Corruption in Myanmar
Corruption in Myanmar is among the worst in the world. Owing to failures in regulation and enforcement, corruption flourishes in every sector of government and business. Many foreign businesspeople consider corruption "a serious barrier to investment and trade in Myanmar." A U.N. survey in May 2014 concluded that corruption is the greatest hindrance to business in Myanmar. The ongoing civil war has significantly set back anti-corruption efforts, exacerbating the problem.
Transparency International's 2024 Corruption Perceptions Index, which scored 180 countries on a scale from 0 to 100, gave Myanmar a score of 16. When ranked by score, Myanmar ranked 168th among the 180 countries in the Index, where the country ranked first is perceived to have the most honest public sector. For comparison with regional scores, the best score among Asia Pacific countries was 84, the average score was 44 and the worst score was Myanmar's, 16. For comparison with worldwide scores, the best score was 90, the average score was 43, and the worst score was 8.
In the Myanmar Business Survey 2014, corruption was the most frequently identified obstacle to business, especially with respect to obtaining firm registration, business licenses and permits from government authorities.
It is common in Myanmar to charge illicit payments for government services, to bribe tax collectors to secure a lower tax payment, and to bribe customs officials to avoid paying customs duties.
Background
Saffron Revolution
In 2007 the then-Burmese government revoked several subsidies for various fuel industries, causing prices to soar throughout the nation. This sparked widespread protests due to the public's dissatisfaction with the military government. It was noted that the average citizen was displeased with the immense levels of kleptocracy in the nation, allowing members of the military dictatorship to live in a "state within a state" with accumulated wealth far beyond that of the people. The government reacted harshly to the protests through violence and arbitrary detentions. While the official death count tallied thirteen killed, it is widely surmised that the true number far exceeded this figure. The government had even taken steps to censor internet access within the country, though to no avail.Although the demonstrations were dispersed and suppressed by the military junta, the public would later vote for a new government and wrest power from Senior General Than Shwe by 2011. Nonetheless, elements of the military government retained power.
File:Than Shwe 2010-10-11.jpg|thumb|left|150 px|Former Burmese Head of State Senior General Than Shwe
Myanmar spent five decades under military rule. This period ended in 2011, when a semi-civilian government took power and sought to regenerate the economy and draw foreign investment. Among its objectives was the reduction of endemic corruption. As of May 2014, however, those reforms were viewed as having had a minimal effect on corruption.
Every leading official in the former military regime is said to have "committed thousands of offenses related to corruption." Most high-level officials in the civil service were related to military officials.
Since the end of military rule, Myanmar has been implementing economic reforms and developing a free market, but according to one source "its nascent market economy remains bound by myriads of regulations," which make possible rampant corruption that "hinders the functioning of the price mechanism, upon which the proper functioning of the market economy is based." Kim Ninh of the Asia Foundation said in May 2015 that despite efforts to reduce corruption after military rule, the country's business environment remained essentially the same, with few new companies emerging since 2011.
An October 2015 article in Wired stated that notwithstanding attempts by the US and other Western countries to promote transparency, the majority of Myanmar's economy remains in control of a corrupt elite. During the privatization process, according to a report by the U4 Anti-Corruption Resource Centre that was updated in October 2014, "numerous state assets were sold to the military, family members, and associates of senior government officials at fire sale prices."
According to several reports, moreover, the military influenced the results of the 2010 and 2012 elections by means of fraud, restrictions on political participation, and prohibition of international monitoring.
2021 coup
The 2021 military coup in Myanmar and the rise of the military-led State Administration Council have significantly deepened corruption across the country. Under SAC rule, bribery has become an everyday requirement for accessing essential public services — from getting ID cards to avoiding military conscription. The SAC has turned corruption into a deliberate tool of governance. By allowing bureaucrats to collect bribes with impunity, the regime secured their loyalty, especially after nearly half a million civil servants joined the Civil Disobedience Movement post-coup. Low civil servant wages and rising living costs have further fueled this trend.Anti-corruption laws are applied selectively, mostly targeting political opponents from the former National League for Democracy while ignoring abuses by regime loyalists. The result is a system where corruption is entrenched, institutionalized, and politically weaponized — exacerbating inequality, eroding trust in government, and stalling national development.
In 2023, Myanmar’s Corruption Perceptions Index hit a new low, scoring 20 out of 100. Myanmar ranks among the most corrupt countries globally and scored the worst in Southeast Asia.
Factors
Some reasons for the high levels of corruption in Myanmar include multiple exchange rates, which enable officials to demand bribes for providing favorable rates; low civil-service pay rates; and a tradition of nepotism. "As there are no competitive selection processes to enter the public sector," notes one report, "personal connections and bribery are maybe more important than qualifications. For instance, it is common practice to select ministers and high-level civil servants from the military ranks rather than based on expertise."It has been observed that post-2011 Myanmar has an expanding informal economy, and that such economies are notoriously vulnerable to corruption.
Political and judicial corruption
Political corruption
Political corruption exists at higher levels of government, and comes into play especially "when large infrastructural works or other 'mega-projects' are being negotiated or implemented." Companies pay bribes "to avoid trouble or delays," and often "establish illicit networks of patronage which can be exploited in future deals." Companies that establish such networks "are often given monopoly control over the markets or sectors they win by 'bidding,'" and this monopoly control stifles competition and growth.In the World Economic Forum's Global Competitiveness Report 2013–2014, business executives rated the incidence of corrupt diversion of public funds to companies, individuals, or groups at 2.3 on a 7-point scale. They rated the favoritism of government officials towards well-connected companies and individuals, as reflected in policies and contracts, a score of 2.2 on a 7-point scale.
Government ministries often fail to report their own expenditures on projects.
Judiciary
The judiciary is corrupt and subject to government and military influence. Judiciary officials in Myanmar accept bribes for various services, such as providing access to detainees and rendering a favorable verdict. Judiciary corruption "represents a major challenge to businesspeople looking to do business in Myanmar." In disputes with foreign firms, local businesses can use bribes to secure favorable judgments. On the World Economic Forum's 2013–14 Global Competitiveness Report, business executives rate the independence of the judiciary at 2.8 on a 7-point scale.Judicial decisions about land and buildings are often affected by government influence, personal relationships, and bribery. It can take years to enforce a contract in the Myanmar courts.
Lobbying groups
There are many lobbying groups in Myanmar, but they are unregulated, and "regularly resort to bribes and concessions to secure favor," which is "abetted by the lack of transparency and accountability in Myanmar."Law enforcement and security corruption
Police and security forces
On the World Economic Forum's 2013–14 Global Competitiveness Report, business executives scored the reliability of police services to enforce law and order at 3.0 on a 7-point scale.Police officers "reportedly often ask victims of crimes to pay substantial amounts to ensure police investigate crimes; in addition, police routinely extort money from civilians." Police are said to be involved in human trafficking, accepting bribes from drug lords, and extorting local businessmen. When a curfew was imposed following riots that took place in Mandalay in 2004, police extorted bribes from people who wanted to break the curfew.
One reason for police corruption is that police officers were expected for many years to pay for their own investigations, without any reimbursement or compensation. This policy not only encouraged corruption but also discouraged serious investigation of crimes.
Security forces "generally act with impunity in Myanmar." The Human Rights Report 2013 noted that a police escort for a UN rapporteur's convoy "stood by" while the convoy was attacked.