Realisation of Myanmar’s potential will depend upon how effectively the country can mobilise and allocate the financial resources to support its development needs. At present, the key institutions in the government and financial system that govern mobilisation and allocation of development financial resources are underdeveloped and hampered by a range of constraints and distortions. These include limited government capacities and underdeveloped legal and fiscal institutions, as well as limitations in the regulatory frameworks essential to the effective functioning of markets and private sector development.Myanmar’s authorities have made impressive beginnings on addressing these obstacles but the challenge will be to sustain an ongoing process of institutional reforms and capacity building. Areas of reform should cover government mechanisms for reporting, co-ordinating, and managing external funding; public financial management and revenue collection; as well financial market development. Reforms should be targeted to ensure that the provision of financial resources not only keeps up with but helps to catalyse the country’s overall development.