A year after general elections gave the National League for Democracy a majority in Parliament and almost eight months since the inauguration of an NLD-led government, Myanmar is in a difficult situation. Economic growth has slowed and the progress of democratization and ethnic reconciliation remains sluggish. In extending support to the Southeast Asian country, Japan must work out policies that will help it respond to the rising expectations of its own people. Myanmar, on its part, needs to make serious efforts to improve economic conditions and ethnic relations.
Decades of sanctions against the military regime hampered the development of Myanmar's economy. De facto leader Aung Sang Suu Kyi has scored a diplomatic success by getting the sanctions lifted. Still, in her meeting with business leaders in the capital Naypyitaw late last month, she admitted that the economy was not growing as fast as expected. The World Bank has predicted Myanmar's economy would grow 7.8 percent with inflation at 8.5 percent in the 2016-2017 period, but Planning and Finance Minister Kyaw Win revised the growth forecast downward to 5 percent. Among the causes of the slowdown is confusion in the investment authorization procedure due to the change of government.
Following years of military rule, most of Myanmar's population still live in poverty, and the high cost of food and fuel is hitting them hard. People's frustration with the NLD-led government will grow if they don't feel they have gained tangible economic benefits under its rule, possibly sowing new seeds of instability in the country.