Agriculture is the key sector of Myanmar's economy. It provides employment to two thirds of the population, contributes 58% to the county's GDP and 48% of its exports. However, the sector, nevertheless, has shown mixed performance over the last two decades. The agricultural potential is under-realised as evidenced by relatively low yields, input use, irrigation coverage despite ample water resources and low cropping intensity in comparison with other South and Southeast Asian countries. Malnutrition pockets exist in various parts of the country despite overall national food self-sufficiency.

Agricultural growth is central to any rural development promotion effort. Broad-based and economically efficient rural growth can significantly help to reduce rural poverty by bringing about sustainable increase in productivity and reducing risks and vulnerability for the poorest population. A sector review for use by government and the international donor community to identify issues, and define broad investment needs to stimulate broad-based agricultural growth is an essential preparatory step. The review would include the formulation of feasible options, suitable strategies and of action plans as a basic framework for investment decisions-by government and external donors.

The agricultural sector review is intended to:

- Assist national institutions and the international donor community to appreciate the large poverty reduction potential of a broad-based agricultural and rural investments in Myanmar;
- Assist national institutions to specify a medium and long-term policies and investment strategies within its overall planning framework that will improve the incomes and well-being of the poorest rural communities;
- Advocate increased commitment by international donors to assist agricultural growth in Myanmar for poverty reduction and rural sector support.

Some of the key themes expected to be covered by this Review are:

(a) Identifying the comparative advantages of Myanmar agriculture and sub-sectors by analysing ways and means of integrating further market-oriented principles and policies into the agriculture sector, while protecting the rural poor from short-term adverse effects of a transition.

(b) Upscaling community development initiatives and identifying those schemes that are 'best practices' in terms of beneficiary impact and sustainability; and assessing the conditions for their replicability on a wider scale within an appropriate policy framework.

(c) Facilitating agricultural services and institutions to operate in a more multi-disciplinary participatory manner; strengthening research and development; improving land allocation and administration and scaling up rural financial services.

(d) Conserving and developing land and water resources by assessing further needs and feasibility of irrigation development from economic and environmental aspects.