Wednesday, June 26, 2013

The Irrawaddy Magazine

The Irrawaddy Magazine

Telecoms License Awards Delayed in Burma

Posted: 26 Jun 2013 05:48 AM PDT

A man talks on his mobile phone by the street side of Rangoon last week. (Photo: Reuters)

RANGOON—The highly anticipated awarding of two telecoms licenses to foreign companies or consortia has been postponed in Burma, lawmakers said on Wednesday.

Burma was set to announce two winners of 11 remaining bidders on Thursday. But the country's lower house of Parliament said on Wednesday that the licensing awards would be delayed until lawmakers passed a new telecommunications law, which is still in the drafting process.

The decision to postpone the awards was made after a member of Parliament's telecoms committee submitted an emergency statement to lawmakers urging them to favor local joint ventures in the selection of telecoms operators.

As a result of that recommendation—which came from Myo Swe, secretary of the telecoms committee and a lawmaker representing Tamu town in Sagaing Division— lawmakers in the lower house agreed to postpone announcing the winners of the tender.

"In some cases, we need to prioritize national interests," Phyo Min Thein, a lawmaker from the National League for Democracy (NLD) party, told The Irrawaddy. "Today nobody objected to the statement on the telecoms tender. Neither did I."

Phyo Min Thein said all 401 lawmakers at Wednesday's Parliament session approved the emergency statement and urged the Union government to implement it.

Other NLD lawmakers said they were surprised by the emergency statement and did not have enough time during the Parliament session to consider it before being asked to make a decision.

Thiri Kyar Nyo, the country representative for Digicel in Burma, declined to comment on Parliament's decision. Digicel is one of 11 international companies shortlisted for the telecoms tender.

SSA-North Rebels Says It Lost 2 Bases to Govt Forces

Posted: 26 Jun 2013 05:14 AM PDT

SSA-North rebel soldiers take a break in Kutkai Township, northern Shan State, in mid-June. (Photo: Kyaw Kha / The Irrawaddy)

RANGOON — The Shan State Army-North (SSA-North) said it has lost two bases in Kehsi Township in northern Shan State in recent days following attacks by the Burmese military.

The confrontation is the latest in a string of armed of clashes that have broken out between the two sides in the past year despite a ceasefire agreement.

"We lost one base at Wanwap village and another one at Ta San Puu village," SSA-North spokesman Sai La said by phone, adding that the military's Light Infantry Battalions No. 525 and No. 569 had attacked the bases on June 22-23.

He said that the Shan rebels had controlled the base at Wanwap village in Kehsi Township, south of Lashio, for decades. "This is the first time that government troops attacked this base," he added.

Sai La said regional military commanders had contacted the rebels during the fighting to let them know that they should give up the base at Wanwap village in order to avoid full-scale attack.

"We withdrew our troops from our base at night on June 23," he said, adding that Tatmadaw units later "continued to stay at our Buddhist temple nearby, where we used to have a temporary base."

Asked why the Burmese army would want to capture the SSA-North base at Wanwap village, he said, "If they can control this base they can block [SSA-North] troop movements."

Sai La said the other captured SSA-North base had been located at Ta San Puu village, where ferries crossing the local river dock.

The SSA-North reached a ceasefire with the government in 1989, but the deal broke down in March 2011 when the government army launched a military offensive against the Shan rebels, displacing more than 30,000 civilians.

The government signed a new ceasefire deal with the SSA-North in January last year, and the two sides have since met several times for peace talks.

The agreement has however, failed stabilize the situation in northern Shan State and dozens of armed clashes have been reported since the signing of the ceasefire, displacing thousands of local villagers.

Government forces have also engaged in ongoing clashes in the region with the Kachin Independence Army (KIA) and the Taaung National Liberation Army (TNLA), which maintain units in parts of northern Shan State.

Despite frequent reports of ongoing clashes in Shan and Kachin states, Naypyidaw has proclaimed its peace process a success. The government reached ceasefires with 10 out of Burma's 11 main ethnic militias in the past year, earning it plaudits from the international community, which is keen to embrace President Thein Sein's reformist government.

Some observers doubt however, that the agreements will bring lasting peace, as Naypyidaw has made no attempt to meet the ethnic groups' long-standing demands for greater political autonomy through the creation of federal states in Burma.

Opium Keeps Burma in International Spotlight on World Drug Day

Posted: 26 Jun 2013 04:56 AM PDT

An anti-narcotics officer stands in front of stacks of seized marijuana on Wednesday. (Photo: JPaing / The Irrawaddy)

Officials from Burma's anti-narcotics task forces on Wednesday called for collaboration among the public, authorities and international supporters of the country's drug eradication program as the world marked International Day Against Drug Abuse and Illicit Trafficking.

There is much work to be done, as Burma remains the world's second biggest producer of opium, after Afghanistan, according to the World Drug Report 2013 from the United Nations Office on Drugs and Crime (UNODC).

The UNODC launched the report to coincide with World Drug Day on Wednesday and said "the use of prescription drugs and new psychoactive substances is growing," while there is a "decline in the use of traditional drugs, such as heroin and cocaine in some parts of the world."

Burma also marked the day, holding an event at which it destroyed millions of dollars' worth of illegal narcotics.

About 15 substances, including marijuana, methamphetamines and the regional plant Mitragyna speciosa, worth more than 4.4 billion kyat (US$4.6 million) were destroyed.

Wednesday was the third mass destruction of narcotics this year, with heroin and other illicit drugs seized from Rangoon, Pegu and Irrawaddy divisions, as well as Arakan, Mon and Karen states, said Pol Col Win Naing of the Central Anti-Narcotics Task Force.

Pol Lt-Col Tin Aung, the deputy director of law and research in the International Relations Department of the Anti-Narcotics Task Force, said the government body is "ready to work together with the ethnic groups in fighting the drug problem." So far the task force has collaborated with the Restoration Council of Shan State (RCSS) and its militant branch, the Shan State Army-South (SSA-South), he said.

As a result of the RCSS cooperation, Tin Aung said the pursuit of drug dealers in Shan State had become easier as "the scope for them [to operate] has narrowed."

On Tuesday, there were reports of a bomb blast in Namkham, Shan State, where an anti-narcotics task force was executing a drug raid. One official was reportedly killed and two others were injured, according to Pa Khu Lan, the vice chief of state for the Ta'ang National Liberation Army (TNLA). He told The Irrawaddy that it was not clear who had carried out the attack, adding that drug-related violence had decreased in recent years.

Captain Khin Maung Thein, of the Rangoon Anti-Narcotics Task Force, said Shan State accounted for the largest drug haul, while the psychoactive substance Mitragyna speciosa was especially prevalent in southern Burma's Tenasserim Division. Use of Mitragyna speciosa (bein-sa-ywat in Burmese) is restricted in Southeast Asia, where it is used nonetheless for medicinal purposes and casual consumption.

Use of the substance is prohibited in Burma and the plant is categorized by the government as an illicit drug. Khin Maung Thein said Mitragyna speciosa is widely used in southern Burma by laborers in the fisheries industry.

Officials on Wednesday called attention to the need for sustainable income generation for poppy growers in Burma, where substitution crop programs in Shan State and elsewhere exist but are not sufficiently attractive alternatives for many. The UNODC recently said about 300,000 families rely on poppy cultivation for their livelihoods.

Anti-narcotics officials emphasized the need for awareness training and international support for such families.

Burma and its neighboring countries have engaged in recent years in a collaborative effort to address the region's lucrative drug trade, but Southeast Asia remains a center for opium cultivation and methamphetamine production.

China on Tuesday said police from four countries (Laos, Burma, Thailand and China) had arrested more than 1,300 suspects during a two-month anti-drug campaign, according to state-run Xinhua news agency. The joint campaign against drug trafficking, called "Safe River," was conducted in the Mekong River region, where China, Laos, Burma Thailand, Cambodia and Vietnam share trade routes.

Last week, the Human Rights Foundation of Monland (HURFOM) released a report stating that drug use and trafficking in Mon State communities is deeply rooted, with government initiatives to prevent narcotics abuse lacking.

Additional reporting by Sanay Lin from Rangoon.

Burma’s Telecom Race Enters Final Stretch

Posted: 26 Jun 2013 02:07 AM PDT

A woman holds up a SIM card, which she won in a June lottery, in Rangoon on June 24, 2013. (Photo: Reuters / Soe Zeya Tun)

RANGOON — Foreign companies will tap into one of the world's final telecom frontiers Thursday when Burma hands out licenses to operate two new mobile phone networks.

Currently less than 6 million of country's 60 million people have mobile phones, putting it on par with North Korea when it comes to connectivity. The government hopes it will be able to push mobile phone usage rates to 80 percent within three years by releasing its grip on the industry.

Those are the kinds of numbers that have left international telecom consortiums salivating.

Of the 90 that initially submitted bids, 11 have been shortlisted including Singapore Telecommunications, Bharti Airtel of India, KDDI Corporation of Japan, Telenor of Norway and Digicel of the Caribbean—some opening offices and even recruiting staff in gleeful anticipation of the announcement.

"It's a great first start," said Richard Dobbs, director of the McKinsey Global Institute. "My only hope is that the winners will move quickly to get broadband—either 2G, 3G or 4G—rolled out countrywide."

He said the government views the opening of telecommunications to foreign investment as an opportunity to spur the type of rapid economic growth that has raised living standards in other developing countries.

"This should not just be about profit maximizing," he said. "It should be about enabling other services," Dobbs said.

By using mobile banking and e-commerce, the country may be able to spread banking and other consumer services more widely and at a reduced cost. Mobile telecommunications could also extend health and education services to even the remotest villages.

Burma, located in the heart of one of the fastest growing regions in the world, became one of the most isolated and poorest nations during its half-century of iron-clad military rule.

After taking control of a quasi-civilian government in 2011, former Gen Thein Sein started implementing promised political and economic reforms.

But the country faces monumental development challenges. Some roads are almost unnavigable, with pot holes several meters wide. Electricity blackouts are routine. Real estate prices in the commercial capital Rangoon rival New York City due to limited supply and a surge in demand brought on by the country's emergence from isolation.

The communications industry, long-neglected by the country's military rulers, is in need of a complete overhaul. That's in part because the original network set up by the country's military rulers was intended for only a tiny number of subscribers—mostly the rich. Up until a few years ago, the cost of SIM cards could reach $2,000.

Eric Schmidt, executive chairman of Google, says there are tremendous advantages to starting from scratch.

"You all will have an opportunity to skip all the previous … generations of technology," he told a group of young business leaders during a visit to Rangoon earlier this year.

"You'll have fiber optic cable in your cities. You'll have 3G and 4G networks that will connect to smartphones. You will literally leapfrog 20 years of difficult to maintain infrastructure."

Experts are quick to point out, however, that while the potential returns for the winners of Thursday's bid are staggering, so are the risks.

Investors preparing to invest billions of dollars are rightly nervous about how political reform will evolve, whether the government can maintain the fragile peace between ethnic groups, and how regulation and ownership rights will develop.

The government insists a new industry regulator will take over within the next few years, but the job is still effectively in the hands of the Ministry of Communications and Information Technology. A telecom bill to set the legal framework for the industry is stuck in Parliament.

Foreign companies "will be entering the market while the process is still taking place and major reforms are yet to happen," said Peter Evans, a senior analyst at the telecom research group, BuddComm.

It's also unclear what role the state-owned incumbent telecom operator, Myanmar Posts and Telecommunications, will be playing. The idea is that it will eventually be divorced from state control but what its structure, funding and role will be at this time remains unclear.

Yatanarpon, which is majority government-owned and primarily an Internet service provider until now, has a much smaller network. And also newly on the scene is the army-owned Myanmar Economic Corporation.

Govt Bans Time Magazine Issue, Raising Concerns Among Local Media

Posted: 26 Jun 2013 12:34 AM PDT

Time magazine July 1 cover labeling U Wirathu "The Face of Buddhist Terror" caught the attention of many Burmese publications, some of which disapproved of the cover. (Photo: Steve Tickner / The Irrawaddy)

RANGOON — Burma's government on Wednesday announced that it is banning Time magazine Asia's July 1st issue because of controversy in the country over its cover, which features a photo of nationalist monk U Wirathu with the headline "The Face of Buddhist Terror."

"To prevent the occurrence of racial and religious conflict, the Central Management Committee for Emergency Periods has announced in the name of public interest not to allow sales, reproduction, distribution or possession of 'The Face of Buddhist Terror' article from Time's July 1 issue," said a statement in government newspaper The New Light of Myanmar.

"We have found that Time's coverage can cause misunderstandings and jeopardize the interfaith trust-building that the government is trying to implement," it said.

Deputy Information Minister Ye Htut told The Irrawaddy on Tuesday that he had initiated the action against Time by raising concerns over the article with the President-led committee, which was created in late March to address inter-communal unrest.

On Tuesday, Inwa Publications, the Burmese distributor of Time, had already said it would scrap sales of its 600 copies of Time, due to local reactions to the cover story. The firm's manager Maung Maung Lwin said "that, as Buddhists, we should not distribute the July 1st issue of Time magazine."

Daniel Kile, a spokesperson for Time Inc., told The Irrawaddy in a reaction from New York that the company stood by the cover article.

"TIME’s international cover story is a thoughtful, well-reported piece that shows the presence in Myanmar of an extremist movement that associates itself with Buddhism," he wrote in an email. "TIME is pleased by the debate and discussion this important piece has raised."

Time magazine Asia's cover story explores the rise of aggressive, nationalist teachings among Buddhist monks in Burma and other parts of Asia, such as Sri Lanka, and the role of radical monks like U Wirathu in instigating unrest between groups of different faiths.

U Wirathu leads the so-called '969' campaign, which urges Buddhists to shun Burma's Muslim minority communities and to support only Buddhist-owned businesses. It has been accused of stirring up bloody inter-communal violence in Burma during the past year.

Burma's government — made up predominantly by Buddhist politicians and officials — has been accused of failing to act against the anti-Muslim attacks that have left about 250 people dead and more than 100,000 displaced. Human rights groups allege it has actively supported the violence.

Time's cover has offended many in Burma because they feel it couples the country's Buddhist tradition and its revered monks with terror and violence.

On Wednesday, members of the Myanmar Press Council decried the ban on Time's article, adding that the role of the Central Management Committee for Emergency Periods in influencing media freedom was troubling.

"Now, [the committee] took this decision, it seems they have the right to do so. This is really worrisome for press freedom," said Thiha Saw, the chief editor of the weekly Open Journal. "It appears as if the committee is going to handle this issue without involvement of the Ministry of Information and the Myanmar Press Council."

Thiha Saw said however, that he disapproved of Time magazine's cover story, citing some of the same reasons that the government used to justify its ban.

"The writing style of the author not only hurts Buddhism but also instigates [inter-communal] violence," he said, "We cannot just blame U Wirathu. There is an impression that the present conflict is only led by monks, but someone else is behind it."

Thiha Saw also said that the views of moderate Burmese monks had not been adequately represented in Time's story, adding "it's not good to write one-sidedly."

Myint Kyaw, a US-educated journalist and media trainer, said the government's ban was pointless as Time's article would not impact Burma's communal tensions. Officials concerned about inter-communal violence, he said, would do better to direct their attention towards curbing anti-Muslim attacks and reining in the divisive 969 movement.

"Instead of capturing the culprits in the violence, they are exaggerating this [Time article] issue. That's because issuing an order is easy, but those who destabilize local communities have not been identified," Myint Kyaw said.

"Have they heard what is being preached at the 969 sermons? Those sermons have been instigating [violence]."

Museum to Honor Arakanese Independence Hero U Ottama

Posted: 26 Jun 2013 12:17 AM PDT

A statute of nationalist hero U Ottama is pictured in Sittwe. (Photo: Kamara)

The country's first-ever museum dedicated to the late abbot U Ottama (1879-1939), a leading figure of Burma's independence struggle in the early 20th century, will be built in Sittwe, the capital of western Arakan State.

U Ariyawuntha, currently abbot of the Shwe Zedi Kyaung monastery formerly presided over by the nationalist hero, told The Irrawaddy that the museum's foundation would be laid with a ceremony in July.

"Although Sayadaw [Abbot] U Ottama was one of the leaders in the independence movement, little related to him remains in Burma," U Ariyawuntha said. "In Japan, a school where he taught and his museum [there] are still kept in good shape. We thought there should be a museum in our country as well to honor his enormous sacrifices for his people. That's why we plan to build this."

Born in a village in Sittwe, the ethnic Arakanese U Ottama was known for his anti-colonial political activities. He was arrested in 1921 for his infamous "Craddock, Get Out!" speech, a harangue against the Craddock Scheme of Sir Reginald Craddock, then the governor of British Burma. Craddock's plan to give Burma some financial autonomy from its sister colony India was widely rejected by nationalist leaders of the time.

U Ottama was repeatedly imprisoned on charges of sedition and in 1939, he died in prison while staging a hunger strike.

In order to raise funds for the Sittwe museum's construction, U Ariyawuntha said video discs detailing his fight for independence would be sold. The videos also aim to spread knowledge about the late abbot among younger generations, he added.

"The history of the Sayadaw and items relating to him will be displayed in the museum, which is expected to cost around 200 million kyat [US$208,000]," U Ariyawuntha added.

U Zawana, a monk who was imprisoned for political activism, explained to The Irrawaddy that a U Ottama museum and the school at which he taught, both in the Japanese city of Nagoya, are preserved and serve as a place for students to study. Tourists from around the world are also regular visitors.

"I didn't know before why we Burmese figuratively called the Sayadaw 'The Sun of Asia,' but I now realize the reason," U Zawana said. "He not only showed the path to liberation for our country but also for those oppressed in the whole of Asia."

During nearly five decades of military rule in Burma, any ceremony commemorating the late abbot was banned by authorities and anyone involved in such an event risked prison time. U Ottama Park, located near Shwedagon Pagoda in Rangoon, also had its name changed to Kandaw Mingalar Park and saw the removal of his bronze statue there.

U Ariyawuntha, however, said ceremonies honoring the national hero have been freely permitted since the administration of President Thein Sein took office in 2011.

For Burmese Call Hawkers, Telecoms Shake-up Signals Bad Days Ahead

Posted: 25 Jun 2013 10:43 PM PDT

Soon to be history? Landline phones in use outdoors in downtown Rangoon. (Photo: Simon Rougheen / The Irrawaddy)

RANGOON — Residents of Burma's biggest city are accustomed to a few eccentricities in daily life, relics unseen or long-forgotten in towns elsewhere in the region.

Instead of newer cars, the streets until last year were mostly filled with 20-year-old Japanese rust buckets, a legacy of an absurd car import system.

Until just a few months ago, visitors to the country had to bring wads of pristine new US dollars to exchange for kyat, as ATMs did not accept foreign credit or bank cards.

Another visible idiosyncrasy is the spread of streetside landline telephones, where every 60 or 70 yards punters can pay to make calls, seemingly unperturbed by the coughing museum-worthy cars nearby or the yelling hawkers all around.

Aye Maung, a foreman on a building site near Rangoon's railway station, says the connection on his mobile phone is patchy, so he makes the five-minute walk to the nearest phone station when he needs to make a call.

"I paid 2 lakh [about US$200] for my SIM card," he complains, "but the mobile line these days seems so crowded, so busy—I can't get through."

In a region where mobile phone penetration rates often exceed national populations, Burma is a telecoms outlier due to its expensive and limited-range mobile phone network. Perhaps about 10 percent, probably a lot less, of the country's 60 million people own SIM cards, though recently the military-backed Myanmar Economic Corporation (MEC) has been offering cheap SIM cards priced at $1.50 each—much-reduced from the most recent government staple price of about $200.

And with two new foreign licenses due for awarding on Thursday, the communications map of Burma is likely, finally, to change soon enough, going by the pledges made by some of the 11 remaining bidders for the mobile permits, even if a new telecoms law is still in the making.

It could mean the end, in time, for the array of government and private phone operators wedged between old-style teashops and street food stalls on the commercial capital's streets, or in the case of Ko Kyaw, perched atop green plastic buckets of rice, the white grains selling at between 900 kyat and 1,100 kyat (between 95 cents and $1.15) for each roughly two-kilogram scoop.

"I only make around 2,000 kyat a day with the phone," he says. "It's not my main business."

Selling calls is a more lucrative gig for shop owner Nge Nge, who thinks it could soon be time to give up on streetside landline desks. Her income from selling calls at her shop is down since the supply of new and cheap SIM cards went up—despite the reappearance of the $1.50 SIMs on the black market at sometimes 10 times the price.

"Now I sell between 10,000 and 15,000 kyat of calls a day," she says. "Before it was more like 30,000."

But, Nge Nge says, the loss is no big deal, and should rather be welcomed as part of a belated telecoms transformation that her country sorely needs.

She runs an upstairs beauty salon and a streetside shop, where she makes most of her money.

"Most of my business is the salon," she says. "I look forward to more SIM cards and foreign companies here—it will be better for the majority of people."

Also hedging against a possible telecoms shake-up is Kyi Ngwe Myint, who staffs a government-run public phone booth. "Maybe the business for these places will stop after the cellphones grow," she says. "I already applied for jobs at other companies."

But for the meantime, Burmese will have to rely—in part, at least—on the kitschy-looking plastic landlines and dirt-spattered desk phones on the city streets, while an ongoing dearth of SIM cards on the market prompts some underhand dealings.

"My phone was lifted right from my pocket," says a glum-looking Thet Paing. His parents stumped up a hefty 500,000 kyat in 2011 for a SIM card for the then 16-year-old student. He believes his SIM card was likely sold on the black market, leaving him to pay 50 kyat per minute to call his friends from one of the three phones run by Kyi Ngwe Myint.

"I think if the foreign companies come here, these businesses will go down," says Thet Paing. "But for now we still need these phones," he adds, pulling out the inside of his empty right-hand pocket as a reminder of where he once—carelessly, perhaps—kept his now illicitly peddled cellphone.

Strengthening Intellectual Property Rights in Burma

Posted: 25 Jun 2013 10:40 PM PDT

Technicians set up new computers at Burma's central bank branch in Rangoon on May 25, 2012. (Phto: Reuters / Damir Sagolj)

Strengthening the protection of intellectual property rights in Burma has the potential to act as a catalyst for economic growth, spurring foreign direct investment and in the long run helping the country reap rewards in terms of greater domestic innovation and increased technology diffusion.

While Burma would do well to ensure the implementation of the World Trade Organization's Trade-Related Aspects of Intellectual Property Rights Agreement (TRIPS), this should not come at the expense of developing its own innovative capacity.

In drafting new legislation, the country's policymakers must be careful to strike a balance between the interests of technology-intensive multinational companies, who wish to break into what has been dubbed the last frontier market of Asia, and striving to develop a viable and innovative technological base of its own.

Decades of political and economic isolation have left Burma with intellectual property rights legislation that is at best outdated and indeed, in some cases, nonexistent. Its laws in this area are cobbled together from a few vague statutes and regulations, many of which date back to the colonial era.

For multinational companies, any lack of legal certainty, including the inability to safeguard intellectual property—the mainstay asset of modern technology-intensive enterprises—serves as a deterrent to investment, excepting those firms hoping to reap quick profits in capital-intensive and labor-light extractive industries, such as mining.

And yet, attracting foreign investment with the potential to transfer technology to domestic firms is a key factor. Thus, the future pace of investment will depend to a large extent on how quickly the government takes steps to upgrade its IPR legislation.

Burma's political leadership has acknowledged the cooling effect that the lack of proper IPR legislation is having on willingness to invest in the country, and the implementation of a strengthened IPR regime has been named as a top priority by government officials.

Indeed, during a discussion on a proposed industrial design rights bill, held in Naypyidaw in late May, Aung Zaw Min, deputy minister of science and technology, recognized the importance of such as a driving force behind the country's economic development.

As a member of the WTO and thus a signatory to TRIPS, Burma has agreed to conform to the provisions of the agreement by 2021 at the latest. This includes awarding de minimis protection for trademarks, patents, copyright, and industrial designs. To fulfill these obligations, Burma will have to completely revamp its IPR system, including the drafting of a new patent law.

Striking a Balance
Notwithstanding the urgent need for a proper IPR framework, it is of critical importance for the country's lawmakers to carefully balance the interests of both potential foreign investors and its own development—interests that are both shared and conflicting to some degree.

While big name investors with billions of dollars invested in IP would like to see a very strict patent law enacted that affords maximum protection for their IP assets—thus barring imitation—Burma, belonging to the LDC group of nations, has a considerable incentive to implement a less protective system, as this would create better conditions for domestic firms to absorb and benefit from the technology that foreign companies bring to the country.

Research suggests that the problem with too stringent an IPR regime in developing countries is that any positive effects in terms of economic growth, technology diffusion and spillovers are highly dependent on the country already possessing an innovative capacity of its own. Lacking such, Burma is not even listed in the World Intellectual Property Organization (WIPO) and INSEAD's Global Innovation Index for 2012.

By comparison, neighboring Laos, with just over a tenth of Burma's population, received an equal share of FDI in 2012 and is ranked 138th of 141 countries surveyed; Thailand is ranked 57th. Given its lack of capacity, it is obvious that the implementation of too stringent IP laws would not be Burma's best course of action.

It is clear therefore that while Burma must change its current IPR system, and its long-term aspiration must be to fully comply with the TRIPS Agreement, this must be a process—taking too large steps too fast could easily backfire, and only serve to impede Burma's ability to develop its own innovative capacity.

Indeed, the WTO recognizes the need for developing and least-developed nations to enjoy some leniency in the application of the TRIPS Agreement, which is why some of its provisions explicitly state that such countries must be given the chance to develop innovative capacities of their own. Burma must accordingly make use of these flexibilities in order to give their own firms the chance to first pass through what has been dubbed the "imitative phase," a precursor to gaining innovative capability in relatively high-tech industries.

Inventive Steps
It follows that the policy implications should be guided along the lines of a country's level of development and its level of imitative or innovative capacity. Hence, Burma's policy priority should be to improve the investment environment, with liberal trade policies to encourage imports of technology embodied in goods. It should be careful not to apply and enforce too stringent IPR legislation, particularly where this would increase the cost of importing IPR protected goods.

In more specific terms, well-tailored policies related to patent fees, novelty requirements and the scope of patentability can all serve the development of a domestic innovative sector and facilitate technology spillover to domestic firms, prompting for example the development of innovative capacity in Burma's petrochemical and agricultural sectors.

A policy of setting high standards for the novelty requirements of patents can prevent routine discoveries from being patented; this can be combined with a system of "utility models" (also known as petty patents), with less stringent patentability requirements, in order to create opportunities for domestic innovators to build on the technology brought in by foreign companies and sow the seeds of a viable domestic innovative capacity.

In tandem with these policies, it is also advisable for Burma to enact policies consistent with the TRIPS Agreement to offset the market power for foreign patent holders. This can be achieved, for example, by making use of compulsory licensing for vitally important technologies and by allowing parallel imports to prevent patent holders from exploiting their monopoly further by engaging in market segmentation.

Burma should also draw on the expertise of the international community in receiving technical assistance in the drafting of its new IPR legislation. For example, WIPO has an important role to play in giving better focused, quantifiable, and realistic development aid in the building and modernization of IPR systems. The US Patent and Trademark Office and the Japan Patent Office are already providing technical assistance to Burma, and as a member of Asean, Burma is also engaged in the Asean Working Group on Intellectual Property Cooperation.

In sum, as long as Burma's IPR legislation remains unchanged, it will continue to constitute a severe disincentive to foreign direct investment. The main obstacles to any successful reform are the political will to make changes and the legal expertise to actually implement them. Whereas the Burma government has recognized the importance of revamping its legislation, in itself a move in the right direction, practical steps will necessitate striking the right balance between stringency and flexibility in its implementation of the TRIPS Agreement.

This is likely to pose a significant challenge for the country, but failure to do so will prove costly in the long run, stifling chances for the country's economic development.

Joel Ankar is a law graduate and project associate at the Institute for Security and Development Policy (ISDP), Stockholm, Sweden. Christopher O'Hara is head of Southeast Asia at ISDP.

Indonesia Arrests 8 in Fires Causing Choking Haze

Posted: 25 Jun 2013 10:25 PM PDT

A helicopter drops water on burnt peatland in Siak district of Riau province on June 24, 2013. (Photo: Reuters / /Fikih Auli (INDONESIA – Tags: ENVIRONMENT DISASTER)

PEKANBARU, Indonesia — Indonesian authorities have arrested eight farmers for setting illegal fires on Sumatra island to clear land after numerous blazes created a thick haze choking parts of Indonesia, Singapore and Malaysia, police said Tuesday.

The farmers were arrested Monday and Tuesday after being caught "red-handed," said local police spokesman Lt. Col. Hermansyah. He did not say whether they were employed by some companies that have been accused of deliberately starting the fires.

About 1,100 residents were forced to flee Rantau Bais and Bangko Pusako villages in Riau province Tuesday as acrid smoke from nearby burning peat swamps and palm oil plantations made breathing difficult, Hermansyah said.

"The smoke has hurt their throats and eyes," said Hermansyah, who like many Indonesians uses one name. "Visibility there is really bad."

A day after apologizing to neighboring Singapore and Malaysia, Indonesian President Susilo Bambang Yudhoyono deployed 2,000 additional personnel Tuesday to fight the fires that have affected air quality and caused respiratory problems among some people. He has called for an investigation, but said it appeared the fires were being caused by natural and human factors.

Indonesia's environmental minister, Balthasar Kambuaya, told reporters Sunday that authorities were investigating eight plantation companies that may have started the fires.

Riau forestry official Ahmad Saeroji estimated the burned area was around 2,000 hectares (4,942 acres). Satellite pictures have detected about 200 fires on plantations in the area.

Authorities warned motorists and fishermen in parts of the province to stay home this week due to poor visibility from the haze. However, the National Disaster Mitigation Agency reported Tuesday that it was raining in the provincial capital of Pekanbaru and in several hotspots after the government deployed aircraft for cloud seeding.

Each year, forest fires on Sumatra and Borneo islands smother parts of nearby Singapore and Malaysia in haze. The Indonesian government usually blames plantation owners and traditional farmers for illegally setting fires as a cheap way to clear land.

Space Capsule Returns from Mission to Chinese Lab

Posted: 25 Jun 2013 10:19 PM PDT

Chinese astronauts (from left to right) Wang Yaping, Zhang Xiaoguang and Nie Haisheng wave before leaving for the Shenzhou-10 manned spacecraft mission at Jiuquan satellite launch center in Jiuquan, Gansu province, on June 11, 2013. (Photo: Reuters / China Daily)

BEIJING — A Chinese space capsule with three astronauts safely landed Wednesday on the country's northern grasslands after a 15-day trip to a prototype space station, marking the latest success for China's manned space program as it enters its second decade.

The Shenzhou 10's descent module landed by parachute in the vast territory of Inner Mongolia early Wednesday with the three crew members smiling and waving on live television after wriggling through the blackened capsule's narrow hatch.

"Space is our dream, the fatherland is our home. Thanks to all compatriots who supported us and best wishes for the wealth and success of our fatherland and the ever greater happiness of our people," mission commander and two-time space traveler Nie Haisheng said to the cameras.

Wang Haiping, China's second female astronaut to complete a mission, said the trip had been especially worthwhile for the opportunity to conduct China's first science class in space, beamed live to 60 million schoolchildren across the country.

"I hope all our young friends may wish beautiful dreams and may their dreams come true," said Wang, who, like her two colleagues, was still clad in her space suit and seated under bright sunshine in white folding chairs in front of the round-edged module.

Back at the Beijing command center, manned space program director Zhang Youxia declared the mission a "complete success" and said all three astronauts were in perfect health.

He was followed by the Communist Party's seventh-ranking official, Zhang Gaoli, who conveyed congratulations from the party leadership and declared that the manned program was entering a new and more challenging stage.

The program has "tremendous significance for the advance of our country's economic and technological strength and ethnic unity, and displays the great Chinese path, spirit, and power," Zhang said.

China's military-backed space program is a source of massive national pride and the successful mission stands as the latest milestone in the party's smooth consolidation of support under its new leader, President Xi Jinping, who also commands the armed forces.

China sent its first astronaut into space in 2003, becoming the third nation after Russia and the United States to achieve manned space travel independently, and has powered ahead in a series of methodically timed steps. Meanwhile, the American program, now in its sixth decade of putting people into space, routinely works on the International Space Station and has long-term plans to go to an asteroid and Mars.

The latest Chinese mission was the second crewed trip to the Tiangong 1 experimental space station, launched in 2011. It's due to be replaced by a three-module permanent station, Tiangong 2, seven years from now.

The future station will weigh about 60 tons, slightly smaller than NASA's Skylab of the 1970s and about one-sixth the size of the 16-nation International Space Station. China was barred from participating in the ISS, largely because of US objections over political differences and the Chinese program's close military links.

Alongside the manned program, China is developing the Long March 5 heavier-lift rocket needed to launch the Tiangong 2. It also plans to send a rover to the moon, possibly followed by a crewed lunar mission if officials decide to combine the human spaceflight and lunar exploration programs.

Rescue Copter From India Flood Zone Crashes, 8 Die

Posted: 25 Jun 2013 10:13 PM PDT

A woman is assisted by a soldier as she leaves an army helicopter during a rescue operation in the Indian state of Uttarakhand on Monday. Another helicopter crashed returning from a rescue mission, killing the eight people on board. About 90,000 people from hundreds of villages and towns hit by the floods have been rescued after flash floods and landslides in north India. (Photo: Danish Siddiqui / Reuters)

GAUCHAR, India — An air force helicopter returning from a rescue mission in flood-ravaged northern India hit a mountain and fell into a river, killing the eight people on board, officials said.

Bad weather has hampered rescue efforts in Uttarakhand state, where more than 1,000 people are believed to have died and thousands of others remain stranded in remote areas because of landslides and floods triggered by torrential monsoon rains. Other air force helicopters were unable to take off due to poor visibility, Group Capt. Sandeep Mehta said.

The air force has ordered an inquiry into the crash in the temple town of Kedarnath, said Priya Joshi, an air force spokeswoman. Five crew members and three civilians were on board the helicopter, she said.

Joshi said 45 aircraft were involved in rescue and relief operations in Uttarakhand.

Hundreds of thousands of Hindus make the Char Dham Yatra to four temple towns in Uttarakhand each year, usually returning home before monsoon rains in July make the mountainous area much more treacherous. Unprecedented heavy rains fell around mid-June this year and caught many unaware.

Air force chief N.A.K. Browne has assured flood survivors that the air force would rescue everyone stranded in Uttarakhand, but bad weather and poor visibility have frequently canceled the evacuation flights.

About 90,000 people from hundreds of villages and towns hit by the floods have been rescued. Landslides flattened entire towns, roads were washed away and communication links snapped, cutting off many people and necessitating air rescues.

Troops are also trying to rescue about 5,000 people who remain stranded in Badrinath town eight days after the torrential rains began.

In the town of Gauchar, the center of the rescue and relief operations, authorities made arrangements to send about a dozen Hindu priests to Kedarnath. The temple is one of Hinduism's most revered pilgrim sites.

Home Minister Sushilkumar Shinde had said deaths in Uttarakhand would exceed 1,000; at least 600 bodies were found buried in silt in and around the Kedarnath temple.

Authorities were preparing to cremate hundreds of flood victims' bodies. Truckloads of wooden logs were loaded onto air force transport planes and flown to Kedarnath to be used in a mass funeral and cremation. Medical teams are taking DNA samples and photographs of the unidentified bodies before they are cremated.

The federal health ministry said Tuesday it has sent more than 1 million chlorine tablets to purify drinking water supplies in Uttarakhand. The ministry has also sent several teams of doctors to help flood survivors.
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