Thursday, May 1, 2014

The Irrawaddy Magazine

The Irrawaddy Magazine


China’s New Economic Priorities Offer ‘Exit Strategy’ on Myitsone Dam

Posted: 30 Apr 2014 08:00 PM PDT

Myanmar, Burma, china, Myitsone, Dam, hydropower, hydroelectric, CPI, Irrawaddy, river, Ayeyarwady, Kachin State, protest, Thein Sein, loan, lending,  foreign investment, investment, FDI,

Burmese living in Malaysia display placards in protest against the China-backed Myitsone dam project, outside the Burmese Embassy in Kuala Lumpur in September 2011. (Photo: Reuters)

New financial constraints imposed by Beijing to deal with China's bloated economy could lead to the controversial Myitsone hydroelectric dam project in northern Burma being quietly abandoned.

The Naypyidaw government has been under pressure from China Power Investment Corporation (CPI) to lift a suspension of construction imposed in 2011 by President Thein Sein, but new Chinese financial priorities could deal the dam a death blow, analysts suggest.

"Until recently China Development Bank and to a lesser extent China Export Import Bank were the best friends the emerging markets ever had," said London's Financial Times.

"They lent money to companies and governments in places where the availability of capital was low, the tenure short and the cost high. But the two Chinese policy banks are now stepping back.

"As the Beijing government puts pressure on its banks generally, mainland credit is being tightened both at home and abroad. While speculation about credit tapering continues in the US, it is already happening in China big time."

Analyst Sean Turnell, an experienced Burma watcher, thinks it highly possible that Beijing's lending curbs could lead to a quiet ending for the US$3.6 billion Myitsone project on the Irrawaddy River in Kachin State.

"The Myitsone dam is such an irritant to the bilateral relationship," said Turnell.

"As it stands, one side must lose face. [However] the pressure within China for banks to rein in lending is surely the solution to the Gordian knot."

President Thein Sein has ordered work on the dam to remain suspended until the end of his presidency in 2015, while CPI has been making noises about restarting work sooner. Turnell, a professor at Macquarie University in Sydney, Australia, and co-editor of Burma Economic Watch, said a Chinese curb on loans for overseas investment by state-owned enterprises offered a "highly plausible exit strategy" for the problem.

"The Burma government can breathe a sigh of relief that this highly symbolic sign of reform [suspension of the dam] can remain so, and China can exit the project without losing face. Everybody wins, seemingly."

The tougher financial policies emerging in Beijing possibly also explain why Chinese investment in Burma has slowed down.

In early April, China Radio International reported that investment in Burma in 2013 had "plummeted" to only US$20 million or 5 percent of the value invested in 2012.

The 2013 figure was only 1 percent of the value of Chinese investment in Burma in the peak year of 2010, the radio station said.

The China Business News newspaper said China lost the leading position among foreign investors into Burma for the first time in four years and dropped to around 10th place.

"It is important to be realistic about the risks now confronting emerging markets in general now that China is focusing much more on its own internal problems and needs," commented John Richardson, an energy analyst writing in the industry magazine ICIS.

Cutbacks will affect infrastructure developments funded by China, notably hydroelectric projects in Cambodia, Laos and Burma, Richardson said.

Three Chinese state-owned companies—Sinohydro Corporation, China Three Gorges Corporation and China Southern Power Grid—were reported to be planning to finance and build several hydroelectric dams on the Salween River in eastern Burma.

It is unclear whether any of these will now proceed.

Analyst Yun Sun of the Washington-based Stimson Center said in February that since the suspension of the Myitsone dam development, China had "suspended almost all new major investment in [Burma]."

"Beijing needs to reconsider whether it is wise to let the destiny of one commercial project sway and affect the future of broader Sino-Myanmar bilateral relations," she wrote.

However, the much bigger issue of China's economic clean-up now seems to have dwarfed Myitsone.

"Real GDP growth in China slowed to 1.4 percent quarter over quarter for the three months to the end of March, while imports rose a mere 1.6 per cent for the period compared to a year ago," the Financial Times said.

"In the month of March, imports fell 11.3 percent compared to March 2013.

"All this suggests China’s role as the engine of growth for the world, and particularly for emerging markets, is likely to diminish in the future."

The post China's New Economic Priorities Offer 'Exit Strategy' on Myitsone Dam appeared first on The Irrawaddy Magazine.

Rangoon’s Salvage Divers Brave Risks for Meager Rewards

Posted: 30 Apr 2014 07:24 PM PDT

Myanmar, Burma, Yangon, Rangoon, diver, underwater, wreck, ship, boat, river, Bago river, Rangoon river, barge, salvage, job, employment, work,

Divers work to salvage a sunken sand barge from the Bago River in Rangoon. (Photo: JPaing / The Irrawaddy)

RANGOON — When the tide of the Bago River goes out, they jump on a wooden boat and head to the middle of the river to start their job. With the low tide, part of the cockpit of a sunken barge has become visible on the water.

"We have to make the most of the low tide, if not it will be very difficult for us because the whole boat will be underwater," one of the men told me.

There are six people onboard. They all are professional divers who have long made their living salvaging sunken boats and ships in the Bago and Rangoon rivers, which run around Burma's largest city.

They leave the boat's engine idling near the sunken vessel, a sand barge that sunk one month ago. They are here today to retrieve the wreckage. Their gear is not sophisticated: a few flimsy masks, oxygen tanks, an air compressor, pumps and a few large empty drums.

"First, the divers have to attach the empty drums to the side of the wreckage. They play a vital role in the salvaging process," the crew leader explains. After attaching the drums, the divers go down into the wreckage to pump out silt that has deposited inside the sunken barge.

"By the time the tide is high, we pump air into the drums. When the drums are filled with air, the wreckage floats on the water," the leader said.

Most of the crew earns the equivalent of about US$10 a day. But they all admit that they job is dangerous since they are at risk of suffocating if the oxygen supply onboard goes wrong, or if they get stuck in the wreckage.

"Though our job is risky, we have no choice as we can't do any other job," one diver said.

The post Rangoon's Salvage Divers Brave Risks for Meager Rewards appeared first on The Irrawaddy Magazine.

Van Sui Chin and Myanmar’s Lost Generations

Posted: 30 Apr 2014 07:00 PM PDT

Myanmar, Burma, Czech republic, education, students, uprising, 1988, university, Aung San Suu Kyi, National League for Democracy, Prague,

Decades of government neglect have weakened Myanmar’s education system, with disastrous consequences for the nation. (Photo: JPaing / The Irrawaddy)

PRAGUE, Czech Republic — Van Sui Chin, a teenage girl living in the Czech town of Stara Boleslav, just outside the capital Prague, is an exceptional student. At the middle school where she studies, the 15-year-old consistently comes at the top of her class in almost every subject. She has received several academic awards, and for two consecutive years has been chosen to travel to Italy on excursions with two other very gifted students.

But Van Sui Chin is not Czech. Her family is from Hakha, the capital of Myanmar's impoverished Chin State.

The story of how she ended up in the Czech Republic is a familiar one. In the mid-2000s, her father, Ngun Peng Siakhel, was arrested and sentenced to a week in prison for allowing an unregistered visitor to stay in his home overnight. He was released on bail, but decided then and there that he had had enough of Myanmar's restrictive and repressive rules.

Deciding that it was time to leave the country for the sake of his family's future, he traveled to Malaysia. Three years later, when she was six years old, Van Sui Chin and her mother and younger sister were smuggled out of the country to join him.

In 2010, after three years of living in Kuala Lumpur as refugees, the family was resettled in the Czech Republic. Despite the many hardships they had experienced in their young lives, Van Sui Chin and her sister, Sarah Mang Cin Tial, soon distinguished themselves as top students.

Their story is one shared by hundreds of thousands of families in Myanmar. Driven out of their homeland by poverty, oppressive laws, human rights abuses and discrimination against ethnic minorities, they have been forced to make new lives in foreign countries.

This vast diaspora—the product of half a century of brutal military misrule—has seen millions of Myanmar nationals flee to neighboring countries such as Thailand and India, as well as to other countries around the region and the world.

Among them, there may be thousands or tens of thousands of students like Van Sui Chin who have benefited from a better education than they could ever dream of receiving at home. This is great for them, but a tragedy for our country, because it means that we have lost so much of our enormous potential to the neglect and misguided policies of the past.

Kyaw Zwa Moe is editor (English Edition) of
the Irrawaddy magazine. He can be reached at kyawzwa@irrawaddy.org.

Soon after President U Thein Sein assumed power in 2011 and began introducing reforms, he invited Myanmar citizens living abroad to return and help rebuild the country. Many, including political exiles and well-educated professionals, did come back to see for themselves how much had changed. Most were unimpressed.

The most common complaint I've heard from many of these returnees is that the government continues to exclude them from the reform process. Instead of sugar-coated words, they say, they want to be able to play a clear role in shaping the country's future.

Unfortunately, it seems that old mindsets among the former military rulers die hard. Rather than embrace well-educated returnees, the authorities prefer to keep them at arm's length.

This is, no doubt, a legacy of the days when students were seen by the ruling generals as adversaries. Since 1962, when the armed forces first seized power, students have been at the forefront of efforts to restore civilian rule. After 1988, when a nationwide, student-led pro-democracy uprising nearly toppled the former dictatorship, this animosity became even more intense, resulting in the closure of colleges and universities across the country. They were reopened only after new campuses were built far from the city centers.

It seems that at least some in the current government—which consists largely of former generals, including some who were directly or indirectly involved in cracking down on student demonstrations—still regard students and the university-educated with suspicion. This is a shame, because the country desperately needs all the help it can get from its best-qualified citizens.

If U Thein Sein is indeed a reformist, he must do more to eliminate such thinking within his government. And the best place to begin is by seeking out and seriously listening to some much-needed input on education reform.

Despite calls from academics for bottom-up reforms, the Ministry of Education continues to believe that it must remain firmly in control of any future changes to the education system. But this top-down approach is at odds with what the country really needs—a reform process that includes a variety of stakeholders working together to achieve a greater degree of autonomy in the country's institutions of learning.

One group that is actively pursuing such changes is the National Network for Education Reform (NNER), which brings together leading voices on education, including teachers unions, ethnic education groups, independent educational organizations, the 88 Generation Students group, the opposition National League for Democracy's education network, and Buddhist monks and Christian churches.

The NNER has conducted dozens of seminars across the country since it was formed in 2012, and in June of last year, it held a national conference attended by 1,200 participants. That gathering produced a report with recommendations on how to create an inclusive education system that was submitted to Parliament and a committee overseeing the government's Comprehensive Education Sector Review.

Despite meeting with Education Ministry officials three times last year, however, the NNER says that the government has so far shown little interest in its ideas on reform.

The problem, according to two active members of the NNER—Dr. Arkar Moe Thu, chairman of the Dagon University Teachers' Association, and Jimmy Rezar Boi, a director of Mustard Seed Myanmar—is that the two sides have fundamentally different ideologies. While the NNER's philosophy is to cultivate free thinking, the ministry believes its goal is to produce "right-thinking" students.

"When they talk about 'right thinking,' we need to ask how they decide what's right and what's wrong," Jimmy Rezar Boi told me when I met with him and Dr. Arkar Moe Thu recently.

"What we want is an education system that allows academics, teachers and students to think freely on their own and allows them to choose what they want. That is their right," he added.

When opposition leader Daw Aung San Suu Kyi visited the Czech Republic late last year, she met some Myanmar nationals here, including Van Sui Chin and her sister. The democracy icon told them to study hard so they could contribute to the development of their homeland in the future.

But until the government learns to stop seeing students as a threat, and instead recognizes them as individuals whose minds are the nation's greatest treasure, Myanmar's future may not be much better than its past.

Kyaw Zwa Moe is the editor of the English-language edition of The Irrawaddy.

This article first appeared in the May 2014 print issue of The Irrawaddy magazine.

The post Van Sui Chin and Myanmar's Lost Generations appeared first on The Irrawaddy Magazine.

Democratic Voice of Burma

Democratic Voice of Burma


No relief for Kachin IDPs in China

Posted: 01 May 2014 04:12 AM PDT

Displaced residents who fled to China earlier this month to escape renewed fighting in Kachin State are suffering from a shortage of food and aid.

On 10 April, 109 displaced residents fled Hka Hkye Zup camp in Kachin's Mansi Township, after fighting between government forces and the Kachin Independence Army (KIA) came in close proximity to their camp.

The residents crossed the river into China and are now sheltering in a makeshift camp in Lung Kawk.

Conditions on the Chinese side are poor and there are not enough shelters to go round.

"We are living rough here – sleeping on the ground. There are elderly people among us who are in poor health and we don't have enough tarpaulin sheets," a displaced woman said.

Though the IDPs have only travelled a short distance, the UN refugee agency is not allowed to cross the river to deliver much-needed aid.

"Back across the border, we received aid from the UNHCR, but the Chinese authorities are stopping items with their logos from coming across and we are facing a rice shortage," the displaced woman said.

Kachin residents told DVB that for now, Chinese authorities are allowing them to stay. However, they are not receiving aid.

"When we first arrived here, the Chinese persistently told us to go back," the displaced woman said. "They claimed the gunfire had ceased and there is no more fighting. Recently, they have been saying we can stay but they are not providing us with any assistance."

Fighting flared on 10 April in the Mansi area of Kachin State, after Burmese troops bolstered their presence in Kachin and northern Shan states, including KIA Territory.

Since then, aid and relief groups have announced that more than 3,000 people have been displaced.

 

Burma’s workers rally for rights on May Day

Posted: 01 May 2014 03:14 AM PDT

Around 200 workers amassed in front of Rangoon's City Hall on Thursday to mark International Workers' Day, also known as May Day. Demonstrators demanded greater rights and protection for Burma's labourers.

The crowd also took the opportunity to rally for several constitutional amendments. Contentious articles included 59(f), which bars opposition leader Aung San Suu Kyi from the presidency, and 436, which establishes highly restrictive criteria for amending the charter.

The protest was organised by an umbrella group comprising more than 1,000 trade unions in Burma. A similar demonstration was also held in central Burma's Mandalay on Thursday.

In a separate May Day event in Rangoon,  the Myanmar [Burma] Trade Unions Federation (MTUF) honoured surviving members of nationwide workers’ strikes of June 1974, during the time of Newin's authoritarian rule. At that time, security forces opened fire on workers and students, leaving about 100 dead at the Thamaing Textile Factory and the Sinmalaik Dock Yard in Rangoon.

While workers' rights and conditions have changed considerably from the bloody bygone days of Newin, labour unions in Burma are still struggling to find their footing as new jobs, new freedoms and new forms of exploitation emerge in equal step.

"Labour conditions in Burma are still inadequate and there is a lot of room for improvement regarding basic rights like fair wages," said Aung Lin, chairman on MTUF. He explained to DVB on Thursday that while there has been some observable progress, labour unions still need to push the government for further protections, sometimes at their peril.

"Because we still have no minimum wage law, workers still struggle with low pay… and union leaders who facilitate protests are often suspended from work," he said.

Burma first passed the Labour Organisation Law in October 2011, a landmark moment for a nation with a long history of suppressing workers rights and forcibly conscripting both workers and soldiers. The new law allowed the formation of unions with 30 or more members, and gave them the right to strike with prior notice.

The law granted once-unthinkable new rights to Burma's workforce; the nation's labourers haven't had the right to organise since 1962.

Photos by DVB’s Tun Tun Thein.

 

Shan Herald Agency for News

Shan Herald Agency for News


Peace process: Both sides need to review own mindset

Posted: 30 Apr 2014 08:26 AM PDT

In order to achieve a speedy Nationwide Ceasefire Agreement (NCA), both the government and the armed resistance movements (ARMs) will have to change their entrenched mindsets, according to sources from the ARMs' Nationwide Ceasefire Coordination Team (NCCT) that had been holding a two-day meeting in Chiangmai to review the first draft of the NCA single text document that came out of the 4-day NCCT-government meeting earlier this month.
NCCT meeting in Chiangmai, 28-29 April 2014 (Photo: Aung Moe Myint/ DVB)

"On the government side, nothing spooks them more than the word 'federalism'" said a source who did not wish to be identified, following the conclusion of the meeting. "On the contrary, many on our side can't even go to sleep or eat without using or hearing it."

Which also applies to other words like "revolution" and "civil war" the two sides are at loggerheads with each other.

"At the next round of talks, we will therefore be discussing more about the concepts of the words than the words themselves," said another source. "If both sides share the same basic concept, then any words, either theirs or ours, will be okay."

India, for example, is in practice a federal country, though official statements have not referred to itself as one.

The date of the next meeting has been proposed on 19 May.

But there are also differences which are more about principles than words. "For instance, the government wants both sides to be subordinate to the Union Peacemaking Central Committee (UPCC) headed by the President," said the second source. "But we have counter-proposed that there must be a joint supreme body."

The 11 person UPCC is comprised of: President, 2 Vice Presidents, 2 House Speakers, Attorney General, Commander in Chief, 3 military appointed ministers for defense, home and border affairs, and a secretary from the President's Office. It is, to all intents and purposes, the most powerful National Defense and Security Council (NDSC), known as Ka-Long, as the only differences are that the latter has the foreign minister and deputy commander-in-chief instead of the Attorney General and Secretary from the President's Office, according to critics.

The NCCT has cited necessity for consultations within each movement and among all movements for the postponement of the next NCCT-UPWC (Governments Union Peacemaking Work Committee) which was initially scheduled for 5 May.

Convincing international community biggest challenge for war-on-drugs critics: researcher

Posted: 30 Apr 2014 08:25 AM PDT

The Burmese military is clearly involved in the drug production and trade in Burma but convincing the international community would be the most daunting task, according to a British researcher speaking to researchers in Chiangmai last week.

Panhsay Kyaw Myint
Patrick Meehan, a Ph.D candidate from the Oxford School of Oriental and African Studies (SOAS), University of London, who has been engaged in in-depth research since 2009 including 9 months of field research in Shan State, quoted excerpts from the 2010 UN Office on Drugs and Crime (UNODC) report to prove his point:
  • (T)he best deterrent for state interference with this (poppy cultivation) process is a rebel army. Without an active conflict, heroin production can be eliminated.
  • (U)sing the armed forces to promote internal instability may be seen as cost effective.
The two central arguments in this approach to Burma's drug trade, he says, are:
  • War finances rebel armies
  • Drugs weaken state power
In the meanwhile, drugs have benefited the Burmese military through its people's militia strategy which is enshrined in the 2008 constitution:
  • by accommodating its 'live off the land' policy in borderlands
  • by reducing territory which was hitherto safe for resistance armies to enter
  • by controlling the choke points of the regional economy based on drugs
U Myint Lwin
The People's Milita Forces (PMFs) in Shan State have been given a free hand in drug production and trade, according to reports from Palaung Women's Organization (PWO) and Shan Drug Watch (SDW). Mr Meehan's report include two of the most prominent PMF leaders who are also top businessmen as well as government MPs: Panhsay Kyaw Myint and U Myint Lwin aka Wang Guoda.

Opium production in Burma during the last season had gone "no holds barred", with the paradoxical exception of areas under the control of the United Wa State Army (UWSA), considered the largest drug trafficking organization in Burma.

Meehan is not the only critic to the current drug policy of the international community. Best known critics include Bertil Lintner, Adrian Cowell (deceased), Chao Tzang Yawnghwe (deceased) and the Amsterdam-based Transnational Institute (TNI). All have called for a political solution for the drug problem in Burma.

Shan CBOs meanwhile have called for a bottom-up initiated remedy rather than top-down solutions.