Myanmar seeks to end corruption in its energy sector

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myanmar-oil-gasMyanmar is expected to begin the process of joining the Extractive Industries Transparency Initiative (EITI) by the end of this year, according to The Myanmar Times newspaper.

This means that all Burmese companies working in the oil, gas, and minerals industries will be required to publicly disclose any payments they make to the government. The Myanmar government will also be required to publicly disclose all revenue received from such companies.

This is an important development for Myanmar because the country has long had a reputation for corruption, especially in the energy sector, which has deterred investors. In a recent report by the Revenue Watch Institute, a global watchdog group, Myanmar received the lowest worldwide rank in transparency in the extractive industries.

Also, in June a human rights and environmental advocacy group called EarthRights International released a report on human rights abuses in Myanmar’s extractive industries. “Myanmar remains a high-risk area for foreign investment, and companies and their home states should take serious measures to mitigate the risk that their actions will contribute to internal conflict, human rights and environmental destruction, and corruption,” the group said in a statement.

Myanmar therefore has something of an image problem in its energy sector, and has finally decided to take aggressive action to address it. Thus, with the ultimate goal of increasing foreign direct investment flows, Myanmar is signing on to the EITI.

There are four requirements that countries must meet to be eligible to join the EITI. They are (i) making a definitive statement of intent to implement EITI rules; (ii) appointing a senior official to lead implementation; (iii) pledging to work with civil society and the private sector on implementation; and (iv) establishing a multi-stakeholder group including government officials as well as civil society and private sector representatives. Myanmar has completed the first three steps and the fourth is expected to be completed in October, according to The Myanmar Times.

Myanmar has everything to gain from eliminating corruption, and the appearance of corruption, in its energy sector. This is a step in the right direction.

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Myanmar is expected to begin the process of joining the Extractive Industries Transparency Initiative (EITI) by the end of this year, according to The Myanmar Times newspaper. This means that all Burmese companies working in the oil, gas, and minerals industries will be required to publicly disclose any payments they make to the government. The Myanmar government will also be required to publicly disclose all revenue received from such companies. This is an important development for Myanmar because the country has long had a reputation for corruption, especially in the energy sector, which has deterred investors. In a recent report...

Reading Time: 2 minutes

myanmar-oil-gasMyanmar is expected to begin the process of joining the Extractive Industries Transparency Initiative (EITI) by the end of this year, according to The Myanmar Times newspaper.

This means that all Burmese companies working in the oil, gas, and minerals industries will be required to publicly disclose any payments they make to the government. The Myanmar government will also be required to publicly disclose all revenue received from such companies.

This is an important development for Myanmar because the country has long had a reputation for corruption, especially in the energy sector, which has deterred investors. In a recent report by the Revenue Watch Institute, a global watchdog group, Myanmar received the lowest worldwide rank in transparency in the extractive industries.

Also, in June a human rights and environmental advocacy group called EarthRights International released a report on human rights abuses in Myanmar’s extractive industries. “Myanmar remains a high-risk area for foreign investment, and companies and their home states should take serious measures to mitigate the risk that their actions will contribute to internal conflict, human rights and environmental destruction, and corruption,” the group said in a statement.

Myanmar therefore has something of an image problem in its energy sector, and has finally decided to take aggressive action to address it. Thus, with the ultimate goal of increasing foreign direct investment flows, Myanmar is signing on to the EITI.

There are four requirements that countries must meet to be eligible to join the EITI. They are (i) making a definitive statement of intent to implement EITI rules; (ii) appointing a senior official to lead implementation; (iii) pledging to work with civil society and the private sector on implementation; and (iv) establishing a multi-stakeholder group including government officials as well as civil society and private sector representatives. Myanmar has completed the first three steps and the fourth is expected to be completed in October, according to The Myanmar Times.

Myanmar has everything to gain from eliminating corruption, and the appearance of corruption, in its energy sector. This is a step in the right direction.

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