Expectations of the Myanmar Government
President U Thein Sein, Daw Aung San Suu Kyi (leader of the opposition National League
for Democracy (NLD)), numerous governments and international organisations, have all
called for ‘responsible business’ in Myanmar. Together with the OECD, the Government
conducted an ‘investment policy review’ of the country in 2013. The 300+ page report
starts with a chapter on responsible business, focused on human and labour rights and
how international standards of responsible business conduct can be introduced in the
country (See Table 1 below). 22 In discussing the report, the Myanmar’s Union Minister of
National Planning and Economic Development, Dr Kan Zaw, “praised the comprehensive
nature of the report and said that it would help to guide the Government in solidifying
investment climate reforms and in promoting more and better investment.” 23 This points to
a Government interested and willing to align itself with international standards.
Table 1: Recommendations from the OECD as part of the Myanmar Investment
Policy Review Chapter on Responsible Business Conduct 24
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Ratify major international human rights, labour and environmental conventions
Enact and enforce domestic legislation consistent with these standards
Strengthen the independence and expand the mandate of the National Human
Rights Commission
Promote revenue transparency
Ensure that domestic enterprises, including state owned enterprises, conform to
the new standards of behaviour and prosecute lawbreakers
Expand the role of civil society (labour unions, local community organisations)
to help ensure that businesses obey the law
Prepare sectoral master plans which include responsible business conduct (e.g.
tourism)
Provide adequate protection of property rights, including for customary land
Free, prior and informed consent (FPIC) for land acquisitions, relocations, etc.
Develop grievance mechanisms in other areas and provide redress to victims
Work with home governments to promote respect for the UN Guiding Principles
on Business and Human Rights and the OECD Guidelines for Multinational
Enterprises. Require foreign investors receiving a permit from the MIC to
commit to these principles.
However, the hard work of translating those commitments into relevant laws, policies and
practices throughout the country is just beginning. The legacy of over fifty years of military
Government and isolation will have to be addressed to ensure that the benefits of a
modern telecommunications network and ICT sector contribute to widespread
development. While Myanmar has taken significant steps towards reintegration into the
global community, it is still a ‘high risk’ or ‘weak governance’ country, requiring a higher
level of rigour and sensitivity in conducting business. Entrenched elite interests,
widespread corruption, lack of state capacity and a lack of comprehensive social policies
have led to low levels of state legitimacy, social cohesion and trust. While high-risk
22 OECD,
“OECD Investment Policy Reviews: Myanmar 2014” (March 2014).
ASEAN Secretariat, “Myanmar Welcomes International Support for Responsible Investment” (March 2014).
24 OECD, “OECD Investment Policy Reviews: Myanmar 2014” (March 2014) pg. 32.
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CHAPTER 1: INTRODUCTION
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1