ADVISORY COMMISSION ON RAKHINE STATE well as other SEZs in Myanmar, suggests that the risk of negative consequences will be significant and economic improvements for local communities limited. For instance, the construction of the oil and gas pipeline caused significant local tension related to land seizures, insufficient compensation for damages, environmental degradation, and an influx of foreign workers instead of increased employment opportunities for local communities. While the Government has publicly stated the SEZ will be undertaken in line with international standards on resettlements, there are concerns that it is already not following its own laws in cases of land acquisition.6 Large-scale investment projects in Rakhine have also served to nurture local resentment towards the central government. Local communities are largely excluded from the planning and execution of such projects. Profit tends to be shared between Naypyitaw and foreign companies, and as a consequence, local communities often perceive the Government as exploitative. During its many consultations in Rakhine, the Commission met with numerous villagers, community leaders and civil society representatives who accused the Government of exploiting the state’s natural resources without giving the local communities their fair share. In sum, creating growth and sustainable development in Rakhine is a formidable task. Ultimately, it will depend on improved inter-communal relations, increased freedom of movement for the Muslim community, closure of the IDP camps, removal of cumbersome bureaucratic practices pertaining to business licenses, sustained efforts to combat corruption, improved infrastructure, vocational training to meet the demands of tomorrow’s economy, additional extension services to farmers, adherence to the rule-of-law and adoption of business regulations that safeguards local communities. It will also depend on the Government’s willingness to allow local communities to have a greater say in the state’s development, and allow Rakhine to harvest some of the benefits of large-scale industrial development projects. Finally, the threat of climate change, to which Rakhine – with its long coastline – is exceptionally vulnerable, is already making itself felt. Much of the state’s farmland is poorly adapted to the new challenges, including flooding, as much of the state has tidal waterways with high levels of salinity. Cyclones such as Nargis (2008), Giri (2010) and Komen (2015) exposed the state’s agricultural areas to salt water intrusion that brought widespread devastation. The state’s vulnerability has also increased as a result of other human interventions. Rakhine’s mangrove cover has been devastated by 6 Special Economic Zones in Myanmar and the State Duty to Protect Human Rights, International Commission of Jurists (ICJ), February 2017. FINAL REPORT 23

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