How Myanmar's Elections Could Dampen Its Investment Climate

In the months leading up to Myanmar's late 2020 elections, an atmosphere of political uncertainty and a risk-averse approach to reforms will combine to make it difficult for the country to attract foreign investment, even as it pushes to diversify beyond Chinese involvement. Myanmar's next government will likely be more divided and incoherent than the one now led by the National League for Democracy, with added complexity expected as ethnic minority, military-aligned and other parties jockey for position. More immediately, in the run-up to the election, the risks associated with spikes in anti-Muslim communal violence, stepped-up military offensives in ethnic border regions and a stagnating peace process with insurgents will rise. These factors, combined with the global trade slowdown, could limit Myanmar's economic growth. The 2020 vote, coming a decade into Myanmar's post-dictatorship period, will be a key test for the country's new political balance....