Saturday, April 23, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


Dateline Irrawaddy: ‘We Cannot Accept the National Education Law’

Posted: 22 Apr 2016 07:20 PM PDT

PHOTO 2Thalun Zaung Htet: Welcome to Dateline Irrawaddy! This week, we'll discuss the student protestors, who were released following President Htin Kyaw's presidential pardon, and their expectations for the country's education system, with Phyoe Phyoe Aung, general secretary of the All Burma Federation of Student Unions (ABFSU) central work committee, and Nan Linn, a university student union leader. I'm Irrawaddy Burmese editor Thalun Zaung Htet.

First of all, I'm happy that students, including you, were released on April 8. Everyone was happy that day. But after the release, we saw statements on social media from the released student protestors, including you, which said the protest had not been called off because 11 demands remained unfulfilled. This drew critical comments on social media like "if students want to go back behind bars [they should say so]," and other similar criticisms. Why haven't the student protestors called off the demonstration?

Phyoe Phyoe Aung: Throughout the year while we were on trial, especially after there was speculation that Aung San Suu Kyi would become education minister, we explained the student protests [against the National Education Law] whenever we gave interviews. Those 11 demands are what the students wish for, which they expressed at the students' conference in November 2014. We cannot accept the National Education Law, which was drafted and approved by the [former] government and Parliament. It is over-centralized and would be an obstacle to the development of a democratic education system in our country. Therefore, students unanimously decided to protest that law. The protest depends on whether or not their demands are met. The decision [to call off the protest] cannot be made by an individual person or organization. In our understanding, it is the nature of a protest to end automatically once demands are met. People failed to take note of what we have continuously said, but many have taken notice of news that has spread on social media about the protest continuing and students taking to the streets. Lately, we have explained [the law and our demands] comprehensively through interviews and statements.

TZH: Nan Linn, the National Education Law was enacted in 2014 and [former President] Thein Sein made some amendments to the law in 2015. How much does the existing education law meet the demands of students? Does the law still need to be changed?

Nan Linn: Surely, it needs to be changed. We pressed for 11 demands. Some have been met and some have not. And others are only nominally met.

TZH: Can you tell me what the 11 demands are?

NL: Roughly, they are about the education budget, ethnic languages, restructuring student unions and changing the university admission system for matriculating students.

TZH: Which demands have been met and which have not?

NL: The law unexpectedly includes provisions about student unions. [An article] of the law provides the formation of student unions at respective universities. The law also touches on ethnic languages and introduces changes to structure and power within the National Education Commission. But, taking a deeper look into its essence, it has yet to pave the way for the implementation of these provisions. Although the law includes so and so provisions, those provisions still need to clear legal barriers to pave the way for educational reforms. If you take a closer look, you will see restrictions behind those provisions.

TZH: So, you mean the National Education Law is not a driving force for promoting education, but rather a tool to make sure the education system is under government control?

NL: Sure, it is.

TZH: The National Education Law formed the National Education Commission and the Higher Education Coordinating Committee. Phyoe Phyoe Aung has said that the law is over-centralized. Does the country's education system even need the National Education Commission and the Higher Education Coordinating Committee?

PPA: We attended the student representatives' discussions with scholars. Generally, I think we do need to form a body of independent scholars to shape policies, manage funds and monitor the quality of universities and schools. But if that organization is under the influence of the government, the government will retain control. It will be a question of the ratio [of government representatives in the body]. It is reasonable that it will include government representatives because the government provides funds. But if the ratio of government representatives is unreasonably large, it will not be an independent entity. This concerns us. Regarding the coordinating committee, if universities become independent and have autonomy, they will be able to coordinate with other universities, either local or international ones. Then, universities can act freely. But if law forms an unnecessary committee, a committee for show—our country used to have many committees and organizations for show—it might not work at all. If possible, we prefer that universities have autonomy and can coordinate with other universities as they wish.

TZH: So, you mean the existing National Education Law is over-centralized and needs to be decentralized?

PPA: Because the first National Education Law that passed was over-centralized, we continuously pressed for our demands. We staged protests as a last resort, after negotiations had failed. In response, the government introduced some changes to the law. It has been decentralized to a certain extent, for example, the ratio, as Nan Linn has said. The proportion [of government representatives] has been reduced in the National Education Commission. But still, there remains a certain extent of centralization in the law.

TZH: The National League for Democracy (NLD) government is in power, as we voted for it in the poll last November. The NLD is leading both the government and Parliament. Nan Linn, to what extent are the students prepared to negotiate with the current government and Parliament? Will students continue to press for their demands? I ask this question because you said you have not called off the protest. As far as Burmese people understand, a protest means taking to the streets and shouting slogans. How will you continue to press for your demands?

NL: We staged the protest against the National Education Law, which was one-sidedly approved by Thein Sein's government, because that law was unacceptable and over-centralized. As a manner of protest, we took to the streets. As Phyoe Phyoe Aung said, we have not called off the protest. There will be different ways and means to continue making changes to the law. Will we negotiate with the government? Will we rewrite the National Education Law or change sections of it? How much will we be able to work with the new government? [Calling off the protest] depends on these factors. We want to choose how we negotiate. We are still staging the protest against the National Education Law, but we want to settle this through negotiation. As you said, the NLD is the people's government, elected by the people. We hope that they know what students and people want, and what is best in order to guarantee democratic education reforms. We hope to work out an agreement with them.

TZH: The incumbent Education Minister Myo Thein Gyi served as the rector of University of West Yangon. He served as the government representative during talks with students about the National Education Law. We heard feedback from students and teachers that they do not like him much. You have spoken with Myo Thein Gyi. Do you think he will be able to create the National Education Law you want?

PPA: I have not yet talked directly with Myo Thein Gyi but we know some things about him, such as the alleged discord during the NNER [National Network for Education Reform] meeting in Naypyidaw. I don't know about his personal life. But I am sure that the education circle—especially teachers, education staff, and some of the students who have engaged with him—are not very satisfied with him. I am also not quite satisfied with him. He is one of those people who took a lead role implementing the education reform policy of the previous government. The NLD has its own education policy, and I am concerned how he would do with the two different policies. I am concerned that his education reform is just a duplication of the former government's plan. I'm concerned that it will deviate from the education reforms aspired to by the NLD government and the people because he has the power as the education minister. But if Aung San Suu Kyi can handle Myo Thein Gyi, we will be able to have some relief. Education is instrumental in the country's reforms. Once the education system of a country is changed, the future of that country will change a lot. We prefer an education minister who is dedicated and can fix the system. It is best if Myo Thein Gyi takes the lead role in education reform but keeps the door open [for students to negotiate].

TZH: Education is of fundamental importance for the development of a country. There are many countries that have achieved development by improving their education systems. One example is Singapore, in Southeast Asia. It has no resources but it built itself through excellence in education. Education is extremely important. The future of our country's education now depends on the policies of the NLD government. Phyoe Phyoe Aung, Nan Linn, thank you.

The post Dateline Irrawaddy: 'We Cannot Accept the National Education Law' appeared first on The Irrawaddy.

The Irrawaddy Business Roundup (April 23, 2016)

Posted: 22 Apr 2016 07:12 PM PDT

A woman collects harvest on a field in Kanyutkwin, Pegu Division, on Nov. 4, 2015. (Photo: Olivia Harris / Reuters)

A woman collects harvest on a field in Kanyutkwin, Pegu Division, on Nov. 4, 2015. (Photo: Olivia Harris / Reuters)

Investors Urged to Update Anti-Bribery Rules After Suu Kyi Order

After the new government issued new rules to civil servants on accepting gifts, an international law firm is advising its clients working in Burma to update their anti-bribery and corruption measures.

In one of her first acts as President's Office Minister, Aung San Suu Kyi on April 4 issued new guidelines that bar government staff from accepting any gifts with a value over 25,000 kyats (just over US$20).

The order came after the National League for Democracy (NLD) put fighting corruption at the center of its campaign for the November 2015 elections. And in a sign that the new government is serious about tackling graft, the President's Office this week issued a warning to a local media company for allegedly trying to hand a gift of 5 million kyats to a government official's assistant during a Thingyan celebration in Naypyidaw.

London-based law firm Berwin Leighton Paisner issued a note on April 20 advising its clients to "take note" of the new guidelines.

International investors working in a "high risk" country like Burma should already have anti-bribery and corruption (ABC) measures in place, the firm said, especially those from Britain and the United States, which both have strict laws on foreign corruption that apply overseas.

However, the note said, "Given that the [new Burmese government] Guidelines contain a number of exceptions, a robust approach is recommended to avoid scenarios where a public official may avoid censure under the Guidelines but US or UK ABC legislation may still be engaged."

Lawyers at Berwin Leighton Paisner urged foreign investors to "revisit and revise their ABC compliance policy" to take into account the new guidelines.

"Further, investors would be well advised to conduct or obtain proper and accessible ABC training for their local staff, suppliers and contractual counter-parties," the note said.

"It would also be prudent to conduct appropriate levels of compliance due diligence on potential counter-parties before entering into any joint ventures or partnerships in Myanmar."

Chevron Looking to Sell $1.3b of Burma Assets

Reuters reported this week that US oil and gas major Chevron has put its assets in Burma, estimated to be worth $1.3 billion, up for sale.

The newswire cited "banking sources familiar with the matter" and said the disposal would be part of a broader retreat from the company. With interests around the globe, Chevron may need to preserve cash as oil prices continue an extended slump due largely to a glut of supply from Middle Eastern oil producers.

Chevron was among the winners when the Burmese government issued a slew of offshore exploration blocks in 2014. After negotiations, the company signed a production sharing agreement with the government's oil and gas company for the shallow-water Block A5, off Arakan State, in May 2015.

Chevron is also a minority shareholder in the Yadana and Sein offshore gas fields that are operated by French company Total and supply most of their gas to Thailand via pipelines. Reuters reports that Chevron's production in Burma amounts to 117 million cubic feet, or about 2.2 percent of the company's global gas output for 2015.

Analysts have previously warned that falling global oil prices could mean delays in converting recent exploration licenses in Burma into production deals. Production is wanted sooner rather than later to provide much needed funds to state coffers as the new government looks to address infrastructure needs and invest in public services.

But there may be interest in Chevron's assets, particularly since Burma is seen as one of the world's last largely untapped locations for conventional hydrocarbon deposits.

Reuters sources named Thailand's PTT Exploration and Production and Australia's Woodside Petroleum as possible buyers, who would likely want to take all three assets together. It also noted there could be interest from China and Japan.

Woodside, which did not comment to Reuters on the Chevron assets, has issued public announcements about two gas discoveries in the Arakan Basin in recent months and is not hiding its excitement about prospects in Burma.

The Australian Associated Press reported on Thursday that Woodside Petroleum Chief Executive Peter Coleman said the company was looking to "snap up" more assets in Burma while oil prices are low. Coleman offered few details, but promised more information on the company's plans soon.

"The investor day in May will give a better line of sight to where we think commerciality in Myanmar will come from," the AAP quoted him as saying.

New Investment Rules Could Help Agriculture: KPMG

Global auditor KPMG said this week that a recent amendment to Burma's foreign investment rules could help the development of the country's agricultural sector.

In a tax alert issued Thursday, KPMG gave a rundown to changes made by the Myanmar Investment Commission on March 21, before the new government took power.

Under the Foreign Investment Law, the MIC has the power to issue rulings on what economic activities foreign firms can perform, and what activities can only be performed by local firms or joint ventures.

The latest notification removed from the list of prohibited activities for foreign companies the manufacture of rubber, as well as the production and distribution of hybrid, high-yield and local seeds used to grow crops.

"The above removal of need for joint ventures [and thus potentially could be carried out by a wholly foreign-owned entity] for the above activities should bode well for the development of the agricultural sector in Myanmar," KMPG said in the alert.

The alert also noted a change that allows joint ventures to produce and distribute vaccines, under certain conditions, and a change to the circumstances when foreign investment is totally prohibited.

The new rules state: "Economic activities … deemed to deteriorate the watershed or catchment protection forests, religious places, traditional belief, pasture land, shifting cultivation farms and water resources will now be prohibited."

KPMG did not comment on the latter amendment, but other observers have noted the broad wording could cause complications for foreign investors.

ADB Hails Burma as 'Fastest Growing Country in Asia'

The Asian Development Bank (ADB) is predicting that Burma's economy will grow faster than any other in Asia in the coming year.

"Despite flooding that devastated one fifth of the country's farm land, and moderating economic activity in the People's Republic of China [PRC], Myanmar's economy is expected to grow 8.4 percent in 2016 and early 2017, the highest rate in Asia and the Pacific," the ADB said in a statement to mark the release of its 2016 Asia Development Outlook.

The ADB hailed relief efforts after Cyclone Komen and intense rains in July and August 2015 that wrecked about a fifth of Burma's cultivated land and displaced more than 1.6 million people.

The bank also praised the economy's resilience. "The storm did little to slow down the rest of the booming economy, with garment exports increasing by 28 percent to $2 billion," the statement said.

"Natural gas exports slightly increased as well. Tourism was also a major driver of the economy with 4.7 million arrivals in 2015 with about 70% of visitors entering overland from neighboring countries. Spending by tourists rose by 19% to $2.1 billion in 2015."

While it noted risks from the country's ongoing conflicts, the continued reliance on natural resource extraction and vulnerability to bad weather, the ADB said the "prospects look sunny for the country," predicting a healthy 8.3 percent gross domestic product growth in 2017.

IFC Provides $40m for Rangoon Container Port Development

The World Bank's International Finance Corporation has provided $40 million in financing for the expansion of a privately owned port in Rangoon.

The loan is the first phase of $200 million of support the IFC has pledged to the Myanmar Industrial Port, which it hopes will expand the port's annual handling capacity from about 300,000 containers (or 20-foot equivalent units) to 500,000 containers or more.

"The investment is IFC's first in the transportation sector in Myanmar and is part of a broader strategy to help Myanmar do business more efficiently and more competitively, thereby unlocking the country's potential for increased international trade and supporting job creation and economic development," the IFC said in a statement this week.

"Myanmar's container volumes are estimated to have increased by 90 percent over the last 3 years due to rapid growth in imports and exports following the government's implementation of political and economic reforms."

The Myanmar Industrial Port on the Rangoon River is operated by Myanma Anwa Swan A Shin Group, a family-owned local company headed by Capt. Ko Ko Htoo. The company built and began operating the port in 2003 with the blessing of the then-ruling military junta.

"IFC's financing for MIP comes at a critical time in Myanmar's development when transport infrastructure is urgently needed to realize the country's growth potential," Hyun-Chan Cho, IFC's head of infrastructure and natural resources for Asia, said in the statement.

"The MIP loans will also help to catalyze investment by other private developers and financiers in Myanmar's infrastructure sector for which long-term US dollar funding has not been readily available."

The post The Irrawaddy Business Roundup (April 23, 2016) appeared first on The Irrawaddy.

Thailand Lags as Myanmar Gains Ground

Posted: 22 Apr 2016 07:04 PM PDT

Myanmar's former President Thein Sein, second left, welcomes Thailand's Prime Minister Prayuth Chan-ocha, left, as their wives hold hands before the opening ceremony of 25th Asean summit in Naypyidaw on Nov. 12, 2014. (Photo: Reuters)

Myanmar's former President Thein Sein, second left, welcomes Thailand's Prime Minister Prayuth Chan-ocha, left, as their wives hold hands before the opening ceremony of 25th Asean summit in Naypyidaw on Nov. 12, 2014. (Photo: Reuters)

Few next-door neighbors have moved so far in an opposite political direction than Thailand and Myanmar, also known as Burma. After more than half a century of military dictatorship from 1962, Myanmar has returned to democratic rule with a free and fair election last November and now a civilian-led government under Aung San Suu Kyi and her National League for Democracy (NLD) party.

Over the same period, Thailand progressed in fits and starts from military-authoritarianism to popular rule only to revert to dictatorship, enabled by two military coups in 2006 and 2014.

The reversal of political fortunes in these two Southeast Asian countries is instructive. It shows the imperative of compromise and accommodation in deeply polarized societies to reach a moving, workable balance.

While under its long military-authoritarian rule, Myanmar faced international opprobrium, suffocated under the weight of Western sanctions, and became a sick member of Asean. With its Myanmar baggage, Asean frequently had to skip or scale down top-level meetings with major democratic governments, and Myanmar itself had to ignominiously forego its rotational chairmanship of the 10-member grouping in 2005.

When they ushered in reforms, Myanmar's top generals wanted to survive by making concessions and keeping much of what they previously had. But they also underestimated how political liberalization could generate its own infectious momentum, especially when spearheaded by a quiet but committed leadership. When President U Thein Sein, a retired top general, freed political prisoners, released Ms. Suu Kyi from her house arrest and instituted broad-based reforms to open up the economy and politics from 2011, his administration was quickly overwhelmed by the force and logic of basic rights and freedoms that had been unleashed.

The costs of rolling back Thein Sein's reforms soon became too high for Myanmar's military—also known as the Tatmadaw—which stood by its constitutional compromise. By constitutional design, the military automatically takes a 25 percent cut in the legislature where a 75 percent majority is required for charter amendments, and controls three security-related ministries for home affairs, defense, and borders. With another clause banning Ms. Suu Kyi from the presidency for having family members who are foreign nationals, this set-up represented the military's end of the bargain.

As the NLD won 77 percent of contested seats in parliament (compared with 10 percent for the military-backed Union Solidarity and Development Party), the ball has been in Ms. Suu Kyi’s court. Appointing a lifelong confidant, Htin Kyaw, as a titular president, she has astutely carved out an unprecedented new role as "state counsellor" to oversee government affairs. As a complement, she has also become a minister attached to the President's Office and Myanmar's foreign minister, effectively the country's spokeswoman.

So far the Tatmadaw has kept its word and allowed Ms. Suu Kyi and the NLD a free hand. Led by Snr-Gen Min Aung Hlaing, the generals apparently do not want to return to their old atrocious ways under dictatorship. The onus will be on Ms. Suu Kyi to reciprocate by displaying magnanimity over vindictiveness. If she were to immediately go after vested interests of the generals and their cronies or somehow ram through constitutional changes to make her president in short order, for example, the civil-military accommodation could unravel.

Yet she has to assure a semblance of transitional justice for past military misdeeds and tackle corruption from the military period. Ms. Suu Kyi will need to manage expectations and deliver results on the ground while ensuring her civilian-led administration keeps the military at bay, a tightrope exercise of the highest order for Myanmar.

Unlike Myanmar, Thailand has been stuck in a holding pattern between the electoral forces of exiled former Prime Minister Thaksin Shinawatra and his party machine on one hand and his royalist-conservative adversaries on the other. Against the old political order from the Cold War that gravitated around the military, monarchy and bureaucracy, Thaksin exploited the inexorable tide of globalization and democratization to great success by winning all Thai elections since 2001. But the vested interests and family-business links that accompanied his rule led to corruption and abuse of power by his personalized regime.

His conflicts of interest and unassailable parliamentary majority paved the way for a military takeover in September 2006 after months of yellow-clad anti-Thaksin street protests. The generals routinely came up with a new constitution designed to clip Thaksin's electoral power by making the Senate half-appointed and shifting power to the judiciary.

Yet Thaksin's party still carried the polls, and more yellow-shirt demonstrations ensued and ended up with an opposition-led government. But Thaksin eventually came back through his youngest sister, Yingluck Shinawatra, who won the election in July 2011.

Just as his sister's government became stable in power, Thaksin gave his rivals another chance by introducing an amnesty bill in October 2013 that would have freed him of all criminal charges and a conviction, enabling him to return home. The amnesty gambit led to more street protests by the yellow side and yet another putsch in the following May by the same fraternal band of generals who staged the preceding coup.

This time, led by Gen. Prayut Chan-o-cha, Thailand's generals are taking no chances. They have ruled directly in government and appointed only a handful of technocrats. The junta, known as the National Council for Peace and Order, came up with an interim constitution that equipped Prayut with absolute power in a remarkable reincarnation of past military dictatorships. Hundreds of dissidents have been detained for up to seven days at military barracks against their will. Human rights advocates have been intimidated, journalists harassed.

The National Council for Peace and Order installed a rubber-stamp legislature, "pro-reform" assembly, Constitution Drafting Committee, and cabinet led by none other than Prayut himself. The culmination of the coup is now a military-inspired draft constitution that vests substantial power in a military-appointed Senate that can keep any elected government in check for an interim period of five years during the generals' 20-year reform drive to take Thailand to where they think it should be going. In addition, the constitution stipulates that the elected prime minister does not have to be an elected representative, thereby opening the door for a junta choice.

If the constitution passes the referendum on Aug. 7, polls are supposed to take place in 2017. Tensions have mounted as civil society and political parties have come out against the overtly pro-military charter.

Many who earlier encouraged a military intervention to restore law and order, and others under the impression that the military's safeguarding role during the royal transition was essential, are having second thoughts. For the foreseeable future, Thailand's ruling generals appear to be hunkering down for long-term rule and brooking no dissent in the process. Thus the road ahead for Thailand will mostly likely be marked by more turmoil.

What Thailand needs is the kind of compromise and accommodation seen in Myanmar. To get there, Thailand's political crisis and polarization has to bottom out to a point where all sides exhaustively come to the realization that none could win it all and therefore bargaining and negotiation cannot be avoided. It took Myanmar's military regime almost five decades to come to terms with this reality. Many Thailand watchers at home and abroad hope it will not take Myanmar's neighbor as long.

Thitinan Pongsudhirak is an associate professor at Chulalongkorn University. This opinion piece first appeared in the Bangkok Post.

The post Thailand Lags as Myanmar Gains Ground appeared first on The Irrawaddy.

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