A Holistic Approach to Strengthen Macroeconomic Capacity in Myanmar
Challenge
To support its reform and opening-up efforts after decades of isolation, Myanmar wanted to significantly boost its capacity in macroeconomic management, so as to enable the country to maintain macroeconomic stability and achieve sustainable, inclusive growth.
Approach
The IMF developed holistic capacity development programs, including training, largely funded by Japan, the European Union, and other development partners, targeting the most critical areas of reform. In 2016, Myanmar was the largest recipient of IMF support for capacity development.
Impact
Over the years, the IMF has helped Myanmar reform its central bank and foreign exchange market, develop monetary policy tools and capacity in bank regulation and supervision, set up a large taxpayer office, modernize tax collection and expenditure management, strengthen the anti-money laundering regime, establish a macroeconomic monitoring group, and build a statistics program. With these and other reforms, Myanmar has managed to lower inflation, boost financial access, increase government revenue and achieve strong economic growth since 2011.