In recent times, after Myanmar opened up its “closed” economy to international investments, several big US companies have steadily moved in to meet rising consumer demands of the nearly 60 million population. This has happened although the US has not yet lifted and only suspended, economic sanctions it imposed against Myanmar since 1988. As for the European Union, it has lifted all sanctions except for an arms embargo.

Making investments in the country has not been easy. Most sectors of the economy remain underdeveloped. There are serious problems of transport infrastructure, crippling power shortages, lack of good accommodation, medical facilities, law and order uncertainties and major communication difficulties beyond the big towns. Old trade and business methods and the unwritten system of official control also remain in place in the interior area, according to media reports.

As a result, despite major foreign investments made in oil and gas exploration, mining and related sectors, under development remained a problem, even in tourism. Things improved after the visit made to Myanmar last year by former US Secretary of State Mrs Hillary Clinton, which was followed by a trip made by 70 business representatives from the US.

Very recently, Coca Cola set up a bottling plant after an absence of 60 years, at a location close to Yangon. Distribution would be done through a local partner, but the company has promised an investment of $200 million over the next five years. Earlier the Ford Motor company finalized a deal to distribute its vehicles in the local market, through a partner. The import of motor vehicles in Myanmar was liberalized in 2011. Other companies which have concluded similar agreements and launched operations include Pepsico, GE, Caterpillar and the Danish beer company, Carlsberg. The Danes had almost finalized their entry into Myanmar some time ago, but in 1996 following complaints made by some HR groups, they pulled out. This time, they have plans to make beer locally, after setting up a distribution network. The GE would make available high tech medical equipment for the locals.

India, too has not fallen. Recently, Prime Minister Dr Manmohan Singh visited Myanmar, the first Indian PM to make such a visit in nearly three decades. The two countries have finalized a $500 million credit from India, which would invest in IT, infrastructure, and industries. Trade and Defence ties are being strengthened. The Tata Motors has begun distributing commercial vehicles and cars using a local partner. India-Myanmar bilateral trade, at around $1.2 billion in 2011 is estimated to touch $3 billion by 2015.

The flow of investments and the promise of development after a long period of stagnation, warn some observers, may not prove to be an unmixed blessing for the people. Analyst Casey Hynes for instance, fears that economic progress and investments may not help reduce the strong anti-minorities trend in the country, of which not only the Muslim Rohingyas are at the receiving end. Native ethnic minorities like the Kachins and Shans, too have had their share of problems with the ethnic majority Burmans, despite occasional lulls in violence following truce agreements.

In a specific reference to economic projects involving the exploitation of resources, she points out that local government authorities, that is the Myanmar administration, is put in charge of security and related matters. Mostly allegations against the abuse of human rights arise from the behaviour of Burmese men in uniforms in such projects. Civil protestors or NGO workers, too are routinely arrested if they associate themselves with critical local grievances. While some political prisoners have been released of late, this is by no means indicative of a more humane behaviour on part of the law enforcing agencies in the country as a whole.

The argument seems to suggest that despite the recent flood of mostly Western investments and the resultant economic prosperity, positive in their own right, the uneasy relationship between the ruler and the ruled in many parts of Myanmar will need time and careful handling, to change for the better. (IPA Service