Foreign Direct Investment in Myanmar

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Foreign Direct Investment in Myanmar (Graphics not Included) Since 1962 the Burmese government has been under military rule (Country Profile, 2007). The lives of the Burmese citizen are dictated by the totalitarian style of government which led to horror and starvation, causing numerous protests against the government. The latest protest in 2007 was planned and organized by the same student groups which took part in the similar protest earlier in 1988. The first protest was held on 15 September 2007 with protesters protesting on streets in Yangon on nearly a daily basis. Soon civilian and Buddhist monks joined in the protest on the streets. The government responded by beating and arresting monks and civilians. Monks are highly regarded and influential in Buddhist custom. The Myanmar government were accused of practising human-right abuses and also using violent acts against its civilian (The Economist, 2007: 27). The political turmoil in Myanmar has cost them in deterioration in various sectors of life, especially in the economic sector. As it was mentioned, human rights seem to be the issue in Myanmar. These issues has caused multinational companies such as Anheuser-Busch International Inc, Carlsberg and many more, to pull out of Myanmar due the increasing in the intensity of the human rights issues, and pressure from countries such as the United States which heavily sanctioned Myanmar (Frey, 2006: 209; Global Policy Forum, 2008; Holusha, 2008; The Irrawaddy, 2003; Lansner, 2008; Myanmars, 2008; Times Online, 2007). 1.1 Causes The Myanmar government on 15 August 2007 drastically raised the price of fuel without first giving notice to the people. The drastic fuel increase caused the price of diesel to be doubled and the price of natural gas to increase five-folds. This triggered a chain reaction which cause price hike in almost everything in the country from commodities to services which is the basic needs of the citizens in Myanmar, such as transportation, rice, and cooking oil (BBC News, 2007). In addition, inflation has led to decline in living standards and cause unrest among the citizen of Myanmar. This is due to the inability of Burmese government to maintain a stable economic situation. Other than that, Burmese was enraged against the Junta government due to the arrest of Daw Aung San Suu Kyi, who was the winner in the first democratic election but was not allowed to come to power (Asian Human Rights Commission, 2007: 2).

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