Yesterday Maplecroft produced a 98-page in-depth country risk report on Myanmar.

The country’s ongoing political and economic liberalisation, combined with its natural resource, large population and strategic position between the fast-growing economies of China and India, make it one the key countries to watch in 2012.

However, as our new report shows, despite Myanmar’s clear commercial opportunities, it is also a country that remains very high risk for international investors, whether these oil and gas firms attracted by its hydrocarbons deposits, manufacturing firms attracted by the country’s cheap labour force, or those involved in other industries such as in the agro-commodities sector.

Five key risks for business entering Myanmar:

1. Lack of democracy and continuing human rights abuses

Despite its recent political reforms, Myanmar’s government remains largely undemocratic and continues to be accused of a wide range of human rights abuses. In particular, a range of civil and political rights infringements by the government continue to be documented including arbitrary arrests and detentions; harassment of human rights defenders and journalists; persecution of religious and ethnic minorities and lack of access to remedy. Further, despite on-going peace talks with ethnic armies and calls from the government for restraint from military forces, the army continues to commit human rights violations against civilians. Business complicity in such abuses can occur indirectly through financing an oppressive regime by paying tax or licensing fees to the state. Alternatively, more direct complicity is evident when companies engage security forces for the protection of their assets. Moreover, it is important to note that despite the transition from military to civilian rule which was completed in March 2011, the military still retains power over the cabinet and occupies a quarter of the seats in parliament.

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