Making a profit in Burma

European companies operating in Burma face all sorts of pitfalls – pressure from their governments, campaigns by activists, boycotts by customers. So why do so many continue to work there?

Companies exist to make money, and there are plenty of opportunities to turn a profit in Burma.

But the US and several other nations have squeezed most of their firms out of Burma by maintaining tough sanctions.

Europe has imposed arms embargoes, asset freezes, import bans and penalties for companies knowingly supporting military activity or repression.

But there is no blanket ban on firms investing in the country – so travel agents, insurance firms, haulage companies, energy firms and telecom conglomerates can continue to work there.

In fact, doing business with the junta is “not so different from most other places”, according to one Western executive who has worked with the generals.

Analysis

Basically, Burma being a third-world country with a political crisis gives MNC’s (Multi National Corporations) a chance to exploit workers and the resources of the country. The military rule also makes more money out of this as the companies give them much more money than they give to the poorer people working in Burma. Hence, the economic growth for individuals or for the countries society.

Asia Slowdown to Have `Serious’ on Affect Europe, Economy Chief Rehn Says

Slower economic growth in China, India or other Asian economies would have a “serious negative impact” on Europe’s growth, the European Union’s economic chief said.

Olli Rehn, the EU commissioner for economic and monetary affairs, said yesterday in a Bloomberg Television interview that a slowdown in the U.S. recovery and turmoil in the sovereign debt markets also could cause concern in Europe.

Strengthening global growth helped Europe’s economy show the fastest expansion in four years in the second quarter after the Greek budget crisis earlier damped confidence in the euro currency and forced governments to step up deficit-cutting measures. Euro-area growth is likely to decelerate in the second half of the year as signs of a slowdown in the U.S. and China dim export prospects.

In the U.S., the world’s biggest economy, the Commerce Department may revise lower its second-quarter growth rate to the slowest since the recovery began, according to the median forecast of economists in a Bloomberg News survey. China’s expansion eased to 10.3 percent in the second quarter and industrial production cooled more than forecast in June, data showed last month, signaling a deeper second-half slowdown.