Myanmar has the world's worst legal system for doing business, retaining a position it has held for the last five years despite recent reforms, according to a report released Wednesday. It remains "the country offering the least legal protection for foreign companies", said British risk analysis group Maplecroft, in a warning to investors attracted by the prospect of Western sanctions being lifted.
Other poor performers on the annual ranking of 197 countries included North Korea, Somalia, Cuba, Afghanistan, Syria and Cambodia - but resource-rich Myanmar is singled out for posing "significant operational and strategic risks". "With recent political reforms and the likelihood of sanctions being lifted, Myanmar offers huge potential for oil and gas firms," the report said.
Ongoing uncertainty in the energy-rich Middle East and North Africa "has made Myanmar's hydrocarbon resources even more attractive globally," it said, but warned improvements in the legal climate were urgently needed. "Tangible improvements in the rule of law, including increased judicial independence and greater transparency in the regulatory system, will be required before the long-term potential of the economy can be realised." Energy rich South Sudan, Turkmenistan and Libya also pose "extreme" risks for oil and gas companies, according to the study, which focuses exclusively on countries' respect for the rule of law.
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