The report recommended that the SEZ legislative and governance framework be revised to mediate the interests of investors and locals more sustainably and fairly. Meanwhile, the government should also reduce its reliance on foreign investments in land and labor-intensive industries. Instead, it should invest in local industries and public infrastructure.

Importantly, arrangements must be made to mitigate the threat of land capture by the State as well as minimise financial extraction of value from the region. 

U Soe Shwe, coordinator of Myanmar SEZs’ Watch, said while the report highlights most of the challenges faced and provides recommendations on the solutions to be taken, the main issue is whether the government will implement them.

The way he sees it, “if the governments do not take a consideration or revising the legislation [the recommendations] will not be very effective. What I see is Myanmar having a better chance than Cambodia in terms of the government hearing the voices of the community. In Cambodia, government oppression on protesters is more severe,” he said.

“In Myanmar, the more pertinent challenge lies in implementing and enforcing stronger and clearer SEZ laws which provide incentives that attract investors, yet protects the communities involved and the environment.”

SEZ effect

SEZs have been built worldwide since the 1960s to facilitate global free trade and integrate developing countries into global production and distribution networks. More recently, that trend has emerged in Southeast Asia as the region opens up to foreign investments.

According to the United Nations Industrial Development Organisation, there were a total of 47 SEZs in the four countries (Myanmar, Laos, Cambodia and Vietnam) that share the Mekong river. Three of the SEZs – Thilawa, Kyaukphyu and Dawei – are located in Myanmar. To date however, only Thilawa is open for business.

Yet while controversial, the SEZs are attracting growing interest from policy makers, investors, civil society, and the general public. This is because SEZs spur foreign investments, create jobs, establish basic infrastructure that benefits nearby townships and help host countries diversify their economies.

On the other hand, critics argue they entail more costs than benefits. That’s because construction involves displacing whole communities to make room for the SEZs and cause significant environmental harm and degradation. 

“SEZs have been in existence globally for more than two decades and there is plenty of evidence to show their impact on the rights of workers and local communities. Also, the model of growth and development that SEZs advance has huge climate footprints. It is alarming that the interests of investors continue to be protected at the cost of people and the environment. Economic growth cannot continue to be promoted without a proper assessment of costs and benefits,”

Shalmali Guttal, an executive director of Focus on the Global South, said.

Favouritism and exploitation

The report also contends that SEZs have been used as tools enabling investors to exploit Myanmar’s most productive assets – land and labour – and facilitates the financial extraction of value from the Mekong. 

It also suggests that weaknesses in the Myanmar SEZ governance structures and the lack of transparency and accountability in the development and administration of the zones are increasing the risk of corruption and nepotism between the public and private sector. 

“The first impact of SEZ faced by the community is the loss of land as well as their livelihoods. Democratic governments need to carefully examine the long term impact of big investment projects on peace building, social justice and the Federal Union,” Kyaw Thu, executive director of Paung Ku, said.

“Without right process, such a mega investment project cannot contribute positive impact and it will create more conflicts in our area. We are very worried that the local government will go ahead without listening to peoples’ concerns, particularly of the women,” Su Su of Tavoyan Women’s Union, said.

Source: https://www.mmtimes.com/news/will-government-heed-civil-societys-advice-sezs.html