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Myanmar's natural resources include gems, industrial minerals, oil, and offshore natural gas reserves estimated at 10 trillion cubic feet. The extractive sector accounted for 39 percent of exports in 2010, yet despite its mineral wealth, Myanmar is one of the least developed nations in the world. Its extractive industries are infamously opaque. In the April 2012 elections, the main opposition party won seats in the parliament, a development that could lead to improved transparency.

Myanmar's Performance on the Resource Governance Index

Myanmar received a "failing" score of 4, ranking last out of 58 countries. It performed extremely poorly on all components.

(out of 58)
(out of 100)
58 Composite Score 4
58 Institutional & Legal Setting 8
Freedom of information law 0
Comprehensive sector legislation 67
EITI participation 0
Independent licensing process 0
Environmental and social impact assessments required 0
Clarity in revenue collection 0
Comprehensive public sector balance 0
SOC financial reports required 0
Fund rules defined in law N/A
Subnational transfer rules defined in law N/A
57 Reporting Practices 5
Licensing process 0
Contracts 0
Environmental and social impact assessments 0
Exploration data 0
Production volumes 50
Production value 0
Primary sources of revenue 0
Secondary sources of revenue 0
Subsidies 0
Operating company names 0
Comprehensive SOC reports 0
SOC production data 19
SOC revenue data 0
SOC quasi fiscal activities 0
SOC board of directors 0
Fund rules N/A
Comprehensive fund reports N/A
Subnational transfer rules N/A
Comprehensive subnational transfer reports N/A
Subnational reporting of transfers N/A
57 Safeguards & Quality Controls 2
Checks on licensing process 0
Checks on budgetary process 0
Quality of government reports 11
Government disclosure of conflicts of interest 0
Quality of SOC reports 0
SOC reports audited 0
SOC use of international accounting standards N/A
SOC disclosure of conflicts of interest 0
Quality of fund reports N/A
Fund reports audited N/A
Government follows fund rules N/A
Checks on fund spending N/A
Fund disclosure of conflicts of interest N/A
Quality of subnational transfer reports N/A
Government follows subnational transfer rules N/A
58 Enabling Environment 2
Corruption (TI Corruption Perceptions Index & WGI control of corruption) 1
Open Budget (IBP Index) N/A
Accountability & democracy (EIU Democracy Index & WGI voice and accountability) 2
Government effectiveness (WGI) 2
Rule of law (WGI) 3
Satisfactory Weak
Partial Failing
To explore all data and compare
scores, use the RGI Data Tool.

Institutional & Legal Setting (Rank: 58th/58, Score: 8/100) learn more

Myanmar's natural resource legislation does not define the licensing process, the role of governmental authorities, or the fiscal system for extractive revenues, resulting in a "failing" score of 8.

The Energy Ministry and the state-owned Myanmar Oil and Gas Enterprise (MOGE) oversee the petroleum sector and award contracts. Foreign companies must sign a production sharing contract with MOGE and accept the risk that the government may announce policy changes at any time.

Almost no information is available on the management of the extractive sector. Myanmar has no freedom of information law, and environmental and social impact assessments are not required. Even experts and those working directly with policymakers know very little about the inner workings of the system. It is unclear which authority receives payments from extractive companies. It is widely assumed that corruption is rampant in the sector and that much of the country's resource revenues have been diverted to the foreign bank accounts of a few government officials. Myanmar has expressed interest in the Extractive Industries Transparency Initiative but is not yet a signatory.

Reporting Practices (Rank: 57th/58, Score: 5/100) learn more

Myanmar provides no information on the licensing process or contract terms, and publishes only very limited industry data, leading to a "failing" score of 5.

Neither the Finance Ministry nor the Energy Ministry provides information on extractive revenues. Only the central bank publishes annual reports with historical information on license fees and the cost of subsidies, but they are not available online. The Central Statistical Organization publishes information on gas production volumes and exports.

Safeguards & Quality Controls (Rank: 57th/58, Score: 2/100) learn more

Myanmar's "failing" score of 2 is the product of a near-total lack of official oversight mechanisms.

There are no set limits on the discretion of licensing authorities. Their decisions cannot be appealed, and sudden changes in fiscal policy are common. The legislature has no clear oversight role in the extractive sector. Myanmar's auditor general has the authority to scrutinize extractive revenues, but audit procedures are not known, reports are not made public, and the auditor's findings are not systematically presented to lawmakers.

Enabling Environment (Rank: 58th/58, Score: 2/100) learn more

Myanmar received a "failing" score of 2, ranking near the bottom of global measurements of control of corruption, government effectiveness, democratic accountability, and the rule of law.

State-Owned Companies (Rank: 44th/45, Score: 2/100) learn more

There are three state-owned enterprises in the gas sector, including MOGE, which also acts as a regulator and may collect payments from foreign gas companies on the state's behalf. MOGE does not publish reports apart from occasional PowerPoint presentations aimed at investors, and these are not comprehensive. They include information on reserves, project costs, companies operating in the country, and production data.

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