The European Union on Tuesday announced it will pledge the equivalent of 10.4 billion baht a year to Myanmar to fund rural development, political reform, peace initiatives and other issues for the next three years.
The 257 million euros in financial aid will cover a wide range of areas, from health, education, trade, and culture to the environment, human rights and civil society. The programme begins this year and ends in 2016, the EU said in a press release today about its Monday decision.
A woman carries her child through a neighbourhood on the outskirts of Nay Pyi taw on Nov 9, 2014. Improving living conditions is one of the areas to benefit from the EU assistance. (Reuters photo)
Rural development tops the list of issues to benefit from the assistance, with 70 million euros of the total earmarked, followed by 31 million euro for political reform - including new general elections next year - and 30 million for peace and reconciliation initiatives.
"This innovative framework illustrates the EU in Myanmar putting the priorities of the European Development policy into action," EU ambassador to Myanmar Roland Kobia said.
Myanmar state-run newspaper Global New Light of Myanmar on Tuesday quoted him as saying that the aid underlined the EU's confidence in the future of Myanmar and sent a message that Brussels was ready to cooperate with the country on reform and the elections.
Traders and investors look at Myanmar as a new business frontier following the country's end of military rule, elections in 2010 and reforms in 2011. Trade and investment are dominated by China and Thailand with western countries are moving in to tap the economic potential.
Trade from EU members increased sharply last year. Exports from the EU to Myanmar totalled 346 million euros, a 45% jump from 2012, and imports from Myanmar rose by 35% to 223 million euros.
Major exports from the EU were aircraft and electrical machinery and equipment. Garments from Myanmar were the main product selling in the European market, followed by fisheries products.
But EU investment in Myanmar has so far been limited at $3.1 billion last year, accounting for 9% of foreign direct investment in the country.
The EU indicated that its role of Myanmar will not stop as it eyes infrastructure development in the country.
''European financial institutions are also looking to offer loans for the development of large infrastructure projects,'' it said in the statement.