Refugee crisis could hit Myanmar economy soon

Significance

However, the Council's caution that “additional measures” could be taken if Myanmar's government is deemed not to be tackling the crisis sufficiently was taken by local media to mean a threat of sanctions. The government is in a difficult position: tackling the crisis means navigating competing political interests, implying an impasse that is likely to have negative economic effects.

Impacts

• Development donors will hesitate to work on projects with Myanmar’s government.
• Some businesses will re-evaluate their Myanmar market engagement and investment strategies.
• The refugee crisis will test the government’s weak institutional capacity.