Saturday, January 23, 2016

The Irrawaddy Magazine

The Irrawaddy Magazine

The Irrawaddy Business Roundup (Jan 23, 2016)

Posted: 22 Jan 2016 06:25 PM PST

Employees work at the Myanmar Central Bank's headquarters in Naypyidaw, May 17, 2012. (Photo: Soe Zeya Tun / Reuters)

Employees work at the Myanmar Central Bank's headquarters in Naypyidaw, May 17, 2012. (Photo: Soe Zeya Tun / Reuters)

CITIC Official Pledges Environmental, Social Protections for Kyaukphyu

A senior official at the Chinese company leading the consortium that will develop a port and industrial zone in western Burma has promised that the project will create jobs for local people and protect the local environment.

The award of the contracts to the state-owned China International Trust and Investment Corporation, or CITIC, has been met with concern from local civil society groups in Kyaukphyu, where the special economic zone will be constructed.

In an interview with Chinese state newswire Xinhua in Beijing, however, CITIC Construction's vice chairman, Yuan Shaobin, reportedly made a number of pledges about the project, which he insisted was driven "purely by business value."

"We need to find a way to preserve the environment while fundamentally improving the infrastructure, and share the dividends released by the projects with Myanmar and the local people," Yuan was quoted saying.

The social impacts of the development would also be measured, he said, declaring that at least 2,000 jobs for local people would be created, and training opportunities, as well as schools, health clinics and emergency rescue services provided for the area, which is prone to cyclones.

Locals may respond that they have heard such promises before. The area is already the terminus of cross-country oil and gas pipelines connecting southwestern China's Yunnan province with the Bay of Bengal.

Local activists say previous Chinese investments in Kyaukphyu have not involved sufficient local consultation and have not been transparent about what safeguards were in place to protect local communities and the environment.

In his interview, CITIC's Yuan promised a "more orderly, beautiful, convenient and comfortable Kyaukphyu" for the locals.

Ironically, the developer from one-party state China also had a message of hope for the political future of Burma, which he reportedly described as an "untapped virgin land in Asia."

"I hope the incumbent and incoming Myanmar governments can adhere to the path of democracy, reform and opening-up, and inject more impetus into its economic development," he said, according to Xinhua.

Civil Society Groups Question EU Trade Deal

A group of 571 Burmese civil society organizations has written to the European Union's commissioner for trade raising questions about the ongoing consultation process for Burma's bilateral trade deal with Europe.

Burma and the EU have been negotiating an Investment Protection Agreement since 2014, which will set in place some terms of trade and investment. Controversially, such agreements often remove local government's powers to change investment conditions, giving companies the right to sue the state in offshore tribunals if policy changes impact on investment.

Private firm Development Solutions is currently collecting responses to a survey getting the feedback of stakeholders on the deal. The deadline for the questionnaire, which has been extended twice, is Feb. 25.

The collection of civil society organizations, some coming from the Myanmar Alliance on Transparency and Accountability and the Lands in Our Hands Network, is unhappy with the way the consultation is being conducted. The groups all signed a joint letter to the EU's trade czar, Cecilia Malmström, to raise their concerns directly.

The groups say that the questionnaire appears to be aimed at businesses and that the nature of the questions themselves was problematic.

"How can we answer questions asking for our views on potential impacts of the IPA when we have never read the full text up for the negotiation?" the letter dated Jan. 14 reads.

"If the EU is genuinely interested in our views, we would like to ask you to give us full insights in the text which has been proposed for negotiations and the different positions taken so far by [the European Commission's Directorate General for Trade] and the Myanmar government."

The groups also pointed out that that the consultation does not tackle the question of whether an Investment Protection Agreement is needed at all. The groups, the letter says, "believe that Myanmar should not sign IPAs at this moment in time with these provisions."

"Myanmar is still in its very early stages of democratization and peace building. Many laws and policies still need to be revised. An IPA would severely endanger our prospects for democracy and sustainable peace."

South Korean-Backed 'National Think Tank' Launched

A new Burmese government-linked think tank set up with funding from the South Korean government has been officially opened in Rangoon, state media reports.

The Global New Light of Myanmar said the Myanmar Development Institute, or MDI, would get $20 million of funding from the Korean International Cooperation Agency (KOICA) over five years.

"MDI will play a role of national think-tank in Myanmar as it is a decision maker to plan national socioeconomic and country policy after its launching," the newspaper said.

The institute will be led by a central committee including representatives of nine Burmese government ministries, it said.

The new institute appears to be similar to the Myanmar Development Resource Institute that President Thein Sein founded in 2011 as he initiated a raft of economic reforms shortly after taking over from the previous military government.

Presidential economic advisor Zaw Oo, executive director of the Myanmar Development Resource Institute’s Center for Economic and Social Development, is chairing the central working committee of the new institute, according to the report.

Malaysia's Edotco to Invest $200M in Burma

After sealing a deal to buy the majority stake in the Myanmar Tower Company last year, Edotco, part of Malaysia's Axiata Group, has announced plans to invest a massive $200 million in Burma.

According to the website Mobile World Live, Edotco's CEO Suresh Sidhu said in a statement that the company, along with its local partner Yoma Strategic Holdings, will build some 5,000 towers for the country's growing mobile phone networks.

"We are dedicated to establishing a high quality telecommunications network in Myanmar," Sidhu was quoted saying. "This will be achieved through the introduction of sustainable and value-added services, such as alternative energy solutions, dual-purpose structures and our proprietary echo remote monitoring and management system."

New Computer System for Burma's Central Bank

The Central Bank has received a new computer system that will modernize the way it settles payments between the country's banks, according to a statement from Japan's aid agency, JICA, which is funding the system.

At a cost of almost $44 million in grant funding, JICA said the project had provided "new payment infrastructure and prompt offices functions for CBM [Central Bank of Myanmar] to promote payment environment and Real Time Gross Settlement (RTGS) among Central Bank of Myanmar and financial institution. The CBM-NET covers fund settlement, T-bond/ T-bill settlement, collateral management for Kyat liquidity, DVP and Mechanized Clearing House."

"Myanmar needed to catch up with other ASEAN member states in financial sector development," the statement said. "Therefore, ICT system for interbank fund settlement and T-bond/T-bill settlement is one of the top priorities, as this will bring about immediate benefits to the financial institutions."

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

Dateline Irrawaddy: ‘The NLD Understands What Civil Society Is For’

Posted: 22 Jan 2016 05:28 PM PST

The Irrawaddy's founding editor Aung Zaw is joined by Kyaw Thu of Paung Ku for this week's Dateline Irrawaddy. (Photo: The Irrawaddy)

The Irrawaddy's founding editor Aung Zaw is joined by Kyaw Thu of Paung Ku for this week's Dateline Irrawaddy. (Photo: The Irrawaddy)

Aung Zaw: Welcome to Dateline Irrawaddy, this week our guest is Ko Kyaw Thu, who leads a civil society organization (CSO) called Paung Ku. Paung Ku was established in 2007 and has been actively engaged in social works since the aftermath of Cyclone Nargis in 2008. I'm Irrawaddy Editor Aung Zaw.

Ko Kyaw Thu, welcome to Dateline Irrawaddy. Both local and international commentators say that Myanmar is undergoing a big political shift at present and it is very interesting to see the developments. The National League for Democracy (NLD) government led by Daw Aung San Suu Kyi will take power soon. I'm interested to learn what changes CSOs will see during this paradigm shift. As far as we understand, CSOs have had greater space in the time of President U Thein Sein. The president has also met CSOs in person. And CSOs have spoken out against land confiscation issues and China-backed projects. The Thein Sein government is no different from the former regime in mounting brutal crackdowns, arresting and repressing student protestors.

But we have learned that there has been greater space for CSOs compared to the past. Paung Ku, as a CSO, has also enjoyed greater space. But as far as I understand, CSOs do not enjoy full freedom. We learn that [the government is] keeping a watchful eye and impeding the activities of CSOs. What is the likely scenario for CSOs after the NLD government comes to power?

Kyaw Thu: U Thein Sein's government came to power under the 2008 Constitution, so their legitimacy is weak. But they are clever. To show that they are making a change, they have made use of CSOs. By granting greater freedom for them, it has tried to convince [the public] that it is making changes. This has however brought a lot of benefits to CSOs. We could operate openly and take up opportunities to operate more. In fact, the government has engaged with CSOs in its interest—to make itself appear legitimate.

AZ: They have established legitimacy by doing so.

KT: Yes, they did. And the number of people who were deceived into believing that they would be able to work together with the government is not small. The government did do some good things—I mean it has made a good beginning—but, whether its changes are real or not, time tells all. At first, the government gave us freedom, but in the end, farmers, students and activists who have stood up for their rights were imprisoned. If somebody exercises their rights, the government prohibits it. It is fair to say that they are clever.

AZ: The government has granted a certain degree of freedom for the media, but at the same time there was also suppression, wasn't there?

KT: Yes, it allowed for greater space, both for the media and CSOs in the beginning. But its real face was only revealed later, for example the cases of student activists, and Ko Par Gyi, [a journalist] who was even killed.

AZ: Ko Par Gyi's case…

KT: Yes, the death of Ko Par Gyi, and the imprisonment of Daw Naw Ohn Hla. The government has done things that appeared to be good, and we have had to deal with them cautiously. When we engaged with the government, they tried to influence us. If we opposed their ideas, they accused us of being against the reforms. There was a time when even the foreign embassies thought that we were rather aggressive while the government was making the right changes.

AZ: Foreign embassies thought that this was a reformist government.

KT: Not just reformist, they even thought that they were the champions of reform. They thought it was making real reforms. They thought it was great.

AZ: Especially the foreign embassies of western countries, right?

KT: Yes. The Chinese Embassy does not seem to have such astuteness, considering the way it dealt with the Myanmar government. The so-called changes of the government brought us an advantage in that we could engage with the newly-formed Parliament. There were good people in the Parliament. There are honest people who understand the need to seek the assistance of CSOs, while some exploited us for their political gain and to establish legitimacy.

 AZ: Let's discuss the challenges. In the past, the NLD was an opposition group and there was a common ground between NLD and CSOs, regardless of their differences. But now, the NLD has become the government, and it will be on a different side from civil society. CSOs have to continue to handle the issues that concern them. So what will be the challenges? Will the NLD government be turning a blind eye to the issues of land confiscation, political prisoners, civil war, ethnic issues, education, and environmental issues? Will it handle those issues? How much it will push the CSOs? What will be the scenario?

KT: The challenges of CSOs will also be challenges for the NLD. The challenges of the NLD will be the challenges of the entire country, as well as the international community, because the international community has actively encouraged the democratic change in Myanmar. Of three elections in 2010, 2012 and 2015, the participation of CSOs was highest in 2015 election. The NLD won an overwhelming majority of votes. The success of the party you voted for is your success. The challenges to the party you voted for are your challenges. Therefore, we, CSOs have studied how we can help the new government in overcoming those challenges—land confiscation, ethnic issues, peace, bribery and corruption. We have thoroughly studied the effects of policies and procedures. These will be helpful for the NLD government. We will have a good relationship with the NLD as the party understands the role of CSOs and we have personal ties [with them].

The outgoing government dishonestly used CSOs for their benefit, but the incoming one will use them with good intent, I believe. The new government can use CSOs cleverly and directly. There are roles that can be assigned to civil society. It will be a challenge for the NLD government to try to understand the voices of civil society and to listen to the voices of the people constructively.

AZ: You mean the NLD government needs to have courage to listen to the voices and demands of CSOs?

KT: You can divide CSOs into two camps. There are CSOs established under the outgoing Thein Sein government and CSOs that support the NLD.

AZ: I found that over the past two or three years, until and during the November election, CSOs have either directly or indirectly contributed a great deal to the NLD as the main opposition party. That's because everybody wants change. How has the NLD recognized those CSOs now?

KT: Let me tell what I have seen. There is frequent contact between the NLD and CSOs as they engage in social works. They may be strangers to each other in some areas, but mostly, the NLD understands what civil society is for. Many from CSOs have joined the NLD and become lawmakers. They are not complete strangers to each other.

AZ: It is a positive sign, isn't it?

KT: Yes, it is a positive sign. But on the other hand, the NLD has its own opposition—the Union Solidarity and Development Party (USDP), as well as proxy parties of USDP and their associate CSOs. The NLD needs to view these clearly.

AZ: You mean the ruling party USDP will be out of power soon, but it has established its own CSOs?

KT: Power and money are related. The USDP is the biggest party, and since its members are the richest people in Myanmar, they still have influence. They still have a lot of influence and can get things done.

AZ: So do you think CSOs with strong financial backing will play a greater role after the NLD government comes to power?

KT: The NLD should be aware of those groups. They are still abusing social and religious issues.

AZ: Are they?

KT: Yes. And they also use the Internet in a systematic way.

AZ: They create hate speech systematically?

KT: I think the NLD will keep a watchful eye on this.

AZ: So they are so-called CSOs.

KT: Yes, so-called CSOs. The outgoing government has created an environment in which real CSOs and impostors are mixed together. Those impostors have grown up with the freedom granted by the outgoing government. Some do not know they are impostors as they are mixed with other CSOs. But the NLD should be able to see this. Their opposition, the USDP, is a huge force. Though the USDP has fewer seats in the Parliament now, their empire—their business empire—is very big. The USDP has spent substantial sums of money on the election. Their expenses were not audited because they lost. CSOs and regular people bore witness to how much they spent. They won't stop just because they lost. They have deliberately drafted the 2008 Constitution to hold onto their power. Don't underestimate them. It will not stop.

AZ: People have referred to NLD as democratic opposition party for more than 20 years. It is a universal truth that it is difficult for democracy to take root without an opposition. If a government can bear the criticism of the opposition, it will be more accountable to the people. Who will be the opposition in Myanmar? Setting aside the USDP, the USDP is demoralized and is trying to recover for the time being. Setting aside so-called CSOs, can independent CSOs and media become a form of opposition which can call the NLD out?

KT: Let's not talk about the definition of opposition first. As a government which will establish democracy, the NLD government should heed the monitoring and criticism of the media. And they should value CSOs, which independently speak up and make demands.

AZ: Thank you for contribution.

The post Dateline Irrawaddy: 'The NLD Understands What Civil Society Is For' appeared first on The Irrawaddy.

The Would-Be Leaders of Burma’s New Parliament

Posted: 22 Jan 2016 04:40 PM PST

Win Myint, second left, and T Khun Myat, second right, are two names that have surfaced as potential candidates for a parliamentary speakership and deputy speakership, respectively. (Photo: Facebook / H.E. Thura U Shwe Mann)

Win Myint, second left, and T Khun Myat, second right, are two names that have surfaced as potential candidates for a parliamentary speakership and deputy speakership, respectively. (Photo: Facebook / H.E. Thura U Shwe Mann)

RANGOON — The National League for Democracy (NLD) offered a clearer picture of its plans for governance over the 2016-21 period this week, only to muddy the waters once more a day later, with two reports sending mixed signals as the party grapples with coordinating a communications strategy for a press eager for any tidbit on offer.

On Wednesday, NLD spokesman Nyan Win told the news wire Agence France-Presse (AFP) that senior party member Win Myint would be tapped to serve as speaker of the Union Parliament's Lower House, while the ethnic Karen MP-elect Mahn Win Khaing Than, also of the NLD, would get the party's backing for the Upper House.

One day later, central committee member Win Htein sought to walk back those remarks, however, telling reporters after a parliamentary session in Naypyidaw that the nominee list was not finalized. This, of course, left media in the difficult position of having to weigh the word of an official NLD spokesman against that of a fellow central committee member.

Win Htein and Nyan Win could not be reached for comment seeking clarification on Thursday and Friday, respectively.

Contacted by The Irrawaddy on Thursday, a senior member of the party did not refute Nyan Win's comments, but declined to discuss the issue.

In the end, The Irrawaddy offers a look at the backgrounds of the two would-be speakers, while again noting that that the party has offered conflicting information on whether the two men will indeed be the leaders of the next Parliament.

The Union Parliament will convene on Feb. 1 and nominees for the speakerships will be voted on sometime shortly thereafter.

Win Myint

Win Myint is considered to be something of a right-hand man for NLD chairwoman Aung San Suu Kyi. An NLD central committee member, 65-year-old Win Myint was re-elected to Parliament on Nov. 8, winning a Lower House seat in Rangoon's Tamwe Township. In an indication of his standing within the party, Suu Kyi brought Win Myint with her when she met with outgoing President Thein Sein in Naypyidaw on Dec. 2, less than a month after the NLD's landslide election victory.

Win Myint's presence at the high-profile meeting had led to speculation that he might be nominated to serve as president of an NLD-led government, an office Suu Kyi is constitutionally barred from holding.

He was born in the Irrawaddy Delta and studied geology at Rangoon University before studying law in the 1980s. He was working as a barrister in 1988 when nationwide pro-democracy protests led to the founding of the NLD, which Win Myint subsequently joined.

He won a seat in Burma's 1990 election, the results of which were annulled by the military, which went on to imprison him and many other victorious NLD candidates in the years that followed.

In Burma's 2012 by-election, he was elected to the Lower House's Pathein Township seat and was subsequently assigned to the secretary position of the Lower House's Rule of Law and Tranquility Committee, which is chaired by Suu Kyi.

Win Myint is said to have been one of four key party leaders responsible for the selection of NLD candidates ahead of the 2015 campaign, a process marred by controversy.

Mahn Win Khaing Than

The NLD's purported choice for the Upper House, should it come to pass, would make good on a party pledge to bring a diverse array of ethnic voices to positions of power during its tenure.

A Karen Christian, Mahn Win Khaing Than joined the NLD in 2013 and contested for the first time in the 2015 election, winning a seat in the Upper House representing a Myawaddy Township constituency.

Born in Irrawaddy Division's Hinthada Township, Win Khaing Than also graduated from Rangoon University, with a law degree in 1975.

He has ties to Suu Kyi's father Gen. Aung San, with his grandfather Mahn Ba Khaing having been assassinated alongside Burma's independence hero in 1947.

Before 1988, the 63-year-old served as secretary of the Karen Literature and Culture Association and in 1990 joined the Union Karen League (UKL), which contested the election that year.

Ethnic Unknowns

The NLD has not yet revealed the bicameral legislature's two deputy speakers by name, but AFP on Wednesday quoted Nyan Win as saying they would both be members of ethnic minorities, one drawn from the Arakan National Party (ANP) and the other a Kachin from the incumbent Union Solidarity and Development Party (USDP).

Speculation appears to have coalesced around two names: Aye Tha Aung, the ANP patron who was elected last year to an Upper House seat in Arakan State, and sitting ethnic Kachin parliamentarian T Khun Myat of the USDP, who chairs the Lower House's Bill Committee.

T Khun Myat

T Khun Myat is said to be a close ally of outgoing Union Parliament Speaker Shwe Mann, who has established a good working relationship with Suu Kyi since she entered Parliament in 2012. Suu Kyi and Shwe Mann have reportedly met often in the post-election period, and T Khun Myat was included in at least one of those meetings, on Nov. 19 in Naypyidaw, less than a week after the NLD secured the parliamentary majority it needed to form the next government.

While the dots can be connected, T Khun Myat's selection for the deputy speaker post would raise some eyebrows, given that he has faced allegations of involvement in the illicit narcotics trade in a series of investigative reports by the Shan Herald Agency for News (S.H.A.N.).

T Khun Myat, a 65-year-old ethnic Kachin, graduated with a law degree from Rangoon University and rose through the ranks of the civil service to legal director of the Attorney General's Office. He retired in 2010 to contest that year's general election, in which he won a Lower House seat in Kutkai Township.

His ties to the USDP go back to the former military government that preceded it, serving as the secretary of the Kutkai Township Peace and Development Council under the junta. While he was serving as legal director at the Attorney General's Office from 1990 to 2010, he concurrently served as leader of a local paramilitary force in Kutkai Township under the command of the Burma Army's North East Command. He also took part in the constitutional drafting commission in 2007.

He was secretary of the Kutkai Township Union Solidarity and Development Association (USDA) and an executive of the northern Shan State chapter of the USDP that succeeded it.

Sai Leik from the Shan Nationalities League for Democracy (SNLD) told The Irrawaddy on Friday that T Khun Myat was tasked by Shwe Mann with drafting a policy on federalism, but Sai Leik said he was unaware of what progress had been made on the assignment.

"There has no reason to object if the NLD nominates him as deputy speaker, but if it happens, he needs to follow the lead of the NLD, and if he can continue and complete that task, that's fine."

Aye Tha Aung

Aye Tha Aung told The Irrawaddy on Thursday that though there has speculation that he could be nominated as Upper House deputy speaker, he had not yet received any information from the NLD about it.

He was born in Myebon Township, Arakan State, and served as a sergeant-major and for a time worked in Ka-Pa-Sa, the heavy (Military) Industry Corporation, but was dismissed and imprisoned due to his underground political activities. He was released in a 1974 amnesty, according to the Assistance Association for Political Prisoners (AAPP).

His pro-democracy activities also earned him an arrest in 2000, and he was released in 2002.

He was chairman of the Arakan League for Democracy (ALD), a political party once outlawed by Burma's former military regime that later merged with the3 Rakhine Nationalities Development Party (RNDP) to form the ANP.

The ANP won 22 seats in the Union Parliament in Nov. 8 election, clearly establishing it as the country's strongest ethnic political party. The ANP also won 23 of 47 state parliament seats on Nov. 8, just short of a majority in the Arakan State legislature.

The post The Would-Be Leaders of Burma's New Parliament appeared first on The Irrawaddy.
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