The Political Economy of Myanmar’s Transition

TitleThe Political Economy of Myanmar’s Transition
Annotated RecordAnnotated
Year of Publication2014
AuthorsJones L
Secondary TitleJournal of Contemporary Asia
Volume44
Issue1
Pagination144-170
Key themesDispossession-grabbing, Distribution, FDI, Policy-law
Abstract

Since holding elections in 2010, Myanmar has transitioned from a direct military dictatorship to a formally democratic system and has embarked on a period of rapid economic reform. After two decades of military rule, the pace of change has startled almost everyone and led to a great deal of cautious optimism. To make sense of the transition and assess the case for optimism, this article explores the political economy of Myanmar’s dual transition from state socialism to capitalism and from dictatorship to democracy. It analyses changes within Myanmar society from a critical political economy perspective in order to both situate these developments within broader regional trends and to evaluate the country’s current trajectory. In particular, the emergence of state-mediated capitalism and politico-business complexes in Myanmar’s borderlands are emphasised. These dynamics, which have empowered a narrow oligarchy, are less likely to be undone by the reform process than to fundamentally shape the contours of reform. Consequently, Myanmar’s future may not be unlike those of other Southeast Asian states that have experienced similar developmental trajectories.
URLhttp://content.csbs.utah.edu/~mli/Economies 5430-6430/Jones-Myanmar.pdf
Availability

Available for download
Countries

Myanmar
Document Type

Journal Article

Annotations

Overall relevance: 

The article examines the dual transition and reform from state socialism to capitalism and from dictatorship to democracy in Myanmar. Through an analytical approach of critical political economy from the Murdoch school, the article suggests that continual power of the military, the political complexities of politico-military-business on the borderlands, and state-facilitated crony capitalism are key constraints for the structural reform in Myanmar. It further asserts that Myanmar is in the early stages of primitive accumulation, therefore the state unilaterally controls resource management through coercive actions and exploitative practices, including land grabs and deforestation for agribusiness, mining, and infrastructure development to enrich a state-linked business class and powerful business oligarchs.

Key Themes: 
  • Land distribution: concentration/dispersion, landlessness - The reform of political economy has not resulted in radical change with the military and its cronies continue their power. Through a top-down reform process, lands are concentrated in the hands of landholding elites who hinder land reform and prevent small scale farmers from access to land for livelihoods through land grabbing and dispossession.
  • Land dispossession/land grabbing - The transition of political economy in Myanmar intensifies land grabbing and dispossession. The legal framework facilitates military-linked businesses, cronies and foreign investors to grab land from people who become landless and displaced persons. Lands are used for economic development activities, including the extractive industries and agribusinesses to serve global markets. In particular, cross-border investments and political economy among different actors, including Myanmar government, ethnic armed groups and foreign investors have made land grabbing and dispossession more complicated.
  • FDI and land access: economic land concessions, contract farming, short term and long term renting - As Myanmar opened up to the outside world, it quickly became apparent that resource-rich border areas of the country carried much potential for exploitation. The increasing involvement of neighbours, particularly China, in this process, has resulted in significant land grabbing, a significant contribution to the rise and persistence of ethnic conflict.
  • Land policy and land law - Reforms in Myanmar during 2011-12 have aimed to instigate the transition to a liberalised market economy. At best, the process could side-line hardliners, allowing space for ‘civilian’ rule and effective development. However, there is a significant chance that power remains with the military, locked into a pattern of elite crony capitalism, where land grabbing is rife.
Research basis: 

This article is based on documentary research of existing academic journals, reports, news articles, and interviews with key informants, including academics, civil society, business corporations and media. (Provided by Supatsak Pobsuk)