Week Five: About My Research
Week Five: About My Research
I dropped my mom off at the airport for her trip home on Monday night and have since spent the rest of the week focusing on my internship and trying to finish my second project. I decided to stay in Yangon this weekend partially because I am running out of places to go and partially because I am switching hostels next weekend which makes it ideal for a weekend trip.
I realized after posting my Week Four blog that I haven’t really explained my research in depth, so I will dedicate most of this post to explaining my research and providing some context. The bulk of my work this summer is focused on special economic zones (SEZs) in Myanmar and other countries’ policies toward investing in Myanmar SEZs. The project I am currently wrapping up is a survey of Myanmar Law regarding SEZs and the processes investors must go through to invest in one. Then I will turn to China, the Association of Southeast Asian Nations (ASEAN), and possibly Japan’s policies toward investing in Myanmar SEZs. I will finish the summer by creating profiles of each of the SEZs in Myanmar.
Special Economic Zones:
Special economic zones are geographical areas within a country which have relaxed taxes or investment laws to help stimulate both foreign and local investment. They are designed to spur both local and foreign investment within a strategic region. There are thousands of SEZs across the world which have produced mixed results: some have been wildly successful while others have attracted little investment or failed entirely.
Myanmar's Economic Situation:
Myanmar sits in a truly unique economic and political situation. At one point in history, it was the richest country in Southeast Asia; Yangon was once what Singapore is today. However, over the past several decades it has fallen far behind its peers. With that said, this past decade has been marked by radical economic changes.
Myanmar has made a significant political shift toward democracy and more free international trade which has made quite a mark on their economic situation. For example, SIM cards for cell phones apparently cost over $1,000 ten years ago, but I paid just over $1 for the SIM card and less than $2 per week for three gigabytes of data.
Myanmar's Special Economic Zones:
Like those of the rest of the world, Myanmar’s three SEZs (Thilawa, Dawei, and Kyauk Phyu) have produced mixed results. On one hand, the Thilawa SEZ, located just outside of Yangon, appears to be producing impressive results. It was created in conjunction with Japan and has attracted some large investments, including a recently announced $53 million investment from Toyota. On the other, the Kyauk Phyu SEZ has sat in limbo for nearly a decade as terms with China were under renegotiation.
Outside of simple bottom line success, there are other concerns that surround Myanmar’s SEZ. First, there are debt concerns. For example, there are concerns that the Kyauk Phyu SEZ is a “debt trap” for Myanmar. This, in part, has led to renegotiations with the Chinese government, and the status of the SEZ is questionable as a result. Furthermore, there are human rights concerns surrounding all three SEZs. Watchdog groups have pointed out that many residents have land taken from them without their consent or knowledge. Once the land has been taken, groups have also pointed out that frameworks for compensation are lacking.
Looking Forward:
I am excited to say that my memo on Myanmar’s SEZs should be published to Open Development’s website this week. Once it is, I will turn to researching Chinese policy on investing in Myanmar. This will likely pose research challenges for me. I am expecting that most of the information I need for this project will not be conveniently located on government websites as it was for my last project.
Aside from work, I’m doing my best to stay dry. It rains unpredictably several times per day, every day. However, between the bouts of rain, Yangon is a truly beautiful city that I’ve become accustomed to. The view from my office has often captivated my attention and reminds me of how it is truly a fascinating city.
