Saturday, May 10, 2014

The Irrawaddy Magazine

The Irrawaddy Magazine


ASEAN to Express Concern on South China Sea Tension: Burma Minister

Posted: 10 May 2014 02:37 AM PDT

: Myanmar, ASEAN, China, Vietnam, South China Sea, foreign relations, international relations, international disputes

A traffic policeman stands near ASEAN countries flags displayed for the 24th ASEAN Summit at Naypyidaw May 10, 2014. (Photo: Reuters)

: Myanmar, ASEAN, China, Vietnam, South China Sea, foreign relations, international relations, international disputes

Philippines President Benigno Aquino arrives at Naypyidaw airport on Saturday afternoon for the 24th Asean Summit. (Photo: Jpaing/ The Irrawaddy)

NAYPYIDAW — Association of Southeast Asian Nations (Asean) chair Burma said the 10-member regional bloc will issue a joint statement calling for restraint over disputes in the South China Sea, after a Chinese oil rig planted close to a disputed island ignited a confrontation between Vietnamese and Chinese naval vessels earlier this week.

Burma is hosting its first ever major Asean meeting this weekend, with the former pariah state welcoming regional government leaders and foreign ministers to the 24th Asean Summit in the capital Naypyidaw.

Following the foreign ministers meeting on Saturday afternoon and Burma's Foreign Minister Wunna Mg Lwin told a press conference that the ministers had agreed to draft a single joint statement expressing concern over this week's escalation of tensions.

"We are concerned about the recent situation in the South China Sea, we urge to both parties to solve this dispute very peacefully," Wunna Mg Lwin said. "We foreign ministers have discussed the South China Sea and reached consensus on a statement." It was not immediately clear when the statement would be released or what its content will be.

The Wall Street Journal reported quoted Singaporean Foreign Minister K. Shanmugam as saying the statement would "express our concern at the turn of events, and ask for everyone to act in accordance to international law, including the [United Nations Convention on the Law of the Sea]."

As host Burma has been immediately forced to address spiraling regional tensions during the 2-day meeting. Asia's most complicated and potentially destabilizing issue spun out of control as Asean member Vietnam and China traded angry accusations following the incident.

The South China Sea region has rich fishing ground and oil and gas reserves, and important maritime shipping routes run through it. An increasingly assertive China has become embroiled in territorial disputes with Taiwan and Asean members Vietnam, Philippines, Brunei and Malaysia, which are trying to resist the territorial claims of their powerful northern neighbor.

Earlier on Saturday, Burmese government spokesman Ye Htut was reluctant to comment directly on this week's incident, saying only that he expected progress would made on the Code of Conduct (CoC) for the South China Sea—a set of rules that would guide maritime conduct between Asean members and China.

"Related countries will submit reports on the latest situation to the foreign ministers meeting and also at the summit," he told reporters. "The Declaration of Conduct for the South China Sea is already approved by the Asean leaders, so the Code of Conduct will be discussed in these meetings."

"The good thing is that Burma has a very good relationship with China and also with Asean member countries, so we will try to [reach an agreement] on the Code of Conduct very soon," he said.

The DoC agreement from the early 2000s states all China-Asean disputes should be resolved peacefully. The regional bloc has, however, made little progress on completing a Code of Conduct agreement with China.

Vietnam and the Philippines, the two Asean nations most affected by territorial disputes, have been vocal supporters of the initiative, but China prefers to resolve any dispute bilaterally. In 2013, a Joint Working Group of was formed in which China and Asean would further discuss the CoC.

Agreeing on a joint statement on the South China Sea disputes has proven difficult for Asean in the past, as Vietnam and the Philippines have sought a strong-worded statement, while members seen as close to China, such as Laos and Cambodia, want to be careful not to offend to Beijing.

Burma's leadership will now be scrutinized for any perceived favoritism towards China. Under the previous military regime, China was Naypyidaw's most important ally, providing diplomatic, economic and military support in return for access to natural resources. Although relations between the two have cooled since a quasi-civilian government took over in 2011, China remains Burma's most important trade partner.

Government spokesman Ye Htut said chairman Burma was not under pressure from its northern neighbor to act in its favor over the South China Sea disputes. "China has not tried to influence us on this issue, there is no pressure on us," he said.

Asean government leaders will be arriving in Naypyidaw in the course of the day, with the notable exception of Thailand's former Prime Minister Yingluck Shinawatra who was ousted by a Constitutional Court this week, further deepening Thailand's protracted political crisis.

The government leaders will meet for the Asean Summit in Naypyidaw's brand new and heavily guarded Myanmar international Convention Center on Sunday. The Asean Parliamentarians meeting and the Asean People's Forum, a meeting of regional civil society groups, is also being held in Naypyidaw this weekend.

Burma's democratic transition has been marred by outbursts of anti-Muslim violence and a crisis in Arakan State, where since 2012 Rohingya Muslims have clashed with Arakanese Buddhists. The crisis displaced 140,000 Rohingya and sent tens of thousands fleeing in small boats through the Bay of Bengal in an effort to reach Malaysia.

Burma has been criticized over a range of serious rights abuses against the Muslim minority, with Asean members such Indonesia voicing concern over the treatment of the group. Ye Htut said, however, that the issue would not be broached during official discussions.

"Our internal conflict involving Bengalis in Rakhine State will not be on the Asean agenda this time. It will be [discussed] during the retreat session. If other country leaders want discuss that issue, we will listen," he said, referring to the Muslim group as "Bengalis." The decision is in keeping with Asean's long-standing policy of non-interference in domestic affairs of members states.

Burma joined Asean in 1997 but was passed over for the chairmanship in 2006 due to political repression in the country. After Thein Sein's government introduced political reforms and released Aung San Suu Kyi and thousands of political prisoners, Asean awarded Naypyidaw this year's chairmanship.

Burma has declared the theme of its chairmanship—in the penultimate year before the ambitious Asean Economic Community (AEC) is supposed to come into effect—"Moving Forward in Unity to a Peaceful and Prosperous Community."

Preparations for the AEC next year will be another key issue on the agenda this weekend. Ye Htut said work on the AEC was "80 percent completed," but noted that significant challenges remained.

Ye Htut said Burma's first Asean chairmanship would provide a boost in the country's international standing and bring economic and political benefits to the government as it seeks to implement further reforms.

"We can benefit from this summit by gaining political prestige on the world stage. We couldn’t take the chairmanship in 2006 due to the political situation at that time, until the new government started its work," he said.

The post ASEAN to Express Concern on South China Sea Tension: Burma Minister appeared first on The Irrawaddy Magazine.

Nargis’s Number Game

Posted: 09 May 2014 08:40 PM PDT

Cyclone nargis, Myanmar, Burma, The Irrawaddy, Aung Zaw, aid, relief

Survivors of Cyclone Nargis queue to receive relief supplies from an aid agency in the hardest-hit Irrawaddy delta region of Burma in this picture taken June 5, 2008. (Photo: Reuters)

Cyclone Nargis killed at least 138,000 people, but nobody knows for sure exactly how many perished in the storm that struck Burma six years ago. At first the regime announced that only 350 people had died, but later that number rose, with international observers estimating that 200,000 people had been killed. In this commentary from The Irrawaddy archives—originally published on May 22, 2008—the magazine's founder and editor-in-chief Aung Zaw reflects on the tragic numbers game following the cyclone.

Finally, Burma’s cyclone victims in the Irrawaddy delta region have been able to mourn their dead. The regime announced three days of official mourning but could offer no assurance that adequate aid is on the way.

Cyclone survivors are mourning without food and proper shelter from the rain, often encountering intimidation from armed police and local officials, who ordered them to stop begging for food and to show "discipline" when VIPs call on them.

Although it appears that Burmese officials have stopped counting the dead, nearly three weeks after Cyclone Nargis struck, the body count and numbers game aren't over yet.

At first the regime, perhaps unaware of the true scale of the disaster, announced 350 people had died. That toll rose in steps, to 10,000, then more than 20,000 and on to 78,000, with 56,000 people listed as missing.

When the number of dead reached 130,000 the regime mouthpiece, The New Light of Myanmar, nervously buried the fact on an inside page, reserving the front page for stories and pictures of the generals inspecting refugee camps and handing out aid packages to survivors.

Even that official toll is far short of the reliable estimates of international observers and diplomats, who believe more than 200,000 could have died. They say the cyclone struck more than 2 million people in one way or another.

But who knows the true figures behind this disaster? Who is counting the dead? There have been no major relief operations in the Irrawaddy delta region, let alone official attempts to rescue survivors and recover the dead.

We're reminded of the 1988 uprising, when about 3,000 activists and students were believed to have been gunned down on the streets, while the regime insisted only a few hundred looters were killed. Twenty years on, the real death toll is still unknown.

Although the true scale of this month's cyclone disaster is still to be revealed, the regime has issued a bizarre announcement that the first phase of the emergency relief mission is over.

Prime Minister Gen. Thein Sein declared: "We have already finished our first phase of emergency relief. We are going on to the second phase, the rebuilding stage." The New Light of Myanmar trumpeted in a headline: "Rehabilitation task goes on with greater momentum."

The UN reports that its agencies and partners have been able to reach only about 25 percent of the people affected by the cyclone. But how we do know it is 25 percent? And how could the UN provide sustainable assistance to them? Denied visas and access, UN officials have been trying to deliver aid by remote control from Bangkok or Rangoon. And the UN continues to make one concession after another to junta leader Snr-Gen Than Shwe.

Until now, The New Light of Myanmar, eschewing any informative reports on the plight of the cyclone victims and the impact of the disaster on the region, has been content to carry daily lists of aid and its origin. It paints a rosy picture of how VIPs are "helping" the victims and claims the situation is returning to "normal."

Normal? Foreign Ministers of the Association of Southeast Asian Nations must have wished it only were so, after Burma's Foreign Minister Nyan Win told them at a ministerial meeting in Singapore that his country needed US $11.7 billion for rehabilitation and reconstruction.

Thailand's Surin Pitsuwan, Asean's secretary-general, spoke for many when he cautioned, after a visit to Rangoon: "How do we know it's $11 billion? How can we be certain?"

Surin said: "Accessibility is important to guarantee confidence and verify the damage and needs, otherwise confidence during pledging will be affected."

Ahead of a donor conference in Rangoon on Sunday, Human Rights Watch warned donors that before they committed themselves to reconstruction projects they should obtain a commitment from the regime to make a significant contribution of its own. So far the regime has committed US $4.4 million (5 billion kyats)—hardly "significant" from a government that holds an estimated $4 billion in foreign reserves and is thought to collect $150 million monthly in revenues from gas exports.

Burma specialist Sean Turnell, of Macquarie University in Australia, posed the question: where is all that money sitting? And he came up with the answer: "What we do know is that it's sitting somewhere where Burmese people can’t get access to it."

Turnell added: "Either it's sitting offshore or it's sitting in the accounts of the Myanmar [Burma] Foreign Trade Bank or the Central Bank. But it looks like it's only accessible by Than Shwe and perhaps one or two others; it's not being used for the benefit of the Burmese people, which of course is critical at the moment. This sort of money can do an enormous amount with regard to the cyclone disaster, but it seems to be deliberately withheld."

Meanwhile, aid is trickling into Burma, at least at Rangoon's international airport—and at least here the facts are being meticulously recorded.

A regime report on Thursday listed the latest arrivals at Rangoon airport: "AN-12 flight carrying 17.12 tons of office equipment, generators, tarpaulin and racks donated by WFP, four C -130 flights carrying about 20 tons of plywood, water bottles, blankets, plastic, nylon ropes, hammers and nails donated by the United State of America, Y 7-100 flight carrying 3 tons of medicines for Laos medical team from Lao PDR, A- 300 flight carrying over 22 tons of foods, cables, medicines and medical equipments donated by KOICA of the Republic of Korea, IL-76 carrying 35.75 tons of water purifiers and related equipment, medicines, tents, foods and plastic donated by Doctors Without Borders of Belgium and IL-76 flight carrying 59.64 tons of construction material and tarpaulin donated by IFRC."

Laura Bush, a strong advocate of Burma's democracy movement, stepped in with some numbers, too. The First Lady told Voice of America: "The United States has been very active in trying to help. I think so far about 40 C-130s have landed in Rangoon with supplies for the people of Burma."

The impressive numbers of US relief flights to Rangoon also present accounting problems for Lt-Col Douglas Powell, spokesman for the US relief mission at Thailand's Utapao air base. "I think we have 36 flights so far," he said. "Oh… wait a minute, let me check my notebook. Err…we now have 41 flights so far.”

The US has also offered dozens of CH-47 helicopters and amphibious vehicles to deliver aid and supplies, but the regime is uninterested.

A particularly heartrending statistic is the number of children who died or lost their parents in the cyclone. But even here the numbers are vague.

UNICEF estimates that 40 percent of those who died in the cyclone and its aftermath were children. Ramesh Shrestha, UNICEF's representative in Burma, said the number of children left without guardians is more than 600 and could rise.

Shrestha admitted to The Associated Press: "We have no idea as to how many there are, but from the bits and pieces that we have, there are more than 600 or 700 unaccompanied minors so far."

A volunteer relief worker in the Irrawaddy delta estimated that more than 1,000 children under the age of 13 in Laputta Township alone lost their parents in the cyclone. The British-based charity Save the Children estimates that 30,000 children under the age of five living in the Irrawaddy delta region were already malnourished before the cyclone and warns that thousands of them now face death from starvation.

The numbers game continues on Saturday, when the regime resumes its constitutional referendum in the cyclone-hit areas. We can expect ludicrously inflated numbers again, probably matching the statistics dreamed up by the junta after the first session of voting on May 10.

Aung Toe, head of the Referendum Holding Committee, said that in the May 10 voting the draft constitution was approved by 92.4 percent of the 22 million eligible voters, and he put the voter turnout at more than 99 percent.

The constitution will guarantee 25 percent of parliamentary seats to the military and promises the construction of a "modern, developed and flourishing disciplinary democracy."

Aung Toe said a further 5 million citizens are eligible to vote on May 24 in Rangoon and the Irrawaddy delta, the region worst hit by the cyclone.

One cyclone survivor Kyi Hla, a 65-year-old grandmother, lost 12 members of her family, including her grandchildren. She is now reunited with three of her sons and five daughters-in-law, while the rest of her family perished in the cyclone and its tidal wave.

She related her remarkable survival story in Laputta to an undercover reporter from The Irrawaddy magazine—and, unlike the improbable statistics the regime plucks out of thin air, the numbers contained in her story ring with the deafening resonance of truth.

The post Nargis's Number Game appeared first on The Irrawaddy Magazine.

“Come On! Get Up! We Have to Rebuild the Polling Stations!”

Posted: 09 May 2014 06:24 PM PDT

The Irrawaddy Business Roundup (May 10, 2014)

Posted: 09 May 2014 06:00 PM PDT

Burma Log Export Ban Bites; Smuggling Continues

As Burma's ban on the export of logs begins to bite, drawing complaints from overseas consumers, the illegal smuggling of logs across the border with China is continuing, according to Eleven Media.

A ban on log exports began last month, but sufficient facilities to process timber in country are not yet set up. Official exports of teak, hardwood and other timber were worth US$947 million in the last financial year, according to Eleven, which ended on March 31.

However, the true amount of wood sent abroad before the ban is likely larger. London-based NGO the Environmental Investigation Agency recently alleged that the majority of timber Burma has exported over the past 15 years has been smuggled.

A report from Eleven Media last week said that following the ban taking affect, a week of seizures by authorities had claimed more than 1,000 tons of timber that was being illegally moved out of the country. And this week, Eleven reported that although the cost of transporting timber from northern Burma had risen, large trucks full of logs were still making the crossing.

"Despite the ban, illegal timber trade continues with smugglers finding new routes through the jungle. Some say that recent fighting between ethnic rebels and the army [has] made it easier to smuggle timber as there are less controls," the report said.

It cited local truckers who said Chinese traders would pay 9 million kyat, about $9,000, plus a barrel of oil for a truckload of logs, to cover the costs of smugglers carrying timber across the border.

Meanwhile the ban has drawn complaints from those who once bought logs from Burma. Pakistan's The News reported Thursday that the Karachi Chamber of Commerce and Industry had written to Burmese President Thein Sein and other authorities requesting that the log export ban be delayed.

The letter reportedly said that the ban had resulted in "intensifying the hardships of those in Pakistan who have been importing this essential raw material regularly for the last five decades." It called for at least a three month delay in the ban, "in order to give some breathing space to Pakistani importers who are unable to cater to local demand," The News reported.

Allen & Overy the Latest International Law Firm in Rangoon

Leading UK-based law firm Allen & Overy (A&O) has become the latest international law firm to set up an office in Burma, according to thelawyer.com

As the Burmese government undertakes political and economic reforms, and foreign investors are invited in, a number of law firms have moved into the commercial capital, Rangoon, to advise companies doing business in Burma.

According to a May 6 article on thelawyer.com, a British website for legal professionals, A&O has had lawyers based in Burma for some time, but has only recently opened an office in Rangoon.

"A&O's Yangon office provides international legal services and will not practice Myanmar law," the report said. "The new office is managed by Bangkok managing partner Simon Makinson and currently has two associates and two support staff."

It said A&O—which is one of the "magic circle" of top London law firms—has already worked with Telenor, the Norwegian telecommunications firm that was one of two foreign companies granted a license to operate mobile phone services in Burma.

"It has a close relationship with Myanmar Legal Services, an affiliate of Thai firm Chandler & Thong-ek Law Offices," the report added.

A number of foreign law firms, including Singapore's Kelvin Chia Partnership, American firm Herzfeld, Rubin, Meyer & Rose, DFDL and VDB-Loi are already operating in Rangoon. US-based Baker & McKenzie opened its Rangoon office in February and Duane Morris, also from the US, announced in September last year it had moved into the city.

Corruption Tops Concerns for Businesses in Burma

Corruption, access to skilled labor and technology are the biggest concerns for businesses operating in Burma, according to the results of a survey reported this week by Reuters.

According to Reuters, the survey—conducted by the United Nations Economic and Social Commission for Asia and the Pacific, the Organization for Economic Co-operation and Development and the Union of Myanmar Federation of Chambers of Commerce and Industry—questioned more than 3,000 firms about the problems associated with doing business in a reforming Burma.

"[T]he survey suggests the reforms have thus far had only a limited impact on corruption," the report said, explaining that about 20 percent of the companies said corruption was a "very severe obstacle."

"Access to skilled labor and technology were identified as the second and third biggest obstacles," it said. "Sixty percent of the firms surveyed said they had to pay bribes for registration, licenses or permits. About half the firms said they paid $500 in extra fees while about a dozen said extra fees exceeded $10,000 (5,892 pounds)."

The Burmese government passed an anticorruption law last year, and a new anti-graft commission was established in February. But the measures, aimed at tackling the endemic corruption that grew over years of secretive military rule, do not appear to have begun taking effect, and the new commission has already faced criticism since it is made up overwhelmingly of former soldiers.

Transparency International's latest Corruption Perceptions Index, published in December, ranked Burma 157 out of 177 countries, a marked improvement on the ranking of 172 out of 176 in 2012.

Indonesia's Largest Cement Maker Plans Burma Expansion

Massive cement firm Semen Indonesia has agreed to buy a stake in a Burma-based cement company, according to the Jakarta Globe newspaper.

A news report May 7 said the company was taking the minority share in an unnamed Burmese company. Semen Indonesia has previously said it plans to spend US$200 million in Burma.

"The move is seen as part of the company's efforts to expand its reach in the region ahead of the Asean Economic Community, which is scheduled to be implemented next year," the Jakarta Globe said.

The report quoted Semen's President Director Dwi Soetjipto saying the company would take a 30 percent stake in the Burmese company.

"The deal is valued at roughly $30 million, Dwi added. He declined to name the company involved in the deal, but mentioned it has an annual production capacity of up to 1.5 million metric tons of cement," the report said.

Dwi was also quoted saying, "We are currently establishing an entry point, but will gradually increase our control there in the future."

In March, Thailand's Siam Cement Group said it was investing $400 million in a cement plant in Burma, set to be operation in 2016.

The post The Irrawaddy Business Roundup (May 10, 2014) appeared first on The Irrawaddy Magazine.

ASEAN Faces Renewed Unity Test as South China Sea Tensions Spike

Posted: 09 May 2014 06:30 PM PDT

ASEAN, South China Sea, Vietnam, China, Cambodia, foreign relations

Protesters shout as they hold an anti-China banner which reads, "down with China" at a park in front of Chinese embassy in Hanoi on Friday. (Photo: Reuters)

NAYPYIDAW— A surge of tensions in the South China Sea threatens to widen divisions between Southeast Asian nations at a summit this weekend, posing a severe test for host Burma as the newly democratic country seeks to manage the region’s growing alarm over China.

The routine annual meeting of Southeast Asian leaders has been given a jolt of urgency by a series of collisions this week between Chinese and Vietnamese vessels after China stationed a giant oil rig near the disputed Paracel islands, off Vietnam’s coast. Both sides have blamed the other, and dozens of coastguard and patrol vessels are in the area.

Tensions also spiked in another part of the oil- and gas-rich South China Sea, with Beijing demanding that U.S. ally the Philippines release a Chinese fishing boat and its crew seized on Tuesday off Half Moon Shoal in the Spratly Islands.

In particular, the unprecedented move by China to plant its drilling rig in Vietnam-claimed waters and guard it with dozens of ships appears likely to dominate discussions at the summit, raising questions over Southeast Asia’s efforts to agree common maritime rules in ongoing talks with Beijing.

Burma, whose chairmanship of the 10-member Association of Southeast Asian Nations (ASEAN) this year marks a coming out on the international stage following the restoration of democracy in 2011, must walk a fine line between preserving ASEAN unity and not upsetting China, its biggest trade partner.

Differences within the group are already coming to the surface. Philippine diplomats told Reuters that some states were opposed to issuing a separate statement on the latest South China Sea or mentioning the tensions in the communique.

Ian Storey, a security analyst at the Institute for Southeast Asian Studies in Singapore, said the summit in Burma's capital Naypyidaw would be "another test of ASEAN unity."

"There will be countries like Vietnam, the Philippines, Singapore and Indonesia that will want to express serious concern at recent developments in the final communique," he said.

"Other members will be more wary, seeing the Paracels as a bilateral issue between Vietnam and China," he said.

Brunei, Cambodia, Laos, Malaysia and Thailand make up the other members of ASEAN, with the first three seen as especially keen to maintain good relations with China.

Singapore issued a statement on May 7 expressing concerns about recent developments and repeating previous calls for ASEAN and China to work for an early conclusion of the Code of Conduct in the South China Sea – a set of rules governing naval actions.

Burma will host two broader regional summits later this year, culminating in the East Asia Summit in November that is attended by the U.S. president as well as the Chinese head of state.

It will be keen to avoid a repeat of a disastrous ASEAN summit in 2012 when host Cambodia, a close Chinese ally, attempted to keep the South China Sea row off the agenda, resulting in ASEAN’s failure to issue a joint statement for the first time in 45 years.

Tough Balancing Act

China says territorial disputes should be discussed on a bilateral basis, but agreed at last year’s summits in Brunei to join talks with ASEAN on framing a Code of Conduct that would govern maritime conduct, with the aim of reducing the likelihood of clashes in the South China Sea.

Beijing claims almost the entire sea, and rejects rival claims from Taiwan, Vietnam, the Philippines, Malaysia and Brunei. The last four are ASEAN members.

The United States, which has forged closer security ties with Vietnam in recent years, has declared a national interest in freedom of navigation through the sea and this week called China’s deployment of the oil rig "provocative and unhelpful." China in turn has blamed the United States for stoking tensions.

"China will keep talking about the Code of Conduct, as a short term strategy in damage control," says Maung Zarni, a Burmese political academic who is a visiting fellow at the London School of Economics.

"But it will likely opt out of anything binding or anything that will restrict its ability to do what it feels to be its historical right – to exploit the South China Sea commercially, build its bases anywhere it deems essential, or disrupt other claimants’ economic and military activities in the area."

During decades of isolation, Burma relied on China as its closest diplomatic and military ally. But since Burma began pursuing dramatic reforms, its relationship with China has cooled.

"I think Myanmar will withstand Chinese pressure more effectively than Cambodia," said Sean Turnell, associate professor in economics at Macquarie University in Sydney.

"There really is a deep-seated loathing of aspects of Chinese commercial activity in Myanmar, and a belief the previous regime had made some bad bargains on energy and other big ticket deals."

An official with Vietnam’s Ministry of Foreign Affairs, who declined to be identified, said a repeat of the 2012 breakdown was unlikely as Burma had been weaning itself away from Chinese influence in recent years.

"It can be seen, although not very clear, that Myanmar has been trying to reduce the influence of China in its country, economically and politically," the official said.

Still, Maung Zarni said Burma would likely avoid antagonizing China by pushing for faster progress in concluding a code of conduct.

"Myanmar may be more independent than Cambodia," he said. "But it is not independent enough for Naypyidaw to behave in any way that will displease, annoy, irritate or anger Beijing over the South China Sea issue."

The post ASEAN Faces Renewed Unity Test as South China Sea Tensions Spike appeared first on The Irrawaddy Magazine.

Lao Dam Troubles Mekong Waters

Posted: 09 May 2014 05:00 PM PDT

Myanmar, Burma, Mekong, dam, hydropower, Laos, Cambodia, Thailand, Vietnam, Myanmar, Burma, China, Xayaburi, Mekong River Commission, Don Sahong

Regional efforts to protect Southeast Asia's most important waterway suffer a blow as Laos pushes ahead with plans to build a new hydropower dam.

BANGKOK — Being landlocked and poor has always placed Laos at a disadvantage to its more powerful neighbors. The only body of water that offers Vientiane an international reach is the Mekong River, which flows through the heartland of Southeast Asia.

Now, that river, which laps the western fringes of the capital Vientiane, has become the staging ground for Laos to flex its diplomatic muscles. The secretive communist party that runs the country is even prepared to stand up to the region's other, more powerful and wealthier communist-dominated regime—Vietnam.

An April summit of the four riparian countries that share the Mekong—Cambodia and Thailand, in addition to Laos and Vietnam—exposed the tension that has surfaced between these communist twins. Like Vietnam, Cambodia is also at odds with Laos over its determination to push ahead with plans for a new dam where the Mekong snakes through southern Laos, just over a mile from the Laos-Cambodian border.

"Though already being informed by the Lao side that work on the project will be started by the end of this year, both the Vietnamese and Cambodian sides have agreed that Laos should comply with the 1995 MRC [Mekong River Commission] Agreement," Nguyen Minh Quang, Vietnam's minister of natural resources and environment, said at the closing press conference of the Second Mekong River Commission Summit, held in Ho Chi Minh City in April. "We [Vietnam and Cambodia] also recommend that Laos only begin work on the project after new rules come into effect."

This is not the first time that Hanoi has been in such a huff with Laos over plans to build on the Mekong. Before the current project—the 260-megawatt Don Sahong Dam—became a cause for concern, the Vietnamese government expressed disapproval over the much larger Xayaburi dam, a 1,260-megawatt project being built on the river's mainstream in northern Laos.

In fact, a January meeting of the four member countries of the Mekong River Commission (MRC) found Laos cornered, with even Thailand expressing reservations about the Don Sahong Dam. Nevertheless, Laos appears determined to forge ahead with the project by skirting around binding MRC agreements, including the one alluded to by the Vietnamese minister, which requires "prior consultation" and regional agreement on dams that could impact the Mekong's flow.

"At the moment there is no consensus on the Don Sahong Dam, because three countries require the project to be subject to prior consultation since they have raised concerns about its impact," Surasak Glahan, spokesman for the Vientiane-based MRC, told The Irrawaddy. "Laos says prior consultation is not necessary because the volume of water that will be impacted by the dam will be small."

Laos has stuck to this view since October, when it formally notified the MRC that it will proceed with the dam. Viraphonh Viravong, Laos' deputy minister of energy and mines, declared at the time that it would not breach the 1995 agreement because the dam is not being built on the Mekong mainstream, but on one of the 17 channels in the Siphandone stretch, where the water flow through the channel accounts for only five per cent of the river's flow.

Such a unilateral view ignores the case advanced by Vietnam about the dire consequences its rice bowl—the Mekong Delta—could face if dams are constructed on the mainstream. The flow of sediment down the Mekong into the delta is crucial for the 20 million people who live there. Nearly 90 percent of the rice Vietnam exports is grown in the delta. Loss of sediments from the Mekong exposes this 15,400-square-mile (40,000-square-km) flat, marshy terrain to saltwater erosion from the mouth of the river, which faces the South China Sea.

Cambodia, meanwhile, views the Don Sahong Dam as a threat to its much-needed fish stocks. A barrier on the only channel, the Hou Sahong, that is the chosen route for fish all year would impact migration, feeding and breeding, "creating trans-boundary impacts," notes the NGO Forum on Cambodia. It is a loss that would affect the diets of Cambodians, given that fish and aquatic resources provide for "76 percent of animal intake, 37 percent of protein intake, 37 percent of iron intake and 28 percent of fats intake of the Cambodian population," according to a 2013 study by the Cambodian Fisheries Administration, a government agency.

These Cambodians are among some 65 million poor people across all four countries depending on the Mekong for their sustenance. The river's reputation as the world's biggest and most productive inland fisheries waterway also makes it a money spinner. And between US$2.2 billion and $3.9 billion worth of fish is harvested from the river each year, accounting for nearly one-fourth of the world's annual catch.

No wonder, then, that environmentalists are perturbed: Laos' readiness to sink agreements with its neighbors over a shared international river demonstrates that national interests are still winning out over wider concerns. "This is a test of regional cooperation and it is failing," Ame Trandem, Southeast Asia program director for International Rivers, a global environmental campaigner, said in an interview. "Laos is setting a very bad precedent about how to ignore the 1995 agreement."

Activists fear the worst for the nearly 3,100-mile-long (5,000-km-long) river, which begins its journey in the Tibetan plateau, roars through southern China and touches Myanmar before heading south through the Mekong Basin. Laos, after all, has set its sights on building nine dams on the Mekong's mainstream in its quest to become an exporter of hydropower to neighbors like Thailand.

Vientiane's ambition to become the "battery of Southeast Asia" has been defended for economic and development reasons: The millions of dollars in foreign exchange it will generate will help raise the living standards of the third of its nearly six million population still mired in poverty. And its defiance on the diplomatic front has been attributed to the growing influence of China, which has already built four mega-dams out of a planned eight with little consideration (and no prior consultations) for downstream countries.

But this go-it-alone approach is coming at the cost of Laos' "special relationship" with Vietnam, forged after US troops were defeated in the Vietnam War, and cemented by a 1977 treaty of friendship and cooperation.

For nearly three decades, Vietnam was a dominant presence in Laos, leading the way with foreign investment. But as China and Thailand step up their economic presence in the country, the influence of Vientiane's ideological big brother appears to be waning—with consequences that could be disastrous for Vietnam's rice exports, and for the region's main waterway.

This article first appeared in The Irrawaddy's May 2014 print edition.

The post Lao Dam Troubles Mekong Waters appeared first on The Irrawaddy Magazine.

Democratic Voice of Burma

Democratic Voice of Burma


Storm rocks Rangoon

Posted: 10 May 2014 12:28 AM PDT

Electricity poles, trees, billboards and rooftops were just some of the victims of strong winds and rain that swept through Rangoon on Thursday night.

Telephone lines and electrical wires were torn down by the storm in Thanylin, some 25km south of the former capital, with areas around Kyeik-khauk Pagoda particularly affected. Power was cut for at least a day in some districts.

Reparations were taking place on Friday with electrical wires and poles being given priority.

No casualties have been reported.

 

Suu Kyi asks KNU to focus on constitutional reform

Posted: 09 May 2014 11:07 PM PDT

National League for Democracy (NLD) Chairperson Aung San Suu Kyi has urged the Karen National Union (KNU) to join with her in pushing for constitutional amendments.

Speaking at Suu Kyi's lakeside home in Rangoon on 9 May, the Burmese opposition leader addressed a delegation of KNU representatives headed by Vice-chairperson Zipporah Sein. According to Pado Saw Thamein Tun, a KNU delegate who attended the meeting, Suu Kyi asked the KNU leadership to focus its efforts on amending the 2008 Constitution and enforcing rule of law in Burma.

Suu Kyi allegedly referred to the ongoing peace talks between the KNU, other ethnic armed groups and the Burmese government, saying that constitutional reform would bolster the peace process.

"She asked that we focus on rule of law issues," said Pado Saw Thamein Tun, "and reiterated that the Constitution would need to be amended in order to allow true political dialogue to take place; otherwise we would face constraints.

"She went on to advise us to focus on dialogue during the peace talks rather than the development programs," he said.

Zipporah Sein has been leading a KNU team recently on a tour of ethnic groups and stakeholders in the peace process, including a visit to the Panghsang headquarters of the United Wa State Army and discussions with ethnic Karens in the Irrawaddy Delta.

The Karen delegation also met leaders from the 88 Generation group and sat for talks with Khun Htun Oo of the Shan Nationalities League for Democracy. The KNU said it had reached agreements at both meetings to work together to achieve a nationwide ceasefire and to collaborate on proposing amendments to the Constitution.

 

Infrastructure, skilled workforce are keys to Burmese economic growth

Posted: 09 May 2014 10:07 PM PDT

Despite an influx of foreign investment and large resource base, Burma’s exponential growth in gross domestic product (GDP) could be held back by inadequate basic infrastructure and a lack of skilled workers, says a Rangoon-based business and market entry adviser.

Jean-Pierre Verbiest, an economic and finance expert at West Indochina, said Burma, officially known as Myanmar, is still in the early stages of developing its independent power producer policy framework and creating energy regulators.

According to the International Monetary Fund, World Bank and Asian Development Bank, the problem could improve in two to three years, he told the CLSA Asean Forum 2014.

“The constraints to Burmese growth are a lack of necessary infrastructure, especially in the energy sector, and skilled workers,” he said.

“The difficulty in finding skilled and manager-level workers in Burma is because there are not that many of them. However, Burma still has one of the lowest wage costs, which is ideal for labour-intensive industries.”

According to the Japan External Trade Organisation, Japanese investors have expressed interest in establishing satellite factories for labour-intensive industries to supply raw materials to Thailand.

That is likely to happen once the Eastern and Southern Economic corridors that link the main production hubs in Thailand with Burma are completed, said Setsuo Iuchi, Jetro’s president and chief representative for ASEAN and South Asia.

According to West Indochina, Burma’s economy grew by about 5 percent in the 10 years prior to reform. In 2011, when reform began, gross domestic product grew by 7-8 percent; last year it rose by 7.5 percent.

“Its 2014, GDP is set to grow by about 9 percent and will continue to be about 8-9 percent for the next 20-30 years due to the inflow of foreign investment, especially in the oil and gas sector, as new projects continue to come online,” said Mr Verbiest.

Similarly, the telecommunications sector will attract a lot of investment in the next 18 months as the country aims to have 80 percent mobile phone coverage.

“Burma is starting its development when technology is cheap and widely available, so it could develop slightly faster than Vietnam did in the ’90s,” said Luc de Waegh, founder and managing partner of West Indochina.

Other than oil and gas and telecoms, its growth areas are consumer goods, packaging, market research and law.

In the tourism sector, the number of visitors is likely to reach 10 million per year in the next 10 years, up from 2 million now.

 

This article was originally published in the Bangkok Post on 10 May 2014.

 

Burma Business Weekly

Posted: 09 May 2014 03:01 AM PDT

 

China still Burma's top trading partner

China continues to rank as the top trading partner with more than US$7 billion worth of transactions in the previous fiscal year, according to the Ministry of Economics and Commerce. Burmese exports to China were listed at $2.9 billion, with imports totaling more than $4 billion. China accounts for nearly 30 percent of Burma's trade; Thailand is second with a total value of $5.5 billion. In 2013-14, Burma's main exports to China and other nations were rice, corn, mung beans, pigeon peas, sesame, rubber, fishery products, teak, hardwood, raw metal, natural gas, jade and garments.

 

Philippines and Burma discuss aviation

Aviation officials from the two countries will meet in late May to discuss an air services agreement, ABS-CBN News reported on Friday. The Philippine ambassador to Burma told reporters that the talks could result in the first ever direct flight between the two Southeast Asian nations. Burma's President Thein Sein travelled to Manila last year, where he penned several pacts with Philippine President Benigno Aquino III, including a visa-free travel agreement for citizens of the two countries.

 

Vehicle import tax creates $800m in revenue

Burma's Internal Revenue Department has revealed statistics showing that more than US$800 million of revenue was generated over the past two years from vehicle import tax after the government relaxed import regulations. According to the data, more than 280,000 vehicles were imported to Burma, indicating an average of $3,000 was charged for each. Vehicle owners also pay $2,000- $3,000 registration fees, which increased the price of automobiles in Burma — two to five times higher than neighbouring countries. Less than one percent of people in Burma currently own a car.

 

Burma's corruption remains investors' biggest concern

Corruption is the top concern for businesses and investors in Burma, according to a survey commissioned by the UN, OECD and UMFCCI. About 20 percent of over 3,000 firms identified corruption as a “very severe obstacle” to their operations. Sixty percent said they had to pay bribes for registration, licences or permits. About half of the firms said they paid $500 in extra fees while about a dozen said extra fees exceeded $10,000. Access to skilled labour and technology were identified as the second and third biggest obstacles.

 

Myeik to Bangkok flights take off

Myanmar Union Express Charter Airline has launched flights between Mergui [Myeik] in southern Burma to Thai capital Bangkok starting from 8 May. Myeik is now the fourth most popular port of departure for Bangkok-bound flights from Burma after Rangoon, Mandalay and Naypyidaw. Round-trip tickets are being priced at US$140, and the service is running around twice a week.

 

Austria offers support on hydropower

Austria has pledged to provide Burma with technical support on hydropower generation, said Vienna's visiting Transport, Innovation and Technology Minister Doris Bures upon signing MoUs with Burma's Naypyidaw's Electric Power and Transportation ministries on Thursday. DVB has learnt the assistance on the electricity sector will mainly focused on a high-technology project to generate hydropower on the Irrawaddy River without disrupting its flow.

 

China's Exim to lend Burma $300m for road upgrade

Burma's National Planning and Economic Development Ministry is reviewing terms for a US$300 million loan from China's Exim Bank, according to a senior ministry official. The loan is intended to fund nationwide road upgrades. Interest rates and repayment deadlines are still under negotiation. Burma's government came under fire over the past year for receiving a $100 million loan from Exim to build up the cooperatives sector, which critics say came with excessively high interest rates.

 

Govt cracks down on contraband

Burma's Mobile Team announced this weekend it had seized over one billion kyat (US$1 million) worth of smuggled goods between August 2013 and the beginning of May this year from seven ports in Rangoon. The squad's deputy-director, Myint Oo, said over 70 percent of all contraband, much of it foreign liquor, was confiscated following tips from members of the public. The official said that 48 raids were conducted by mobile teams during the last nine months at warehouses and onboard ships coming in to dock, 12 were instigated by tips from members of the public. Those particular raids yielded no less than 700 million kyat worth of illegal goods.

 

Chinese firm claims Hpa-an locals support cement factory project

Myanmar Jidong Cement Company, a subsidiary of Chinese multinational giant Tangshan Jidong, one of the world's largest manufacturers of cement, has countered claims that local communities in Karen State capital Hpa-an are opposed to their building a factory in the area, saying it has the support of the people, and that it intends building the facility as soon as it has approval from the Karen State government and the Myanmar Investment Commission (MIC).

In an article on 29 April, DVB reported that plans for a cement factory near Hpa-an had met with "stark opposition" and that the majority of locals had refused to sign an agreement indicating approval for the plant, which if constructed could produce 5,000 tons of cement a day, the company says.

Read more: https://www.dvb.no/news/chinese-firm-claims-hpa-an-locals-support-cement-factory-project-myanmar-burma-karen/40311

Displaced Kachin must leave but can’t go home

Posted: 09 May 2014 02:49 AM PDT

Kachin refugees sheltering in the Lagat Yang camp for internally displaced persons (IDPs) have begun to relocate amid pressure from the Burmese Army, a camp administrator told DVB.

The Lagat Yang camp in Mansi Township, Kachin State, is home to hundreds of families forced to flee their homes because of fighting between the Burmese Army and the Kachin Independence Army (KIA).

Camp sources have for weeks been reporting steady pressure from the Burmese military, urging the refugees to return to their villages, which soldiers insist are now safe.

The camp's coordinator, La Sang, told DVB that after continued pressure, some of the IDPs returned to their homes to examine damages and prepare for a permanent return, but most of them quickly returned to the camp because fighting resumed.

"We have been living in [Lagat Yang] for over a year," said La Sang, "we're just beginning to settle in now and it would be difficult to go back to our villages as we have to tidy up and rebuild homes."

He said that though they tried to convince authorities to let them stay, they are still being instructed to leave. Most of the IDPs do not feel that it is safe to return and are considering other relocation sites. A church in nearby Man Win Gyi has arranged accommodation for some of the displaced. Others are said to be headed towards China.

La Sang said that about 440 Lagat Yang residents — around 92 families — began vacating the camp on 7 May. Twenty of those families were bound for China.

On 3 May, Burmese soldiers detained fourteen new arrivals to the camp on the grounds that they were not registered as residents. They have all since been released and are among those relocating to Man Win Gyi.

Approximately 227 families — about 800 people — had been living in the Lagat Yang IDP camp since fighting broke out between the Burmese Army and the KIA in Mansi Township in November 2013.

Last year's conflict caused thousands to flee the Nam Lin Pa IDP camp and nearby villages, hundreds settling at Lagat Yang.

In early April of this year, additional installment of Burmese troops in the area — assigned to accompany census enumerators — eventually led to territorial conflicts. Several sources have reported that frontline shellfire landed within the camp's boundaries, causing many of the refugees to flee again.

Some fled to nearby Man Win Gyi, while many made a run for the Chinese border. Of those, many have since returned to the Lagat Yang camp. Several hundred IDPs remain in Lagat Yang, originating from various villages and other refugee camps in Bhamo District.

Korean child psychologist to be next Special Rapporteur

Posted: 08 May 2014 09:02 PM PDT

A child psychologist from South Korea, Yanghee Lee, has been appointed to take over from Tomas Ojea Quintana as United Nations Special Rapporteur to Burma as from 1 June, DVB has learned.

Lee was selected on Thursday from a list of candidates that included career diplomats, former Suu Kyi lawyer Jared Genser, and British activist-academic Guy Horton.

Although a participant in ASEAN fora, Lee would appear to have little experience in dealing with Burma or its government. She was first elected to the Committee on the Rights of the Child in 2003 and later became chairperson.

Lee's background is in child psychology and education, and she is a BSc graduate of Georgetown University in Washington, DC.

Shortlisted candidate Guy Horton said, "Congratulations are due to Ms Lee on the appointment. She is taking over a very difficult situation. It should be noted that Mr Quintana has called for an investigation into crimes against humanity in Rakhine [Arakan] State, and I hope she will take that forward."

The Korean inherits a position fraught with controversy. Quintana frequently faced criticism from Naypyidaw and from Burma's Buddhist majority for his stance toward the Rohingya Muslims.

Leaving the position, Quintana wrote in March that Burma's nascent democracy faces immense challenges in the coming years, some with the capacity to "jeopardise" progress made since the country's transition from military dictatorship to quasi-civilian leadership in 2011.

"In assessing the reforms that have been initiated so far," he wrote, "the Special Rapporteur stresses that this can only be viewed as the start of a long process of reform that will be required to address the deep seated human rights issues in Myanmar [Burma]."

Quintana noted that throughout his six years on the UN mandate, he has seen significant changes in Burma that have brought important improvements to the human rights situation, including the release of over 1,100 prisoners of conscience, the opening up of space for freedom of expression, the development of political freedoms, the holding of free and fair by-elections, and important progress in securing an end to fighting in the ethnic border areas.

He said he believes that there is limited space for backtracking, though the democratic transition is still in its early stages and remains fragile.

"A change of mind-set still needs to take place within all levels of Government to allow civil society, political parties and a free media to flourish beyond the limited freedoms that have currently been granted," he concluded. "The energy and enthusiasm of the younger generation and of women needs to be allowed to come through which will, in turn, reinvigorate the reform process and ensure that Myanmar [Burma] secures a successful transition. As part of this transition, addressing the past will also become increasingly important.

"A critical step will be to secure ceasefire and political agreements with ethnic minority groups, so that Myanmar can finally transform itself into a peaceful multi-ethnic and multi-religious society."

 

Thai, Burmese labour officials pledge to protect migrant workers

Posted: 08 May 2014 07:51 PM PDT

Burmese and Thai labour officials held a high-level meeting on 7 May in Bangkok where they agreed to cooperate and provide full labour rights to Burmese migrants, with additional pledges to protect the estimated one to two million Burmese in Thailand from elements such as extortion and employment scams.

According to Min Hlaing, the chairman of the Myanmar Overseas Employment Services Association (MOESA), the meeting mainly focused on rights protection for Burmese migrant workers, specifically the formation of labour bodies in both countries to monitor and prevent abuses.

"It was roundly agreed that establishing labour bodies in both countries to supervise procedures will prevent abuses such as scams and extortion while also providing assistance with migrants' issues and protecting their rights," he said.

The MOESA chairman said that Burmese officials raised the issue of renewing migrants' passports and work permits after their four-year visa terms have expired in order to protect them from arrest while they wait for new documents.

Thai officials in response said that "one-stop service" centres had been opened in border towns to issue fresh documentation to migrants. However, they noted that few Burmese workers had used the service, and they urged the Burmese government to help persuade migrants to adhere to the procedure.

It is estimated that of the hundreds of thousands of Burmese migrants whose four-year visas have now expired, only around 6,000 have sought fresh documents.

Thai and Burmese officials also discussed updating the existing MoU on employment cooperation which was agreed last year.

The meeting was attended by a 12-person delegation from Burma which included Labour Minister Htin Aung, Labour Ministry Director- General Myo Aung, Burma's ambassador to Thailand Aung Myint, and the Burmese embassy's Labour Attaché Thein Naing. Their Thai counterparts were led by Labour Ministry Permanent Secretary Jirasak Sukhonthachart.

Shan leader abducted by Army in Kengtung

Posted: 08 May 2014 03:51 AM PDT

A leader of a major Shan political party was allegedly arrested and tortured by the Burmese Army in Kengtung, party officials said on Wednesday.

Sai Jan, Namt Lin Mai village chairman for the Shan Nationalities League for Democracy (SNLD), is said to have been apprehended by Burmese troops from his home on 5 May. According to Sai Lon, the SNLD eastern Salween chairman, the troops had no warrant and were not accompanied by government officials.

"We learned that Sai Jan was arrested at his home while he was sitting with a friend," said Sai Lon, who explained that while the friend had managed to escape, Sai Jan was abducted and kept in detention overnight. According to Sai Lon, he was returned to his house at around 11am the following morning, with his "hands tied around his back and his face black and blue”.

The soldiers then searched his house and left with Sai Jan, who is now assumed to be in custody at the Kengtung military headquarters.

Sai Lon said that party officials went to the Kengtung Police station on Wednesday morning to inquire about the incident, but police denied any knowledge of the arrest.

Sai Lek, spokesperson for the SNLD, said the party denounced the behaviour of the Burmese Army, warning that such incidents could lead to distrust among the country's many ethnic groups, who are currently negotiating a nationwide peace accord with the central government after decades of war and unrest.

"We assume [Sai Jan] is innocent, and even if he wasn't, arrests should be conducted in accordance with the law," he said. "We denounce the arrest of Sai Jan without a police warrant or the company of local authorities."

The Shan State Army-South reported a similar incident this week, claiming that Burmese Army troops entered their liaison office in Kengtung without prior notice or warrant, and proceeded to search the building and surrounds, though no one was abducted in that incident.

Myitsone marchers on the home straight

Posted: 08 May 2014 03:45 AM PDT

After two months of walking across the country, a group of campaigners dubbed the 'Myitsone marchers' reached Sagaing Division's Katha district on Tuesday.

The activists are calling for the complete suspension of the Myitsone hydroelectric dam project, which was halted in 2011 by President Thein Sein's government after public opposition to the development.

The group started their walk in Rangoon on 14 March, which coincided with International Rivers' Day, and have travelled 1,000 kilometres on foot, taking them almost across the entire length of central Burma.

Despite the hardship of the journey, the activists said they have been welcomed in towns and villages along the way.

"We faced a lot of struggles on the way," said one of the Myitsone marchers. "We even had to cook for ourselves in some villages, but we improvised means to get us through. We also received healthcare assistance from organisations such as the NLD [National League for Democracy] and local villagers."

Forty-three activists began the marathon hike by splitting into four groups – each taking different routes to Myitsone.

The Myitsone marchers are now on the home straight as they have about 300km of further hiking until they reach the Irrawaddy river confluence – and the home of the Myitsone Dam.

Rights groups call on Obama to renew sanctions

Posted: 08 May 2014 02:52 AM PDT

A coalition of 29 human rights groups issued a statement on Tuesday urging US President Barack Obama to continue the country's policy of "national emergency" with respect to Burma, which is set to expire later this month.

A number of sanctioning tools remain at the disposal of the US State Department and Treasury, although most American sanctions against Burmese entities were lifted in mid-2012. If Washington were to allow remaining sanctions to expire, it would follow in the footsteps of the European Union, which lifted all sanctions last year except for a longstanding arms embargo.

In a letter to US President Barack Obama, the organisations – led by the Washington-based US Campaign for Burma – claimed the "concerns and rationale for continuing the national emergency persist and have even worsened," citing the arrest of new political prisoners, the denial of aid to Rohingya Muslims, and escalating violence in northern Burma. The letter also cited the "obstruction of political reform," including a failure to amend the Constitution and lingering military ties with North Korea as reasons for maintaining the status quo. The organisations urged the president to maintain the national emergency, which they deemed "imperative for supporting the reform process in Burma."

Breaking ranks with other Western countries, the US has chosen to maintain a limited arsenal of financial sanctions against Burma as political and economic reforms have progressed. "Sanctions were widely lifted under the belief that the Burmese government was planning to adhere to a measured path of human rights and democratic reforms," Rachel Wagley, US Campaign for Burma's policy director, told DVB. "This belief has proven demonstrably false, and now the international community is left with little recourse as the human rights situation grows increasingly dire, attacks escalate in ethnic areas, and Parliament works to enact new discriminatory laws."

A longstanding Specially Designated Nationals (SDN) list, published by the Treasury's Office of Foreign Assets Control (OFAC), remains in force, and American companies are largely barred from doing business with SDN-listed entities, with a few exceptions. Last February, OFAC issued General Licence 19, which allows US entities to conduct transactions through four Burmese commercial banks owned by listed "cronies" otherwise subject to targeted sanctions.

While a number of entities have been added to the list over the past two years – primarily for military links with North Korea – the SDN list has come under intense criticism from critics of the US sanctions regime, who claim that enforcement is overly bureaucratic and counterproductive, with unclear criteria for why entities are listed. Many of the individuals still on the list are prominent tycoons with which US interests have had extensive contact, including Win Aung, the chairman of Burma's Chamber of Commerce, which hosted a delegation from its American counterpart last year.

Following the suspension of most financial sanctions in mid-2012, President Obama signed Executive Order 13619 into law, which provides the State Department and Treasury with the right to stop asset transfers between Americans and Burmese entities that "[threaten] the peace, security, or stability of Burma" or commit human rights abuses. In theory, the order provides the US government with the legal framework to hold American companies accountable if they are complicit in human rights abuses or criminal activity on a case-by-case basis, outside of the blanket proscriptions already stipulated by the SDN list.

Entities found to be in violation of the Order are supposed to be added to the SDN list, but this has not always happened in a timely fashion. Last year, a joint statement by many of the same rights groups behind the call to maintain sanctions criticised the Obama administration for "tout[ing] the importance of updating the SDN list… while simultaneously failing to update it."

While most import and export restrictions on Burma were lifted for good in 2013, some provisions of the 2008 Burma JADE (Junta's Anti-Democracy Efforts) act remain in force, particularly a ban on the importation of Burmese rubies and jade due to their close associations with human rights violations and organised crime.

Last month, the Burma Human Rights and Democracy Act of 2014 was introduced to congressional committee, which could block further security assistance funds to the Burmese military unless it submits to civilian oversight and improves its human rights record, among other stipulations.

National News

National News


Rakhine won’t harm relations with US, insists government

Posted: 09 May 2014 02:11 PM PDT

The Myanmar government has dismissed any suggestion that humanitarian problems in Rakhine State are straining its fledgling relationship with the United States, days after Congress slammed the country's treatment of Muslims and other minorities.