The Irrawaddy Magazine

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• Vietnam’s Viettel Nears Deal to Invest $800M in Yatanaporn Teleport
• Women’s Livelihoods Undermined by Dawei SEZ: Report
• Villagers File Complaint Over Police Killing of Protestor at Copper Mine
• China Expresses Concern After Protests at Copper Mine
• 1 Year Minimum Until Call for Upgrade, Transfer of Airports: Official
• Thousands Protest Against Mandalay Gem Market Move
• Forged Statements From NLD, President Criticize Letpadaung Protesters
• Can We Open Our Presents Yet?
• Curfew in Indian State After Tribal Militants Kill 48
• US Calls Planned Thai Poll Delay to 2016 ‘Unwise’
• India Slashes Health Budget, Already One of the World’s Lowest

Vietnam’s Viettel Nears Deal to Invest $800M in Yatanaporn Teleport Posted: 24 Dec 2014 05:05 AM PST The Yatanarpon Teleport logo is seen in front of its office in Rangoon. Thailand's True Corp, which plants to expand in the region, is set to enter into a partnership with the state-owned company within the next two months. (Photo: Reuters) HANOI/RANGOON — Vietnam’s Viettel Global and Burma's state-backed Yatanarpon Teleport are awaiting approval for an investment of at least US $800 million to build Yatanarpon’s telecoms infrastructure, officials from both companies said on Friday. Burma—where communications were tightly controlled by the former military junta—is one of the world’s last telecoms frontiers, with just a small minority of the 53 million population having a mobile phone. Last month, Viettel Global, the investment arm of Vietnam’s military-run Viettel Group, announced plans to contribute $800 million to developing telecoms with an unnamed partner in Myanmar, and told Reuters on Friday it will likely announce the decision of its shareholders on Dec. 15. An official in Hanoi with direct knowledge of the negotiations confirmed that Yatanarpon was the Burma partner. Yan Win, a member of Yatanarpon’s board of directors, told Reuters the board had finalized talks with Viettel and was waiting for Yatanarpon’s management to approve the deal. The total investment for the deal will rise to between $1.8 and $2 billion, said the official in Hanoi who declined to be identified because he is not authorized to speak to the media. Viettel Global said the additional funds would be raised by its foreign partner and a joint venture, to be established by both firms, the Vietnamese company said in the plan published in November. Aung Tha, CEO of Khine Thit Sar, a Rangoon-based company helping to upgrade the state-owned Myanmar Posts and Telecommunications (MPT), said he was aware of talks between Viettel and Yatanarpon, which has primarily been an Internet service provider until now. "It will be tough for them to compete with the existing operators," he said. "They have no infrastructure; they will have to start from scratch." Swedish telecoms giant Ericsson said that in 2012 less than 4 percent of the country’s population had mobile phones. That number has risen dramatically over the past few months as Norway’s Telenor and Qatar’s Ooredoo have begun selling SIM cards after the reformist government, which took power in 2011, granted the companies telecoms licenses. MPT, formerly the country’s sole provider, has also scaled up distribution of SIM cards and has partnered with Japanese firms KDDI Corp and Sumitomo Corp, which have said they will invest $2 billion. Yatanarpon reportedly holds the fourth telecoms license and its chief executive told Reuters last year that it would seek at least $1 billion from investors to expand its operations. The post Vietnam's Viettel Nears Deal to Invest $800M in Yatanaporn Teleport appeared first on The Irrawaddy Magazine.

Women’s Livelihoods Undermined by Dawei SEZ: Report Posted: 24 Dec 2014 04:55 AM PST Representatives of the Tavoyan Women's Union at the launch of "Our Lives, Not For Sale" in Rangoon on Wednesday. (Photo: Nang Seng Nom / The Irrawaddy) RANGOON — The Tavoyan Women's Union (TWU) called for the immediate cancellation of the Dawei special Economic Zone (SEZ), in part due to its damaging impact on Tavoyan women, in a new report launched in Rangoon on Wednesday. The group's report, "Our Lives, Not For Sale," focuses on the impact of the multi-billion dollar Dawei SEZ on local women, drawing on interviews conducted with 60 women from six villages in Yephyu Township, close to where the deep-sea port is being built. More than 10,000 people live in these six villages, according to government figures recorded at the start of the project. Interviews for the report were conducted between September 2013 and September 2014. "Our main finding from this research is that women's lives are getting more difficult due to the project," Soe Soe Nwe, research coordinator for the report, told The Irrawaddy. "The rate of children dropping out of school is higher [and] more young women have left for Thailand to work." According to the report, almost all the women interviewed have lost sources of income since the project began, due to land confiscation, destruction of farmlands and restricted access to the coast. Forty-nine of the 60 women have taken their children out of school since the project started. Traditional livelihoods, such as shellfish collection carried out by women, have been "drastically affected" by the project. "Just over a third of the women now have no income at all from their former livelihoods," the report said. Speaking at the report's launch in Rangoon, Kay Kahing Yu, a villager from Mayingyi in Yephyu Township, said that the project's development had led to the destruction of fields and crops, as well as reduced yields. "Usually we grow rice only in the monsoon season, which is enough for us to eat for the whole year. Since the [Dawei SEZ] project arrived, due to a mine at the mountain, our paddy fields were destroyed [as water became polluted]," Kay Kahing Yu said. "Now, the yields from our paddy fields are not even enough to eat for six months. … When we went to talk with the company [Italian-Thai Development], they promised us compensation, but we still haven't received it." The report also urged the Thai and Burmese governments, and project developers, to return confiscated land to landowners and to offer adequate compensation for damaged or confiscated land. Yi Yi Htwe, the secretary of the Dawei Farmers Union, said the price of land in Dawei skyrocketed within a year of the project's launch and locals could no longer afford to buy land in the area. "Suddenly we were forced to sell our land," Yi Yi Htwe said. "Farmers have no money now. There is no farmland to work on anymore. We can't even afford a plot of land in our area now due to higher prices." The post Women's Livelihoods Undermined by Dawei SEZ: Report appeared first on The Irrawaddy Magazine.

Villagers File Complaint Over Police Killing of Protestor at Copper Mine Posted: 24 Dec 2014 04:16 AM PST Family members of Khin Win, who was killed by police during a protest on Monday, file a complaint over her death at Salingyi Township Police Station on Tuesday evening. (Photo: JPaing / The Irrawaddy) SALINGYI TOWNSHIP, Sagaing Division — The family of a villager shot dead by police during a protest against a copper mine project has filed an official complaint over the killing, Sagaing Division police said. Salingyi Township Police Station chief Col. Aung Kyaw said family members of Khin Win, a 56-year-old woman who died during the unrest on Monday, had registered their complaint at the station on Tuesday evening. "We have accepted a complaint on the case of the death," he told Irrawaddy reporters visiting the station. "Medics will investigate the cause of death. We'll have to wait and see the results before taking further action." Dr. Myint Than, who heads Monywa District Hospital, conducted a forensic examination on the body of Khin Win, a resident of Moegyobyin Village. "We've found no other ailments. We could confirm she was killed by a bullet as her skull was blown out," he said on Wednesday. Thaung Htay, the younger brother of the victim, said he had reluctantly agreed to let authorities take her body to the hospital for examination. "I have no trust in the government. What if they destroy the body?" he said. "The government mistreats us in collaboration with the Chinese, let alone protects us. We have no one to rely on," Thaung Htay said. On Wednesday afternoon, the situation appeared to have calmed down, while staff of China's Wanbao mining company continued to clear confiscated farmland and fence off the area. Authorities spared no efforts to secure the area for the company, as dozens of police patrolled the area and placed huge rolls of barbed wire along the perimeter of the latest land seizures. The mining complex was being further secured by high fences and the installation of watch towers, while tailings produced by the mine are being dumped to form a barrier along the edge of the area. Tensions flared up near the Letpadaung copper mine on Monday and Tuesday after Wanbao company workers began clearing land with bulldozers and fencing off more than a dozen acres of farmland in Hse Tae Village as part of the planned expansion of the mine. About 60 villagers, who have refused to accept what they deem as inadequate compensation for their land, faced off with dozens of armed police accompanying the Chinese workers and clashes ensued. A doctor from the 88 Generation Peace and Open Society has said he treated 16 villagers—mostly women—who were injured in confrontations, including several shot with rubber bullets, while others were reportedly hit and kicked by police. Witnesses and police confirmed that Khin Win was shot by a police officer during the clashes. The US Embassy said on Wednesday that it was concerned over the clash near the Letpadaung mine. "We are alarmed by reports of violence, including the death of a female protester, and continue to monitor the situation on the ground closely," an embassy spokesperson said. "Resolving land and resource disputes is a major challenge all around this country. It is clear that patience, dialogue, and restraint, not the use of force, will be essential to address these issues going forward, as will be an expeditious and transparent investigation" into the incident. Wanbao, the Chinese company constructing the Letpadaung mine in a joint venture with the Burma Army-owned Union of Myanmar Economic Holdings (UMEHL), has called the death "senseless," while at the same time defending the mine's expansion plans and accompanying land seizures. It said on Monday that local communities were properly consulted and compensated over the forced land confiscations. The mining project has already resulted in the loss of all land in four villages while another 26 will also suffer land losses. Communities have objected against the land confiscation, the mine's environmental impact and the removal of religious structures in the area. Wanbao struck a deal for the mega project with Burma's former military government shortly before it handed over power to a nominally-civilian government in 2011. The project is highly controversial among the Burmese public who view it as a massive land grab by Chinese investors and the army. In the last two years, there have been numerous confrontations between villagers and security forces as the mine's operators attempted to extend the project's operating area. In Nov. 2012, authorities caused a public outcry after police fired incendiary rounds, believed to be white phosphorous, into a protest camp near the mine. Dozens of protestors, many of them Buddhist monks, suffered serious injuries. Following the incident, a parliamentary committee led by opposition leader Aung San Suu Kyi reviewed the project in early 2013 and said it should continue if the company properly addressed the mine's social and environmental impacts. A new contract was drawn up between Wanbao, UMEHL and the government, in which the government's earnings from the project greatly increased. Several million dollars were allocated to environmental and corporate social responsibility projects, while compensation amounts for farmers were increased. Yet the deal failed to address the grievances of many of the farmers who continue to vehemently oppose the mine's expansion. The post Villagers File Complaint Over Police Killing of Protestor at Copper Mine appeared first on The Irrawaddy Magazine.

China Expresses Concern After Protests at Copper Mine Posted: 24 Dec 2014 04:06 AM PST Burmese President Thein Sein gestures beside Chinese Premier Li Keqiang at the East Asia Summit in Naypyidaw in November (Photo: JPaing / The Irrawaddy) BEIJING — China expressed concern on Wednesday about a protest against a Chinese-run copper mine in Burma in which a person was killed and some were wounded saying China urged its companies abroad to act responsibly and protect the environment. Burma police on Monday fired on protesters near the Letpadaung mine which is at the center of a long-running land dispute, killing one person and wounding 20. The mining company, Myanmar Wanbao, is a unit of the Chinese weapons manufacturer China North Industries Group Corp. "We express concern and regret at the reports of casualties. We call for the relevant parties to appropriately deal with those victims’ cases," Chinese Foreign Ministry spokeswoman Hua Chunying told a daily news briefing. She said China and Burma were friendly neighbors and their "cooperation fits the common interests of both sides". "China’s government has consistently required Chinese enterprises with investments abroad to respect other countries’ laws and regulations, exercise social responsibility, and place importance on protecting the environment," she said. Residents have protested against the Letpadaung mine in Monywa, about 100 km (60 miles) west of Mandalay, saying thousands of acres of land have been confiscated to enable the project to proceed. In November, human rights group Amnesty International urged the Burmese government to halt work at the site, saying land had been acquired through a flawed process and other social and environmental issues had to be resolved. The group also said authorities had yet to be held accountable for attacks on protesters two years earlier. In November 2012, more than 100 people including at least 67 monks were hurt when riot police raided protest camps. Twin Chinese oil and gas pipelines across Burma have also sparked controversy, as have China’s interests in hydropower schemes. In 2011, President Thein Sein suspended the $3.6 billion, Chinese-led Myitsone dam project, some 90 percent of whose power would have gone to China, angering Beijing. The post China Expresses Concern After Protests at Copper Mine appeared first on The Irrawaddy Magazine.

1 Year Minimum Until Call for Upgrade, Transfer of Airports: Official Posted: 24 Dec 2014 04:01 AM PST Airplanes taxi on the runway at Rangoon International Airport. (Photo: Feliz Solomon / The Irrawaddy) RANGOON — A government call for the upgrading and privatization of 30 domestic airports in Burma has been postponed until late next year at the earliest, due to ongoing efforts to transfer three international airports to private hands, according to Win Swe Tun, the director general of the Department of Civil Aviation (DCA). The DCA announced in November 2013 that it would put out a call for private domestic or foreign companies to upgrade and take over operations at 30 out of the country's 69 domestic airports. More than one year since the department invited the private sector to submit Registry of Interest papers, Win Swe Tun told The Irrawaddy on Wednesday that the plan would be delayed at least 12 more months. "We are going to transfer all of Mandalay [International] Airport to a Japanese firm this coming March, so there are still two airports to be done before issuing domestic airports tenders, so it will be delayed until the end of next year," Win Swe Tun said. Last month, the government announced that Japan's Jalux Inc. and Mitsubishi Corp., and a subsidiary of local firm Yoma Strategic Holdings, were granted the license to upgrade and operate Mandalay International Airport at an estimated cost of US$100 million. "So after transferring Mandalay Airport, we need to discuss further the Yangon and Hanthawaddy airport transfers to private companies. It will take time, we expect that it will all be done next year," Win Swe Tun said. Singapore's Yongnam Holdings has been awarded the contract to construct the Hanthawaddy International Airport, a project about 50 miles north of Rangoon that is expected to cost $1.5 billion. A subsidiary of the Burmese conglomerate Asia World was awarded a $150 million contract to upgrade the current Rangoon International Airport. The DCA director general said Wednesday that his department would be looking for detailed plans from bidders. "We want to encourage the private sector to prepare precise master plans for their proposed airports before submitting the application to us. They still have time, it should include details on how much they can invest and how they plan to operate the airports," Win Swe Tun said. The DCA had received hundreds of Registry of Interest applications by early this year, but Win Swe Tun said many were lacking in specifics. When the department has completed the transfer of the three international airports in Mandalay and Rangoon, it will ask interested parties to reapply. According to the DCA, Nyaung U (Bagan), Heho (Inle Lake), Thandwe, Sittwe and Dawei are Burma's busiest domestic airports, and received the most interest from bidders. On the other end of the spectrum, some airports among the 69 are not even currently operational for want of sufficient passenger demand. "So we will have to reconsider whether we still need to spend government funds to operate these airports in future," Win Swe Tun said. According to the DCA, the government currently spends about $12 million annually on running its 69 domestic airports. Most airports in Burma are small, potentially hazardous and lack sophisticated technology, following decades of mismanagement and neglect under the previous military regime. Phyo Wai Yar Zar, chairman of the Myanmar Tourism Marketing Board, said that services at Burma's domestic airports were lagging behind even smaller regional neighbors like Cambodia and Laos. "Domestic airports' services are weak, and a lack of sanitation systems around airports are an annoyance for passengers as well. Even in Yangon International Airport, there is betel nut liquid around the [luggage] conveyors," he said. "We can't complain to the government about these things, but I hope that if private companies are allowed to operate these airports as soon as possible, it may cost [passengers] more but will provide better services and a cleaner environment," he said. The DCA hopes to sign public-private partnership agreements in which private investors agree take over airport management and upgrade infrastructure and technology. The agency would continue to be responsible for airport security and air traffic control. The post 1 Year Minimum Until Call for Upgrade, Transfer of Airports: Official appeared first on The Irrawaddy Magazine.

Thousands Protest Against Mandalay Gem Market Move Posted: 24 Dec 2014 03:54 AM PST Thousands gather in Mandalay to protest a proposal to relocate the country's largest gem market, Dec. 23, 2014. (Photo: Teza Hlaing / The Irrawaddy) RANGOON — Crowds took to the streets of Burma's second largest city on Tuesday to protest a government proposal to relocate the country's principal jade and gems market. Organizers of the demonstration estimated that tens of thousands of people gathered in downtown Mandalay to voice their opposition to the plan, which would move the marketplace from Maha Aungmyay Township to Amarapura, about 8 km (5 miles) south of the city center. Than Win, chairman of a committee advocating for renovation over relocation, told The Irrawaddy that while he and his colleagues requested permission for 50,000 people to demonstrate, police allowed for 40,000. Mandalay police confirmed that they authorized a mass demonstration. Mandalay Mayor Aung Maung tabled the proposal in the divisional parliament in early December, signaling that the plan may soon become a reality. Traders have opposed the move since it was first proposed in 2012, claiming that it disenfranchised small-scale merchants and left their merchandise vulnerable to theft. Proponents of the move said the current market is run down, crowded and unkempt, but traders countered that they had twice proposed renovating the market instead of relocating it, a proposal that they claimed had been not yet been addressed by lawmakers. "We have already requested three times by letter that the divisional government not move the marketplace, and we have also proposed that we upgrade the [existing] market with our money," said Naing Lin Aung, also a member of the Committee to Deter Moving of the Gems Marketplace. Kyaw Zaw Aung, the secretary of the committee, said that moving could be disastrous for small-scale local traders. "The new market is very far from Mandalay, and the place is not safe for merchants as they would carry gems with them on their way. They could be mugged," he said. "And again, smaller gems merchants will have to spend more for travel expenses." Locals said that though the proposal has not yet been approved, a new facility is already being built near Amapura's Sim and Myinmu villages on a 6-acre plot of land. The main company involved in the project is Aye Aye Khaing Co. Ltd., a leading gem trading firm, according to committee members. Traders said the current market houses more than 1,000 showrooms, where about 3,000 dealers make their living peddling rare stones. The market supports the livelihoods of countless others who work as porters, cutters and polishers. Some traders estimated that as many as 8,000 people would be directly affected by the move. The post Thousands Protest Against Mandalay Gem Market Move appeared first on The Irrawaddy Magazine.

Forged Statements From NLD, President Criticize Letpadaung Protesters Posted: 23 Dec 2014 09:02 PM PST A copy of a forged statement, bearing the letterhead and seal of the National League for Democracy, which criticized the Letpadaung protesters. (Photo: Facebook) RANGOON — Representatives of the National League for Democracy (NLD) and the office of President Thein Sein have refuted the authenticity of two statements which attacked the motives of villagers protesting the Letpadaung copper mining project. A statement purportedly signed by the President said that the Chinese firm Myanmar Wanbao Mining Copper Ltd., one of the Letpadaung project's joint venture partners, acted within the law by fencing work sites, and accused farmers of behaving unlawfully, justifying a police response which resulted in the death of 56-year-old villager Khin Win and injury to several others. The statement said that farmers connected with Khin Win and other protestors would be charged for their "criminal activity" and concluded with an effusive apology to Wanbao and the People's Republic of China. The NLD statement, complete with the party's letterhead and seal, criticized farmers for opposing government policies, and urged for farmers involved in the land dispute and protest ringleaders to be charged. Both forgeries were widely circulated over social media on Monday. Zaw Htay, director of the President's office, and the NLD both took to Facebook on Tuesday to announce both statements were fake. Nyan Win, a spokesman for the NLD, said that the party was still discussing the faked letter and formulating an appropriate response. "We are still finding out about the extent of that problem," he told The Irrawaddy. "We are solving that problem with the committee so we can't say anything now. If it is necessary we will issue a statement." This is the second time that the NLD has been the victim of a forged official statement. In the aftermath of religious riots in Mandalay last July, an anonymous social media user published a statement with the party's logo and letterhead, stating that the NLD was "fully backing the Muslims" and would support efforts to prosecute Buddhist rioters, in an attempt to discredit the party. Lawyer Kyee Myint told The Irrawaddy that the creator of the false statements faced a harsh punishment if caught. "If the person who distributed the fake statements is revealed, he or she can be sentenced under Article 468 of the Penal Code with seven years' imprisonment," he said. The post Forged Statements From NLD, President Criticize Letpadaung Protesters appeared first on The Irrawaddy Magazine.

Can We Open Our Presents Yet? Posted: 24 Dec 2014 01:00 AM PST The post Can We Open Our Presents Yet? appeared first on The Irrawaddy Magazine.

Curfew in Indian State After Tribal Militants Kill 48 Posted: 23 Dec 2014 09:33 PM PST Indian security personnel stand on a boat to keep vigil in the river Brahmaputra ahead of India’s Independence Day in the north-eastern state of Assam on August 6, 2014. (Photo: Reuters) GUWAHATI, India — India imposed a curfew in parts of the northeastern state of Assam on Wednesday after suspected tribal guerrillas killed 48 people in a series of attacks in retaliation for an offensive against them. Assam has a history of sectarian bloodshed and groups fighting for greater autonomy or secession from India. Tuesday's attacks in four places by militants of the National Democratic Front of Bodoland within the space of an hour were the deadliest in months. Villagers told police the rebels came on foot, armed with assault rifles and wearing military uniforms. "The militants first came and asked for water. Suddenly they opened fire with their AK-47 rifles," a witness, who fled into jungle, later told reporters. The guerrillas say they are fighting for a separate homeland for indigenous Bodo people. They complain that the tea-growing state has been flooded with outsiders. Indian security forces launched a campaign last month against the rebels in their remote hideouts, prompting a threat from them to target settlers. "They didn't even spare women and children," said a police officer, adding there were at least 10 women among the dead in Tuesday's violence. At least 13 children were killed. Lalit Gogoi, deputy commissioner of the worst-affected Sonitpur district, said the army had been put on standby and a dusk to dawn curfew imposed. The single hospital in Sonitpur was crowded with scores of people with gunshot wounds. Assam is one of seven states in India's northeast, a region bounded by China, Myanmar, Bhutan and Bangladesh. Residents have long accused the federal government of plundering its natural resources and ignoring development. Prime Minister Narendra Modi has vowed to accelerate the development of roads and railways in the area. At least 10,000 people, most of them civilians, have been killed in Assam state alone in the last three decades. In May, rebels from the same group shot and killed more than 30 Muslim settlers in the region. Additional reporting by Muneea Navqi of The Associated Press. The post Curfew in Indian State After Tribal Militants Kill 48 appeared first on The Irrawaddy Magazine.

US Calls Planned Thai Poll Delay to 2016 ‘Unwise’ Posted: 23 Dec 2014 09:22 PM PST Thailand's Prime Minister Prayuth Chan-ocha salutes members of the Royal Thai Army after a handover ceremony for the new Royal Thai Army Chief, Gen. Udomdej Sitabutr, on Sept. 30. (Photo: Reuters) BANGKOK / WASHINGTON — A general election to return Thailand to democracy will be held in February 2016 at the earliest, a deputy prime minister said after talks with a US diplomat on Tuesday, a delay Washington later called "unwise and unjustified." The military government, established after a May 22 coup, said last month an election planned for late 2015 would be delayed until 2016, giving more time for reforms that the military says should bring stability after a decade of factional rivalry. On Tuesday, Deputy Prime Minister Wisanu Krue-ngam clarified the target date after talks with US Charge d'Affaires W. Patrick Murphy. "I told the US charge d'affaires today elections will take place at the earliest in February 2016," Wisanu told reporters. "But if we have to have a referendum, polls could be delayed by a further three months," he said, referring to a possible plebiscite on a new constitution. The United States, a long-time ally of Thailand, expressed dismay at the coup and froze US$4.7 million of security-related assistance, canceled high-level engagements, some military exercises and training programs for the military and police. A spokesperson for the US State Department said Washington believed Thais should be allowed to choose a democratically elected government "as soon as possible." "We … believe a delay until 2016 would be unwise and unjustified," the spokesperson added. The May coup followed months of establishment-backed protests against a populist elected government. A junta-appointed National Reform Council last week proposed stripping parliament of the power to appoint a prime minister and cabinet. On Tuesday, a committee appointed to draft a new constitution rejected that recommendation. A senior Western diplomat said he was not optimistic about the possibility of an election in 2016, fearing Prime Minister Prayuth Chan-ocha, the army chief who launched the coup, could come up with a justification to delay. "It is not inconceivable that Prayuth will stay in power for two to three years," said the diplomat, who declined to be identified. Questions over the return to democracy come at a time of extreme sensitivity surrounding the monarchy, in particular the issue of succession, which has formed part of the backdrop to the complex national crisis. King Bhumibol Adulyadej, 87, is in hospital recovering from gallbladder surgery. The king is regarded as almost divine by many Thais and is widely seen as a unifying figure through years of political unrest. The post US Calls Planned Thai Poll Delay to 2016 'Unwise' appeared first on The Irrawaddy Magazine.

India Slashes Health Budget, Already One of the World’s Lowest Posted: 23 Dec 2014 09:12 PM PST A man gets his eye tested at a free eye-care camp in Mumbai December 6, 2013. (Photo: Reuters) NEW DELHI — The Indian government has ordered a cut of nearly 20 percent in its 2014/15 healthcare budget due to fiscal strains, putting at risk key disease control initiatives in a country whose public spending on health is already among the lowest in the world. Two Health Ministry officials told Reuters on Tuesday that more than 60 billion rupees, or US$948 million, has been slashed from their budget allocation of around $5 billion for the financial year ending on March 31. Despite rapid economic growth over the past two decades, successive governments have kept a tight rein on healthcare expenditure. India spends about 1 percent of its gross domestic product (GDP) on public health, compared to 3 percent in China and 8.3 percent in the United States. But hopes were high that Prime Minister Narendra Modi, who was elected in May, would upgrade basic health infrastructure and make medical services more affordable for the poor. The United Nations estimates about one third of the world’s 1.2 billion poorest people live in India. "We were not expecting [budget cuts] this time because of the commitments they made in the manifesto," one of the health ministry officials said, referring to Modi’s Bharatiya Janata Party (BJP). "No reason was given … but there is shortage of funds. It is not rocket science." The officials requested anonymity because of the sensitivity of the matter. The Finance Ministry, which ordered the spending reduction and overruled objections from the Health Ministry at a recent meeting, did not respond immediately to requests for comment. The move reflects the government’s struggle to achieve its 2014/15 fiscal deficit target of 4.1 percent of GDP. Dominated by private players, India’s healthcare industry is growing at an annual clip of around 15 percent, but public spending has remained low and resulted in a dilapidated network of government hospitals and clinics, especially in rural areas. One of the Health Ministry officials said the cut could crimp efforts to control the spread of diseases. More newborns die in India than in poorer neighbors such as Bangladesh, and preventable illnesses such as diarrhea kill more than a million children every year. The retrenchment could also derail an ambitious universal healthcare program that Modi wants to launch in April. The plan aims to provide all citizens with free drugs and diagnostic treatments, as well as insurance benefits. The cost of that program over the next four years had been estimated at 1.6 trillion Indian rupees ($25 billion). The Health Ministry officials had been expecting a jump in their budget for the coming year, in part to pay for this extra cost. "Even next year we don’t think we’ll get a huge amount of money," said one official, adding that it was now unclear how the new program would be funded. HIV/AIDS Funds Slashed In addition to the healthcare budget, the finance ministry has also ordered a spending cut for India’s HIV/AIDS program by about 30 percent to 13 billion rupees ($205.4 million). India had the third-largest number of people living with HIV in the world at the end of 2013, according to the U.N. AIDS program, and it accounts for more than half of all AIDS-related deaths in the Asia-Pacific. In October, India was on the brink of running out of a critical medicine in its free HIV/AIDS drugs program due to bureaucratic delays. A crisis was averted with the assistance of pharmaceutical companies and global health organizations. Still, health activists complain about dire shortages of several HIV/AIDS diagnostic kits. "We are all in shock. That shows the kind of importance the government attaches to public health," said Leena Menghaney, a New Delhi-based public health activist. "This will undermine the HIV program in the long run." The post India Slashes Health Budget, Already One of the World’s Lowest appeared first on The Irrawaddy Magazine.

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