ADVISORY COMMISSION ON RAKHINE STATE – albeit mostly offshore – and an agricultural sector that could be significantly more productive and profitable if satisfactory government policies were put in place. With increased mechanisation – combined with robust extension services, skills development and the provision of better quality inputs to farmers – the productivity of agriculture could be significantly boosted over time. With improved infrastructure, there may also be a potential for agricultural exports to Bangladesh, India and other countries in the region. The state’s embryotic garment industry may also be expanded, providing new livelihood opportunities for all communities. There may also be opportunities in the hospitality business, as Rakhine is home to some of Myanmar’s most picturesque beaches (including Ngapali) and impressive historical monuments (such as Mrauk U). With improved infrastructure, such sights may attract a significantly higher number of tourists than they do today. The Ministry of Hotels and Tourism requires any hotel that is registering to host foreigners to construct at least 10 rooms. Changing this regulation – which has allowed the industry to be dominated by larger, usually Burmese, businesses – may increase the number of local entrepreneurs benefitting from tourism. Rakhine also has a couple of large-scale investment projects, which potentially may have a significant effect on the state’s economy. First, the “Kaladan Multi-Modal Transport Transit Project”, carried out jointly by India and Myanmar, aims to connect Mizoram State in northeast India to the Bay of Bengal through Chin and Rakhine State. The project consists of a new jetty in Sittwe, an inland water transport corridor to Paletwa in southern Chin State and a highway from Paletwa to the Indian border. If completed, the project could significantly improve connectivity in the area, and possibly improve Rakhine’s access to markets in India. Second, Kyawkpyuh Township is the location of various on-going and planned industrial projects, including an oil and gas terminal at Madae Island, which already serves as the starting point for an oil and gas pipeline to Yunnan in China. The terminal receives gas from the fields off the coast of Rakhine, and functions as an offloading site for international oil tankers. Kyawkpyuh is also the site of a planned Special Economic Zone (SEZ) and deep seaport, expected to be developed mainly by a Chinese-led consortium. As currently planned, the SEZ would cover dozens of villages, and contain designated industrial parks for different industries. Over time, the SEZ may potentially become a dynamic economic engine, generating jobs, growth and renewed optimism for communities in Rakhine – by itself and through spin-off industries enabled by the SEZ. Yet, there are reasons for concern. The history of previous investments in Kyawkpyuh, as 22 Towards a Peaceful, Fair and Prosperous Future for the People of Rakhine