Financial Times: Using Sanctions to Promote Responsible Investment in Myanmar

Wall and Hutman wrote, “The approach is creative and potentially path-breaking, offering a win for all stakeholders, and could provide lessons for future sanctions programs. But like all sanctions programs, its effectiveness will depend on the particular circumstances on the ground.”

They argued that the U.S. should establish a process for Specially Designated Nationals (those on the so-called U.S. “black list”) to step forward, with a clear criteria for the information they need to provide. “The people and entities on the SDN list are principally cronies of the previous military regime who enjoyed privileged access to natural resources concessions and other largesse,” both authors explained. “Their economic interests are pervasive and the Myanmar economy lacks transparency, so it is often difficult if not impossible for U.S. companies to conduct the due diligence necessary to avoid business dealings with them.”

“The ultimate question is whether the U.S. attempt to promote responsible investment will impact economic development and how it benefits the people of Myanmar,” Wall and Hutman concluded. “The regime needs to show tangible economic benefits, and opposition leader Aung San Suu Kyi, who announced at the World Economic Forum in April her intention to run for president in 2015 if the necessary constitutional changes are implemented, is pressing the government hard on the issue. In the end, whether this new sanctions approach will work may depend on how that political contest plays out.”

To read more about the “Responsible Investment Reporting Requirements,” visit: United States Issues Final Investment Reporting Requirements for Burma/Myanmar.