Tuesday, October 18, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine


Arrest Warrant Issued for Helmsman of Capsized Chindwin Ferry

Posted: 18 Oct 2016 06:36 AM PDT

A rescue team tries to salvage a ferry that capsized, and killed at least 40, on the Chindwin River in Sagaing Division's Kani Township. (Photo: Pyay Kyaw/ The Irrawaddy)

A rescue team tries to salvage a ferry that capsized, and killed at least 40, on the Chindwin River in Sagaing Division's Kani Township. (Photo: Pyay Kyaw/ The Irrawaddy)

RANGOON — Police have brought criminal charges against the helmsman of an overcrowded ferry that capsized on the Chindwin River in Sagaing Division over the weekend.

"Negligence" and "rash navigation" were cited as causing several deaths, according to police authorities in Kani Township, where the incident occurred near Michaung Dwin village early on Saturday morning.

The ferry was reportedly carrying 300 passengers. As of Tuesday afternoon, rescuers had discovered 40 bodies—12 men and 28 women—but the death toll is expected to climb as several people remain missing.

A total of 159 survivors, including four ferrymen, have been identified, according to S Willy Frient, Director of the Sagaing Division's Relief and Resettlement Department. No hospitalizations have been reported so far.

Police major U Tin Maung Myint of the Kani Township police station, told The Irrawaddy on Tuesday that the 40-year-old helmsman, Ko Zaw Myo Win, is being charged under Articles 280 and 304(A) of Burma's Penal Code.

A rescue team tries to salvage a ferry that capsized, and killed at least 40, on the Chindwin River in Sagaing Division's Kani Township. (Photo: Pyay Kyaw/ The Irrawaddy)

A rescue team tries to salvage a ferry that capsized, and killed at least 40, on the Chindwin River in Sagaing Division's Kani Township. (Photo: Pyay Kyaw/ The Irrawaddy)

There is a warrant for his arrest, but it is not clear whether he is on the run, or among the passengers still missing, the police major added.

According to Article 280 of the penal code, anyone "who navigates any vessel in a manner so rash or negligent" as to endanger human life or to cause hurt or injury to others could be imprisoned for a maximum of six months. Article 304(A) imposes seven to ten years in prison "for causing death by negligence."

When asked about the ferry owner, officials said no case had yet been filed.

"He will be investigated and charged if he is found guilty of the accident," the police major told The Irrawaddy.

According to U Tin Tun Aung, head of the Sagaing Division's Inland Water Transport Department, the privately owned Aung Soe Moe Kyaw-2 ferry was registered as having a seating capacity of only 36 passengers.

The ferry left Homalin for Monywa on Friday evening. Navigating during the nighttime is, however, not allowed.

"The Inland Water Transport Authority restricts ferries from navigating in the Chindwin River during the nighttime as it's dangerous," U Tin Tun Aung told The Irrawaddy on Tuesday.

At the time of reporting, the emergency rescue team was trying to salvage the sunken ferry.

The post Arrest Warrant Issued for Helmsman of Capsized Chindwin Ferry appeared first on The Irrawaddy.

Production Slowing at Wa Tin Mine

Posted: 18 Oct 2016 06:31 AM PDT

Tin mine seen in Man Maw at ethnic Wa territory in Shan State on Oct. 5, 2016. (Photo: So Zeya Tun / REUTERS)

Tin mine seen in Man Maw at ethnic Wa territory in Shan State on Oct. 5, 2016. (Photo: So Zeya Tun / REUTERS)

MAN MAW, Wa Self-Administered Division — Output from a mysterious Burma tin mine that has disrupted the global market in the metal is falling sharply and deposits could be depleted in "two to three years," senior mine officials told Reuters.

A surprise discovery of large quantities of tin has propelled the formerly isolated Southeast Asian country into the position of third largest producer of the industrial metal, and contributed to a sharp fall in prices in the last three years.

Much of it comes from the Man Maw mine deep inside the self-proclaimed "Wa State," a secretive, China-dominated statelet the size of Belgium controlled by Burma's most powerful ethnic armed group, the 30,000-strong United Wa State Army (UWSA).

Reuters was the first media organization to visit the mine, tucked away in cloud-shrouded hills straddling Burma's rugged eastern border with China, as the UWSA takes its first tentative steps towards opening to the world after decades of isolation.

"The production is falling sharply. It may be depleted in two to three years," said Jia Xu Bing, deputy leader of the Wa State Industrial Mining Bureau's survey team, citing estimates based on output. He declined to elaborate.

"We do not have the capacity to do a comprehensive evaluation. We will stop the operations once workers' safety becomes a concern," Jia added.

Burma's tin production has surged 10-fold of the past four years. At an estimated 33,000 tons of tin concentrates last year, the country was responsible for nearly all of China's imports of tin ore, a key ingredient for making the solder widely used in electronics such as smartphones and tablets.

Some metals analysts have previously argued that the output from the Man Maw mine was likely peaking, but the lack of geo-exploration in the Wa State and highly restricted access to the area has left much uncertainty.

The Wa region is virtually unknown to outsiders—in recent decades Westerners have had less access than to North Korea.

The UWSA is blacklisted by the United States for alleged drug trafficking, accusations its leaders deny.

Production Slowdown

Interviews with company managers and officials—and the appearance of the mine itself when Reuters visited—also suggested a slowdown.

Production from two of the seven major mining companies at Man Maw, which covers 1.5 square miles (4 sq km), had been "close to zero" since last year and they are struggling to find new resources, officials said.

While dozens of tight-packed shacks carrying signs in Chinese promising services from clinics to karaoke were seen in the Man Maw hills, the number of workers, mostly from China, has halved to about 1,000 from the peak in 2014, officials said.

Company and government officials said several large open pits had been depleted and most of the remaining mining was underground, pushing up costs for miners.

The quality of the ore now mined had also declined sharply, they said, with most deposits containing around 2-3 percent tin by weight, compared with an unusually high-grade of more than 10 percent two years ago.

"The production is certainly in decline," said International Tin Research Institute analyst Cui Lin, who visited the mine earlier this year.

"It's hard to say how long it might last as Chinese companies are unwilling to invest more in geo-exploration due to political risks in Wa."

As the largest ethnic armed group, the UWSA is key to the peace process launched by Burma's leader, Daw Aung San Suu Kyi. The group has not clashed with the military in recent years, but did not sign a landmark ceasefire deal last year.

The rise of Man Maw underscores the challenges faced by Burma's first democratically-elected government in decades, as Daw Aung San Suu Kyi tries to shore up budget revenue and control the exploitation of the country's mineral riches in areas controlled by ethnic armed groups.

"It's hard to say how much is left underneath the hills," the Industrial Mining Bureau's deputy head Li Seck said. "We are counting on China for talents, technology and money."

Ore Stockpiles

Deep in the hills three hours' drive northwest of regional capital Pangshang, the mine is controlled by the Wa State Treasury Department, whose head, Pao Yu Liang, is a senior UWSA commander indicted in the United States on drug trafficking charges.

The treasury takes an "ore tax" of a quarter of concentrates mined by the seven Wa-China joint ventures operating at Man Maw.

The authority then stockpiles the ore in a depot near its border with China and trades with Chinese buyers based on daily trading price from the Shanghai Metal Exchange.

"Tin price goes up and down, so the treasury only sells them when price is good," said Jia of the Wa treasury's Industrial Mining Bureau, adding that mining was now the top revenue source in one of the poorest regions in Asia.

The treasury declined an interview request. It was not clear how much stockpile the authority holds and how its trading decisions were made, which could affect global tin prices.

The seven companies in Man Maw are partly funded by Chinese investment and controlled by top Wa leaders, according to senior officials and people with close leadership ties.

Yun Hsin is one of the five mining firms that still sees output in Man Maw. While part of its processing facilities was shut, about a dozen of workers were seen operating grinding machines adjacent to its pits when Reuters visited.

Chen Ta Yung, manager of the firm of about 80 employees, said as the grade of ore extracted had declined, strict rules had been imposed to lower costs and limit the environmental impact of mining. Companies are now only allowed to ship processed deposits containing 18.5-20 percent tin by weight.

Sitting in a truck carrying 72 tons of tin concentrates, Tzu Pin was among 10 drivers waiting in Pangshang for China's border control to reopen after lunch.

After crossing the small river Yunnan that marks the frontier, the ore will be graded and shipped to China's "tin capital" Gejiu in Yunnan Province, where many of the country's smelters are based.

Tzu, a 26-year-old from China, hopes the Wa's tin boom will last.

"It's good for the local economy," he said. "I hope it won't be depleted soon."

The post Production Slowing at Wa Tin Mine appeared first on The Irrawaddy.

Ma Thida: ‘Fear Makes People Fierce’

Posted: 18 Oct 2016 06:26 AM PDT

Ma Thida, pictured on the campus of Northern Illinois University in October 2016, where she spoke on a panel at the 12th International Burma Studies Conference. (Photo: Sally Kantar / The Irrawaddy)

Ma Thida, pictured on the campus of Northern Illinois University in October 2016, where she spoke on a panel at the 12th International Burma Studies Conference. (Photo: Sally Kantar / The Irrawaddy)

Dr. Ma Thida has served as a dissident author, editor, publisher, physician, political aide and activist—often at the same time. It is well known that she spent nearly six years in prison in the 1990s for "distributing unlawful literature"—among other charges—as an active member of Burma's student-led democracy movement in 1988. In prison, she suffered a myriad of health issues, including tuberculosis. Her release on humanitarian grounds was not in small part due to international pressure from organizations like PEN International, of which she is now a board member.

 During an October trip to the US, Ma Thida shared with The Irrawaddy her observations of society in present day Burma, particularly what she sees as an increase in aggression, rooted in fear. Overcoming this, she says, means confronting the country's "real wrongdoers"—those who have perpetuated a system of physical, structural and cultural violence for generations. 

Could you give us an overview of the different roles you hold today?

I am the elected president of PEN Myanmar, and an elected member of PEN International—a board member at large, as they say. But I think I won't be able to hold both of these titles at the same time in the long run. Coming in December there will be elections for PEN Myanmar—we have three-year terms—and I won't join the elections again. I will help them.

I'm [also] the editor in charge of the Info Digest journal. It's database journalism—a bi-weekly journal, just by subscription. We are not interested in sentimental or sensational pieces; we are just interested in defending the people's right to know.

And I'm still a general practitioner, practicing family medicine. Every time I have a chance to meet my patients, this is such a privilege. I started volunteering at the Free Funeral Service clinic [in Rangoon] ten years ago. Even though I travel a lot, I try to be there once a week. I still have some regular patients. For me, health is pure politics. It's related to everything.

In the past, you have said that your primary political aspiration was to "be a good citizen." What does that mean for you at this point in your life?

I still want to be a better citizen. But right now, my decision is to get more involved with PEN International. It's not my own personal achievement, but throughout history, I think none of the Myanmar writers have had this kind of decision-making role in an international institution. I try to be a good citizen on behalf of my country. It's something that shows we are not isolated anymore. That's the message I really want to pass on: even as just an ordinary citizen, you can do something.

You once served as an aide to Aung San Suu Kyi. In your book Sunflower [written in 1992 and published seven years later], you described her as a "prisoner of applause," due to the high expectations placed on her by the public. Now, more than six months into her government term, how would you assess her and the NLD administration's performance?

I have only one question for her: are you still free from fear? In the position of a leader, she might not have that much to fear. But as a responsible State Counselor, she might have so many fears—not to insult the citizens, not to disappoint any groups. I can empathize. I really wonder how she handles this kind of fear—it's not the same fears she mentioned in her [1991] book Freedom from Fear, but there might be different ones. That's why I really want to know about her fight against fear right now.

Do you think she is giving in to her fears?

It's hard to say. That's why I wonder—I wonder whether our current situation is related to fear or not.

Fear was also a theme of your talk on a panel at Northern Illinois University's Burma Studies Conference, in which you said, "fear makes people fierce." How have you seen this phenomenon manifested in present day Burma?

There is a short story by a well-known writer that [I heard him] share at a literary talk. At that time, [the country] was still [under] Thein Sein's government, and he said that this was a story that could give a "bold punch" to the government. It's about a clerk, Mr. B, who is the lowest member of staff at a company. And the manager is very arrogant, a pretty bad guy—Mr. A. A lot of the other employees gossip about Mr. A, but Mr. B, the clerk, never joins. He would simply accept Mr. A's bad manners. And then, after the work hours, he went to [Rangoon's] Pansodan Bridge to the manicurists and pedicurists on the street, as a customer. In our culture, taking care of someone else's feet is the lowest thing. So now, someone is taking care of him, and Mr. B is becoming like a boss. After he gives the pedicurist the money, he says to him, "bye bye, Mr. A."

[Making someone called Mr. A touch his feet] is like his own revenge. That's why I say it's so fierce. The people always have in mind a kind of revenge, even though they know it's harmful. He was so polite to the manager, Mr. A, because of his fear. He still has a spirit of revenge, but he cannot do anything about it, because he knows he would be in danger. So he carries out his revenge on another Mr. A, who cannot retaliate against him.

People love this story as a "punch" to the cronies, to the government, but for me it's not; I was so shocked by it. That's why I feel that fear makes people fierce. They really don't use their wisdom or their sense of reasoning. How do they let out their revenge? It reflects our society's handling and management of fear. Through this story, I learned more about people's psychology.

Who are people in Burma taking out their revenge on?

I think it applies to the sectarian violence, or racial and religious violence. The whole population was deeply rooted in fear. They have a high spirit of revenge, and are looking for someone who cannot retaliate. And they found the minority. That's why I say fear makes people fierce.

How do you think people should address their fears?

People say, now we have more problems. I say no, the problems are more or less the same as in the past. What we now have is more awareness and more admittance. In the past, we didn't admit we had problems—we just pretended we had no problems. Now we dare to admit the problems. Why should we keep the politeness, pretending like the clerk, Mr. B? Instead of this unwilling politeness, why don't we directly face the real wrongdoers, and speak with courage?

Who would you like to face directly in this way?

There are so many people. I have called for an official public apology [to former political prisoners]. Without an apology, even if we are ready to practice our right to forgive, it cannot be fulfilled. On the other hand, only the guilty people do repeated wrongdoings. I want them to liberate themselves from their guilt by apologizing. It is not only for our sake, but for their sake. Some people might say they are naïve, that they don’t know whether they are guilty or not, but I don't believe that. I think it would be good for them, to be let out from their guilt.

Who in Burma do you think deserves to receive an official apology?

The general population—generation by generation. We deserve it. Some people got arrested or lost their family members, but not only them—ordinary people, too. They have been under structural violence, even if it is not physical violence. Cultural and structural violence has been done to the whole population.

But is an apology enough?

Indeed not. But an apology can shake the hearts of the people, and reduce the tension and the spirit of revenge. Then it's better to apply it legitimately, or legally. An apology is the first step.

Now there is much talk in Burma of "national reconciliation." What do you make of this concept—what does it mean to you?

Without acknowledging or admitting wrongdoing, national reconciliation discussions for the future are not a healthy way to sustain peace.

You became a writer originally to share your observations about poverty. What observations do you feel compelled to share now?

Not the physical poverty, but the lack of knowledge, lack of wisdom. It's a serious problem. That's why [advocating for] the freedom of expression is at the top of my activities. I believe that even if you are rich or have a position of power, if you don't have enough knowledge, you are powerless. I really want to encourage the whole population to become powerful with knowledge. Without powerful, voluntary, responsible participation of the people, how can we make a change?

What kind of knowledge is needed?

Knowledge about the systems, about where we are heading—knowledge about their ability or capacity. Until and unless they feel they are the ones who feel they can make a contribution to change the society, they will still be powerless.

I used to ask at my talks, who is the most important person in the country? And [people] would say, Aung San Suu Kyi, U Htin Kyaw. I said, look in the mirror: you are the most important one. Every one of us should acknowledge that. If you feel you are important, you are going to make an effort. Otherwise, you'll just wait for others to do things for you. I want them to feel like they are the most important person in our country—every single one.

You've said that the issue of freedom of expression hasn't been discussed enough in Burma. What would you like to see being done in this regard?   

When we look at freedom of expression, it is not just about individual rights. It's about collective rights. Until and unless we can defend other people's rights to practice their freedom of expression, we will have no freedom of expression. We need to look at four levels: constitutional, legal, institutional and personal levels.

Why have you taken a more collective approach to this issue?

Even though you believe you can practice your freedom of expression, constitutionally, you are at risk. And legally, you are also committing a crime. Institutionally, you cannot be part of the society, because you are just practicing it on your own. When we look at freedom of expression at an individual level, we include minority language rights. So if we say, 'we have so many different periodicals now,' and 'oh, there is no censorship'—for a non-Burmese-speaking person, what does it mean? There is no press freedom for them.

Alongside the protection of free expression, you've also highlighted a need for greater media literacy among the public. Can you explain more about this?  

Many people cannot differentiate between information processed by media and by primary data sources. That's why people cannot decide what information is reliable, and what information either processed or biased. Media ownership also has a big influence on our censorship—self-censorship, peer censorship is also related to media ownership. People don't really know which media is representing what.

What would you still like to accomplish, that you have not done yet?

I would like to finish a novel. I already have a title and the design, but I haven't had enough time to do research and writing. It's about a town: the protagonist itself is a town.

Prisoner of Conscience: My Steps Through Insein is Ma Thida's most recent book, a memoir of her years as an activist and political prisoner. It was originally published in Burmese in 2012, under the title Sanchaung, Insein, Harvard and was translated into English in 2016. It was reviewed in The Irrawaddy in September.

The post Ma Thida: 'Fear Makes People Fierce' appeared first on The Irrawaddy.

Company Accused of Bribing, Misleading Locals to Build Coal-Fired Power Plant

Posted: 18 Oct 2016 04:06 AM PDT

National League for Democracy lawmakers attend a session of the Rangoon Division parliament in September. (Photo: Phyo Min Thein / The Irrawaddy)

National League for Democracy lawmakers attend a session of the Rangoon Division parliament in September. (Photo: Phyo Min Thein / The Irrawaddy)

RANGOON — Questions were raised in the Rangoon Division parliament about an unnamed company using underhanded methods to induce locals of Zweba Kone village, in semi-rural Kyauktan Township on the outer fringes of the city, to consent to the building of a coal-fired power plant.

Daw Thet Thet Mu, the lawmaker representing Kyauktan Constituency-2 for the National League for Democracy, told the divisional legislature on Tuesday that the company's efforts to bribe and mislead locals—apparently carried out under the radar of local authorities—had been going on since early March.

She said that there were serious concerns over the likely impact of the power plant on the environment and rural livelihoods in the village, and asked whether the Rangoon Division government would allow it to proceed.

Speaking with the Irrawaddy, Daw Thet Thet Mu refused to name the company, purportedly because the project is at a very early stage, but said that she had not recognized the name; the companies' delegates spotted in the locality were Indian and Chinese, she claimed, adding to suspicion that it is foreign-owned.

Daw Thet Thet Mu told the legislature that the company had recently donated 4.5 million kyats (US$3,560) for fresh water excavation in the village. During the donation ceremony, 150 villagers were asked to lend their signatures to paper forms written in English signaling their support for the power plant. Although most of the villagers could not understand English, some unwittingly signed the consent forms, she said.

She added that that "the company's representatives convinced the villagers that they would share 2 percent of the power plant's profits with them," and that they would construct a new bridge linking Kyauktan with Thanlyin Township, allowing easier access to the city.

She said that more educated villagers had expressed deep worry that the power plant may pollute the soil, air and water in the village, ruining the farmland on which the villagers depend.

The Divisional Minister of Electricity, Industry and Transport Daw Nilar Kyaw responded on behalf of the Rangoon Division government, saying they would not allow the coal-fired power plant to go ahead.

The post Company Accused of Bribing, Misleading Locals to Build Coal-Fired Power Plant appeared first on The Irrawaddy.

Arakan Locals Call for ‘People’s Militia’

Posted: 18 Oct 2016 02:24 AM PDT

 Government press conference on Arakan State attacks at the Ministry of Information in Naypyidaw on Monday. (Photo: Htet Naing Zaw/The Irrawaddy)

Government press conference on Arakan State attacks at the Ministry of Information in Naypyidaw on Monday. (Photo: Htet Naing Zaw/The Irrawaddy)

Local ethnic Arakanese worried about their safety following militant attacks on security posts in Maungdaw Township have asked government officials to arm them with weapons to form a militia.

This local request was revealed at a government press conference on the situation in northern Arakan State that took place in Naypyidaw on Monday.

Deputy Defense Minister Maj-Gen Myint Nwe, however, said that the idea was not possible because the government is working towards peace in the area. "The 'people's militia' strategy would be a long-term plan that needs serious consideration," he added.

"If rural villagers want to protect their villages as a people's militia, they should join the regional police under the Myanmar Police Force," said the deputy minister.

Ministers and deputy ministers from the ministries of Information, of Defense, of Home Affairs, and of Labor, Immigration and Population were at the press conference.

Ministries are working together to restore regional safety as soon as possible while providing security for government departments and securing important transportation channels, said deputy minister for Home Affairs Maj-Gen Aung Soe.

The government needs short-term and long-term plans to prevent future attacks that threaten national security and the rule of law, said Information Minister U Pe Myint.

Among the government's plans are ensuring the livelihoods of local people, monitoring displaced people's camps, mending border fences, recapturing looted weapons, as well as wiping out insurgents and identifying their affiliations in line with existing laws, he said.

Since the attacks on Maungdaw Township border posts on Oct. 9, a total of 30 attackers have been killed and 29 others, including two transferred from Bangladesh, are being held in police custody at prisons in the state capital Sittwe and in Maungdaw town.

Five Burma Army soldiers and nine police officers have been killed, and four police officers injured, according to government figures.

The Irrawaddy questioned the military over the fatal shooting by Burma Army soldiers of three alleged militants armed with knives in a Maungdaw village on Oct. 15.

Col. Zaw Min Tun of the Office of the Commander-in-Chief defended the military operations as a response to acts that "gravely threaten" the peace and stability and the rule of law of the country.

Most of the fatal attacks on security forces are with knives, said Col. Zaw Min Tun: "security forces had to shoot—it is the only choice for the military."

"Border guard forces were also attacked with knives. We can conclude that the attackers can skillfully use knives," said the colonel.

With the approval of the President's Office, the military have designated Maungdaw, Buthidaung and Rathedaung townships as areas of military operations, with access restricted to aid groups and journalists.

Permanent Secretary of the Ministry of Foreign Affairs U Kyaw Zeya was quoted as saying, "we have requested cooperation through diplomatic means from Bangladesh, Pakistan and Saudi Arabia. They have received the request and said that they would assist with the [Burmese] government's measures and cooperate."

Information Minister U Pe Myint said that the government has met with ambassadors of three Muslim-majority Asean countries—Indonesia, Malaysia, and Brunei—and explained the situation. The Indonesian ambassador said that his government accepts that the actions of the Burma government is within the power of a sovereign country and that Burma government is taking actions in line with the law. The two other ambassadors shared this view.

On Monday Burma's Minister of Home Affairs replaced the Border Guard police chief of Maungdaw Township Brig-Gen Maung Maung Khin with Brig-Gen Thura San Lwin.

The government has provided 8 million kyats (US$6,320) to the family of each police officer killed and 3 million kyats ($2,370) for each police officer and Burma Army soldier injured, according to the press conference.

The post Arakan Locals Call for 'People's Militia' appeared first on The Irrawaddy.

End To US Sanctions a Boon to Burma’s Economy, But Woes Remain

Posted: 18 Oct 2016 12:06 AM PDT

Staff prepare to sell meals at a KFC branch during its opening day in Rangoon, June 30, 2015. (Photo: Soe Zeya Tun / Reuters)

Staff prepare to sell meals at a KFC branch during its opening day in Rangoon, June 30, 2015. (Photo: Soe Zeya Tun / Reuters)

RANGOON — KFC's grinning Colonel Sanders and his goatee are among the few prominent signs of US brands or business in Burma's biggest city, Rangoon.

That will likely change after President Barack Obama ended most remaining US sanctions against this fledgling democracy on Oct. 7. But much hinges on how the government led by former political prisoner Aung San Suu Kyi revamps the country's outdated laws and other policies.

The US had earlier broad prohibitions on investment and trade imposed on this Southeast Asian country of around 51 million over the past two decades. The more targeted restrictions that ended earlier this month were mostly on dealings with army-owned companies and officials and associates of the former ruling junta. A ban on imports of jadeite and rubies from Burma also ended.

Up to now, the rush to invest in Burma has been dominated by Asian countries, especially China, its main investor and trading partner during its years of isolation. Most US businesses and many other Western ones stayed away, mindful of fines potentially in the millions of dollars and jail terms of up to 20 years.

Foreign investment slowed earlier this year, as companies awaited changes in the investment law, company law and other regulations.

"Genuinely a lot of American business was extraordinarily wary of the sanctions, especially for financial services because of the massive fines," said Sean Turnell, a Burma expert and adviser to the National League for Democracy (NLD) led government.

For many Western, not just US, firms, restrictions on financial transactions in US dollars, which are processed by banks doing business in the US, were the biggest constraint.

"It was too hard, the market is too small and profits were pretty small beer compared to the fines they could get," said Turnell. "You had great difficulty just moving money in and out of the country."

The garment industry could be one of the biggest beneficiaries of the end to sanctions. The United States stopped giving Burma special market access under the Generalized System of Preferences in 1989 due to workers' rights concerns. When those benefits are restored on Nov. 13 it will regain the right to export about 5,000 products to the United States duty-free.

Nay Aung, whose travel services company, Oway, has launched a car-booking app that is providing about 500-600 rides a day in Rangoon, is hoping that will help drive an export boom.

"If multinationals come in, we will benefit," he said. "For us, if the country grows, we are the beneficiary of those investments."

Burma was governed by the military for more than a half-century. Five years since it began its shift toward a civilian government and a year since the NLD led by Daw Aung San Suu Kyi won a landslide election, the country is still just beginning to develop a modern financial sector and rebuild its crumbling roads, ports and buildings, many of which date to Britain's colonial rule.

The new leadership is grappling with extreme poverty, civil war with several ethnic minorities, rampant corruption and narcotics and human trafficking. Massive illegal trade in goods like jade and timber continues.

The sanctions were just part of the problems laid out in a report by the American Chamber of Commerce in July. Chief complaints included a decision by the city government in Rangoon, the country's commercial capital, to stop issuing the licenses for new parking spaces that are required to buy new vehicles. That was a blow to big foreign automakers like Chevy and Toyota that want to sell new cars there, but a boon for the already thriving trade in used vehicles from Japan, left-hand cars and trucks widely used on Burma's right-hand drive roads.

Still, the country's young, inexpensive workforce and low living standards offer huge potential for growth. GE, on its website, describes Burma as a "new sweet spot" for growth in Southeast Asia.

Japanese and other Asian investors have been piling in.

Aeon, Japan's equivalent of Walmart, opened an office in Rangoon in 2014 and has a thriving microfinance business. Its first supermarket in Burma, a joint venture with a local retailer, opened in the city's Okalapa Township in late September, offering thousands of products, most of them imported from Thailand.

Even the KFC, which opened across the street from Rangoon's Bogyoke Market in 2015, is a franchise set up by Singapore-listed Burma conglomerate Yoma Strategic Holdings.

Some other major US brands got a head start, including Coca-Cola, which has a factory producing for the local market. Ball Corp. has a factory in Rangoon's Thilawa Special Economic Zone making cans for Coca-Cola. MasterCard is expanding in the area of ATM cards.

GE is active in energy and other sectors and leases Boeing 737-800s to the country's national airlines. ConocoPhillips and Chevron have stakes in oil and gas exploration and development. Some US businesses, like Caterpillar, have distribution tie-ups in Burma with local or other foreign companies.

But the total US$248 million US companies have committed since 1988 amounts to less than 1 percent of total foreign investment of about $60 billion. China has invested more than $25 billion, according to Chinese figures.

Trade with the US has also been modest.

Burma's imports from the US totaled $227 million in 2015, while exports from Burma to the US amounted to $142 million, mostly dried peas, rattan and wood products and travel goods like backpacks, according to the US Trade Representatives website.

The lifting of sanctions is bound to benefit big players no longer on the sanctions lists, like the ex-junta chief, Than Shwe, and Stephen Law, founder of one of the nation's largest conglomerates, Asia World, whose late father was once described by Treasury as one of the world's key heroin traffickers.

But at the other end of the spectrum, there likely will be little immediate impact, said Jes Kaliebe Petersen of Phandeeyar, a local non-profit devoted to helping start-ups and entrepreneurship.

Ending sanctions has a "signal value," suggesting lower risks of doing business in Burma, says Petersen, who is Danish. What remains, though, are problems typical of a frontier economy, such as a dysfunctional financial system, bad roads, and a legal system that has yet to catch up with the country's political evolution.

"It took three months to get money wired into Rangoon just to pay my rent," Petersen said when asked about the challenges of doing business in Burma. "But on a micro-level, I’ve never had a single conversation about the sanctions."

The post End To US Sanctions a Boon to Burma's Economy, But Woes Remain appeared first on The Irrawaddy.

Burma’s New Economic Zone Attracts Foreign Interest But Local Ire

Posted: 17 Oct 2016 11:41 PM PDT

A man works at the site of the Thilawa Special Economic Zone near Rangoon, May 8, 2015. (Photo: Soe Zeya Tun / Reuters)

A man works at the site of the Thilawa Special Economic Zone near Rangoon, May 8, 2015. (Photo: Soe Zeya Tun / Reuters)

RANGOON — Looking north from Myint Win's farm, across rice paddies and past bamboo huts, a massive new industrial development on the outskirts of Burma's biggest city gleams in the distance.

The buildings sprang up during the first phase of developing the Thilawa Special Economic Zone (SEZ), a 6,200-acre (2,500-hectare) industrial project that is a joint venture between the governments of Burma and Japan and some private consortia.

The factories that have been built produce everything from children's toys to clothing, medical supplies to electronics.

For developing nations like Burma—which emerged from decades of economic isolation in 2011 when the military stepped back from direct control of the country—special economic zones are a way of attracting foreign investment and creating jobs.

Next month the second phase of the US$1.5 billion development begins on a site of around 5,000 acres (2,000 hectares) that includes Myint Win's farm.

Myint Win, whose family has lived on the land for four generations, and hundreds more like him will be relocated from the site which lies about 16 miles (25 kilometers) southeast of Rangoon.

Although work is meant to start in a few weeks, the 53-year-old farmer said he has not been told what will happen to him.

"This has been going on for a long time and until now there is nothing concrete they have shown us," he told the Thomson Reuters Foundation in an interview at Phalan village on the site of the next phase of the SEZ.

Land rights campaigners say local residents are often kept in the dark about development plans and lose their livelihoods and access to services when they are relocated.

But the developers say villagers are well compensated, provided with new, better housing, and have the chance to get work in new industries brought to the Southeast Asian nation with crumbling infrastructure that is seeking foreign funding.

COMPLAINTS

In Burma there are three planned SEZs, including Thilawa, that are supported by the ruling National League for Democracy (NLD), which won a historic election last year to form the first democratically elected government in more than half a century.

Thilawa SEZ will be the first to be built and operational. The smaller, first phase is 90 percent complete and as of August 12 factories had opened, with another 25 to follow soon.

Foreign investment into the first phase, which is 90 percent complete, stands at $760 million. Investment into Thilawa accounted for 12.5 percent of total investment into Burma in the 2014-15 fiscal year, ending in March, and 3 percent of total exports, the developers have reported.

A recent special report by Burma's Eleven Media Group found the Thilawa SEZ had attracted investment from up to 13 foreign countries including Japan, Singapore, China, Thailand, the United Arab Emirates, Panama, Malaysia and South Korea.

But the project got off to a bad start when construction started in 2013 with the first phase beset with controversy after involving the relocation of nearly 70 families to Myan Yar Thar, 2.5 miles (4 kilometers) away.

Many residents said the compensation they received was not enough. The Thilawa site had been earmarked for industrial development under Burma's junta government in 1996 and people relocated from the land were compensated a reported 20,000 kyats ($16) per acre.

The junta's industrial project was scrapped and those who had been moved away then returned. But Thilawa's new developers say the site already belonged to the government because of the junta's deal, and offered compensation only for crops grown on the land, but not for the land itself.

Residents said the employment training they received as part of their relocation package failed to prepare them to compete for jobs in the SEZ, leaving only low-paid jobs open to them, such as clearing rubbish or working as security guards.

A lack of clean water was another problem, they said.

Daw Sanda, a member of the Thilawa SEZ Management Committee (TSMC), a government entity monitoring development of the zone, said the complaints were unfounded.

She said the compensation given in phase one was sufficient for villagers to build new and better homes. Daw Sanda added that many were in debt before they moved, and they were given financial assistance by the authorities.

She said there was employment to be found in factories in the area that did not require a skilled labor force and training would be provided to staff.

Deeper wells had been dug to address a shortage of water in Myan Yar Thar and a water supply system that will make tap water available was being developed, she said.

"(It) will be completed in no time," she told the Thomson Reuters Foundation by email.

Although there have been complaints about the first phase of the development, Vicky Bowman, head of the Myanmar Centre for Responsible Business said it "should be recognized that this is actually the most advanced, transparent and comprehensive resettlement process which has ever occurred in Burma."

"But as with all such projects, there are always lessons to be learned," she said. "Government capacity to handle these large projects is seriously lacking."

Takashi Yanai, chief executive of the company developing the project, Myanmar Japan Thilawa Development (MJTD), said the company believed it had a "responsibility to ask the Myanmar government to implement such acquisition and resettlement work without violation of human rights."

MJTD was ready to "listen to the voices of the people at any time and, if necessary, we will deliver the voices to and discuss with the Myanmar government to find the solution," Yanai said in an email.

"NO HAPPINESS"

But land rights campaigners remain skeptical.

"If the second phase of Thilawa goes forward in its current state it gives a green light to irresponsible and harmful investment," Katherine McDonnell, legal advocacy coordinator at Earth Rights International, told the Thomson Reuters Foundation.

Aye Khaing Win, a 30-year-old mechanic who was relocated to Myan Yar Thar in 2013, said villagers were poor before they moved but they were able to support themselves and were happy.

"Even though before I lived in a small house of bamboo, lit by candles, my family did not have any worries," he said.

"Now, everyday, I have all these pressures. I can’t find happiness here."

The first phase of the SEZ has been hailed as a success by private local consortium, Myanmar Thilawa SEZ Holdings, one of the stakeholders in the public-private partnership that carried out phase one in the development of Thilawa SEZ.

According to its an annual report released last month, the total planned investment in the first phase is expected to reach $1 billion by 2018 with 40,000 new jobs created.

It also expects the special economic zone to process exports worth $350 million by 2018.

But last month villagers traveled to Tokyo to present their concerns to Thilawa SEZ investors, including the main conduit for Japan's overseas development aid, JICA.

JICA told the Thomson Reuters Foundation that it would not comment on whether it would invest in the second phase.

A spokesman for the company said in an email the relocation of residents for the first phase was "conducted in accordance with JICA social and environmental guidelines."

Around 4,000 people live or work on land that will be developed for the remaining phases of the Thilawa SEZ, Earth Rights International said.

U Mya Hlaing is one of them. The 70-year-old farmer, who also leads the community-based Thilawa Social Development Organisation, said consultations ahead of the second phase relocation had been inadequate.

He said the community wanted a resettlement plan that would protect their livelihoods and ensure decent healthcare and education.

He said his organization would contact businesses to tell them not to invest in the Thilawa SEZ.

"If they do not agree we will not give them our land," U Mya Hlaing said.

The post Burma's New Economic Zone Attracts Foreign Interest But Local Ire appeared first on The Irrawaddy.

Ten Things to Do in Rangoon This Week

Posted: 17 Oct 2016 10:12 PM PDT

tenThe Irrawaddy picks 10 interesting events happening in Rangoon this week.

GrandRoyalMusic Unlimited

End the week bopping to tunes from more than a dozen of Burma's most garlanded singers, at the Mya Yeik Nyo Hotel. Seats cost between 20,000 and 100,000 kyats; standing tickets available for 8,000 kyats, at call center-1876.

Where: Mya Yeik Nyo Hotel, Bahan Tsp.

When: Friday, October 21 (starts at 6 pm)


Aung YinAung Yin's 32

Burmese singer Aung Yin will celebrate the 32nd anniversary of his musical career, in concert with other famous singers at Burma's handsome (to some) national auditorium. Tickets available for between 20,000 and 50,000 kyats. Call 09-451010 789, 09-965010 789, or 09-7820 97436.

Where: National Theater, Myoma Kyaung Street.

When: Saturday, October 22 (starts at 7 pm)


kiss-myanmarParty Night

Like dancing around like an idiot on Friday nights? Good, because Muse Bar is putting on an electronic dance music (EDM) party, featuring locally known (and impeccably named) DJ acts such as The Kendrick and The Bugbears, plus a special live performance from pop-star Ah-Moon. No extra charges for the party, beyond what you usually pay to get in.

Where: Muse Bar, No. 330 Alone Road, Dagon Township, Yangon International Hotel Compound

When: Friday, October 21 (starts at 10.00 pm) 


ayeyarwady-festivalIrrawaddy River Art Festival

Burma's oddball National Museum will play host to talks, music shows, and art and photography displays on the subject of the Irrawaddy, Burma's most important river, also known as the Ayeyarwady. You can check out King Thibaw's old throne in the museum's permanent collection, while you're at it.

Where: National Museum, Pyay Road

When: Sunday, October 23 to Sunday, October 30


myanmar-housingMyanmar 1st Affordable Housing Expo

Being overcharged for your dank Rangoon apartment? Well, the Construction and Housing Development Bank (CHDB) and the Ministry of Construction are jointly putting on a showcase of (purportedly) low-priced apartments available in Rangoon and elsewhere in Burma, with CHDB telling the punters about mortgages.

Where: MICT Park, Hlaing Campus, University of Yangon, Hlaing Tsp.

When: Friday, October 21 to Sunday, October 23


4th4th Natural Friends

More than 20 artists from the Danubyu Artists Association will showcase over 100 paintings, with scenic landscapes and portraits reflecting Burma's ethnic diversity.

Where: Myanmar Artists Organization (Central), Bogyoke Market

When: Wednesday, October 19 to Sunday, October 23


ArtTraveling with Art

A group exhibition, featuring over 30 oil and acrylic paintings by six artists depicting the obscure site of Bagan and other areas of rural Burma.

Where: Lokanat Galleries, 62 Pansodan St, 1st Floor, Kyauktada Tsp. Tel. 095-1382-269

When: Friday, October 21 to Tuesday, October 25


65-galleryWaves

Another group art exhibition, situated within a characterful colonial-era villa on Yaw Min Gyi, with around 50 paintings on various themes by six artists: U Hla Tun, U Win Sein, Ko Shine Lu, Triangle Tun Naing, Wi Le Linn and Nyi Htun.

Where: Gallery 65, No. 65 Yaw Min Gyi Road, Dagon Tsp.

When: Saturday, October 22 to Wednesday, October 26


think-galleryMerry Dance of Mother & Kids

Artist Aung Khaing's merrily titled solo show, featuring 43 paintings on ebullient themes. The artist will be performing demonstrations. Get on your (figurative) dancing shoes.

Where: Think Art Gallery, No. 23 Nawaday Street, Dagon Tsp.

When: Saturday, October 22 to Saturday, October 29


sunset

Sunset

Rangoon-based photographer Linaung Pyae's second solo exhibition. Stop by for glimpses of beautiful sunsets from across Burma, if you're into that sort of thing (and who isn't?).

Where: Wired on 39 Gallery, 39th Street

When: Friday, October 21 to Saturday, November 5

 

The post Ten Things to Do in Rangoon This Week appeared first on The Irrawaddy.

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