Chief ministers of several states and regions are urging more decentralisation and less bureaucracy to speed the way to a federal system for the country.
“We chief ministers are very active in inviting investments in our states and regions, but we are hampered by the central government. Without sufficient decentralisation, it will be hard to streamline and simplify the investment process,” U Zaw Myint Maung, chief minister of Mandalay Region, said this week at a workshop on boosting investment in northern Myanmar.
At the event, Salai Lian Luai, chief minister of Chin State, where only four townships are electrified, said that although the state has hydropower, the effort to bring power to more townships is delayed because of the need for central government approval.
“The challenge in the electricity sector is that regions and states can only authorise projects under 30 Megawatts, while those with higher output can only be carried out by the central government. The other problem is we can’t decide the price of the electricity generated. Only the central government can make those decisions. The process would be smoother and faster if the state governments had more authority,” Salai Lian Luai said.
Under the Myanmar Investment Law 2016, investment committees were established in every region and state.
The committees include representatives from government departments and are headed by the chief ministers. They have the authority to permit foreign investment of up to US$5 million, and local investment of up to K6 billion.
The 2008 Constitution lays out the powers of the regional and state governments, and the chief ministers say it gives too much authority to the central government.
“However hard the State Counsellor urges us to work with the union government, there’s still a gap. As long as centralisation exists, it will be harder for us to progress,” said U Zaw Myint Maung.
According to the Myanmar Economic Index report by the Asia Foundation, Myanmar has been gradually decentralising. In addition, national-level polices still play important roles, and state and regional governments are getting more involved in the process, the report said.
“As the country is moving towards becoming a federal democratic nation, the roles of states and regions are crucial in economic affairs. Meanwhile there are certain investments that we have permitted, but to give power to the regions is already one of Myanmar’s policies, so it can be assumed that the economic situation will change with the changing political landscape,” said U Aung Naing Oo, permanent secretary of Investment and Foreign Economic Relations.
