10 - The Open Issues: Cases between Chinese Investment Companies and Local People in Myanmar

Summary

INTRODUCTION

With increasing foreign direct investment (FDI) flow from China, Myanmar's economic growth is depending more and more on Chinese investment. According to FDI data for 1988–2018, China is clearly the number one foreign investor in Myanmar (see as well Mierzejewski, this volume and 2021). Even though the investments coming from China into Myanmar are beneficial in many respects, they entail some major problems. Those are exemplified by the series of strikes that broke out related to three major development projects: The Letpadaungtaung copper mine project, the gas pipeline project, and the Myitsone dam project. As the latter two had been contracted by the former military government before the drafting of the 2008 Constitution, no impact assessments had been conducted and transparency was lacking. As the political reforms that ensued the passage of the 2008 Constitution have initially appeared successful, Myanmar people hoped to move forward in building a democratic nation as guaranteed by the Constitution. They aspire to participate in the decision-making concerning both businesses as well as political affairs. Myanmar, as an International Person, respects the ratified International Conventions and carries out their provisions by integrating them into national laws. Likewise, Myanmar Parliament has moved forward to update the national laws according to international standards of foreign investment, environmental and social impacts, employment, land rights and political reforms.

This paper investigates the three aforementioned Chinese investment cases such as the Letpadaungtaung copper mine project by the Wanbao Company, the gas pipeline project by China's National Petroleum Corporation, and the Myitsone dam project by the Chinese Power Investment Company. The Belt and Road Initiative (BRI) provides a new context for these open issues of environmental, social and human rights. The paper addresses the question of how to reduce the negative local impacts of Chinese investment projects that are allegedly dedicated to Myanmar's sustainable development. Local people had often not been informed about the projects before construction started. Moreover, the projects neglected the human rights impact assessment for local people and indigenous people. It is evident that the “Free, Prior and Informed Consent” method of public participation was not used.