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Myanmar Country Context Paper

January 26, 2018

This Country Context Paper provides an overview of women’s contribution to Myanmar’s economy as farmers, entrepreneurs and wage workers.  It identifies key barriers to women’s economic empowerment and is undertaken under the auspices of the Australian Government’s Investing in Women initiative (under Component Three), which refers to government partnerships to remove selected barriers to women’s economic empowerment and implement changes that will encourage partner government regulatory reform. It provides a snapshot of factors either facilitating or inhibiting women’s economic empowerment in the country, focusing on: laws and their implementation (Part One); social norms (Part Two); access to markets and productive assets (Part Three); business and work (Part Four); and political representation (Part Five).  It lists major factors and actors/institutions driving or resisting policy reforms to consecrate gender equality in the world of work, and provides recommendations for addressing underlying causes of gender gaps.

Myanmar is undergoing a period of unprecedented transformation. Following decades of isolation, the last five years have seen rapid and ambitious social, political and economic reforms. With its rich resource base, Myanmar has the potential for strong economic growth and development.

Aung San Suu Kyi’s National League for Democracy came into government in Myanmar in 2016, bringing high hopes for positive change in the country.  But the new government faces challenges. Military influence continues across public institutions and the economy.  While a peace agreement is in negotiation, there is ongoing conflict and unrest in parts of the country. Limited detailed policies have been released by the new government regarding development in Myanmar. And reforms need to continue and deepen to bring about substantial improvements in the lives of people across the country.

Myanmar’s economy is underdeveloped and levels of poverty are high. Major reforms have moved it towards a market-based economy, but decades of isolation, conflict and economic neglect have been costly.  Myanmar is in the early years of its transformation. Although improving, it still lags behind regional neighbours on most social and economic indicators. The country ranks 145 out of 184 countries in the 2016 Human Development Index. Poverty rates are estimated to between 26 and 38 per cent, and vary greatly depending on geography and other factors (World Bank 2015a, p13; ADB & UN 2016). According to 2010 UN data poverty incidence is higher in rural areas (29.2 per cent) than urban areas (15.7 per cent); and many remote, ethnic, border regions (like Chin and Rakhine States) have a higher proportion of their population living in poverty than in other areas (cited in ADB & UN 2016, pp.33-34).

The economic outlook for Myanmar is positive. GDP is expected to grow at 7.7 per cent in FY2017 (up from 6.2 per cent in FY2016).  Commodity prices are likely to increase, and agriculture (which employs around 63 per cent of the labour force) is expected improve. Industry and services (particularly telecommunications) are also expected to grow, and exports to increase following the removal of US sanctions (ADB 2017).

Over the last decade, there have been significant advances in social and economic indicators for women. Around 52 per cent of Myanmar’s population of 51 million people are female (MoIP 2014). The situation for women and girls has improved in many areas – particularly the labor force participation rate of women, nonagricultural wage employment, access to credit, literacy rates, primary and secondary education completion, and the maternal mortality ratio (ADB & UN 2016). Myanmar comes in at around the middle of all countries in the 2016 Gender Inequality Index.

Despite gains, women continue to face obstacles in accessing rights. Many of these obstacles are common to women across the developing world (ILO, 2016). However, the OECD reports that the level of institutionalized gender discrimination in Myanmar is relatively high (2014 Social Institutions and Gender Index). Girls and boys complete school at similar rates, but this does not translate this into greater earnings or literacy for women (MoLESS & CSA 2015). Women are underrepresented in almost all areas of public life. Patriarchal stereotypes are prevalent, bolstered by religious norms (CEDAW 2016). Age, disability, ethnicity, poverty, geography, migratory status and other factors can compound disadvantage.

New data provide insights into the lives of Myanmar women, and show clear gender disparities. For decades, Myanmar governments did not routinely collect demographic data. The minimal data collected was rarely disaggregated by gender or other characteristics.  In recent years, the government (assisted by international donors) has begun to systematically collect data. The 2014 Census was the first in more than 30 years, and the first comprehensive Labour Force Survey was released in 2016 (previous official data had generally been based on outdated projections).  In 2015, the overall labour force participation rate was 64.7 – but for males was 80 per cent, much higher 52 per cent for females (MoLESS & CSA 2015). On average, women earn 25 per cent less than men (MoLESS & CSA 2015). Women are often employed in the informal sector which increases the risk of exploitation (ADB & UN 2016). Female ownership (at 27 per cent) and management (at 29 per cent) of private firms is lower than in other countries in the region (World Bank 2015b; DFAT 2016). Women made up 52 per cent of employees in government administration, but only 39 per cent of leadership positions (Minoletti 2016).

National policy priorities

The economic and development policies of the last two governments in Myanmar have not made specific reference to women. The previous government created the comprehensive Framework for Economic and Social Development (2011 – 2015), which identified and sequenced the country’s reform priorities under a Five Year Development Plan (2011-2015).  The current government’s Statement of Economic Policy (released in 2016) lacks detail. However, it notes the importance of promoting a market system that allows individuals to freely pursue economic opportunities; and employment opportunities for all citizens. Although sectoral plans are being implemented in health and education, the current government has not yet released a detailed and prioritized overarching national development plan.

In 2013, the previous government released the National Strategic Plan for the Advancement of Women [NSPAW] (2013 -2022).  Despite its isolation, Myanmar became a signatory to CEDAW in 1997, signed the Beijing Platform for Action in 1995, and is party to ASEAN gender equality mechanisms. NSPAW aims to implement international commitments by creating enabling systems, structures and practices for the advancement of women, gender equality, and the realization of women’s rights (MoSWRR 2013). There are twelve priority areas listed in NSPAW. The Women and Livelihoods priority aims to improve women’s livelihoods and reduce poverty.  The Women and the Economy priority aims to ensure fairness and equal rights for women in relation to employment, credit, resources, assets and economic benefits. The Women and Decision-Making priority aims to ensure women’s equal participation in decision-making and leadership at all levels of society (MoSWRR 2013).

NSPAW can be a robust platform for women’s rights in Myanmar, and momentum is increasing for implementation.  Progress to date has been slow. The Ministry of Social Welfare Relief and Resettlement [MoSWRR], which is responsible for implementation, manages several competing priorities due to its broad mandate. NSPAW implementation is managed by a small number staff in the Women’s Development Division in MoSWRR (GEWESWG undated). Although advances have been made against NSPAW objectives, particularly from within civil society, few of these were directly driven by the NSPAW agenda (MoSWRR 2017). The Committee on the Elimination of Discrimination Against Women (2016) stressed the importance of turning NSPAW into action. Technical working groups are now being established by MoSWRR to fast track implementation; the groups covering participation and mainstreaming will be particularly relevant to women’s economic empowerment. The aim is to develop a five-year costed implementation plan and monitoring and evaluation framework by the end of 2017 (MoSWRR 2017).

Although there is no national development plan currently in place in Myanmar, there is evidence of government commitment to MoSWRR programs. MoSWRR received additional funding of around 300 per cent this year, despite the tight budget environment. This built on increased parliamentary interest in social issues, and additional funds will expand social welfare programs (UNICEF 2017). The budget increase indicates there are openings to build support for social issues under this government, although the budget bid directly related for the Women’s Development Division was not approved this year. If MoSWRR is able to deliver on outcomes against the increased budget this year, the case will be stronger for increased funding in future budgets.

Part One: Legal and regulatory frameworks and their implementation

Myanmar’s legal system is undergoing major reforms. NSPAW contains goals for the equal treatment of women under land and agrarian reforms, equal pay for equal work and ending harassment.  It also prioritizes awareness raising of labour law among employers and employees, and recommends funding initiatives that address women’s rights and security in the workplace.

Myanmar’s Constitution (2008) enshrines principles of gender equality, including that women are entitled to the same rights and pay as men in similar work. However, the Committee for the Elimination of all forms of Discrimination Against Women (2016) noted that the Constitution contains gaps and contradictory provisions that undermine gender equality principles. The Committee recommended amending the Constitution to remove references to women as mothers and child-bearers, and remove specific provisions that allow gender discrimination in government recruitment. Further, it noted a lack of special measures in Myanmar (like quotas) to achieve gender equality in representation.

Women, business and investment

According to the Women, Business and the Law 2016 report, Myanmar performs well against other countries in terms of enacting of gender-neutral laws. However, the report focuses on the content of the laws rather than their application (World Bank 2016a). Globally, gaps in legal frameworks and failures of implementation undermine the intent of gender equality laws (UN Women 2012). The implementation of laws in Myanmar is often influenced by directives from relevant ministries and practice (Luther 2016). Many laws and regulations impacting on women’s economic empowerment are new, and there has been limited assessment of their implementation.

Institutional and structural constraints to the business environment reflect the infancy of Myanmar’s transformation towards a market economy. Although many laws have passed that aim to improve the environment for business and investment, these do not have gender-specific provisions. Due to a lack of data, it can be difficult to discern general constraints to engaging in business from gender-specific constraints – particularly regarding how laws are implemented (DFAT 2016).

The business environment in Myanmar is improving, but is still extremely challenging. Myanmar improved from a ranking of 182 out of 189 countries for ease of doing business in 2014, to 170 out of 190 countries in 2017. Between 2011 and 2016, an average of 46 reforms were implemented annually to make setting up a business easier (DFAT 2016). However, Myanmar has not made significant gains in many areas key to effectively doing business.  It ranks second last for enforcement of contracts, provides minimal investor protections, and fell in ranking for ease of getting credit from 2014 (World Bank 2017).

Women and labour laws

As part of the reform process, outdated labour laws are being revised or replaced. For example, a new Labour Organisation Law was enacted in 2011, allowing workers to form labour organisations. Prior to this freedom of association and collective bargaining were severely curtailed. Other labour laws followed, including on dispute resolution, leave, factory work and social security (MCRB 2015). There has been minimal analysis of how these new laws have been implemented, and how they impact on women.

Minimum wage legislation has the potential to increase women’s average earnings, but implementation is critical.  In 2015, Myanmar’s first minimum wage was set at 3,600 kyat (AUD $3.50) per day.  With few exceptions, the minimum wage applies across all industries and sectors (Bernhardt et. al. 2016). Data on implementation is limited. However, men paid daily wages earn an average of 4,900 kyat (AUD $4.80), compared to 3,340 kyat (AUD $3.30) for women (MoLESS & CSA 2016). Female daily wage workers earn an average wage that is lower than the minimum wage in Myanmar, which is in turn the lowest set minimum wage in South East Asia (Bernhardt et. al. 2016).

Maternity leave is now enacted in law in Myanmar, however it is likely that few women access it. Under the Leave and Holiday Act 1951 (amended 2014), women workers are entitled to maternity leave of 14 weeks, female civil servants are entitled to six months of maternity leave, and fathers have right to 15 days leave after the birth of a child. Women may access a cash benefit during maternity leave in some circumstances under the Social Security Law 2012 (MCRB 2017). However, as the vast majority of the female working population are in the informal sector, they are not protected by these laws (MCRB 2017). New provisions also require that owners of large factories employing more than 100 women with young children must provide onsite day-care. There has been limited data on the application of this law, although anecdotal evidence suggests it is not being implemented (Kyaw 2016).

Myanmar imposed a temporary ban on migration for domestic purposes in 2014, which has significantly increased the risk of movement for women. The ban aims to protect women from extreme abuses. But the result is that women are now more likely to move as irregular migrants which limits their protections in the destination country (Pollock 2017). There has been pressure by advocacy groups to lift the ban to help regularize the movement of women (MCRB 2015).

New laws (currently in draft) may have a significant impact on women workers. In particular, legislation to strengthen occupational health and safety could substantially improve working conditions in the female dominated garment sector (see below). A draft law on sexual and gender-based violence includes provisions to end harassment and violence and work, although in its current iteration the law is considered too weak to be effective (MCRB 2015; DFAT 2017).

Responsibility for women’s economic empowerment in government

The Union-level government plays a strong role in economic development in Myanmar, including responsibility for managing licenses in the lucrative natural resources sectors. Within government, responsibility for women’s economic empowerment cuts across many ministries. MoSWRR has a coordination and convening function in implementing NSPAW. Relevant line ministries include: Ministry of Planning and Finance (which implements business and investment regulations); Ministry for Labour, Immigration and Population (which includes the Department of Factories and General Labour Laws Inspection that enforce labour laws); Ministry of Industry (implements legislation regarding SMEs); and line Ministries relating to particular sectors (Luther 2016; MCRB 2015; World Bank2015b).

Part Two: Social norms and unpaid care work

The Committee on the Elimination of Discrimination Against Women (2016) noted that patriarchal attitudes and discriminatory stereotypes regarding the roles of women in the family were persistent in Myanmar society.  Studies reveal two pervasive misperceptions regarding gender equality: that it actually does not exist in Myanmar; and that it is not critical to becoming a modern, developed and democratic nation (Oxfam, Troicare, CARE & Action Aid 2013; GEN 2015; Williams 2017). One study found that many women leaders felt that gender equality was solely a social welfare issue, rather than central to the aims economic growth and poverty reduction (Oxfam, Trocaire, CARE & ActionAid 2013). In recognition of this issue, NSPAW includes a specific goal to eliminate the customs, superstitions and beliefs that are obstacles to women’s access to information about the economic sector (MoSWRR 2013).

Opportunities for work and livelihoods are strongly gendered. Work for men and women are typically positioned as: hard work as opposed to easy or light work; inside work as opposed to outside work; and productive work as opposed to reproductive work.  Prevalent gender norms pitch men as the household leader and breadwinner, with the work of a man considered more valuable than that of a woman (GEN 2015). Wage disparities and gender-specific recruitment practices reflect this belief (see above).

Family responsibilities keep women out of the workforce in Myanmar. Of those outside the labour force, 63.9 percent of women said that they did not work due to family and housework responsibilities, compared to only 13.9 per cent of men. And gender expectations appear to be present from a young age.  Girls are far more likely to engage in all types of household chores than boys, whether or not they also engaged in paid work (MoLESS & CSA 2016).

Although the number of women engaging in the economy is increasing, this has not led to more equitable responsibility for household work. Women are often left feeling overburdened, rather than gaining any sense of greater equality (GEN 2015). These multiple burdens are particularly restrictive for poor and economically vulnerable women (Oxfam, Trocaire CARE & ActionAid 2013). A small UNDP study in 2012 showed that women spent four or five times more per day on reproductive and domestic tasks than men (cited in ADB & UN 2016). Role reversal can bring social stigma, and appears to take place only in the poorest households out of necessity.  Frustrations about not being able to live up to norms can sometimes lead to drug and alcohol abuse in men, as well as domestic violence (GEN 2015).

Gender norms influence the type of work women undertake.  Women are more likely to be hired for part- time employment or in sectors, occupations, and tasks considered appropriate for women. Women dominate in teaching and nursing (which fits the stereotype of women as carers). Although many women work across the education sector, they are rarely the rectors of educational institutions (ADB & UN 2016). Recruitment for senior roles is at times open only to male applicants, whereas junior jobs are generally not gender-specified (DFAT 2017). Women are more likely to work in the garment industry and to contribute to family-owned enterprises (MoIP 2016). Large numbers of women work in agriculture, but undertake what are viewed as “gender appropriate” (and less well paid) tasks (GEN 2016). Many women working in family businesses are considered to be in vulnerable employment, defined by inadequate earnings, lack of social protection, low productivity, and difficult work conditions (ADB & UN 2016).

Social constraints, poverty and other factors may combine to draw women into more dangerous work. Women are more often engaged in the informal sector, and in work that is unregulated and isolated (MoLESS & CSA 2016; GEN 2016). For example, although the mining industry in Myanmar is contributing substantially to economic growth, few women work in large mines. However, women make up half the workforce in small-scale artisanal mines. These mines are mostly in poorer, ethnic minority areas, and are labor-intensive, hazardous, and unsafe. Children accompanying their mothers often end up working as well. Anecdotal evidence suggests that women paid less than men in these worksites. They are also exposed to greater health issues due to the type of work they undertake, and are at greater risk of sexual abuse (ADB & UN 2016). Many young girls in poor, rural families drop out of school to contribute to family income, taking up domestic work, or work in factories or karaoke bars – where they are at risk of exploitation, including trafficking (GEN 2015)

Part Three: Access to assets, finance and markets

Major reforms are underway in Myanmar to improve access to credit, assets and markets. The Committee for the Elimination of all forms of Discrimination Against Women (2016) recommended that Myanmar intensify efforts to include women in the formulation of policies regarding economic development and access to finance.  It also recommended increased efforts to eliminate customs and practices that restrict women’s access to economic resources. NSPAW sets a specific priority on women’s access to credit, resources, assets and economic benefits. Separate sectoral reforms aim to improve women’s access to land.

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