What Matters No. 73
(This article is a translation of the original Burmese language version that ISP-Myanmar posted on its Facebook page on December 28, 2021.)
Investment from China in Myanmar declined significantly after the military coup by US$33 million – the lowest amount of investment by China since 2015. Compared to the same period in 2019-2020, the amount of investment decreased by US$364 million. The total amount of investment made by China entering the country in June, July, and August 2021 was only just over US$33 million. This investment within these three months is allocated as additional investment in previously existing projects.
∎ Why does it matter?
Foreign investment is an important economic pillar for developing countries, but not all kinds of foreign investment guarantee economic growth. If the investments are resource-exploitative, inconsiderate of the environment, inconsiderate of human rights, and do not improve the livelihoods of the local people, they could further deteriorate the development of the country and cause further impoverishment and vulnerability among Myanmar people. This has been the case throughout successive military regimes in Myanmar. The information concerning which countries are currently investing in Myanmar and what kind of investments are entering the market is key to understanding the involvement of other countries in the current political crisis. Moreover, foreign investments have a direct impact on the long-term sustainable development of the country and the livelihoods of Myanmar people, so it is crucial to monitor any foreign investment developments. Particularly in the current situation in which information ecosystems are being corrupted and destroyed, it is important to keep track of the figures on foreign investment to check whether the military regime is being transparent in their reporting of investments they have approved.
∎ Other relevant readings
Information and statistics concerning the status of foreign investment can be studied using the official website of the Directorate of Foreign Investment and Company Administration, in which investment information is compiled on a monthly and yearly basis. In addition, reports and statistics released by the World Bank, annual reports of the Asian Development Bank, and papers published by Oxford Economics and the Economist Intelligence Unit can also be consulted.