Myanmar Civil Society's Role in Raising Social and Environmental Standards in a Country Growing on Extractives

Abstract

As the 22nd World Economic Forum concludes in Naypidaw Myanmar on 7 June 2013, there are strong signals of interest by western businesses to start doing business here. On the other hand, the majority of the investments may still hinge on the gas bounty, as indicated by 59 global energy companies lining up for a share of Myanmar’s estimated $75 billion bounty of the fuel, according to the country’s energy ministry.1 According to McKinsey’s recent report, energy and mining is currently the fourth-biggest contributor to Myanmar’s GDP, at $8 billion in 2012 followed by agriculture at $21.2 billion, infrastructure at $10.5 billion and manufacturing at $9.8 billion. But the energy and mining sector is projected to grow to $21.7 billion by 2030, according to the report, and will serve as the driver of the projected 6.75 percent annual growth, according to the International Monetary Fund. The role of the mining and energy sector in driving investments is consistent with the trends of the past decade: power, oil and gas and mining made up the top three sectors of approved investments from FY 2000-01 to FY 2010-11 for a total of 98.1% of all approved investments over that decade. In a country where extractive sector investments (which beyond gas, oil and mining, could be broadened to include sectors such as agri-investments and timber extraction) is expected to be a major driver for its growth, and where traditionally social and environmental standards associated with investments have not met international standards, this raises important questions about the way the social and environmental standards will be upheld in Myanmar.