Navigating the Financial Landscape
Episode #201: Sean Turnell provides a deep analysis of Myanmar's economic history and its transformation from a prosperous nation to one of the poorest in Southeast Asia. Throughout the episode, Turnell’s personal experiences, including his time as an economic advisor to Aung San Suu Kyi and his 650-day imprisonment following the coup, intersect with the nation's trajectory, emphasizing the resilience and courage of the Myanmar people in the face of adversity.Turnell’s insights shed light on the detrimental impact of decades of disastrous economic policies imposed by successive military regimes. Turnell discusses the military's complete control over the country's natural resources and their focus on a “rent-seeking” rather than growth-oriented economy, resulting in widespread poverty.He also explores the role of the Myanmar Economic Corporation and Myanmar Economic Holdings Limited, two major conglomerates overseen by the military, and the lack of transparency surrounding their operations. The conversation also delves into the brief period of economic openness and the shift towards more foreign investment during the transition period, which was driven by the military’s fear of becoming a vassal state of China.Turnell highlights the challenges faced during the transition, emphasizing the difficulty of implementing reforms, and the resistance from a corrupt bureaucracy. He reflects on the potential for what a second NLD term might have been, and the bold economic reforms it might have brought to the Burmese people.The episode concludes with a discussion of post-coup Myanmar, including the military’s reckless printing of money and its impact on monetary instability. Turnell highlights the widespread barter economy and economic inequality as factors preventing hyperinflation.