Worker Perceptions on the (Potential) Exit of Foreign MNEs in the Garment Sector
Description
The ongoing crisis in Myanmar, intensified by military rule since 2021, has triggered widespread economic collapse and social instability. Amid growing humanitarian needs, formal employment opportunities have declined sharply, increasing the risk of exploitation through illegal migration and human trafficking. This paper examines the role of multinational enterprises (MNEs) in Myanmar’s cut, make, and pack (CMP) garment, with a focus on the socio-economic and ethical implications of their presence or potential exit. Drawing on secondary data and primary survey responses from garment sector workers, the study highlights the crucial role MNEs play in sustaining livelihoods, especially for women and marginalized populations. While some advocacy groups call for divestment to avoid complicity with the military regime, the findings suggest that MNEs act as economic stabilizers and protective agents in a fragile context. The paper argues for a "principled presence" approach, wherein MNEs remain engaged while strengthening labour protections and upholding human rights standards. It also cautions that a "responsible exit" could have unintended consequences, such as mass unemployment and heightened vulnerability to trafficking.