In this short essay, Myanmar’s Risk, I analyse various aspects of the country’s risk. The analysis is based on the article “Democracy dividend bolsters the positive economic momentum” (2016) by Credendo group.
I start the essay with a short introduction, outlining the key elements and factors of Myanmar’s economy. I follow with the definitions of country risk and highlights the one used in this article. I then, turn to the theoretical approaches to country risk. I recount the approaches used in Credendo’s article, including currency crisis, the monetary approach, the elasticities approach, and financial risk along with the political and non-economic risk factors. I allocate more space to the elasticities approach because of its key role in Credendo’s paper.
The analysis demonstrates that as the improved Credendo ranking implies, the economic and financial factors point to a brighter future for Myanmar. However, this picture is blurred by political factors, including policy making and economic management.