticed that people of all
political hues use the phrase 'Market Economy'. It is the aim of  the NLD to
promote a Market Economy that provides all the basic  freedoms of Human
Society which opens the field for maximum  development of skills and
creativity for the effective  development. 

( Unofficial translation )
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