From Extractive to Non-Extractive Based Foreign Investment: An Analysis on the Impact of Foreign Direct Investment and Decent Work Conditions in Myanmar

Abstract

This research paper primarily uses insight from a range of stakeholders that work directly with foreign investors or have closely observed some of the activities that have shaped the labour market. This paper is divided into two sections that are all geared towards understanding the connection between FDI in Myanmar and its role in advancing responsible business value chains which simultaneously promote the decent work agenda. The first section is an overview of FDI and trade patterns since 2013 and economic growth in Myanmar. This is followed by an analysis on the relevant Myanmar laws and regulations that demonstrate the intrinsic link between fostering a conducive environment for attracting investment and enacting labour laws and policies that protect Myanmar workers and promote decent work. This linkage in turns highlights the relationship between FDI and decent work. Furthermore, the section also provides an overview of how Myanmar is performing in terms of ease of investment and labour standards in comparison to its neighbours within the Association of Southeast Asian Nations (ASEAN) The second section gives extensive detail on the role of firms in promoting decent work in Myanmar. The methodology is outlined first in order to give a context on how this research study was conducted. Five areas of decent work are presented which include, employment opportunities, skills development and enhancement, equality at the work place, social protection and social dialogue. For each area, substantial findings are presented based off stakeholders‟ perspectives and the current initiatives taking place in Myanmar. Lastly, based on all the findings and challenges or gaps raised, the paper shall outline a series of recommendations that can help advance the decent work campaign in Myanmar.