Energy Transition

Energy infrastructure development to power Myanmar’s growth

Myanmar must develop its energy infrastructure and increase its power-generation capacity to continue its growth.

Myanmar must develop its energy infrastructure and increase its power-generation capacity to continue its growth. Image: REUTERS/Aung Hia Tun

John Rice
Chairman, GE Power

Myanmar has made enormous strides in integrating into the global community and promoting economic development. The government is focused on sustaining that momentum, but significant challenges remain. Most pressingly, the country must develop its infrastructure and increase its power-generation capacity to continue its growth.

Infrastructure investment – especially in the energy sector – is key to the development of a stable and prosperous economy, with improved standards of living for all. The World Bank estimates that spending an additional 1% of world GDP on infrastructure would increase global GDP by 2% and GDP in developing countries by almost 7%.

Without electricity, developing countries like Myanmar have no chance of providing basic requirements for health, job creation and sustainable development. Per capita electricity consumption in Myanmar is among the lowest in Asia, with an electrification rate of only 27%. The rate is much lower in most rural areas. As Myanmar’s leaders have acknowledged, shortages of electricity are a major hindrance to economic development. The costs are profound – in terms of investments never made, businesses never established and jobs never created.

Myanmar has an opportunity to invest in its energy infrastructure and build a framework for growth. It is looking to develop a comprehensive energy framework that will make the best use of its resources. Interestingly, Myanmar’s own energy development potential reflects at least three significant global trends: the significant growth of power generation based on natural gas, a fuel with which Myanmar is richly endowed; the modernization of transmission and distribution (and eventually, the so-called Smart Grid); and the growth of distributed power or the creation of off-grid solutions that are particularly important for rural areas.

Yet technology alone will not solve Myanmar’s energy needs. Good government policy – policy that enables and attracts effective cooperation with the private sector – is also critical. Based on General Electric’s experience, at least four critical elements are needed to create a strong enabling environment for infrastructure development: (1) a clear and durable political commitment; (2) regulation that is transparent, reasonable and speedy; (3) good, transparent procurement processes; and (4) worker education and training.

A focus on these areas will lead to more investment and long-term commitments from companies, allowing Myanmar to develop infrastructure that will promote growth and improve the quality of life for its citizens.

Author: John G. Rice is Vice-Chairman of General Electric (GE) and President and Chief Executive Officer of GE Global Growth and Operations

Image: Workers repair power cables in Kawhmu, Myanmar REUTERS/Aung Hia Tun

Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Stay up to date:

ASEAN

Related topics:
Energy TransitionFinancial and Monetary SystemsGeographies in Depth
Share:
The Big Picture
Explore and monitor how Financial and Monetary Systems is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

The hidden fuel: energy efficiency lessons from the UAE

Sharif Al Olama

November 1, 2024

The biggest barriers to energy sector growth are often policy-related.  Here’s how to overcome them

About us

Engage with us

  • Sign in
  • Partner with us
  • Become a member
  • Sign up for our press releases
  • Subscribe to our newsletters
  • Contact us

Quick links

Language editions

Privacy Policy & Terms of Service

Sitemap

© 2024 World Economic Forum