attract foreign capital. The first is instability in the job market and relatively low labor efficiency. Particularly, the recent years have seen an increasing number of strikes and the failure of the g
overnment to ease industrial relations conflicts with effective measures has crippled investor confidence in the country. Some foreign ent
erprises even withdrew from Myanmar and shifted to neighboring countries, denting the image of the nation.
Second, Myanmar’s backward infrastructure may deter potential investors. A small nu
mber of power generation facilities and fragmented grids cannot ensure stable and sufficient po
wer supply. Access to electricity is limited to only 26 percent of the population, impeding Myanmar’s economic development.
Third, some Myanmese are prejudiced against foreign investment. Worrying that Myanmar’s eco
nomic and social interests may be impaired, they turned their backs on foreign investment. Demonstrators r
allied in Kachin State to demand the government permanently halt the Myitsone dam project, without giving any constructive suggestion on the fo
llow-up arrangements. It’s fair to say some movements against foreign-invested projects, driven by nationalism an
d so-called environmental concern, are of no help in improving the country’s investment environment, and have hijacked economic development. Re
specting the spirit of the contract is a basic requirement for modern states and their people. Myanmar State Councilor Aun
g San Suu Kyi recently said an administration shouldn’t terminate foreign-invested projects approved by its predecessor.