Burma: The Dilemmas of Commercial and Humanitarian Engagement

Burma is an important case study in the international debate about constructive engagement with authoritarian regimes: this article discusses the role of companies and humanitarian agencies.

International business has long been interested in Burma's economic potential, but the country has failed to live up to expectations – largely because of government policy failures. The foreign companies that do enter the country face significant political risks both inside the country, because of the risk of arbitrary government decision-making; and outside because of the risks of sanctions and boycotts. Advocacy groups in the West accuse foreign investors of abetting an unjust regime.

Humanitarian agencies face many of the same dilemmas. Most international aid was suspended in 1988 after the military regime suppressed pro-democracy demonstrations with the loss of thousands of lives. However, UN agencies and a number of international NGOs are now working in the country. Many agencies are concentrating on grassroots development with a view to minimising contact with the regime.

The urgency of Burma's humanitarian need may lead to greater international involvement. In the business world, companies are trying to identify what “best practice” should involve in an authoritarian regime. However, neither companies nor development agencies will be able to make the contributions that Burma so desperately needs unless there is substantive political change.