Description:
"This paper sets out to understand how trade liberalization particularly impacts employment in the Global South by looking at the case of Myanmar. The paper is divided into five succinct parts that
contribute to analysing to what extent trade liberalization through out Myanmar’s economic and political changes. Based on the findings of this paper, there are five key areas that shed light on the linkages
between trade and employment in Myanmar. These five areas include, (i) trade, structural transformation and employment, (ii) informality of the economy (iii) trade and global value chains integration (iv)
productivity (v) and wages, income inequality and working conditions.
The first section looks at the structural transformation of the economy, which is best described by Myanmar’s shift from an agrarian economy to an industrialized economy. Consequently, the shares of
industry and services sector to total GDP have increased overtime but the growth in the agriculture sector is not strong as others due to constraints such as high production cost, low productivity, low quality
products and lack of value chain integration. Moreover, data indicated how the garment sector experienced positive employment when export value of garment sector increased by threefold. Secondly,
the significance of the informal sector is demonstrated in how it employed about 81.9 per cent of total
labour force in 2017 and at least over 40 percent of Myanmar's imports from neighbouring country come
through informal channels. The World Bank's enterprises survey data (2016) confirmed that informal
firms in Myanmar have lower sales per worker (labour productivity) compared to firms in formal sector.
Therefore, based on previous findings, it can be assumed that workers in formal sector in Myanmar,
especially from export-oriented firms have gained more because of trade openness.
Furthermore, there is a need to invest in job-friendly global value chains which can be primarily done
through attracting FDI to diverse job-intensive sectors helping SMEs engage in GVCs is key to creating
quality jobs. This shows that foreign capital is not automatically generating better working conditions and
the host government play critical role in making sure better working environment and protecting
venerable workers not to be exploited. Based on the facts and discussions, this study recommends a
strong coordination among stakeholders and institutes with clear objectives to response present changing
dynamics in trade context as well as social security provisions to make sure benefits go to workers as
well..."
Source/publisher:
International Labour Organisation (ILO)
Date of Publication:
2018-08-31
Date of entry:
2019-06-12
Grouping:
- Individual Documents
Category:
Countries:
Myanmar
Language:
English
Local URL:
Format:
pdf
Size:
612.68 KB
Resource Type:
text
Text quality:
- Good