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Pestel Analysis Of Myanmar (Burma) Country Description:Burma, officially the Union of Myanmar, is the largest country by geographical area in mainland Southeast Asia. The country is bordered by People's Republic of China on the northeast, Lao on the east, Thailand on the south-east, Bangladesh on the west, India on the north-west and the Bay of Bengal to the south-west with the Andaman Sea defining its southern periphery. Onethird of Burma's total perimeter, 1,930 kilometers (1,199 mi), forms an uninterrupted coastline.The country's culture, heavily influenced by Buddhism.Burma's diverse population has played a major role in defining its politics, history and demographics in modern times, and the country continues to struggle to mend its ethnic tensions The military has dominated government since General Ne Win led a coup in 1962 that toppled the civilian government of Burma remains under the tight control of the military-led State Peace and Development Council.
Political factors:Burma (Myanmar) is an underdeveloped agrarian country ruled by an authoritarian military regime. The country¶s government suppresses all expression of opposition to its rule. The Government of Burma has announced that it will hold nationwide elections on November 7, 2010, the first such elections in Burma in two decades.Burma is one of the poorest nations in the world, suffering from decades of stagnation, mismanagement, and isolation. Burma¶s GDP grows at an average rate of 2.9% annually.
Economical factor:under British administration, Burma was the second-wealthiest country in South-East Asia. It had been the world's largest exporter of rice. During British administration, Burma supplied oil through the Burma Oil Company. Burma also had a wealth of natural and labour resources. It produced 75% of the world's teak and had a highly literate population The country was believed to be on the fast track to development.
After a parliamentary government was formed in 1948, Prime Minister U Nu unsuccessfully attempted to make Burma a welfare state and adopted central planning. Rice exports fell by two thirds and mineral exports by over 96%. Plans were partly financed by printing money, which led to inflation The 1962 coup d'état was followed by an economic scheme called the Burmese Way to Socialism, a plan to nationalise all industries, with the exception of agriculture. The catastrophic program turned Burma into one of the world's most impoverished countries Burma's admittance to Least Developed Country status by the UN in 1987 highlighted its economic bankruptcy. After 1988, the regime retreated from totalitarian rule. It permitted modest expansion of the private sector, allowed some foreign investment, and received needed foreign exchange The economy is still rated as the least free in Asia (tied with North Korea All fundamental market institutions are suppressed.Private enterprises are often co-owned or indirectly owned by state. The corruption watchdog organisation Transparency International in its 2007 Corruption Perceptions Index released on 26 September 2007 ranked Burma the most corrupt country in the world, tied with Somalia.
Social factors:The population of Burma is 48,837,741 and the trade organization like WTO and ASEAN is working actively over here if we talk about religion Many religions are practised in Burma. Religious edifices and orders have been in existence for many years. Festivals can be held on a grand scale. The Christian and Muslim populations do, however, face religious persecution and it is hard, if not impossible, for non-Buddhists to join the army or get government jobs, the main route to success in the country.Such persecution and targeting of civilians is particularly notable in Eastern Burma, where over 3000 villages have been destroyed in the past ten years.More than 200,000 Muslims have settled in Bangladesh, to escape persecution, over the past 20 years. 89% of the population embraces Buddhism Other religions are practiced largely without obstruction, with the notable exception of some ethnic minorities such as the Muslim people, who have continued to have their citizenship status denied and therefore do not have access to education, and Christians in Chin State. Four percent of the population practices Christianity 4 percent, Islam 1 percent. The educational system of Burma is operated by the government Ministry of Education. Universities and professional institutes from upper Burma and lower Burma are run by two separate entities, the Department of Higher Education of Upper Burma and the Department of Higher Education of Lower Burma. Headquarters are based in Yangon and Mandalay respectively. The education system is based on the United Kingdom's system, due to nearly a century of British and Christian presences in Burma. Nearly all schools are government-operated, but there has been a recent increase in privately
funded English language schools. Schooling is compulsory until the end of elementary school, probably about 9 years old, while the compulsory schooling age is 15 or 16 at international level.
Technological factors:There are 9,29,000 Telephones main line in use meets minimum requirements for local and intercity service for business and government system barely capable of providing basic service mobile-cellular phone system is grossly underdeveloped with a subscribership base of less than 1 per 100 persons there are near about 108900 internet user government controls all domestic broadcast media; 3 state-controlled television stations with 1 of the stations controlled by the armed forces; a fourth TV channel a pay-TV station, is a joint state-private venture; access to satellite TV is limited with residents required to register and pay a fee for all satellite television receivers; 2 state-controlled domestic radio stations; transmissions of several international broadcasters are available in Burma; the opposition-backed station Democratic Voice of Burma broadcasts into Burma via shortwave (2009) also Burma has 76 airports 27000 kms of road and 3955 kms of rail network pipeline for gas and oil spreads over 2228 kms and 558 kms respectively.
Environmental factor:Deforestation; industrial pollution of air, soil, and water; inadequatesanitation and water treatment contribute to disease are some of the current issues of Burma,Burma is rich in natural resources like petroleum, timber, tin, antimony, zinc, copper, tungsten, lead, coal, marble, limestone, precious stones, natural gas, hydropower and The major river is the Ayeyarwady River with a length of more than 2 000 kilometers, Other big rivers are Chindwin, Kaladan and Sittoung.
Legal factors:Legal factors include labour law,business law and tax system labour administration is the
responsibility of the Ministry of Labour. Departments under the Ministry of Labour include: (1) Department of Labour (2) Social Security Board, (3) Central Inland Freight Handling committee, (4) Factories and General Labour Laws Department,and (5) Central Trade Disputes Committee also the major functions performed by this department include conducting negotiations and conciliations in cases of dispute between employers and employees; providing employment services through its 78 township offices; providing overseas employment services; researching and reviewing labour laws; and maintaining manpower statistics. This department researches, monitors, and enforce safety and health standards in factories. Its inspectors are authorised to fine employers who breach minimum safety and health standards, and who commit other transgressions such is not complying with trade disputes awards, or not remitting social security contributions. Apart from enforcement, the department also disseminates industrial safely information and provides consultancy services. TAXATION
There are 15 types of taxes and duties under four main heads, they are: (1) Taxes levied on domestic production and public consumption - excise duty; licence fees on imported goods; state lottery; taxes on transport, commercial tax etc. (2) Taxes levied on income and ownership - income tax and profit tax. (3)Customs duties. (4) Taxes levied on utility of State-owned properties - taxes on land; water tax, embankment tax; taxes on extraction of forest products, minerals, rubber and fisheries. Income of tax payer is computed on the basis of one fiscal year (April 1 to March 31 of the following year). The fiscal year in which income is received is expressed as "income year" and the year following as "assessment year"
A resident foreigner or a resident citizen is subject to tax on all income derived from sources within the Union of Myanmar and on income from sources outside the Union of Myanmar. In the case of an enterprise operating under the Union of Myanmar Foreign Investment Law, the tax is payable only on income derived from sources with in the union of Myanmar. CONCLUSION
Myanmar, rich in natural resources, human resources and cultural and national heritage, offers a range of opportunities to potential investors. Myanmar also practises the legal system based on Common Law legal system. Myanmar needs to reap the best benefit out of such¶ endowments are influx of capital, appropriate technology, managerial skills and access to international markets.
Myanmar, bearing the said fact in mind, has laid down four economic objectives one of those being " development of the economy inviting participation in terms of technical know-how and investments from sources inside the country and abroad" In order to facilitate this objective in particular, Myanmar provides a spectrum of incentives in the form of taxes and duties. Myanmar believes in doing business in the light of mutually beneficial economic cooperation for the long term.
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