Special economic zones: Gateway or roadblock to reform?

Economic reform is a key component of any political transition, as both a direct goal of political actors and an unintended consequence of new institutional arrangements. Myanmar’s transition, which began in 2011, has been characterised by the former. Aft er decades of insularity, command- style planning and low economic growth, the government has implemented numerous economy- wide reforms. Th ese have included substantive changes to banking, exchange rate, trade and natural resource policies, to name just several examples, as well as the beginning of a long overdue transition towards a market economy (Turnell 2015 ). Th e lift ing of international sanctions by Western powers which has accompanied related reforms in the political system has been equally important, allowing new capital goods, fi rms and fi nancial products to enter Myanmar for the fi rst time. Although the economy remains backward by regional standards, the country’s steady progress suggests a new, outward- looking approach to economic management which may fi nally unlock Myanmar’s long- recognised potential