"Burma's problem is that it lacks capital."
Yes, but... the fundamental problem isn't a lack of capital, but an economy that is inefficient at putting it to productive uses. The massive boom in property prices in Yangon and Mandalay over the past few years shows that Burma's elites have significant financial resources. An acre of land in either downtown easily goes for over $1 million, even higher than in Bangkok. While other factors have contributed to the rise, one of the major culprits is the lack of alternative investments. Banks aren't trusted and moving money overseas is difficult. So people store their wealth in fixed assets like property, gold, and gems.
At the same time, there is a dire lack of credit in the countryside. Those who don't have collateral must rely on informal loans with interest of 10 percent per month. The state agricultural bank lends farmers barely a third of what they need to cultivate their land. Private banks are prohibited from lending to farmers at all -- one of many needless restrictions inherited from socialist days past. The result is a system in which capital can't get to the rural sector, and more money will not fix this core problem.
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