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Based on data for actual and approved Foreign Direct Investment (FDI) from 1989-2011, this paper explores the major trends in FDI in Myanmar, focusing on changes over time in the source and sector of investment. It argues that over the last decade Myanmar's inward FDI has become heavily concentrated in the extractive and power sectors, while investment in manufacturing, services and other secondary and tertiary sectors has been almost non-existent. This is mostly the result of a poor investment climate, including import and export regulations, a weak judicial system, currency controls and weak property rights. The paper shows that China, Hong Kong, South Korea and Thailand have been the main investors in Myanmar, while Singapore, India and Western countries invested little in the 2000s. This divergence is driven partly by the differing investment patterns of the source countries, yet also reflects commercial and geopolitical realities, sanctions and concerns over energy security. The paper then examines whether and how FDI can lead to economic development in Myanmar, and, closes by discussing the importance of recent political and economic reforms for rebalancing Myanmar's FDI. [ABSTRACT FROM AUTHOR]

This paper is a conceptual study that attempts to analyse the possible effects of the development of the Kra Isthmus Canal on ASEAN relations. The Kra Canal would constitute a mega-project, a passageway that would connect the Andaman Sea and the Gulf of Thailand at the Isthmus of Kra, Thailand. Although the proposed Kra Canal is projected to provide many economic and trade benefits to Thailand, and to the region as a whole, steps toward its development have yet to be taken. There has been much debate over the costs for trade, the costs for the environment, national and regional security concerns, as well as major concerns related to political and economic relations in the region. Therefore, one of the main purposes of this study is to contribute to the debate on the possible impact of the development of the Kra Canal on ASEAN's regional relations. In particular, it proposes that the development of the Kra Canal could threaten regional solidarity as it would physically divide maritime Southeast Asia from mainland Southeast Asia, which would ultimately result in an economic, cultural and political divide of ASEAN itself. [ABSTRACT FROM AUTHOR]