Myanmar Transport Sector Policy Note: How to Reform Transport Institutions

Myanmar's transport sector institutions are currently ill adapted to the new situation. Although government reform attempts have been in the right direction, more is needed to shape a strong basis for sector development.

The thrust of the government’s efforts—liberalization of service markets, corporatization of state-owned economic enterprises (SEEs), decentralization, increased importance of planning—has been in the right direction. However, reforms address only part of entrenched problems, and there is a lack of consistency between subsectors of transport.

A more ambitious reform package is needed to:

• scale-up sector resources, from a historic level of 1%–1.5% of GDP to 3% or 4% of GDP;
• find a lasting solution to the state-owned economic enterprise crisis, and doing so, clarify their role and that of the government;
• create the bases for private sector growth. Regulations and institutions that foster competition, balanced public procurement, and good governance are needed;
• put technical planning at the heart of decision-making to ensure that scarce resources serve top priorities and are at a scale and standard appropriate to needs;
• enable a strong leadership of the transport sector in the central government;
• decentralize effectively. Transport could be a leading sector in decentralization, but matching packages of resources, responsibilities, and administrative capacity are needed.

About the Transport Sector Policy Note

The Myanmar Transport Sector Policy Note is composed of a series of 9 reports, and a Summary for Decision Makers.

• How to Reform Transport Institutions
• How to Reduce Transport Costs
• Railways
• River Transport
• Rural Roads and Access
• Trunk Roads
• Urban Transport
• Road Safety
• How to Improve Road User Charges