Saturday, September 3, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


Ahead of State Counselor’s Visit, US Considers Burma Sanctions Relief

Posted: 03 Sep 2016 03:21 AM PDT

US President Barack Obama delivers remarks to the Pacific Islands Conference of Leaders at the East West Center in Honolulu, Hawaii on August 31, 2016.

US President Barack Obama delivers remarks to the Pacific Islands Conference of Leaders at the East West Center in Honolulu, Hawaii on August 31, 2016.

The United States is considering further easing or lifting sanctions against Burma around the time of a White House visit this month by the country's new leader, State Counselor Daw Aung San Suu Kyi, US officials told Reuters.

US President Barack Obama is expected to decide on the extent of the sanctions relief after consultations between Burma's state counselor and his administration to gauge how far she wants Washington to go in loosening the screws on Burma's still-powerful military.

Obama will attend a Group of 20 leaders' summit this weekend in China followed by an East Asia summit in Laos, where Burma's state counselor may also be present. She will visit Washington on Sept. 14-15 for meetings with Obama, US Vice President Joe Biden, members of the US Congress and business leaders.

Daw Aung San Suu Kyi, a Nobel Peace Prize laureate and democracy icon, helped persuade the West to impose sanctions during her years as a jailed opposition leader. She is now trying to strike a balance between showing her people the economic rewards of a democratic transition while keeping pressure on the country’s generals for further reforms.

Obama's historic opening to Burma followed by its peaceful transition to an elected civilian-led government is seen as one of his foreign policy achievements. But with less than five months left in office, his administration remains wary of giving up leverage for removing the vestiges of military rule.

Daw Aung San Suu Kyi's Washington visit would be her first since her National League for Democracy (NLD) party swept into power after November 2015 general election.

Ben Rhodes, Obama’s deputy national security adviser, met this week with congressional staffers and told them the president was considering reducing sanctions or removing them altogether, several US officials said.

The US officials spoke to Reuters this week on condition of anonymity.

The White House declined comment.

Washington is eager to expand relations with Burma to help counteract China's rise in Asia and let US businesses take advantage of the opening of one of the world’s last "frontier markets"—fast-growing but less developed emerging economies.

Most of the remaining US measures restrict business with military-run enterprises, including bans on imports of Burma's jade and gemstones, and with black-listed individuals.

Obama has already eased some sanctions on Burma several times. This included the removal in May of state-owned banks from the US blacklist and of measures against seven key state-owned timber and mining firms. But many restrictions were renewed for another year.

"We're looking at things related to trade, investment and commerce, and trying to see what can be done to improve the investment environment in Burma," a US government source said of the changes being weighed.

These could include adding Burma to the Generalized System of Preferences program, which provides duty-free treatment for goods from many poor and developing countries, the sources said.

A key question is how far Burma's state counselor wants Washington to go in relaxing pressure on the military, which has a strong hand in politics through a military-drafted constitution as well as an economic powerbase.

"If our bosses are in the room with Aung San Suu Kyi and she says 'I want you to lift all the sanctions,' it is hard to imagine them saying no," a congressional source said, when asked whether members of Congress would go along with lifting US sanctions.

Daw Aung San Suu Kyi is barred from the presidency by the constitution drafted by the former junta because her two sons are British citizens. She holds the titles of foreign minister and state counselor, but is Burma's de facto government leader.

She and the NLD have been criticized for not doing enough to help Burma's oppressed Rohingya Muslim minority.

Some backers of removing sanctions argue that easing Burma's international isolation could help improve human rights by boosting the economy.

However, Human Rights Watch called on Friday for the US government to keep sanctions in place to deter the military from derailing democratic reforms.

The post Ahead of State Counselor's Visit, US Considers Burma Sanctions Relief appeared first on The Irrawaddy.

State Counselor Tells Peace Conference Participants Not to Dwell on the Past

Posted: 03 Sep 2016 03:14 AM PDT

State Counselor Daw Aung San Suu Kyi delivers her closing remarks at the Union Peace Conference in Naypyidaw on Saturday. (Photo: Pyay Kyaw / The Irrawaddy)

State Counselor Daw Aung San Suu Kyi delivers her closing remarks at the Union Peace Conference in Naypyidaw on Saturday. (Photo: Pyay Kyaw / The Irrawaddy)

NAYPYITAW — State Counselor Daw Aung San Suu Kyi delivered the closing speech at the 21st Century Panglong peace conference on Saturday, in which she encouraged participants not to dwell on the past, but to "look to the future with courage.".

The first installment of the Union Peace Conference—with other peace conferences to follow at six-month intervals—began on Wednesday and ended after three-and-a-half days of sessions featuring 750 participants from ethnic armed groups, the government, parliamentarians, political parties and the Burma Army, among others.

Members of civil society organizations, including women's groups, attended as observers, numbering 50. With support staff for participants, attendance swelled to 950—notwithstanding the opening day, which was attended by 1,400 people in total.

One notable upset was the abrupt departure on Thursday of the United Wa State Army delegation, who were offended at having being issued "observer" nametags at the outset, even though the conference organizers were quick to put it down to a management error.

Across sessions, a total of 72 stakeholders each delivered ten-minute presentations—sometimes contrasting in content—which touched on principles for establishing federalism, changing the constitution, regional development, governance, women's participation in political leadership, and formal programs of security sector reform/disarmament, demobilization and reintegration.

The ethnic armed alliance the United Nationalities Federal Council delivered its draft federal constitution, which conceives an "eight state model" with a "Burman state" being formed out of several existing divisions, to add to the roster of current ethnic states. Other statements revolved around the commitments and "spirit" contained in the original 1947 Panglong Agreement, which promised autonomy for ethnic "frontier areas."

The presentations delivered by the Burma Army, however, upheld the 2008 Constitution and stated that any amendments should be in accordance with its procedures.

The State Couselor in her closing remarks lauded the conference as a "proud landmark" and a testament to joint effort. She hoped that those who "looked only to the past" would think more for the future.

"It is up to the individual whether we remain stuck in the past, or whether we face the future with courage," she said.

With the conference over, further discussion will take place over how to include all groups in a national-level political dialogue, which would pave the way for a federal restructuring of the state.

Although the conference included both armed groups that have signed and those that have not signed the Nationwide Ceasefire Agreement, three armed groups—the Ta'ang National Liberation Army, the Myanmar National Democratic Alliance Army and the Arakan Army—were not invited because they refused to publicly commit to disarming, as demanded by the Burma Army (a demand not made of other ethnic armed groups.)

Participants told The Irrawaddy that they acknowledged that the current conference was only an "introduction" to peace negotiations, which they believed could span over three to five years.

State Counselor Daw Aung San Suu Kyi told attendants that peace talks were "not for individual organizations or ethnic groups, but for all people in the Union, and particularly for future generations."

She urged participants and the wider public to "think of peace-building as everyone's responsibility instead of leaders' only." She said that all presentations in the conference had been broadcast live, to let the public understand they must take part in the process.

She acknowledged that there had been mishaps—a likely reference the departure of the United Wa State Army delegation—but she thanked the organizers for their "tireless efforts under pressure."

Lt-Gen Yar Pyae, who chairs the 21st Century Panglong organizing sub-committee (1), said in his closing speech that, "Our aim is conflict resolution." He urged everyone to help "transform contrasting opinions" into a common vision.

Before the next peace conference, scheduled for six months' time, the political dialogue framework will be finalized and national-level political dialogue will begin, according to current plans.

The post State Counselor Tells Peace Conference Participants Not to Dwell on the Past appeared first on The Irrawaddy.

Dateline Irrawaddy: ‘No Party Can Fully Represent the People’

Posted: 02 Sep 2016 07:16 PM PDT

photoYe Ni: Welcome to Dateline Irrawaddy! This week we'll discuss to what extent the current Panglong peace conference can fulfill the wishes of the Burmese people. U Thwin Lin Aung, member of the temporary committee to organize the 21st Century Panglong civil society organization (CSO) forum, and ethnic Chin human rights activist Mai Cheery Zahau will join me for the discussion. I'm editor of The Irrawaddy's Burmese edition Ye Ni.

The 21st Century Panglong Conference is going on now. Except for four groups—the Kokang [MNDAA], Palaung [TNLA], Arakan [AA] and Naga (NSCN-K) —all other NCA [nationwide ceasefire agreement] signatories and non-signatories are attending the conference. We have seen events supporting the peace conference here and there. Mai Cheery, as an ethnic Chin who is continuously engaged in ethnic issues, what do you think of the peace conference?

Cheery Zahau: The 21st Century Panglong Peace Conference is part of the peace process initiated in 2011. Both NCA signatories and non-signatories were invited to it and it is fair to say that there is greater inclusion in terms of ethnic armed groups. But in terms of the inclusion of political parties—which played a role in the peace process from 2011 to 2016—it is not inclusive.

The government has set the criteria that only the political parties that won seats in the 2015 election could attend the conference. This is problematic. You can't use the election as the single yardstick to determine who should participate in the peace process. The election is about electing representatives to Parliament. But the peace conference is about finding a solution through all-inclusive dialogue, and including people who don't have parliamentary representatives and who have different views from the mainstream.

Excluding political parties makes them think that they need to take up arms to be recognized. The government needs to be aware of this. In a democracy, no party can fully represent the people. In the November election, people voted for other parties. They did not only vote for the National League for Democracy [NLD].

In some states, the NLD won by a margin of 30 percent, and in Chin State, by about 70 percent. So, where are the voices of the remaining 30 percent? Chin ethnic armed groups alone can't represent the voices of that 30 percent; the parties need to be included.  Currently, the representation of many people is lost because of a criterion that allows only the winning parties to participate. If this continues, I'm concerned that the saying "might makes right" could become justifiable in a democratic crisis.

YN: As you have said, most of the delegates to the conference are ethnic armed groups. Throughout the entire peace process, it is the people who have been suffering. Ko Thwin Lin Aung, we heard that a forum would be held to represent the voices of the people. How is progress on that forum, which will represent civil society and community based organizations?

Thwin Lin Aung: The government informed us in July that we could organize a CSO forum so we started to make preparations. At that time, we did not have division of responsibility (DOR) guidelines for holding the forum. We started to work out a DOR. Then, the government said that it would draw up the DOR and we could present our requirements.

The problem is that we are not allowed to discuss all topics. The government prohibits CSOs from discussing political or security issues. Another question was how we could send the results of the CSO forum to the Panglong conference. We were only allowed to present the forum results by mail or as recommendations to Panglong conference committees. This frustrates us.

We told the Panglong Conference organizing committees that we would like to discuss all topics.  People should be allowed to discuss any problems they are concerned with. On the surface, politics and security seem unrelated to the people, but it is because of political and security issues that ordinary people are suffering. It is ordinary people—people without guns—who have to bear the brunt of wars. I told the organizing committees that the forum should represent the voice of the people.

We said that rather than sending the forum results by mail, we would like to send representatives. We had good reason to make this demand, because Article 22(g) of the NCA states that CSOs should be included in the peace process. But when the framework for political dialogue was adopted, CSOs were left out. So we pressed for our demands and waited for approval. But the review of the political framework has reached an impasse and since the DOR can't be developed without a firm framework, we are still waiting.

YN: I heard that CSOs released a statement about the conference and the CSO forum, which remains undecided. Can you tell me about it?

TLA: I heard that about 50 CSOs were invited to the first round of the conference, but most of them were invited as observers to witness the opening ceremony. I also heard that participants would not make decisions at the conference.

We are happy that the conference is spearheaded by the government—which was elected by popular vote in the 2015 election—and hope that there will be good prospects. But much remains to be done if a truly peaceful democratic federal Union that can guarantee equal rights for all is to be built. We have pointed out six things to them.

First, clashes were still going on just days before the peace conference and we suggested that military and ethnic armed groups release a joint ceasefire statement on the day when the peace conference convened.

Second, we demanded a guarantee of security for people who were affected by clashes.

Third, we welcome that many NCA non-signatories were included in the conference, but there are groups that are not yet included. So, it can't be said that it is inclusive. If these groups can't join the conference this time, they should be allowed to join next time.

Fourth, we demanded that CSOs be allowed to discuss all issues. There are some barriers—for example Article 17(1) of the Unlawful Association Act—which bar us from discussing certain subjects and being involved in the peace process. Suppose we hold discussions with an ethnic armed group and are charged with Article 17(1). We demanded the abolition of this article.

As far as I am concerned, there have been about five similar peace talks so far. This conference has improved a lot in terms of the form.  Previously, for example during the peace negotiations in 1980, general amnesty was granted to political prisoners ahead of the conference. We demanded such a general amnesty be granted this time also.

Fifth, we called for coordination to create the landscape needed to build a federal Union, which the nation aspires to.

Sixth, we called for equality. But sadly, when we were about to release a statement to demand these six points, we found that [state-run newspapers] had mentioned the titles of Burma Army representatives but not the titles of ethnic armed group leaders.

I'm concerned by this negative trend. It reminds me of a horrible past. In prisons, the authorities do not use honorifics for the inmates, as a way of degrading them. I am shocked to see this practice. I don't want to see it.

YN: It has been said that women are playing a very limited role in Burma's peace process. It is women and children who are hit hardest in wars. What do you want to say about their voices not being reflected in the peace process?

CZ: Of Burma's 51 million people, more than 26 million are women. They constitute more than half of the country's population. Therefore, women must be included in all of the country's affairs—whether politics, social issues or the peace process.

Unless and until the voices of half of the country's population are reflected, democracy won't be real. The government, ethnic armed groups and political parties need to recognize this fact.

We have seen that women's voices were starting to be heard after the Mai Ja Yang ethnic summit. Previously women could only hold informal discussions; now they can hold some formal discussions.

I want women to be included in all sectors, but not just for show. Women who can really represent the voices of the people should be included. They will be able to link upper level discussions with what is happening on the ground. For the time being, I still do not see effective representation of women, but there has been some improvement.

YN: We have many things to discuss, but the duration of this program is limited so let us conclude here. Thank you for your contributions.

The post Dateline Irrawaddy: 'No Party Can Fully Represent the People' appeared first on The Irrawaddy.

This Week in Parliament (August 29-September 2)

Posted: 02 Sep 2016 07:00 PM PDT

The gates to the compound of Burma's national Parliament in Naypyidaw, Nov. 2014. (Photo: Reuters)

The gates to the compound of Burma's national Parliament in Naypyidaw, Nov. 2014. (Photo: Reuters)

Monday (August 29)

In the Lower House, lawmakers debated a proposal submitted by Dr. Hla Moe of Aung Myay Thazan Constituency, which urged the Union government to provide appropriate payments and allowances for election commission members at different levels who are not civil servants. The Lower House approved the proposal.

The Upper House passed the senior citizens draft law.

Tuesday (August 30)

In the Lower House, lawmakers donated their collective daily allowance of 8,520,000 kyats (US$7,000) for the renovation of pagodas and stupas in Bagan that were damaged in a recent earthquake. The house speaker also donated 6,480,000 kyats ($5,300).

Lawmaker Aung Kyaw Zan of Pauktaw Constituency submitted an urgent proposal stating that including three foreigners on the Arakan State Advisory Commission formed by the State Counselor's Office would turn an internal problem into an international issue, and the commission should only be formed with local experts.

In Union Parliament, lawmakers debated the signing of the second revised Asean comprehensive investment agreement by Burma. Parliament approved the signing of the agreement.

Wednesday (August 31)

Parliament was not in session because of the Union Peace Conference.

Thursday (September 1)

In the Upper House, lawmaker Saw Moe Myint from Karen State asked about the operation of coal-fired power plants in Burma. The Union Minister for Electricity and Energy replied that the environmental and social impacts of coal power plants are assessed in line with environmental impact assessment procedures adopted by the Ministry of Resources and Environmental Conservation.

Tenders were invited to upgrade the Tigyit coal-fired power plant in Shan State, which has been in operation since 2004. It was leased to China's Wuxi Huaguang Electric Power Engineering Co. Ltd. for 22 years in late 2015. The Chinese company is now undertaking environmental and social impact assessments, he said.

Coal-fired power plants in Tenasserim Division's Kawthaung and Shan State's Nawngkhio are small or medium scale and are not connected to the national grid. They are under the management of concerned state and divisional governments.

Friday (September 2)

In the Upper House, the Bill Committee explained its review of the draft law to annul the 1950 Emergency Provisions Act sent by the Lower House.  The bill was already approved by the Lower House on August 24.

Lawmakers debated the proposal of Khin Aung Myint from Mandalay Constituency (8), which urged the Union government to adopt a special plan to eliminate illiteracy among ethnic minority groups and enable them to obtain higher education, as well as promote ethnic literature.

The post This Week in Parliament (August 29-September 2) appeared first on The Irrawaddy.

The Irrawaddy Business Roundup (Sept 3)

Posted: 02 Sep 2016 06:55 PM PDT

A buyer checks a jade stone near a mine dump at a Hpakant jade mine in Kachin State, Burma on November 29, 2015. (Photo: Soe Zeya Tun / Reuters)

A buyer checks a jade stone near a mine dump at a Hpakant jade mine in Kachin State, Burma on November 29, 2015. (Photo: Soe Zeya Tun / Reuters)

Survey: Sharp Downturn for Manufacturing

Burma's manufacturing sector contracted in August at a steeper rate than in the previous seven months, according to a monthly survey of the sector.

New orders, output and stocks of purchases continued to fall in the manufacturing sector throughout the month along with staffing numbers, according to the inaugural Purchasing Manager's Index (PMI) for the country, produced by IHS Markit.

Data collection for the index began in December 2015 but the first information for public release was announced on Sept. 1.

The index is compiled from information collected on new orders, output, employment, suppliers' delivery times and stocks of purchases among manufacturers. The index decrease in August, down to 47.2 from the previous month's 49.2, was the largest monthly drop since the survey began.

In line with falling inflows of new business, in August, firms in Burma's goods-producing sector curtailed production for the fourth consecutive month, according to the report.

Many survey respondents attributed the latest drop to severe flooding in the country, IHS Markit reported.

Vietnam's Increased Presence in Burma

The rising presence of Vietnamese companies in Burma may be a sign of increased Asean economic integration, or possibly also of an "affinity" between the two countries, a report in the Nikkei Asian Review suggested this week.

Included in the "remarkable" rise of Vietnamese investment in Burma is the recent arrival of the Bank for Investment and Development (BIDV) of Vietnam, which opened a branch at Rangoon's Myanmar Plaza in July and aims to rank among the top five foreign banks in the country by boosting its local assets to $300 million, the report said.

The Myanmar Plaza commercial complex was built by Vietnamese real estate developer Hoang Anh Gia Lai. More Vietnamese companies are expected to take space in the complex and may come to comprise a large percentage of the tenants, according to a real estate industry source.

Other notable recent Vietnamese entrants to Burma include the Viettel Group, which plans to launch high-speed mobile services, and FPT, an information technology company.

According to the Nikkei Asian report, a senior official at a Japanese bank said that the two countries shared some common history, including having a large number of state-owned companies and having formerly antagonistic relationships with the United States.

Vietnam's aggressive entry into the market has also been supported by the establishment in late 2015 of the Asean Economic Community, a framework for abolishing tariffs between members of the Asean bloc, the report said.

Jade Industry Faces Tougher Times

Lowered demand from China is hitting jade companies in Burma whose unsold stock is starting to pile up, according to a report in the Global New Light of Myanmar this week.

New anti-graft measures in China banning gifts of value-added jade is affecting sales of the gem, the report said, quoting Soe Naing, a member of the Myanmar Gems Club.

The jade market remains cool although the government halted extensions for many jade mine licenses in Kachin State this year, the report added.

Over the 2015-2016 fiscal year, raw jade worth US$305.779 million was exported to China via a 115-mile camp at the Muse border. Exports of raw jade from April to July in the 2016-2017 fiscal year amounted to $53.016 million, with a volume of 475.096 tonnes.

Burma Increases E-visa Access for Three Border Towns

Tourists and business people with electronic visas are now eligible to enter Burma through three towns on the border with Thailand.

The Ministry of Immigration and Population started to allow tourists from 100 countries holding electronic visas to enter Burma through three border towns on Sept. 1, the ministry announced on its website this week.

The e-visa system was introduced in 2014 and allowed tourists holding electronic visas to enter the country via airports in Rangoon, Mandalay and Naypyidaw. The business e-visa was introduced the following year for the same locations. The application process and policies for e-visas will remain the same, according to the announcement.

The three new locations open for e-visa holders are Myawaddy in Karen State, which sits opposite Thailand's Mae Sot; Tachileik in Shan State, across from Mae Sai in Thailand; and Kawthaung in Tenasserim Division, which is close to Thailand's Ranong.

New Investments Planned

Yoma Strategic Holding will invest $19 million to build a five-star hotel at the Pun Hlaing Golf Course, DealStreet Asia reports. The same site also reports that Maxxcare—a subsidiary of Mega Life Sciences which engages in manufacturing, distribution and marketing of medicines—is to invest $21.6 million to build a warehouse in the Mingaladon industrial zone in Rangoon.

The post The Irrawaddy Business Roundup (Sept 3) appeared first on The Irrawaddy.

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