This volume is a valuable contribution to our understanding of the transition in Myanmar's economy and society towards democracy since 2011. The approach is inter-disciplinary, touching upon the interface of law, economics and development issues, with an unmistakable emphasis on one institution, namely the law. The first chapter, written by the editor, Melissa Crouch, sets the tone for the chapters that follow, reminding readers of the great importance of the evolution of the legal structure of an economy like Myanmar's, a nation which remained in isolation for decades.
The new laws introduced since 2011 had an unambiguous lineage from the past, but with a distinct tilt towards a market-based economy. This distinction is due to the significant presence of Civil Society Organisations (CSOs) which wield considerable influence in shaping land rights and labour laws. Notably, Myanmar allows foreign law firms to operate in the country unlike many other emerging economies. This has allowed foreign firms to represent their interests favourably to state and local governments. This chapter has valuable insights on legal developments in Myanmar, while keeping in mind local–global conflict and cooperation.
The second chapter on ‘Labour standards and international investment in Myanmar’ by Michele Ford, Michael Gillan and Htwe Htwe Thein can be read along with the ones on ‘Special Economic Zones’ by Josh Wood (chap. 7) and ‘Facing the concentrated burden of development’ by Lauren Nishimura (chap. 8). All these chapters have one thing in common — the impact of the entry of multinational companies (MNCs) and foreign investment in general on the changing legal environment in Myanmar. The chapter on labour standards specifically examines the garment industry, which saw the introduction of minimum wage laws under pressure from MNCs. The chapter on SEZs clearly unravels the story of the unplanned creation of three SEZs in Dawei, Kyaukphyu and Thilawa. The relaxation of laws on taxation and perhaps those on land and labour in the SEZs took concrete shape in the wake of market-oriented reforms in Myanmar, and were intended to attract foreign investment in the early 2000s. However, this study shows the government's short-sightedness in its choice of SEZ locations and poorly designed implementation which has jeopardised their success.
Nishimura's chapter highlights the contradictions between international and domestic law in the context of SEZ development in Myanmar. The SEZs needed the implementation of some international laws on rights and taxation since foreign investors were a key component. However, the demands of local communities on the issue of displacement from their land, and compensation for their losses as well as environmental threats from the new developments were overlooked. But the gap between laws and local demands also creates scope for transnational action groups to act along with local community groups to put pressure on the government to change laws in their favour.
Four chapters in the book take up the common theme of the role of civil society and local level governance in the emerging business scenario in Myanmar. Chapter 3 on ‘The extractive industries transparency initiative: New openings for civil society in Myanmar’ by Adam Simpson, lauds the efforts to bring transparency to the extractive industries in Myanmar (for example, its famous jade mining) to eliminate corruption, but at the same time highlights the role of CSOs in implementing this effectively. At the same time, the study shows the trade-offs between the allocation of scarce resources vis-à-vis environmental degradation and human rights. Next, chapter 4 on ‘The risky business of transformation: Social enterprise in Myanmar's emerging democracy’ by John Dale and David Kyle, argues in favour of promoting social enterprises (mainly not-for-profit NGOs) to help the democratic transition in Myanmar. Although such social enterprises have grown, for example, in providing skills training for different services and industries, legal reforms have not kept pace with such developments. Interestingly, the authors suggest the involvement of the regime's large number of prisoners as a prospective pool of social entrepreneurs, provided commensurate legal reforms are undertaken.
Chapter 5 on ‘Microfinance in Myanmar’ by Sean Turnell pursues the same theme to underline the importance of microfinance institutions (MFIs) in Myanmar, given the scarcity of access to formal credit for much of the local population. It highlights the informality of such MFIs, leading to the high interest rates of such loans. The author argues that the democratic process in Myanmar needs to correct a dysfunctional credit system to better serve the needs of its people. Chapter 6, ‘The governance of local business in Myanmar: Confronting the legacies of military rule’ by Matthew Arnold, has a similar theme in highlighting the lack of decentralisation in decision-making throughout Myanmar. The General Administration Department (GAD) of the Ministry of Home Affairs is really a bureaucratic behemoth which controls even grassroots decisions. Although the Development Affairs Organisations (DAOs) have been entrusted with municipal affairs, both GAD and DAO need organisational changes to promote more efficient local-level administration.
Overall, this book is a very interesting addition to the literature on less-discussed aspects of Myanmar's democratic transition (jolted by unfortunate recent events though). Its unmistakable focus is the lacunae of the legal system in supporting an efficient democratic transition in Myanmar and it covers the most important sectors and actors involved. The chapters in general are a little light on comparative data between the pre-democracy and the transitional phase — a better idea could have been formed if one could see these changes through the lens of wider empirical facts and figures to form a more considered opinion on this matter.
