Original article Myanmar’s extractive industries: An institutional and regulatory assessment Gillian Cornish a, *, Vlado Vivoda b a Centre for Social Responsibility in Mining, The University of Queensland, The School of Geography, Planning and Environmental Management, The University of Queensland Chamberlain Building (35), Campbell Rd., St. Lucia Campus, Brisbane, QLD 4072, Australia b Centre for Social Responsibility in Mining, The University of Queensland Sir James Foots Building (47A), St. Lucia Campus, Brisbane, QLD 4072, Australia A R T I C L E I N F O Article history: Received 17 June 2016 Received in revised form 2 August 2016 Accepted 3 August 2016 Available online 6 August 2016 Keywords: Myanmar Extractive industries Governance Regulation Reform A B S T R A C T Myanmar is undergoing rapid political, economic and social transition. This paper examines the regulatory governance of Myanmar’s extractive industries amidst this reform process. Based on the literature review, the paper develops an evaluative framework for assessing regulatory governance in the extractive industries, which includes six criteria: (1) clarity of roles and objectives; (2) stability and predictability; (3) participation; (4) capacity; (5) autonomy; and (6) transparency and accountability. The regulatory governance of Myanmar’s extractive industries is evaluated against the criteria, using original qualitative data to illustrate the key issues and challenges. Overall, the country has made notable improvements in recent years. The out-dated regulatory framework that has governed Myanmar’s extractive resources during military rule is transitioning to a framework that may enable improved industry practice and lead to responsible investment. However, reform processes of this scale cannot materialise over a short timeframe. The paper identifies priority area for the government in order to shift away from hitherto dominant norms and practice. ã 2016 Elsevier Ltd. All rights reserved. 1. Introduction Myanmar’s vast and diverse mix of natural resources includes gems, industrial minerals, oil and natural gas. Natural resources are Myanmar’s principal source of foreign exchange earnings and a major attraction for foreign direct investment (FDI). As such, they contribute significantly to the government budget. In recent years, natural resource exports accounted for two-thirds of national exports, or over 10 per cent of GDP, with natural gas alone making up 40 per cent of the total (IMF, 2015). 1 Extractive projects, when well managed, offer an opportunity to transform resource wealth into equitable development outcomes in developing countries. For Myanmar, growing export earnings and inward investment in the extractive industries have the potential to generate a significant level of economic and social development. However, in spite of being relatively well-endowed with natural resources and located within a region that has experienced significant economic, social and political development, Myanmar remains the least developed country in Southeast Asia, and faces significant challenges with natural resource management (EITI, 2015a). Over the past several decades, Myanmar’s extractive industries have operated within a framework of limited information, plagued by “bad governance” (Thein and Pick, 2010). Relations between government, companies and civil society (and communities) have been dominated by conflict. The military-linked extractive projects, for example in the jade industry, have been perceived by civil society organisations (CSOs) as the drivers of conflict (Global Witness, 2015). Unsurprisingly, foreign investors in extractive industries have been heavily criticised by a variety of non-governmental organisations (NGOs), including trade unions, environmental activists and pro-democracy groups, for supporting the military junta and damaging the environment (Meyer and Thein, 2014). A significant challenge for international investors will be to overcome preconceptions and gain societal trust. * Corresponding author. E-mail addresses: g.cornish@uq.edu.au (G. Cornish), v.vivoda@uq.edu.au (V. Vivoda). 1 The exact share of revenues derived from natural resources is difficult to estimate. There are pervasive data gaps on prices and extraction volumes; the division of responsibility for revenue collection and appropriation between ministries and SEEs is unclear; payments are deposited in multiple bank accounts; and information on production volumes and payments is not publicly disclosed. All these factors make it particularly challenging to estimate revenue flows. Additional sources of uncertainty include the largely informal extraction and payment practices (especially in non-gas sectors); extensive tax holidays; the involvement of military-owned companies; and parallel administration of some resources by subnational entities. http://dx.doi.org/10.1016/j.exis.2016.08.002 2214-790X/ã 2016 Elsevier Ltd. All rights reserved. The Extractive Industries and Society 3 (2016) 1075–1083 Contents lists available at ScienceDirect The Extractive Industries and Society journal homepage: www.else vie r.com/locat e/e xis