The 2017 Resource Governance Index Global Report
2017 Resource Governance Index
Measuring the quality of governance
in the oil, gas and mining sectors of 81 countries.
The only international index dedicated to resource governance
This index measures the quality of resource governance in 81 countries that together produce 82 percent of the world’s oil, 78 percent of its gas and a significant proportion of minerals, including 72 percent of all copper. It is the product of 89 country assessments (eight countries were assessed in two sectors), compiled by 150 researchers, using almost 10,000 supporting documents to answer 149 questions.
http://resourcegovernanceindex.org/about/downloads
Country Profiles
2017 Resource Governance Index Myanmar Mining & Myanmar Oil and Gas
Military capitalism in myanmar examining the origins continuities and evoluti...
2017 Resource Governance Index Myanmar Mining & Myanmar Oil and Gas
1. 2017
Resource
Governance
Index
Myanmar (mining)
83rd
MYANMAR GEMSTONE MINING:
RGI SCORE AND RANK
Good
(>75)
Satisfactory
(60-74)
Weak
(45-59)
Poor
(30-44)
Failing
(<30)
Myanmar’s gemstone sector scores 27 of 100 points and ranks 83rd
among 89 assessments in the 2017
Resource Governance Index (RGI). This assessment focuses solely on Myanmar’s gemstone sector,
which is governed by a separate legal framework from other minerals. The gemstone sector remains
opaque, with a lack of public access to rules on licensing or the fiscal regime. Myanmar is one of the
poorest countries in the world when measured by gross domestic product per capita.1
The country has
suffered decades of internal conflict, partly financed by jade mining. Although significant variation
exists between valuations, Myanmar’s annual rough jade production is generally estimated to be worth
billions of dollars. Improved transparency around the entire sector, particularly in licensing, ownership,
production and revenue data, would be a step towards better governance.
Myanmar gemstone mining: RGI and component scores
VALUE REALIZATION 33/100
REVENUE MANAGEMENT 30/100
ENABLING ENVIRONMENT 19/100
COMPOSITE
27/100
2. 2017 Resource Governance Index
2
2017 Resource Governance Index: Myanmar (mining)
INDEX RESULTS SUMMARY
Myanmar’s gemstone licensing system is among the most poorly governed in the world
Myanmar’s gemstone sector governance is poor in both value realization and revenue management, and the
country’s index performance is worsened by a failing enabling environment. Licensing is the weakest element
within value realization, with a score of four of 100, placing Myanmar’s gemstone mining sector second-to-last,
above Turkmenistan, in the ranking. The government has virtually no transparency requirements and discloses
almost no information related to the licensing process, contracts or the identities of those with ultimate financial
interests in the gemstone sector and trading companies. The latest Extractive Industries Transparency Initiative
(EITI) country report contains an incomplete list of gem and jade licenses, including some details on blocks and
license holders. Most of these permits have since expired and the identities of companies that won rights more
recently have not been disclosed.
Myanmar gemstone mining: subcomponent scores
Myanmar’s governance is poor in revenue management. The government only discloses the total annual budget,
while revenues from natural resources and projections for gemstones are not available, despite the fact that
gemstones are the largest mining sector contributor to government revenue. In the context of Myanmar’s peace
process, resource-rich, conflict-affected regions of the country have called for greater sharing of natural resource
revenues and management responsibilities. Governance challenges evidenced by the index results point to a need to
improve transparency on actual and estimated revenues as the first step toward designing a revenue sharing system
that distributes benefits equitably and allows oversight of compliance with these rules.
0
20
40
60
80
100
Policy area performance across
the extractive's value chain
Valuerealization
ResourceGovernanceIndex
Licensing
LocalImpact
Taxation
State-ownedenterprises
Revenuemanagement
Subnationalresourcerevenuesharing
Nationalbudgeting
Sovereignwealthfunds
Enablingenvironment
Voiceandaccountability
Governmenteffectiveness
Regulatoryquality
Ruleoflaw
Politicalstabilityandabsenceofviolence
Controlofcorruption
Opendata
3. 2017 Resource Governance Index
3
2017 Resource Governance Index: Myanmar (mining)
Myanmar gemstone mining: legal framework and implementation scores
Myanmar performs satisfactorily in governance of local impacts as a result of provisions included in the general
environmental law for disclosure of environmental and social impact assessments and procedures for rehabilitation of
closed mining projects. These requirements are vague, however, and do not provide clear guidance for the gemstone
sector; as a result, indicators measuring practices in this area all achieve failing scores. Myanmar demonstrates the
widest gap between legal framework and implementation in local impact among all assessments in the index. Lack of
adequate oversight of gemstone operations has reportedly led to human rights violations and environmental disasters.
STATE-OWNED ENTERPRISE GOVERNANCE
Myanmar Gems Enterprise remains opaque, ranking 21st
among 22 state-owned mining
enterprises globally
Name
State ownership
level Revenue [USD] Score/100 Rank/74 SOEs
Rank/22 mining
SOEs
Mining: Myanmar
Gems Enterprise
(MGE)
100% $ 16 68 21
With a failing score of 16 of 100, the Myanmar Gems Enterprise (MGE) ranks in the bottom ten of all state-owned
enterprises (SOE) assessed in the index, and lowest of those in the Asia-Pacific region. In addition to MGE, military-
controlled companies hold interests in gemstone mining, which has kept the sector in the hands of the country’s
former ruling elite. Gemstones can be sold through “the emporium,” a semi-annual trade event organized by the MGE
and the Myanmar Gems and Jewellery Entrepreneurs Association (MGJEA), the country’s primary industry group,
or through private transactions. Myanmar’s SOE law and gemstone law do not contain rules on how the MGE joint
ventures or private operators should sell gemstones, which are mostly exported to China or Thailand.
GOVERNANCE PERFORMANCE ACROSS OIL, GAS AND MINING SECTORS
The oil and gas sector outperforms the gemstone sector in licensing and SOE governance
The licensing process for gemstone mining in Myanmar is the least transparent of all countries in the index with a score
of four of 100, whereas the oil and gas sector’s license awards are somewhat more transparent, scoring 24 of 100 and
ranking 67th
among 89 assessments. The competitive bidding rounds organized by Myanmar Oil and Gas Enterprise
(MOGE) in 2013 and 2014 were significantly more transparent than previous rounds. SOEs play a central role in the
licensing process in both sectors but details on the process, other than final results, are rarely published.
Transparency around how much the government collects from both sectors and how these revenues flow to the
national budget is poor. Aggregate information on revenues collected from extractive companies is disclosed
through EITI, but only a fraction of gemstone companies and their payments were included in the EITI country
report. In both sectors, taxes and payments are collected by several agencies; MOGE and MGE collect most
revenues, though the Internal Revenue Department of the Ministry of Planning and Finance, the Ministry of
0 10 20 30 40 50 60 70 80 90 100
Practice
Law
4. 2017 Resource Governance Index2017 Resource Governance Index: Myanmar (mining)
The Natural Resource Governance Institute, an independent, non-profit organization, helps people
to realize the benefits of their countries’ oil, gas and mineral wealth through applied research, and
innovative approaches to capacity development, technical advice and advocacy.
Learn more at www.resourcegovernance.org
Natural Resources and Environmental Conservation and the Ministry of Energy and Electrical Power, and (for
gemstones), the General Administration Department, also collect forms of tax. There are deficits between audit
requirements and practices; for example, extractive companies are not audited by the national tax agency. Results of
audits conducted by the Office of the Auditor General (OAG) on the different tax-collecting agencies, including the
SOEs MOGE and MGE, are not disclosed to the public. Furthermore, military-controlled holding companies MEC
and UMEHL, which also work in the gemstone sector, have historically been exempt from the OAG audit.
Differences between the two sectors emerge in the governance of SOEs. The EITI country report discloses the cost of
non-operational activities, revenues transferred to the government, and the cost of non-operational activities and pro-
duction volume and value for MOGE. However, it includes only an aggregate figure on MGE’s payments to government.
Myanmar: oil and gas vs. Gemstone mining scores
What is the RGI?
The 2017 RGI assesses how 81 resource-rich countries govern their oil, gas and mineral wealth. The index
composite score is made up of three components. Two measure key characteristics of the extractives sector – value
realization and revenue management – and a third captures the broader context of governance — the enabling
environment. These three overarching dimensions of governance consist of 14 subcomponents, which comprise 51
indicators, which are calculated by aggregating 133 questions.
Independent researchers, overseen by NRGI, in each of the 81 countries completed a questionnaire to gather
primary data on value realization and revenue management. For the third component, the RGI draws on external
data from over 20 international organizations. The assessment covers the period 2015-2016. For more information
on the index and how it was constructed, review the RGI Methodology.
Endnote
1 World Bank, World Development Indicators [GDP growth, annual %], accessed 17 April 2017, http://data.worldbank.org/data-catalog/world-
development-indicators
■ Mining ■ Oil and gas
-100 -50 0 50 100
Resource Governance Index
Value realization
Licensing
Taxation
Local Impact
State-owned enterprises
Revenue management
National budgeting
Subnational resource revenue sharing
Sovereign wealth funds
Enabling environment
Voice and accountability
Government effectiveness
Regulatory quality
Rule of law
Control of corruption
Political stability and absence of violence
Open data
8. 2017 Resource Governance Index2017 Índice de la Gobernanza de Recursos Naturales: Colombia (minería)
The Natural Resource Governance Institute, an independent, non-profit organization, helps people
to realize the benefits of their countries’ oil, gas and mineral wealth through applied research, and
innovative approaches to capacity development, technical advice and advocacy.
Learn more at www.resourcegovernance.org
၂၀၁၇ခု အရင္းအျမစ္ စီမံခန္႔ခြဲမႈ အၫႊန္းကိန္း - ျမန္မာ (သတၱဳတူးေဖာ္ေရး)
ျမန္မာ - ေရနံႏွင့္ သဘာဝဓာတ္ေငြ႕ ႏွင့္ ေက်ာက္မ်က္တူးေဖာ္မႈ ရမွတ္မ်ား
RGI ဆိုသည္မွာအဘယ္နည္း။
၂၀၁၇ RGI သည္ ၈၁ ႏိုင္ငံေသာ သဘာ၀သယံဇာတ ၾကြယ္၀ေသာႏိုင္ငံမ်ားက ယင္းတို႔၏ ေရနံ၊ သဘာ၀ဓာတ္ေငြ႕ႏွင့္ ဓာတ္သတၳဳမ်ားကို မည္ကဲ့သို႔
ကိုင္တြယ္စီမံသည္ကို အကဲျဖတ္သည္။ အၫႊန္းကိန္းစုစုေပါင္း ရမွတ္တြင္ ၃မ်ိဳးပါဝင္သည္။ထုတ္လုပ္မႈက႑၏ တိုင္းတာမႈဆိုင္ရာ အဓိက လကၡဏာႏွစ္မ်ိဳးမွာ
တန္ဖိုးသတ္မွတ္ျခင္းႏွင့္ အခြန္စီမံခန္႔ခြဲမႈတို႔ျဖစ္သည္။ တတိယလကၡဏာျဖစ္သည့္ သဘာဝပတ္ဝန္းက်င္ ထိန္းသိမ္းမႈတြင္ ပိုမိုက်ယ္ျပန္႔ေသာ
ကိုင္တြယ္စီမံမႈပါဝင္သည္။ ယင္းကိုင္တြယ္စီမံမႈဆိုင္ရာ ေပါင္းကူးဖြဲ႕ယွက္ေနေသာ ပမာဏသံုးခုတြင္ အစိတ္အပိုင္း ၁၄ခုျဖင့္ ဖြဲ႕စည္းထားၿပီး ယင္းတို႔တြင္
အၫႊန္းျပကိန္း ၅၁ ခုပါဝင္သည္။ ယင္းတို႔ကို ေမးခြန္းစုစုေပါင္း ၁၃၃ ခုျဖင့္ တြက္ခ်က္သည္။
တန္ဖိုးသတ္မွတ္ျခင္းႏွင့္ အခြန္စီမံခန္႔ခြဲမႈတို႔ႏွင့္ပတ္သက္၍ အဓိကက်ေသာ အခ်က္အလက္မ်ားကို ေကာက္ယူရန္ အတြက္ ၈၁ ႏိုင္ငံအနက္
တစ္ႏိုင္ငံခ်င္းစီမွ NRGI က ႀကီးၾကပ္ေသာ သီးျခားလြတ္လပ္သည့္ သုေတသီမ်ားက ေမးခြန္းတစ္စံု ျပဳစုခဲ့သည္။ တတိယ လကၡဏာအတြက္ RGI သည္
ႏိုင္ငံတကာအဖြဲ႕အစည္း ၂၀ေက်ာ္မွ ျပင္ပအခ်က္အလက္မ်ားကို ေရးဆြဲသည္။ ယင္းအကဲျဖတ္ခ်က္ကို ၂၀၁၅-၂၀၁၆ခုႏွစ္ကာလပါဝင္သည္။ အၫႊန္းကိန္းႏွင့္
ယင္းကိုမည္သို႔ တည္ေဆာက္ခဲ့သည္ဆိုသည္ႏွင့္ပတ္သက္သည့္ အခ်က္အလက္မ်ားအတြက္ RGI နည္းကိုၾကည့္ပါ။
■ Mining ■ Oil and gas
-100 -50 0 50 100
Resource Governance Index
Value realization
Licensing
Taxation
Local Impact
State-owned enterprises
Revenue management
National budgeting
Subnational resource revenue sharing
Sovereign wealth funds
Enabling environment
Voice and accountability
Government effectiveness
Regulatory quality
Rule of law
Control of corruption
Political stability and absence of violence
Open data
သယံဇာတ စီမံခန္႔ခြဲမႈ အၫႊန္းကိန္း
တန္ဖိုးသတ္မွတ္မႈ
လိုင္စင္ခ်ထားေပးမႈ
အခြန္ေကာက္ခံျခင္း
ေဒသတြင္း ထိခိုက္မႈ
ႏိုင္ငံပိုင္ လုပ္ငန္းမ်ား
အခြန္ေငြ စီမံခန္႔ခြဲမွု
ႏိုင္ငံေတာ္ဘတ္ဂ်က္ခ်ထားေပးမႈ
ႏိုင္ငံေတာ္က တစ္စိတ္တစ္ေဒသ ပိုင္ေသာ အရင္းအျမစ္အခြန္ခြဲေဝျခင္း
အခ်ဳပ္အျခာအာဏာပိုင္ ဓနဥစၥာ ရန္ပုံေငြ
သဘာဝပတ္ဝန္းက်င္ ထိန္းသိမ္းျခင္း
ျပည္သူ႔သေဘာထားႏွင့္ တာဝန္ခံမႈ
အစိုးရ၏ ၾသဇာသက္ေရာက္မႈ
ထိန္းညႇိမႈ အရည္အေသြး
တရားဥပေဒ စိုးမိုးမႈ
အက်င့္ပ်က္ျခစားမႈ ထိန္းခ်ဳပ္ျခင္း
ႏိုင္ငံေရးတည္ၿငိမ္မႈႏွင့္ အၾကမ္းဖက္မႈမရွိျခင္း
ျမင္သာေသာ အခ်က္အလက္မ်ား
သတၱဳတူးေဖာ္ေရး ေရနံနွင့္သဘာဝဓါတ္ေငြ႔
9. 2017
Resource
Governance
Index
Myanmar (oil and gas) 77th
MYANMAR OIL AND GAS:
RGI SCORE AND RANK
Good
(>75)
Satisfactory
(60-74)
Weak
(45-59)
Poor
(30-44)
Failing
(<30)
Myanmar’s oil and gas sector scores 31 of 100 points and ranks 77th
among 89 assessments in the
2017 Resource Governance Index (RGI). Compared to the country’s gemstones sector, progress in
transparency is more visible in the oil and gas sector, which is emerging as a significant contributor
of revenue to the state’s coffers. According to the first Myanmar Extractive Industries Transparency
Initiative (EITI) report, the oil and gas sector contributed 85 percent of reported revenues from the
extractive sector, generating nearly a quarter of the government’s revenues. Some reforms to the role of
state-owned enterprises (SOEs) are underway. Myanmar’s enabling environment is assessed as failing.
Myanmar oil and gas: RGI and component scores.
VALUE REALIZATION 44/100
REVENUE MANAGEMENT 30/100
ENABLING ENVIRONMENT 19/100
COMPOSITE
31/100
10. 2017 Resource Governance Index
2
2017 Resource Governance Index: Myanmar (oil and gas)
INDEX RESULTS SUMMARY
Myanmar has taken small steps toward better environmental controls and licensing transparency
Myanmar oil and gas: subcomponent scores
Myanmar’s oil and gas sector achieves its best component score, 44 of 100 points, in value realization, the component
that measures a country’s ability to extract value from its natural resource endowment. Myanmar performs
satisfactorily in taxation, although in the absence of up-to-date sector legislation, the terms of hydrocarbon extraction
lack the force of law and are determined by the National Energy Policy and a model production sharing contract.
Reform of the legal framework, including the fiscal regime, has stalled, and the public cannot hold the government
accountable for compliance with contracts because oil and gas contracts are not disclosed.
Myanmar oil and gas: resource governance trends
Issue 2017 RGI Score Direction
Company payment disclosure 77 s
Environmental impact assessment/
social impact assessment rule
100 s
Myanmar has made progress in transparency, particularly by joining the EITI, which has facilitated disclosure of
basic data on reserves, production, and exports of oil, gas and jade. According to the country’s EITI report, the
government collected nearly USD 2.7 billion in oil and gas tax and non-tax revenues and another USD 460 million
in mining revenues in fiscal year 2013–2014. In addition, EITI has been a forum for progress in civil society
participation in a mostly closed and centrally controlled country. (Myanmar’s enabling environment scores just 19
of 100 points in the index.) Myanmar passed a new environmental law in 2012 with some environmental controls,
but further reform of the environmental legal framework is required. Indicators measuring enforcement of laws and
actual disclosure achieve failing scores.
0
20
40
60
80
100
Policy area performance across
the extractive's value chainValuerealization
ResourceGovernanceIndex
Licensing
LocalImpact
Taxation
State-ownedenterprises
Revenuemanagement
Subnationalresourcerevenuesharing
Nationalbudgeting
Sovereignwealthfunds
Enablingenvironment
Voiceandaccountability
Governmenteffectiveness
Regulatoryquality
Ruleoflaw
Politicalstabilityandabsenceofviolence
Controlofcorruption
Opendata
11. 2017 Resource Governance Index
3
2017 Resource Governance Index: Myanmar (oil and gas)
There are no specific subnational revenue sharing mechanisms for oil and gas sector revenues. Companies can
voluntarily contribute to social development funds, but because local governments’ revenue generation abilities are
limited and fiscal transfers take place on an ad hoc basis, there is demand for a system for sharing resource revenues,
particularly in oil-and-gas-rich but poverty-stricken states.
STATE-OWNED ENTERPRISE GOVERNANCE
Myanmar Oil and Gas Enterprise’s lack of transparency hinders accountability on public revenues
Name
State ownership
level Revenue [USD] Score/100 Rank/74 SOEs
Rank/52 oil and
gas SOEs
Oil and gas:
Myanmar Oil and Gas
Enterprise (MOGE)
100% N/A 35 56 39
The Myanmar Oil and Gas Enterprise (MOGE) is the most important extractive industry revenue generator in
Myanmar. The government has announced a policy to reform SOEs, granting them greater autonomy, including
a right to keep a portion of revenues. MOGE does not disclose information on how it sells the production share
it collects from its partnerships. Its reporting and corporate governance practices are failing, as it does not report
annually on its finances or operations. The 2016 Myanmar EITI report provides some information on MOGE,
including the share of revenues it retains, and that it provides fuel subsidies on behalf of the government.
GOVERNANCE PERFORMANCE ACROSS OIL, GAS AND MINING SECTORS
The oil and gas sector outperforms the gemstone sector in licensing and SOE governance
The licensing process for gemstone mining in Myanmar is the least transparent of all countries in the index with a score
of four of 100, whereas the oil and gas sector’s license awards are somewhat more transparent, scoring 24 of 100 and
ranking 67th
among 89 assessments. The competitive bidding rounds organized by Myanmar Oil and Gas Enterprise
(MOGE) in 2013 and 2014 were significantly more transparent than previous rounds. SOEs play a central role in the
licensing process in both sectors but details on the process, other than final results, are rarely published.
Transparency around how much the government collects from both sectors and how these revenues flow to the
national budget is poor. Aggregate information on revenues collected from extractive companies is disclosed through
EITI, but only a fraction of gemstone companies and their payments were included in the EITI country report. In
both sectors, taxes and payments are collected by several agencies; MOGE and MGE collect most revenues, though
the Internal Revenue Department of the Ministry of Planning and Finance, the Ministry of Natural Resources and
Environmental Conservation and the Ministry of Energy and Electrical Power, and (for gemstones), the General
Administration Department, also collect forms of tax. There are deficits between audit requirements and practices; for
example, extractive companies are not audited by the national tax agency. Results of audits conducted by the Office
of the Auditor General (OAG) on the different tax-collecting agencies, including the SOEs MOGE and MGE, are not
disclosed to the public. Furthermore, military-controlled holding companies MEC and UMEHL, which also work in
the gemstone sector, have historically been exempt from the OAG audit.
Differences between the two sectors emerge in the governance of SOEs. The EITI country report discloses the cost of
non-operational activities, revenues transferred to the government, and the cost of non-operational activities and pro-
duction volume and value for MOGE. However, it includes only an aggregate figure on MGE’s payments to government.
12. 2017 Resource Governance Index2017 Resource Governance Index: Myanmar (oil and gas)
The Natural Resource Governance Institute, an independent, non-profit organization, helps people
to realize the benefits of their countries’ oil, gas and mineral wealth through applied research, and
innovative approaches to capacity development, technical advice and advocacy.
Learn more at www.resourcegovernance.org
Myanmar oil and gas: oil and gas vs. Mining scores
What is the RGI?
The 2017 RGI assesses how 81 resource-rich countries govern their oil, gas and mineral wealth. The index
composite score is made up of three components. Two measure key characteristics of the extractives sector – value
realization and revenue management – and a third captures the broader context of governance — the enabling
environment. These three overarching dimensions of governance consist of 14 subcomponents, which comprise 51
indicators, which are calculated by aggregating 133 questions.
Independent researchers, overseen by NRGI, in each of the 81 countries completed a questionnaire to gather
primary data on value realization and revenue management. For the third component, the RGI draws on external
data from over 20 international organizations. The assessment covers the period 2015-2016. For more information
on the index and how it was constructed, review the RGI Methodology.
■ Mining ■ Oil and gas
-100 -50 0 50 100
Resource Governance Index
Value realization
Licensing
Taxation
Local Impact
State-owned enterprises
Revenue management
National budgeting
Subnational resource revenue sharing
Sovereign wealth funds
Enabling environment
Voice and accountability
Government effectiveness
Regulatory quality
Rule of law
Control of corruption
Political stability and absence of violence
Open data