The Economic Cost of Internet Censorship in Myanmar: A Call for Change

Introduction: The Price of Connectivity Control

Internet censorship has become a defining issue in Myanmar, where government-imposed restrictions have far-reaching implications. Beyond stifling freedom of expression, the economic costs of these measures are immense. In 2024 alone, Myanmar incurred an estimated $1.58 billion in economic losses due to internet shutdowns, a significant increase from $974 million in 2023 (Top10VPN). Given Myanmar’s nominal GDP of approximately $64.82 billion in 2023, this loss represents about 2.44% of the nation’s GDP. This article examines how such policies affect Myanmar’s economy and why it is crucial for policymakers to reconsider their approach to internet governance.

The Economic Impact of Internet Shutdowns

Internet disruptions in Myanmar have directly impacted businesses and individuals, particularly in sectors reliant on digital platforms. Key effects include:

Loss of Business Revenue
- E-commerce and online service providers suffer immediate losses during internet shutdowns. Prolonged outages often lead to permanent business closures, reducing market competition and innovation.
- Small and medium enterprises (SMEs), which are critical to Myanmar’s economy, face significant setbacks when unable to access online tools or communicate with customers.
Deterrence of Foreign Investment
- An unstable internet environment discourages foreign investors. Businesses seeking to establish operations in Myanmar view the unpredictability of internet access as a major risk.
- According to Freedom House, digital repression has created a challenging environment for companies relying on international connectivity.
Increased Costs for Individuals
- With restrictions on virtual private networks (VPNs) and access to certain platforms, internet usage costs have surged. Many citizens, already facing financial hardships, are forced to cut back on usage or sell devices to meet basic needs (Freedom House).

The Broader Consequences of Digital Repression

Myanmar’s internet policies extend beyond economic losses, influencing the nation’s global standing and societal well-being:

Isolation from Global Markets
- Internet restrictions isolate Myanmar from global trade opportunities, undermining its potential to participate in the digital economy.
- Investors in emerging technologies avoid markets where digital infrastructure is unreliable.
Human Rights Concerns
- Beyond economic impacts, internet censorship infringes on citizens’ rights to information and expression. The government’s efforts to block VPNs and enforce strict cybersecurity laws have drawn international criticism (AP News).

A Path Forward: Reimagining Internet Policy in Myanmar

To mitigate the economic and societal damage caused by internet shutdowns, the government must prioritize:

Stable Internet Access
- Ensuring uninterrupted connectivity can attract investment, promote innovation, and create jobs.
Transparent Governance
- Adopting policies that balance security concerns with economic growth and human rights.
Encouraging Digital Literacy
- Equipping citizens with the tools and knowledge to thrive in a connected world fosters a resilient and skilled workforce.

Conclusion: Internet Freedom as a Catalyst for Economic Growth

Myanmar stands at a crossroads where the benefits of a connected society must be weighed against short-term political objectives. By fostering an open internet, the government can unlock the nation’s economic potential, build trust with international partners, and secure a prosperous future for its citizens. It is not just an economic necessity—it is a moral imperative.