I hereby presents the moves beyond describing Myanmar’s problems and starts articulating a constructive economic philosophy:
Peace → Rule of Law → Trust → Open Economy → Investment → Brain Circulation → Brain Recycle → Brain Return → Leap-Forward.
Trust is economic infrastructure.
That may actually be one of the strongest concepts in the whole series. Roads, electricity and banks are visible infrastructure; trust, enforceable contracts and impartial justice are invisible infrastructure without which the visible infrastructure cannot attract sustainable investment.
The salmon image also gives the series a human ending. We are not asking Myanmar’s people to remain trapped inside the country. Let them travel, learn languages, gain skills, build international contacts and prosper abroad—but eventually make home attractive enough that they voluntarily bring their knowledge, capital and networks back.
That is a much more positive concept than simply saying “stop brain drain.”
And I think the two articles now fit together beautifully:
Previous post should be regarded as Part I — The Mandala Reversed
Myanmar once accumulated human capital through conquest; today it is losing human capital through conflict and migration.
And this post should be regarded as Part II — How to Leap-Forward Myanmar’s Economy
Turn that apparent loss into an advantage through diaspora networks, investment, trust, rule of law and Brain Recycle.
Perhaps the ultimate MMNN message could be condensed into just one sentence:
“Let Myanmar’s children go into the world to learn—but build a Myanmar so peaceful, just and prosperous that they will eventually want to bring the world home.”
That is a dream worth preserving for the future.
TRUST INFRASTRUCTURE — THE MISSING FOUNDATION OF MYANMAR’S ECONOMIC LEAP-FORWARD
Migration Has Created an Unexpected Economic Asset
There is another side to Myanmar’s massive migration that is often overlooked.
We usually talk about migration as:
Brain Drain.
But millions of Myanmar people living abroad are also accumulating something extraordinarily valuable:
Brain Capital + Social Capital + Global Contacts.
A Myanmar person living in Thailand may learn Thai.
A Myanmar worker in Malaysia may learn Malay and English.
Someone in Singapore may learn international business practices.
A professional in Australia may understand Australian regulations and corporate culture.
A Myanmar entrepreneur in the United States may develop relationships with investors, technology companies and international markets.
And almost all of them retain something that a foreign investor cannot easily acquire:
knowledge of Myanmar.
They understand the language.
The people.
The culture.
The local business environment.
The difficulties.
The opportunities.
The informal networks.
The local workforce.
The real cost of doing business.
Therefore, Myanmar’s diaspora could eventually become one of the country’s greatest economic bridges to the outside world.
FROM MIGRATION TO ECONOMIC BRIDGING
Imagine a Myanmar engineer living in Singapore who knows:
- 20 potential investors;
- 10 technology companies;
- several international suppliers;
- Singaporean business culture;
- international accounting standards;
- English and Chinese;
- and the Myanmar market.
That person is not merely a migrant.
He or she is potentially a bridge between two economies.
Multiply that by hundreds of thousands or millions of Myanmar people around the world.
Suddenly Myanmar possesses a vast, informal global economic network.
The diaspora could become:
Investors’ bridge.
Technology bridge.
Language bridge.
Cultural bridge.
Professional bridge.
Market bridge.
Knowledge bridge.
This is why the ultimate objective should not simply be:
Stop Brain Drain.
It should be:
Convert Brain Drain into Brain Circulation — and eventually Brain Recycle.
BUT THERE IS A CRITICAL CONDITION: TRUST
However, there is a danger.
Opening a country rapidly without adequate commercial and legal protection can produce the opposite of what we want.
A foreign investor may lose money because of a dishonest local partner.
A local entrepreneur may lose money because of an unscrupulous foreign partner.
A returning Myanmar professional may be cheated by a former employee or business associate.
A supplier may deliver goods on credit and never receive payment.
A company may close after losing a major contract while leaving unpaid debts.
Land may be purchased using a nominee’s name and later become the subject of a dispute.
These are not merely individual tragedies.
They can damage an entire investment environment.
TWO SIDES OF THE SAME PROBLEM
I have personally heard of cases illustrating both sides.
In one case, a Myanmar national who had returned from abroad complained that a former employee’s name had apparently been used to acquire land intended for a factory and business. The resulting dispute demonstrated how vulnerable investors can become when ownership, nominee arrangements and local relationships are not properly documented and legally protected.
In another case, a Myanmar businessman introduced through family connections entered into a business involving IT/communications-related raw materials. After the business lost an important contract and closed, the supplier was reportedly left unpaid for materials already provided. Even when he travelled to pursue repayment, the debtor allegedly refused to settle the outstanding amount.
These are individual cases, and they should not be used to accuse an entire nationality, community or business sector.
But they illustrate a universal principle:
A country cannot build an investment economy on personal trust alone.
Even honest people can eventually fall into disputes.
Businesses fail.
Contracts are misunderstood.
Partners disagree.
Cash flow collapses.
Companies become insolvent.
Employees leave.
Land ownership becomes complicated.
Therefore:
TRUST MUST BE BACKED BY LAW.
MUTUAL PROTECTION — NOT ONE-SIDED PROTECTION
When Myanmar opens its economy, the law must protect:
Foreign investors from local fraud.
Local businesses from foreign fraud.
Investors from government abuse.
The government from tax evasion.
Employees from exploitation.
Employers from dishonest employees.
Suppliers from non-payment.
Customers from fraudulent businesses.
Landowners from unlawful appropriation.
Businesses from arbitrary confiscation.
Minority partners from majority abuse.
In other words:
INVESTOR PROTECTION MUST BE MUTUAL.
The objective should not be:
“Protect foreigners because we want their money.”
Nor:
“Protect locals because foreigners are dangerous.”
The principle should be:
Protect everyone who obeys the law, regardless of nationality.
BUILD A COMMERCIAL JUSTICE SYSTEM
Myanmar therefore needs strong institutions for commercial disputes.
A future economic reform programme should establish or strengthen:
1. Commercial Courts
Specialised courts capable of dealing rapidly with:
Contract disputes.
Debt recovery.
Partnership disputes.
Shareholder disputes.
Land and property disputes.
Construction disputes.
Intellectual-property disputes.
Banking disputes.
Foreign-investment disputes.
2. Arbitration
Businesses should have access to credible domestic and internationally recognised arbitration mechanisms.
3. Enforceable Contracts
A contract should not become merely a piece of paper.
If someone supplies goods according to an agreed contract, payment should be enforceable.
If an investor provides capital according to an agreement, ownership rights should be enforceable.
If a partner violates a contract, there should be a predictable legal remedy.
4. Digital Corporate Records
Company ownership, directors, shareholders, licences, secured loans and relevant property interests should increasingly be recorded digitally and securely.
5. Transparent Land Records
Land is one of the most dangerous areas for investment disputes.
Myanmar needs:
Clear title.
Searchable land records.
Transparent transfers.
Proper registration.
Protection against fraudulent documents.
Protection against multiple claims.
And effective legal remedies.
THE NOMINEE PROBLEM
Special attention must be given to situations where one person’s name is used to hold property or shares for another person.
Nominee arrangements can create enormous disputes if the beneficial ownership is not legally documented.
Therefore, Myanmar should establish clear rules concerning:
Legal ownership.
Beneficial ownership.
Trust arrangements.
Shareholding.
Landholding.
Power of attorney.
Inheritance.
Corporate control.
The objective should not necessarily be to prohibit every nominee arrangement.
The objective should be:
Make the real economic relationship legally visible and enforceable.
That protects both sides.
CREDIT MUST BECOME TRUSTED CREDIT
Modern economies cannot function entirely on cash.
Businesses must be able to buy:
Raw materials.
Machinery.
Equipment.
Services.
Transport.
Inventory.
on credit.
But credit requires confidence that debts will be paid.
Therefore Myanmar should gradually develop:
Credit information systems.
Business credit ratings.
Secured-transactions registries.
Invoice financing.
Factoring.
Trade insurance.
Bank guarantees.
Letters of credit.
Reliable debt-recovery procedures.
A businessman who supplies goods worth millions should not have to travel across the country begging a debtor to pay.
The legal system should make payment enforceable.
WHY THIS MATTERS FOR BRAIN RECYCLE
This is particularly important for returning Myanmar professionals.
Imagine a doctor, engineer or entrepreneur who has spent 20 years abroad.
He has savings.
He has foreign contacts.
He knows international business.
He wants to return.
He brings an investor.
They establish a factory.
They employ hundreds of Myanmar workers.
They purchase locally produced materials.
They pay taxes.
They train workers.
They export products.
That is exactly what Myanmar needs.
But if the investor is cheated by a local partner, or if the investor’s local supplier is cheated by the investor, both sides may leave.
And they may tell twenty other potential investors:
“Don’t invest there. You cannot trust the business environment.”
That one failed relationship can therefore have consequences far beyond the original financial loss.
TRUST IS AN ECONOMIC MULTIPLIER
A country with good roads but no trust has difficulty attracting investment.
A country with good universities but no rule of law loses its graduates.
A country with natural resources but insecure property rights attracts speculative rather than productive investment.
A country with cheap labour but unreliable contracts cannot easily develop sophisticated industries.
But a country with:
Rule of law + reliable contracts + transparent property rights + honest administration + competent courts + educated people
can attract enormous amounts of productive capital.
Therefore:
Trust is not merely a social virtue. It is economic infrastructure.
We spend billions building roads.
We should also build:
legal roads.
financial roads.
information roads.
trust roads.
THE MYANMAR GLOBAL BUSINESS BRIDGE
The diaspora could play a particularly important role in building these bridges.
A future government could create a:
Myanmar Global Business Network
connecting Myanmar entrepreneurs with Myanmar professionals abroad and international investors.
It could provide:
Business matching.
Investor verification.
Professional referrals.
Legal guidance.
Accounting guidance.
Market information.
Technology partnerships.
Investment opportunities.
Diaspora financing.
Mentorship.
Export connections.
But one principle must be absolutely clear:
The government should facilitate the network — not control every transaction.
Independent professional bodies, chambers of commerce, banks, lawyers, accountants and arbitration institutions should participate.
VERIFY BEFORE YOU TRUST
Myanmar could also develop a trusted system for verifying business partners.
Before entering a major partnership, investors should be able to check:
Who legally owns the company?
Who are the directors?
Does the company have outstanding debts?
Has it been involved in major litigation?
Does it possess the necessary licences?
Who owns the land?
Are there existing mortgages or claims?
Is the company actually operating?
What is its financial history?
This is not bureaucracy for its own sake.
It is investment insurance through information.
THE GOLDEN RULE
The future Myanmar economic system should operate according to one simple rule:
No one should need to be someone’s cousin, friend, relative, former employee or political connection to obtain justice.
If you have a valid contract, the law should protect you.
If you have supplied goods, the law should help you recover legitimate payment.
If you have invested money, the law should protect your property.
If you have borrowed money, the law should require you to honour legitimate obligations.
If a business fails honestly, bankruptcy law should provide an orderly solution.
If someone commits fraud, the law should punish the fraud.
That is how trust is created.
OPEN THE WINDOW — BUT BUILD A SCREEN
Deng’s metaphor can be taken one step further.
Opening the window brings fresh air.
But a sensible householder also installs a screen.
The screen does not stop the fresh air.
It stops the insects.
Likewise:
OPEN ECONOMY
RULE OF LAW
TRANSPARENT BUSINESS REGULATION
COMMERCIAL COURTS
ANTI-FRAUD MEASURES
MUTUAL INVESTOR PROTECTION
=
A TRUSTED OPEN ECONOMY
That is the model Myanmar should seek.
Not:
Closed windows.
Not:
Open windows with no protection.
But:
OPEN WINDOWS + STRONG SCREENS.
FROM BRAIN DRAIN TO BRAIN RECYCLE
This brings us back to our previous dream.
Myanmar’s millions of migrants are not necessarily a permanent loss.
They can become a global network.
They have learned languages.
They have learned professional skills.
They have learned business practices.
They have accumulated savings.
They have built relationships.
They have gained international experience.
They know Myanmar.
And some of them may eventually want to come home.
Our task should be to make that return possible.
Not by forcing them.
Not by emotional appeals.
Not by nationalism.
But by creating a country in which:
their capital is safe,
their contracts are enforceable,
their property is protected,
their businesses can operate,
their children can study,
their foreign spouses can live and work,
and
their future is secure.
Then the salmon can return.
THE FINAL FORMULA
Myanmar’s economic leap-forward therefore requires more than capital.
It requires:
PEACE
↓
RULE OF LAW
↓
TRUST
↓
OPEN ECONOMY
↓
FDI + JOINT VENTURES
↓
DIASPORA CONNECTION
↓
BRAIN CIRCULATION
↓
BRAIN RECYCLE
↓
INVESTMENT + TECHNOLOGY + SKILLS
↓
EMPLOYMENT
↓
EXPORTS
↓
PROSPERITY
And eventually:
BRAIN RETURN.
The real economic miracle will not occur when Myanmar merely attracts foreign investors.
It will occur when a Myanmar person living in Singapore can confidently introduce a Singaporean investor to a Myanmar entrepreneur.
When a Myanmar engineer in Australia can bring a technology company home.
When a Myanmar doctor abroad can establish a modern hospital.
When a Myanmar businessman in Malaysia can bring international partners home.
When a foreign investor knows that the Myanmar legal system protects both sides.
And when the local businessman knows exactly the same thing.
That is when trust becomes capital.
That is when migration becomes an asset rather than merely a loss.
That is when Brain Drain becomes Brain Circulation.
That is when Brain Circulation becomes Brain Recycle.
And that is when Myanmar can truly LEAP FORWARD.
Open the windows.
Let in the fresh air.
Keep out the flies.
Protect everyone fairly.
And let Myanmar’s people — like salmon returning to their birthplace — one day come home to build the country they always dreamed of.
