State-Crime Nexus on the Myanmar Border: The Symbiosis of the Political Economy of the Military Junta and Border Guard Forces in the Yatai New City Ecosystem

Authors

  • Dita Amanda Prastya Universitas Jember, Indonesia
  • Honest Dody Molasy Universitas Jember, Indonesia
  • Agung Purwanto Universitas Jember, Indonesia

DOI:

https://doi.org/10.56013/jpm.v12i2.5110

Keywords:

Border Guard Forces; Political Economy of Crime; Cybercrime; Transnational Crime; Myanmar; State Crime Nexus; Yatai New City

Abstract

The 2021 military coup in Myanmar precipitated a collapse in state governance, creating a vacuum often assumed to be the primary driver of organized crime. However, the rapid expansion of Yatai New City in Myawaddy suggests a more complex dynamic. This study investigates the political economy of the Yatai New City, specifically the interaction between foreign investors, the Karen Border Guard Forces (BGF), and the Military Junta. Employing the State–Crime Nexus framework and a qualitative approach based on source triangulation, this research challenges the "ungoverned space" narrative. The findings reveal that the persistence of the cyber-fraud industry in Yatai is not a symptom of state absence but the result of a symbiotic ecosystem. In this arrangement, the BGF provides security and logistical infrastructure, foreign investors supply capital and technology, and the Junta grants structural impunity in exchange for political loyalty and economic survival amidst international sanctions. This study concludes that the "scam state" formation in Myanmar represents a strategic adaptation of authoritarian power, implying that international interventions must target the political-economic alliances sustaining these operations rather than treating them solely as law enforcement issues.

References

Andreas, P. (2013). Smuggler nation: How illicit trade made America. Oxford University Press, USA.

Burgess, M. (2025, February 27). Elon Musk's Starlink Is Keeping Modern Slavery Compounds Online. WIRED. Retrieved December 15, 2025, from https://www.wired.com/story/starlink-scam-compounds/

Denzin, N. K. (2009). The research act: A theoretical introduction to sociological methods. Aldine Transaction.

Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). Sage Publications.

Creswell, J. W., & Creswell, J. D. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). Sage Publications.

Faisal Tareque Shohan, Abu Ubaida Akash, Muhammad Ibrahim & Mohammad Shafiul Alam. (2022). Crime Prediction Using Machine Learning with a Novel Crime Dataset. (Preprint) (arXiv)

Gamboa, F. P. (2025, Agustus 1). Observations on the State of Cybersecurity in Southeast Asia. EAST-WEST CENTER OCCASIONAL PAPER, 16, 1-22. https://www.jstor.org/stable/resrep71805

Gargi Sarkar & Sandeep Kumar Shukla. (2025). Cyber Slavery Infrastructures: A Socio-Technical Study of Forced Criminality in Transnational Cybercrime. (Preprint) (arXiv)

Global Initiative against Transnational Organized Crime. (2023). Global Organized Crime Index 2023. Global Initiative.

Molasy, H. D. (2024). The Digital Frontier: How Indonesia's Politics is Shaping the Fight against Human Trafficking. JIAPI: Jurnal Ilmu Administrasi Dan Pemerintahan Indonesia, 5(2), 118-131.

H. Waxenecker, J. R. Nicolás-Carlock & I. Luna-Pla. (2025). Prosecution of Complex Criminal Networks: A Multilevel ERGMs Approach to CICIG’s Judicial Cases. (Preprint) (arXiv)

M. M. Alam & H. Uddin. (2025). Navigating Challenges of Bangladesh–Myanmar Border Management and Its Strategic Solutions. Society & Sustainability, 7(1), 32–43. (riiopenjournals.com)

Maria Bada & Jason R. C. Nurse. (2021). Profiling the Cybercriminal: A Systematic Review of Research. (Preprint) (arXiv)

Md. Harun-Or-Rashid, Akkas Ahamed & Md. Sayedur Rahman. (2020). A Critical Study on the Transnational Organized Crime Along the Bangladesh–Myanmar Border. International Journal of Sciences: Basic and Applied Research (IJSBAR), 52(2), 203–216. (GSSRR)

Miles, M. B., Huberman, A. M., & Saldana, J. (2014). Qualitative Data Analysis: A Methods Sourcebook. SAGE Publications.

Moe Thuzar & Kyi Sin. (2024). The Extraordinary Rise of Cybercrime Operations in Myanmar. (Case study / working paper) (ScholarBank)

Molasy, H. D. (2025). Instrumen Hukum dalam Mendorong Pembangunan Internasional: Studi Kasus Penanggulangan Perdagangan Manusia di Thailand. WELFARE STATE Jurnal Hukum, 4(2), 257-271.

Molasy, H. D., & Ariyanti, S. F. (2022). Perdagangan Anak di Thailand. Indonesia Emas Group.

Molasy, H. D., & Elfadani, E. (2025). Otonomi Khusus di Thailand Selatan: Meredam Separatisme, Membangun Perdamaian. Books For A Better World.

Pinzón, V. G., & Mantilla, J. (2020, November 12). Contested borders: organized crime, governance, and bordering practices in Colombia-Venezuela borderlands. Trends in Organized Crime, 24(2), 265–281. 10.1007/s12117-020-09399-3

S. M. Zobaer Alam. (2024). The Impact of Integrated Border Security System on Human Trafficking in Bangladesh: The Mediating Effect of the Use of Advanced Technology. IJISRT, 9(7). (IJISRT)

Shelley, L. I. (2018). Dark Commerce: How a New Illicit Economy Is Threatening Our Future. Princeton University Press.

Snyder, R. (2006). Does Lootable Wealth Breed Disorder? A Political Economy of Extraction Framework. Comparative Political Studies, 39(8), 943–968.

The Organized Crime Index. (n.d.). The Organized Crime Index. Retrieved December 15, 2025, from https://ocindex.net/country/myanmar

United Nations Office on Drugs and Crime – Regional Office for Southeast Asia and the Pacific. (2024). Transnational Organized Crime and the Convergence of Cyber-Enabled Fraud, Underground Banking, and Technological Innovation: A Shifting Threat Landscape. (UNODC)

United Nations Office on Drugs and Crime (UNODC). (2022). Conflict and Organized Crime in Southeast Asia. UNODC Regional Office for Southeast Asia and the Pacific.

United States Institute of Peace. (2022, November). Myanmar’s criminal zones: A growing threat to global security. United States Institute of Peace

United States Institute of Peace (USIP). (2024). Transnational Crime in Southeast Asia: A Growing Threat to Global Peace and Security. USIP Special Report.

Wired. (2025). Inside the Scam Compounds: How Technology Fuels Human Trafficking in Myanmar. Wired Magazine.

Yin, R. K. (2018). Case Study Research and Applications: Design and Methods (6th ed.). Sage Publications.

Zan, T. T., & Kyaw Min, S. T. (2025). Cybercrimes and the Illicit Financial Flows in Myanmar. Journal of Academics Stand Against Poverty, 6(1), 43–69. (journalasap.org)

Downloads

Published

2025-11-19

How to Cite

Prastya, D. A., Molasy , H. D., & Purwanto, A. (2025). State-Crime Nexus on the Myanmar Border: The Symbiosis of the Political Economy of the Military Junta and Border Guard Forces in the Yatai New City Ecosystem. JURNAL PARADIGMA MADANI : Ilmu Sosial, Politik Dan Agama, 12(2), 71–86. https://doi.org/10.56013/jpm.v12i2.5110

Issue

Section

Articles