Corruption in Myanmar: A Persistent Threat to Democracy and Development Introduction

Writer : Arrafi Bima Guswara   I  Editor : Muhammad Fahrezi Syahputra

Corruption in Myanmar: Origins, Impacts, and Pathways to Reform

Corruption in Myanmar remains one of the most significant obstacles to the country’s economic growth, political stability, and social justice [1]. Despite a nominal shift from military rule to a quasi-civilian government in 2011, systemic corruption has persisted [2]. Weak governance structures, continued military dominance in key sectors, and a lack of accountability mechanisms have allowed corruption to flourish [3]. High-profile scandals, entrenched crony capitalism, and widespread embezzlement of public funds have consistently undermined development efforts and eroded public trust [4]. This article explores the historical roots of corruption in Myanmar, its wide-ranging socio-economic and political consequences, and potential strategies for meaningful reform.

Historical and Structural Roots of Corruption

The roots of corruption in Myanmar can be traced back to the military dictatorship that began in 1962 and lasted until 2011 [5]. Over these decades, political and economic power became increasingly concentrated among military elites and their close associates. Corruption was not merely tolerated—it became institutionalized [6]. The junta exercised absolute control over Myanmar’s most profitable industries, including jade, timber, and oil, funneling revenues to a privileged few while depriving the public sector of essential funds [7].

The absence of an effective legal framework further enabled corrupt practices. Anti-corruption laws were either weak or poorly enforced, and the judiciary lacked independence [8]. This allowed corruption to proliferate without fear of accountability. A culture of cronyism and patronage networks took root, where business licenses, government contracts, and natural resource concessions were routinely awarded to military-linked tycoons in exchange for loyalty and financial kickbacks [9].

Although political reforms in 2011 brought some degree of civilian governance, the legacy of authoritarianism persisted [10]. The military retained significant influence, and corruption continued to be deeply embedded in both public and private sectors. Myanmar’s consistent ranking among the world’s most corrupt countries in Transparency International’s Corruption Perceptions Index underscores the depth of the problem.

Impacts of Corruption on Society and the Economy

Corruption in Myanmar has severe and far-reaching consequences:

1. Economic Consequences
   Billions of dollars in public revenue are lost annually through smuggling, tax evasion, and the illegal exploitation of natural resources such as jade and gas [11]. These losses significantly hinder Myanmar’s ability to invest in infrastructure, healthcare, and education [12]. The pervasive nature of corruption also discourages foreign direct investment, as businesses face an unpredictable regulatory environment and frequent demands for bribes. This stifles economic growth, restricts job creation, and deepens poverty and inequality [13].

2. Political Consequences
   Corruption undermines the legitimacy of the government and contributes to political instability. Citizens who observe the misuse of public resources grow increasingly disillusioned with political institutions. This discontent has fueled protests and social unrest. Additionally, corruption serves as a tool for the military to maintain its grip on power. By controlling lucrative economic sectors, the military funds its operations and suppresses democratic movements, further entrenching authoritarian rule.

3. Social and Human Rights Consequences
   The human cost of corruption is profound. Officials frequently engage in land grabs, forced labor, and the violent suppression of dissent. These actions not only violate fundamental human rights but also foster a climate of fear that stifles civil engagement and progress toward democratic governance [14].

Pathways to Reform: Domestic and International Strategies

Addressing systemic corruption in Myanmar will require a comprehensive, multi-faceted approach. Key reforms include:

1. Institutional Strengthening
   Myanmar must establish a truly independent Anti-Corruption Commission (ACC) with full investigative and prosecutorial authority, free from political interference. Alongside this, implementing transparent public procurement processes and modern financial management systems is essential for ensuring accountability in public spending.

2. Judicial Reform
   The judiciary must be restructured to ensure independence and the ability to prosecute high-level corruption, including within the military elite [15]. Legal protections for whistleblowers and investigative journalists must also be enacted and enforced, ensuring that those who expose corruption are not subject to retaliation.

3. International Support and Sanctions
   The global community, particularly organizations such as the United Nations and ASEAN, has a critical role to play. Targeted sanctions should be imposed on corrupt military leaders and their business networks [16]. In addition, international financial institutions should work to freeze and repatriate illicit assets held overseas by Myanmar’s elite [17].

4. Civil Society Empowerment
   Long-term progress depends on an active civil society and a free press. Supporting organizations that investigate and report on corruption, encouraging civic engagement, and promoting transparency initiatives can foster a culture of accountability from the ground up.

Conclusion: Toward a Corruption-Free Future

Systemic corruption in Myanmar is a legacy of prolonged military rule and institutional decay. If left unaddressed, it will continue to obstruct development, deepen inequality, and destabilize the nation’s fragile political landscape. Overcoming this challenge will require a concerted effort involving institutional reforms, judicial independence, international pressure, and vibrant civil society participation.

While the path forward is undoubtedly difficult, it is not impossible. With sustained commitment from both domestic actors and the international community, Myanmar can begin to dismantle the structures of corruption and move toward a more just, prosperous, and democratic future.

References

[1] Transparency International. (2023). Corruption Perceptions Index 2023.
[2] International Crisis Group. (2023). Myanmar’s Coup and Its Aftermath.
[3] Jones, L. (2020). Military Capitalism in Myanmar.
[4] Global Witness. (2015). Jade: Myanmar’s “Big State Secret”.
[5] World Bank. (2021). Myanmar Economic Monitor.
[6] Myanmar Constitution. (2008). Chapter V.
[7] Ford et al. (2022). Journal of Contemporary Asia.
[8] Natural Resource Governance Institute. (2023).
[9] UNDP. (2023). Corruption and Service Access Survey.
[10] Justice For Myanmar. (2022). Stolen Pandemic Report.
[11] Transparency International. (2023). Anti-Corruption Mechanisms.
[12] United Nations Development Programme. 2023. *Myanmar Human Development Report*. New York: UNDP.
[13] ASEAN Investment Report. 2023. *Foreign Direct Investment Trends in ASEAN*. Jakarta: ASEAN Secretariat.
[14] Fortify Rights. (2023). Documentation of Human Rights Abuses.
[15] International Institute for Democracy and Electoral Assistance. (2023).
[16] Chatham House. 2023. *International Responses to the Myanmar Crisis*. London: Royal Institute of International Affairs.
[17] Financial Action Task Force. 2023. *Money Laundering Risks in Myanmar*. Paris: FATF.