Myanmar eyes economy for next round of reforms

In this June 10, 2012 photo, vendors hawk through a traffic to sell weekly news journals in Yangon, Myanmar. Myanmar President Thein Sein vowed Tuesday, June 19, 2012, to put the economy at the center of his next wave of reforms. AP PHOTO/KHIN MAUNG WIN

YANGON—Myanmar’s leader vowed Tuesday to put the economy at the center of his next wave of reforms, aiming to boost development in the impoverished country following a series of dramatic political changes.

In a televised speech to the nation, President Thein Sein said his government was targeting economic growth of 7.7 percent a year on average over the next five years.

“The government worked for political reforms and national reconciliation during its first year,” the former general said.

“The second phase of the reform process starting from this year will focus on the development of the country and the people.”

Since taking power in March 2011, the government has surprised even its critics with a string of reforms such as releasing hundreds of political prisoners and welcoming the opposition back into mainstream politics.

Companies are hungrily eyeing the oil and gas rich country after Western nations rewarded the government by easing some international sanctions.

Thein Sein’s administration has reached out to foreign investors as it seeks to invigorate an economy ravaged by decades of military rule and mismanagement

The president said a new “privatization commission” would be set up in an attempt to increase the role of the private sector in sectors such as telecommunications, energy, forestry, education and health.

Much of Myanmar’s industry is currently controlled by companies owned by the government or their cronies.

In the new government’s most radical economic reform yet, the country in April began a managed flotation of its currency, in a move apparently aimed at facilitating trade and investment.