The Irrawaddy Magazine

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• In Burma, Risky Drugstore Sales a Regular Part of Life
• MSF Urges Burma to Allow It to Resume Work as Health Crisis Worsens
• The Irrawaddy Business Roundup (August 16, 2014)

In Burma, Risky Drugstore Sales a Regular Part of Life Posted: 15 Aug 2014 06:00 PM PDT A drugstore employee prepares medicine for a customer in Rangoon. (Photo: Sai Zaw / The Irrawaddy) RANGOON — When 26-year-old Aye Aye Khin came down with a cold earlier this year, she did not go to see a doctor. Instead, she decided to seek the help of a salesman at a nearby drugstore. As a receptionist at a hotel working eight-hour shifts every day, Aye Aye Khin did not have time to wait in the long line of patients at a clinic in her township. Nor was she able to spend the doctor fees, about 5,000 kyats (US$5), when she only makes a meager monthly income. For less than one-tenth that amount, she knew would be able to pay the salesman at the pharmacy to prepare some medication for her. Bypassing the doctor's office is a normal part of life for many people in cities of Burma. But this time, Aye Aye Khin was surprised by the terrifying reaction she had after taking the medicine she had been given. "A while after, my throat started to tighten up and I couldn't breathe properly. I was wheezing. My skin also began to itch and rashes appeared all over my body. I was so scared," she said, recounting the events from one year ago, and adding that she later learned that the medicine included penicillin, which she is allergic to. Allergic reactions are only one possible danger of buying prescription-only medication without a proper prescription. Dr. Yin Yin May, a primary care physician for more than 30 years, says she has seen patients experience gastrointestinal bleeding and other drug reactions after buying medicine at drugstores. "In emergency cases like that, I have to send the patients straight to the hospital," she said. According to Burma's National Drug Law of 1992, it is illegal to sell prescription-only medicines to someone without a doctor's prescription. Violators can be fined and imprisoned for up to one year. Still, whether due to the low prices or the easy accessibility of their medicines, drugstores continue to attract a large patronage. "You can spend less time and money going to buy medicine at a nearby shop. You have to make appointments and pay a lot more money to go see a doctor," said a schoolteacher who lives in Hledan Township. Prescription-only medication can be effective, but it needs to be taken at proper doses to avoid negative side effects. However, some salespeople at drugstores seem to be unaware of the dangers of using these medications without a doctor's prescription. "When a person comes asking me to prepare a medication for an illness, such as headache, fever or stomachache, my goal is to help get rid of the symptoms as fast as possible," said Myo Aung, a sales assistant at a small drugstore in Sanchaung, one of the most populated residential areas in Rangoon. "A lot of people come to my shop for help when they have some minor illnesses because I can prepare medications that relieve their pain fast," added Myo Aung, who has been working at the shop since he finished high school. He has not had any medical education, but he does not believe it is necessary for his job. Some people come to buy medicine with a doctor's prescription, and he takes note of what the doctors prescribe, so when a patient with a similar illness arrives without a prescription, he can try to replicate the correct medication. Regardless of socioeconomic status, many Burmese opt for this shortcut in treatment. "No matter what the educational level or financial status of the people, a lot of them are still relying on these shops preparing medications for them," said Dr. Yin Yin May. "The main problem, I think, is the public's weak health knowledge. People should know that every medicine has side effects to some degree. Just seeing an improvement within a day or two doesn't mean an illness has been cured completely," she said. To address this matter while promoting public health knowledge, the existing law should be reinforced, according to a director of the country's Department of Food and Drug Administration. "The proposal to systematically implement the rules and regulations of the Ministry of Health was submitted to Parliament last year. After the proposal is approved by Parliament, then we will handle this matter step by step," said the director. "We cannot take any drastic measures against this matter because we also have to consider the challenges facing the people involved," she added. It may take time to tackle the problem in a way that benefits both the buyers and sellers of these medicines. For now, it seems that many customers are here to stay. "I am feeling dizzy today so I've come to this drugstore to get some medicine. I have to go to work tomorrow so I want to get rid of the dizziness quickly. I think my accident last time was a coincidence. Most of the time, the medicine from this drugstore works for me. So I've come to this shop to get medicine again now," said Aye Aye Khin, smiling as she walked out of the drugstore and onto the crowded street. The post In Burma, Risky Drugstore Sales a Regular Part of Life appeared first on The Irrawaddy Magazine.

MSF Urges Burma to Allow It to Resume Work as Health Crisis Worsens Posted: 15 Aug 2014 05:30 PM PDT A patient with drug-resistant TB is being examined by a MSF doctor at a clinic in Lashio, Shan State, earlier this year. (Photo: Eddy McCall / MSF) RANGOON — An international medical group has urged the Burmese government to follow through on a commitment to let it resume work in one of the poorest parts of the country, warning that healthcare there has seriously deteriorated since it was expelled. The government ordered the group Médecins Sans Frontières (MSF) out of the western state of Arakan in February after the group said it had treated people it believed were victims of sectarian violence. The government denied that an attack had taken place and it has also accused MSF of being biased in favor of members of the minority Muslim community. The withdrawal of the agency, which had operated in the area for more than 20 years, left some half-a-million Rohingya Muslims without access to reliable medical care. "What has become clearer since the expulsion is that the situation has gotten more grievous by the day," said Reshma Adatia, operational adviser to MSF-Holland on Burma. The government announced on July 23 that MSF would be allowed to return to Arakan State. However, MSF says it has had no official word from the government since the announcement was made. Adatia said the decision to allow MSF to resume work "has not been translated into how and when we can return to the Rakhine [Arakan] State and conduct our medical activities." Arakan State has a long history of discrimination against the Muslim Rohingya community. Aid groups have drawn the ire of some Arakanese Buddhists who accuse them of favoring the Rohingya, a group that makes up the vast majority of victims of recent outbreaks of sectarian violence. Humanitarian groups reject accusations of bias towards Muslims and many workers say they have been threatened and intimidated. A spokesman for Arakan State, Win Myaing, denied any knowledge of a decision to let MSF resume work there. Than Tun, a Buddhist leader and a member of an Emergency Coordination Committee set up in March to monitor the work of international aid groups, said the decision was not supported by the people of Arakan State. Some aid workers say the announcement that MSF would be allowed to resume its work had more to do with politics than resolving the humanitarian crisis. The announcement came as Yanghee Lee, the new UN human rights envoy to Burma, visited the country, including the Arakan area. US Secretary of State John Kerry attended a regional conference in the capital, Naypyidaw, on Aug. 9-10. The Burmese government is in a tight spot. Concessions towards the Rohingyas could prove unpopular among the general public, but perceived ill-treatment risks angering Western countries that have eased sanctions in response to human rights reforms. On July 26, Zaw Htay, head of the president's office, posted a photo on his social media feeds showing a previous protest against MSF, and warned that people in Arakan State were organizing to strike against the regional government for inviting MSF to return. The post MSF Urges Burma to Allow It to Resume Work as Health Crisis Worsens appeared first on The Irrawaddy Magazine.

The Irrawaddy Business Roundup (August 16, 2014) Posted: 15 Aug 2014 05:01 PM PDT Neighbors Thailand and Bangladesh Face Crises as Burma Bids to Grow Two of Burma's immediate neighbors, Thailand and Bangladesh, face potential crises which could seriously damage their economies, studies said. Bangladesh faces continuing political instability and labor rights problems which are "having a deleterious impact on the country's economy, including the vital garment export sector," said the business risk analysts Maplecroft. "Both of these hold important implications for investors in one of the world's most populous and least developed nations," the report said, noting that the ruling Awami League government has "few meaningful checks and balances on its power." Meanwhile, Thailand's business and agricultural heartlands are at growing risk from the effects of climate change, the British analysts said in a separate assessment. Many low-lying coastal areas including the capital Bangkok "are particularly vulnerable to climate change, with sea level rise posing threats to the densely populated coastal communities," said Maplecroft. "While facing an overall decrease in annual rainfall, Thailand is likely to experience shorter, more intense rainfall events due to climate change, increasing the severity of flooding in the future. "The impacts of climate change on Thailand include decreased fishery and agricultural yields, and more frequent flood events, and will ultimately adversely affect economic growth prospects." Although Burma has a long border with Thailand, the Maplecroft report gave no indication of possible climate change knock-on effects. Executive Jets Get Red Carpet Service at Rangoon Airport An executive business jet service has begun operating in and out of Rangoon International Airport. The service has been established by Bangkok-based entrepreneur William Heinecke working with several Burmese firms. The basis of the Myanmar MJets Business Aviation Center is Heinecke's MJets operation in Thailand, which has teamed up with Burma's Wah Wah Group, founded by Ohn Myint, and Myanma Airways. Next to Rangoon's domestic passenger terminal, the center includes an executive lounge, business meeting facilities and separate customs and immigration clearance. "There is a growing market for flying in investors and company CEOs on private jet charters mainly from Singapore and Bangkok," Ohn Myint was quoted by travel industry paper TTR Weekly saying. About 300 private jet flights will visit Burma this year, the paper said. "About 10% of the traffic at the centre will be for air ambulances, mostly patients from Myanmar seeking medical treatment in neighbouring countries like Thailand and Singapore," Ohn Myint said. China's Trans-Burma Oil Pipeline Still Dry Due to Unexplained Delays China's new oil pipeline running 900 kilometers through Burma from the coast at Kyaukphyu to the Chinese border is still not close to beginning operations, although its construction was supposed be almost completed months ago. The opening of the pipeline has been delayed for several reasons, a report by the Myanmar Times said, quoting an unnamed official from the Myanmar Oil & Gas Enterprise (MOGE). The US$1 billion pipeline, designed to pump crude oil from the Middle East, is being built by the state-owned China National Petroleum Corporation (CNPC). "It will take some time to start operation of the pipeline said a company official who requested anonymity due to the subject's sensitivity," the Myanmar Times reported. At full operation it has a capacity of 440,000 barrels of crude oil per day, transshipped from tankers at a specially built terminal at Kyaukphyu. Under the terms of the joint agreement between CNPC and MOGE Burma is mean to receive several million tons of oil per year. A gas pipeline built by CNPC running alongside the oil line is operating at less than 20 percent of its capacity. Final Contracts Signed for Onshore Oil and Gas Exploration A number of foreign companies, including little-known firms, have signed final agreements on 15 onshore blocks with the Myanmar Oil & Gas Enterprise to explore for oil and gas in onshore areas across the country. They include Bashneft International from Russia, Sun Apex Holding, registered in the British Virgin Islands, and Petroleum Exploration, based in Singapore, the Myanmar Times said. Local firms named as partners in the contract awards include Apex Geo Services, Machinery and Solutions Company, Parami Energy Development and Precious Stone Mining. Contracts for blocks won by Eni of Italy and MPRL E&P, owned by Burmese entrepreneur Moe Myint, have already been signed. India's ONGC Videsh Limited, Brunei National Petroleum, Canada's Pacific Hunt Energy Corp and Petronas of Malaysia have also agreed terms with the government, said the Myanmar Times. Small Business Matching Scheme Launched with Japan and Germany Japan and Germany are cooperating in a business matching scheme to try to help small and medium sized firms starting up in Burma to find potential partners, a report said. A list of more than 100 Burmese firms is being distributed via Japan's Daiwa Institute and the German Embassy and the Ministry of Industry, said Eleven Media. The current project is only a pilot scheme however. Burma has thousands of small-to-medium firms which "face difficulties such as a lack of infrastructure, finance and technology," Eleven Media said, quoting the ministry. The post The Irrawaddy Business Roundup (August 16, 2014) appeared first on The Irrawaddy Magazine.

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Democratic Voice of Burma

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• Arakan High Court rejects appeal in Taunggup lynching case
• Burmese govt agrees, in principle, to a federal union
• BURMA BUSINESS WEEKLY – 16 AUGUST 2014
• First past the post: the responsible choice for Burma

Arakan High Court rejects appeal in Taunggup lynching case Posted: 16 Aug 2014 12:08 AM PDT The High Court of Arakan State on Friday rejected an appeal by lawyers of seven men accused of murdering 10 Muslim pilgrims in 2012. The trial will now go ahead as scheduled at Sandoway [Thandwe] District Court. Charged in May with the murder – which involved a Buddhist mob grabbing a group of Muslims from a bus in Taunggup and beating them to death – the seven suspects had appealed against the charges to the regional high court. The appeal was dismissed on 12 August, according to Aye Nu Sein, a lawyer for the accused. “The High Court confirmed the original charges and dismissed our appeal," she said. "If we do not now appeal to a higher court, the trial will go ahead as scheduled at district level." Related Stories Mandalay curfew to be lifted The roots of intolerance and prejudice in Buddhism Decision awaited on Taunggup lynching appeal She confirmed that the only higher authority in the land was the Supreme Court in Naypyidaw, but elaborated no further on whether such an appeal would be launched. Aye Nu Sein said it appears strange that her clients were not residents of Taunggup Township in southern Arakan State, but were from other places. “The accused are not Taunggup locals," she said. "They are all from northern Arakanese towns such as Rathedaung and Mrauk-U. Only one is local. The six who I represent are not. I think this is strange." The 2012 lynching of the 10 pilgrims in Taunggup was a catalytic incident in the wave of mob violence between Buddhists and Muslims that has plagued the western region ever since.

Burmese govt agrees, in principle, to a federal union Posted: 15 Aug 2014 11:30 PM PDT Burma's central government agrees to the principle of establishing a federal union in the country, according to officials emerging from negotiations between a government delegation and ethnic leaders in Rangoon on Friday. Speaking at a post-summit press conference, Hla Maung Shwe of the Myanmar Peace Center, which is hosting the two-day peace talks, said, "The proposal raised by the ethnic side was to establish a union based on federalism. The UPWC [government's Union Peacemaking Working Committee] agreed in principle to implement the idea – a state based on federalism." He said that the government advocated that such a federal union would be based on whatever agreements were made during the period of political dialogue, which is due to begin within 90 days of a nationwide ceasefire being signed. "The ethnic leaders accepted this proposal. So it is agreed," he said. "This is the main issue, so I hope most of the other points fall into place." Representing the ethnic alliance Nationwide Ceasefire Coordination Team (NCCT), Vice-chairman Nai Hongsa said the UPWC had accepted the principle of establishing a federal union based on democracy, ethnic equality and self-determination. Related Stories Bullet Points: 15 August 2014 Federalism on agenda at ethnic leaders' meeting Aung Min urges MPs to play role in post-ceasefire dialogue "The government delegation agreed with our proposal that we should establish a federal union in Burma based on ethnic equality, democracy and self-determination, a matter the ethnic side believes is most important," he said. "However, we have not yet reached a stage of agreement on every issue. We have just started discussions and have covered only sections one and two [of the proposed draft for a ceasefire]." In his opening speech at the conference on Friday, UPWC Vice-chairman Aung Min said he hopes the two-day meeting will produce "positive results". Ahead of the summit, Nai Hongsa said the ethnic delegation wished to focus on policy issues rather than the wording of the proposal. "Democracy, ethnic equality and self-determination, these are the important priorities on the agenda," he said. "The formation of a federal army within a federal state is also a necessity for the sustainability of the Union." Negotiations were continuing on Saturday. This round of talks marks the fifth meeting between the NCCT and UPWC since May. Several observers said they view this conference as pivotal in the quest for a nationwide ceasefire. Many of the ethnic representatives at the negotiations represent armed groups that have been involved in a civil conflict against Burmese government forces since the late 1940s.

BURMA BUSINESS WEEKLY – 16 AUGUST 2014 Posted: 15 Aug 2014 08:52 PM PDT   Ups and downs The buying rate for Burmese kyat on Friday is 971 to the US dollar, while selling at 972. The price of gold went up from 667,200 kyat per tical this week to 676, 500 kyat. Fuel remained the same as last week: petrol 820 kyat; diesel 950 kyat; and octane 950 kyat per litre. High-quality Pawsanhmwe rice remains at 1,300-1,700 kyat per basket, while low-quality Manawthukha is still set at 900 kyat per basket at most Rangoon markets.   Thailand's PTTEP to explore gas in Burma PTT Exploration and Production Plc (PTTEP), Thailand's sole listed upstream firm, and its investment partners have signed a production-sharing agreement with Myanma Oil and Gas Enterprise (MOGE) for onshore exploration and production rights for the MOGE 3 block. Four exploration wells are planned for MOGE 3 at an initial cost of US$72 million for the first three years, president and chief executive Tevin Vongvanich said in a filing submitted to the Stock Exchange of Thailand this week. PTTEP and its partners won exploration rights in the second round of onshore bidding last year. READ MORE: http://www.dvb.no/news/thailands-pttep-to-explore-gas-in-burma/43125   Burma express Five international express courier services – Magnate Group Logistics, Smart Logistics, Transmarine Logistics Asia, United Courier Services and Myanmar USU Logistics – have each signed agreements to launch operations in Burma. The former three companies were set to begin operations on 8 August while the latter two will start on 1 January. Industry leader EMS is already established in the country, however rival Fedex is not. Previously, customers in Burma had to rely on a government service which was often criticised as expensive and inefficient.   Rangoon to host oil and gas fair in October An oil and gas trade fair will be held at the Myanmar Convention Centre on 15 – 17 October, Nasdaq announced on its news site on Monday. The inaugural event – Oil & Gas Myanmar 2014 – is expected to showcase more than 60 international exhibitors, including strong representation at the Singapore and UK pavilions, the report said. Foreign players such as ConocoPhillips, Royal Dutch Shell and Total all won offshore exploration contracts in March.   Russians signs onshore oil contract with Burma Russia's Bashneft International has signed a production-sharing contract with Myanma Oil & Gas Co and Sun Apex Holdings for inland oil block EP-4 in Pegu Division, according to Burmese state media on Tuesday, reporting that the Russian firm paid a US$4 million signature bonus and that it must conduct environmental and social impact assessments before drilling. Russian state media confirmed the deal, saying Bashneft had signed a three-year contract to investigate the seismicity and drilling of two survey wells.   Air Bagan to offer shares to staff Air Bagan has announced a plan to distribute 40 percent of its more than 30 million shares to staff members for free as it bids to be listed as a public company. The Burmese airline said it had signed all necessary paperwork at the Office of the Registrar of Deeds and Assurances on 16 July. The airline, founded in 2004 by business tycoon Tay Za, is on the US sanctions list.   Power to the people  Speaking at a meeting between government officials and World Bank representatives, Burma's Minister of Electric Power Khin Maung Soe said the government has drafted a plan to bring electricity to the entire country by the year 2030. The minister said the plan was drafted with assistance from the Japan International Cooperation Agency, which has already contributed some 5 billion yen (US$50 million) to provide electrical power to 160 villages around the country.   Burmese post and telecoms must improve to compete with foreign firms, says official Customers in Burma say that state-run Myanmar Posts and Telecommunications' (MPT) service is unsatisfactory and needs to improve now that the telecoms market has two new foreign-owned entries, Telenor and Ooredoo, a senior official in the MPT said on Tuesday. "At the moment, MPT dominates most of the market, but we do foresee that we will begin to lose market shares in the long term," said the principal of the Telecommunications and Postal Training Centre, Kyaw Soe. "For this, we are trying to make our services more convenient and reliable for our customers." READ MORE: http://www.dvb.no/news/mpt-needs-improvement-to-keep-up-with-competition-official-says-burma-myanmar/43235   Thai Oil looks to refine operations in Thanlyin Thai Oil and PTT have submitted a proposal to Myanmar Petrochemical Enterprise to upgrade its Thanlyin refinery near Rangoon. The alliance has been on the shortlist, with the result likely to be announced in the fourth quarter. The refinery upgrade is scheduled for 2016, with initial capacity of 15,000 bpd. Burma consumes only 70,000 bpd compared with Thailand’s 850,000 bpd even though the two countries are not far apart in population size.   Burma's fish stock in severe decline The Myanmar Fish Farmers Association (MFFA) has called for a national-level workshop to discuss the decline of fish stocks. Over the past few years, fish populations in Burmese waters have fallen dramatically due to over-fishing and pollution. The Myanmar Fisheries Federation (MFF) echoed the MFFA in saying that the decline is serious and said it wants to step up efforts to replenish fish stocks. "In 2012-13, around 150,000 tonnes of fish were caught. But from 2010 to 2014 the number gradually declined," said Han Tun, vice-chairman of MFF, adding that since 2010 fish stocks off Burmese waters had almost halved. READ MORE: http://www.dvb.no/dvb-video/action-needed-over-fish-stock-decline-burma-myanmar/43287

First past the post: the responsible choice for Burma Posted: 15 Aug 2014 08:17 PM PDT Burma's relatively new, quasi-civilian leadership has yet to prove that it is responsible and accountable to the country's citizens, who, for the first time after decades under an oppressive military regime, have been given the promise of representation. But the problems in Burma that most affect the lives of its people are rarely reaching parliament, which has chosen instead to focus on convoluted political shuffles and superficial reforms. One lively debate has come out of parliament recently, however. A proposal to adopt a proportional representation (PR) electoral system has sparked heated discussion about how best to bring Burma's marginalised peoples into the political arena. With by-elections expected to be held later this year and a monumental general election slated for 2015, electoral procedures have become one of the most important political issues in Burma. Members of the international community have repeatedly warned that they will be watching to see how Burma performs come election time. Failure to hold free and fair elections could bring big consequences from Western governments that are both eager to invest and apprehensive about Burma's reforms. The PR system, first proposed to parliament by the National Democratic Front (NDF) earlier this year, is an alternative to Burma's current "first past the post" (FPTP) system, which grants representation on a "winner takes all" basis. The proposal was immediately divisive; Burma's main opposition party, the National League for Democracy (NLD), staunchly rejected the idea, while the ruling Union Solidarity and Development Party (USDP) all got behind it. The position of the military on this issue is still unclear. The NLD rejected the proposal on the grounds that the current Constitution does not allow for the introduction of a new electoral system. While the military-drafted charter is largely contested and viewed by many as an illegitimate document in dire need of revision, Burma's politicians are keenly aware that they have to play by the rules. Related Stories We are in favour of changing Article 436, say committee members Bullet Points: 12 August 2014 Thousands need water after storms in Mon State Proponents of PR argue that the system would empower small parties that represent minorities because it would reduce "wasted votes" and ensure a more diverse parliament. Detractors, however, view the switch as an attempt to weaken the opposition's power by splitting it up into disparate factions. While Burma is known as an incredibly diverse country – populated by people of many ethnicities, faiths and cultures — many of the country's minority groups have allegiances to each other. The PR system, some analysts say, would weaken this unity and create competition among minorities which could do more harm than good. Ensuring diversity and inclusivity in the political and social spheres is necessary as the country moves towards achieving democracy. That said, the idea of "diversity and inclusivity" should not be manipulated to overwhelm the legislature and flummox the general public, who, more than anything, crave unity. National policies cannot be "diversely" implemented. If Burma's parliament attempts to establish such a system, a party run by cronies or by Buddhists could create self-serving policies, the opposition's policies will compete with each other, and the legislature will stagnate. Attempting to suddenly diversify the parliament will not actually bring about legal protections for the country's diverse population. Diversity can only be maintained on a personal level, through one's own moral conviction. It is not a collective mandate. The principle of maintaining diversity suits smaller units of governance, such as village or township committees, but it would be preposterous to make diversity the top priority when electing union-level legislators. The most important quality for a political assembly in any democratic system is the ability to compromise. This is what we should look for in our leaders, and we should create a system that allows them to do that successfully in a way that meets the diverse needs of the country. “A PR system, at this point in Burma's transition, would further institutionalise already strong interest groups like Buddhists, cronies and veterans… These interest groups do not seek compromise, they seek power” Some people assume that a FPTP system is unfair because of its winner-take-all nature. This assumption is wrong; in a vibrant, competitive and fair election, the candidate who wins is the one most favoured by voters. It is the minority votes that tend to break ties in close, competitive races. They are the voters that swing elections, they choose the candidate best able to compromise on their behalf. A PR system, at this point in Burma's transition, would further institutionalise already strong interest groups like Buddhists, cronies and veterans by ensuring their place in parliament while weakening their opponents. These interest groups do not seek compromise, they seek power. Benefitting them through electoral reform would contradict a fundamental ethic of law-making; laws exist to protect the weak from the powerful. Laws pave the way for preserving the common interests of the people. In free and fair contests, legislators are elected because people trust their judgment and ability to make decisions that will benefit the community. Choosing leaders based on specific interests, a likely outcome of the PR system, could fracture those communities. Acknowledging the views of minorities is crucial to democracy, but allowing those views to be overpowered by other interest groups that are sure to be supported is unacceptable. The PR system will entrench special interests in the parliament and create a political impasse, at the very moment when the nation needs general consensus to keep reforms moving quickly and smoothly. In Burma, where many of those interests — namely, faith-based, economic and military — are closely related to each other, they could become an overpowering political presence in the government, leaving the nation's people stranded. The PR system is representative, but FPTP is responsible. The FPTP system elects the candidate that appeals to the broadest spectrum of voters, special interests aside. Proportional representation, at this point in time for Burma, runs the risk of empowering extremists and opportunists. Keeping Burma's reforms on track will require the critical capacity to choose leaders based on the common sense and common interest of the majority.   Dr Nyo Tun has worked as an international consultant for the EU, USAID and Gates Foundation-funded study projects which analyse strategies for national and global health issues. Prior to his international consultancy work, he led public health initiatives for providing health care to marginalised populations in various regions of Burma.  The views expressed in this article are the author's own and do not reflect DVB’s editorial policy.

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Shan Herald Agency for News

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Decentralization or Co-opting Ethnonationalism: 8 States or 14 States and Regions? Posted: 15 Aug 2014 09:32 PM PDT Lately, the question of whether 8 States or 14 States and Regions should be used for the equitable power-sharing solution, in rebuilding a genuine federal union, has rear its head and come up again, as a main sticking point for the fusion of Shan Nationalities League for Democracy (SNLD) and Shan Nationalities Democratic Party (SNDP), the two Shan political parties. SNLD is headed by Hkun Htoon Oo, which had won the second place in 1990 nationwide election after Aung San Suu Kyi led National League for Democracy (NLD) and came out first in Shan State. SNDP is led by Sai Aik Pao, which came out third in 2010 nationwide election, after Union Solidarity and Development Party (USDP) and National Unity Party (NUP). 1. THE MAKING OF 6 STATES AND MYANMAR PYI-MA  First, let us go back to the historical backdrop of how the 6 Ethnic States and Pyi-Ma or Mother State come into being, after the British had left Burma, in 1948. Chin: On the eve of independence from the British in 1948, Chin Hills Special Division was carved out of Arakan Division, with the capital at Falam. On January 4, 1974, it was granted the state status and became Chin State. Kachin: The Burmese government under Aung San reached the Panglong Agreement with the Shan, Kachin, and Chin peoples on 12 February 1947. The agreement accepted "Full autonomy in internal administration for the Frontier Areas" in principle and envisioned the creation of a Kachin State by the Constituent Assembly. Kachin State was formed in 1948 out of the British Burma civil districts of Bhamo and Myitkyina, together with the larger northern district of Puta-o. Shan State: On 28 November 1885, the British captured Mandalay, officially ending the Third Anglo-Burmese War in just 11 days. But it was only in 1890 that the British were able to subdue all of Shan states. Under the British colonial administration, established in 1887, the Shan states were ruled by their saophas as feudatories of the British Crown. The British however placed Kachin Hills inside Mandalay Division and northwestern Shan areas under Sagaing Division. In October 1922, the Shan states, and Karenni states were merged to create the Federated Shan States, under a commissioner who also administered the Wa State. This arrangement survived the constitutional changes of 1923 and 1937. During World War II, most of Shan States were occupied by the Japanese. Chinese Kuomingtang (KMT) forces came down to northeastern Shan states to face the Japanese. Thai forces, allied with the Japanese, occupied Kengtung and surrounding areas in 1942. After the war, the British returned, while many Chinese KMT forces stayed inside Burmese Shan states. Negotiations leading to independence at the Panglong Conference in February 1947 secured a unitary Shan State, including former Wa states but without the Karenni states. More importantly, Shan State gained the right of secession in 10 years from independence. Karenni: The Constitution of the Union of Burma in 1947 proclaimed that the three Karenni States be amalgamated into a single constituent state of the union, called Karenni State. It also provided for the possibility of secession from the Union after 10 years. In August 1948, the Karenni leader U Bee Htu Re was assassinated by central government militia for his opposition to the inclusion of the Karenni State in the Union of Burma. An armed uprising swept the state that has continued to the present-day. In 1952, the former Shan State of Mong Pai (1901. pop - 19,351) was added to Karenni State, and the whole renamed Kayah State, possibly with the intent of driving a wedge between the Karenni (in Kayah State) and the rest of the Karen people (in Karen State), both fighting for independence. Karen: Since Burmese independence in 1948, the Karen relationship with Burma has been primarily political. The old Karenni states formed Kayah State, and in 1952 the Burmese government established Karen State with Pa-an as its capital. During the 1964 peace negotiations, the name was changed to the traditional Kawthoolei, but under the 1974 constitution the official name reverted to Karen State. Mon: In 1974, Mon State was created out of portions of Tenesserim Division and Pegue Division, partly to calm down the demand for rights of self-determination and separative tendency of the Mon resistance movement. Arakan: Arakan independence, spear-headed by the Arakan resistance movement have been ongoing, since the early 1950. In part to appease this sentiment, in 1974, the socialist government under General Ne Win constituted Arakan State from Arakan Division giving at least nominal acknowledgement of the regional majority of the Arakan people. Burma Proper/ Pyi-Ma: Various names have been in used concerning the homeland of Bama or Burman.  "Bama Pyi"-meaning: Bama State or Country-, "Myanmar Pyi" - Myanmar State or Country-, "Ministerial Burma, Burma Proper or Pyi-Ma", were used interchangeably. But the name Pyi-Ma is seldom used in official documents and instead used or refer to as "the remaining territories of the Union of Burma", in the 1947 Union of Burma Constitution. According to Chao Tzang Yawnghwe, in his article " Putting Burma Back Together Again", writes : In truth, the 1947 Constitution contravenes the Panglong Spirit. The principle contravention is the setting up of one state -- the Burma State or Burma Proper -- as the Mother State (Pyi-Ma, in Burmese). What this means is that the Burma State, as the Pyi-Ma or Mother State, was the central power to which other member states of the Union were, or have to be, subordinated to. Clearly, such an arrangement is colonial in nature. And equally clear is the fact that the 1947 Constitution does not in any way, shape, or form fits in with the Panglong Spirit. A return to the 1947 Constitution or a similar kind of arrangement is therefore not adequate. The understanding was that the peoples and leaders of the Frontier Areas would join with the Burman nationalist forces to jointly fight for independence, and that a federal Union (Pyidaungzu, in Burmese) of equal states, guaranteeing self-determination for all ethnic segments, would be established. However, the constitution (the 1947 Union Constitution) which emerged was, from the viewpoint of the non-Burman leaders, not federal, but a centralized, or semi-unitary one. It was one where one constituent state, Ministerial Burma or Burma Proper, occupied the position or status of the mother-state (Pyi-Ma, in Burmese). The relationship was one like that which existed between England, the mother state, and Scotland, and Wales. The other seven states were not equal members of the Union, and were at best semi-autonomous, but subordinated entities vis-à-vis the Burman mother-state. Their status and competencies were defined not in the respective state constitutions— there were none— but in sections of the Union constitution which, in essence, was the constitution of Burma proper, the mother-state. 2. FOR AND AGAINST 14 STATES AND REGIONS CONFIGURATION Recent set-up of 14 States and Regions, unitary system with some power devolving to the states; and 8 States-based federal arrangement, within the mould of federalism are two schools of thought, which are being considered to reach political settlement between the military-dominated government, the ethnic nationalities and democratic opposition groups. Generally the non-Burman ethnic groups considered that in order to be a genuine and equitable federal union, there is no other way than creating a Bama State, as equal partner, in relation to the other ethnic states. According to the NCGUB Border Office documentation, written in Burmese, on "Federal Proposal Petition", Sao Shwe Thaike tabled a personal letter to the Constitutional Amendment Committee, on 22 December 1960, which part of the letter writes: "To observe the past 13 years of practical implementation of the Union of Burma Constitution, it seems like the constitutional law has allowed to practice the doctrine of "racism". Burma Proper or Myanmar Pyi-Ma has not function as a state, but seems to have administered and taken the place of the British colonial master. It is not like voluntary fusion of all the constituent states, but looks like becoming subordinate states under Myanmar Pyi-Ma domination. The States have to ask everything from it and there have been no rights of self-determination, under the constitution; and it is entirely up to the Union Government in the administration of the states." He further pointed out: " The real essence of "Federation" should be that Myanmar Pyi-Ma should have equal rights and treated as an equal constituent state as all the other states. But according to the present constitution, Myanmar Pyi-Ma is having the advantage of usurping the power of union and that was why the other states were dissatisfied with it." In a foreword written by the well known, Bama politician, Thein Pe Myint for an article written by U Htun Myint (Taunggyi) titled, "An equal Shan State within the Union", on 24 February 1961, writes: " If it is a union all states should have equal rights. To be equal, the first thing to do is to change and organize Myanmar Pyi-Ma into a state. The union will become genuine only when all equal states merge together." The States Unity Organization, made up of all non-Burman ethnic groups within Burma, submitted a document in January 1962, which part of it writes: 1. To ensure that the Union of Myanmar becomes a true federal union,it must be based on the national stand that all states coming together to form the union are equal. Therefore a true federal union cannot be a combination of Myanmar Proper and the states. Myanmar Proper must be established as a state, after which a true federal union of states should be formed. 2. as the usurpation of the central powers of government by Myanmar Proper means a lack of equality, thereby creating dissatisfaction, we strongly desire the removal of this dissatisfaction by establishing a Union of Myanmar with Myanmar Proper as one of the constituent states. (Source: History of Shan State; by: Sai Aung Tun; page 443.) Another school of thought, which have resigned to the thought that the military-dominated government would not budge from its presidential unitary system with 14 States and Regions, have devised some plans on how to make the best out from the existing situation. Examples of what could be done to enhance the decentralized aspects of the present constitutional framework in order to strengthen its federal features - with or in many cases without  amendments  to the 2008 Constitution – would be: to delegate more administrative and financial resources to the States and Regions, to delegate by union law the implementation of union legislation to States and Regions, to boost their share in public expenditure, to allow them a margin of deviation from national policy frameworks to adjust union norms to their particular social and geographic circumstances, to allow State and Region governments to coordinate positions amongst themselves vis-à-vis the union government, to develop a modern framework for decentralization of administrative services to the local level, both in urban and rural areas and move towards local self-government. to allow States and Regions to take their own decisions facilitating the use of local languages beside Myanmar language, to increase the availability of disaggregated data which should make planning and investments by sub-national governments more tailored to local needs, to allow more genuine public participation of citizens and access to government at the local and Region/State level. (Source: Constitutionalism and Legal Change in Myanmar Workshop, 13-14 Feb 2014 Singapore Towards "genuine federalism"?- By: Marcus Brand) Another gist guideline recommendation made by the Asia foundation on reform process are as follows: Rationalize state and region government administration and human resources Further clarify the roles and responsibilities of the state and region departments Separate state/region departments from union ministry structures; programmes and incentives for relocating civil servants Consider creating state/region civil service organizations Support state and region ministers' and departments' independence from the General Administration Department Issues: Role of GAD as state/region government office in Constitution Civil service reform & restructuring a challenge Deepen the deconcentration process within union ministries Policy framework for line ministries to further deconcentrate responsibilities across administrative levels Capacity support to line ministries as they deconcentrate, and to state and region ministry offices as they take on new tasks Ensure resources for functions at state/region level are predictable and transparent; modest budget deconcentration Ensure offices engage in participation and outreach with state and region governments and hluttaws, as well as civil society and communities Issues: Care needed to avoid unfunded responsibilities Broaden the scope of state and region government responsibilities Consider including aspects of education policy and provision including hiring and language of instruction in state/region legislative or administrative list Foster more state and region participation in the management of significant natural resources, and approval and oversight of natural resource extraction and development concessions and projects, possible involving state and region authorities in EITI Issues: Modification of Schedule Two, or addition of functions through union law Strengthen public expenditure management, budgeting and resource allocation Strengthen tax policy and administration at state and region level Improve union public financial management capacity for fiscal projections Revise allocation of the Poverty Reduction Fund & develop intergovernmental fiscal arrangements Ensure donor programmes support state and region planning, budgeting and monitoring capacities Support Union Financial Commission to develop and apply transparent fiscal policies Improve clarity of national accounting and budget presentation Issues: Budget comprehensiveness challenge Develop a transparent and rules-based intergovernmental fiscal system Consider wealth sharing arrangements including what should be included, who collects, and the formula Consider the overall transfer system including what functions must be financed, what equity and policy goals are important, and what will encourage good governance, revenue or service performance. Policies for management of foreign financial flows in relation to states and regions Issues: Participation of peace process stakeholders Strengthen the political autonomy of the state/region government Support state and region hluttaws to function more effectively in legislative and oversight roles, especially for small hluttaws Consider how to increase Chief Minister accountability to state/region Comprehensive communication and constituency engagement strategies at the state/region level Issues: Rules on hluttaw formation or size Rules on Chief Minister appointment (Source: The Asia Foundation: State and Region Governments in Myanmar; September 2013) 3. THE BASIC ARGUMENT The basic argument whether the 14 States and Regions configuration with the a built-in unitary system could accommodate the ethnic nationalities demand for full fledged federal system of governance is an open question. The splitting of Burma Proper or Pyi-Ma into 7 Divisions, in BSPP era, and later changed to 7 Regions by 2008 Constitution, and the subsequent acceptance of the SLORC , SPDC and present Thein Sein government is to pre-empt the ethnic groups' bargaining position and ensure Bama majority superior posture in all political decision-making power. While the Bama military leaders like to portray this diversifying Pyi-Ma as an act of decentralization, the real motivation is more to balance the ethnic bargaining power. The understanding that the federal union be formed, along the 8 major ethnic line, with built-in minorities' rights, has been the norm all along. And the splitting of Pyi-Ma into 7 Regions is a direct assault to the territorial-ethnic-based federal agreement, and replace it with just a territorial-based federal system. In other words, it is aimed at diluting the ethnic identities and co-opting ethnonationalism with the replacement of individual, civil and citizenship rights. During a short-lived parliamentary era from 1948 to 1962, with the exception of care-taker, military rule from 1958 to 1960, the Bama have always been the majority in Chamber of Nationalities and also in Chamber of Deputies, under 1947 Union of Burma Constitution. In Chamber of Nationalities, the Bama-dominated areas were represented with 62 seats, while the combined ethnic states were just 63. In the Chamber of deputies, needless to say, the Bama, having the numerical majority within the country, dominates the parliament. The one party system rule of BSPP era was a military rule, in fact, and the military is dominated by the Bama, as it is also the case now. The present, military-backed Thein Sein regime also act like the parliamentary era, with the Bama-dominated military calling the shots in all aspects of political and social lives. No wonder, House speaker Thura Shwe Mann said that he would have no rejection on federal system governance installation, if 14 states and regions configuration is accepted. The ethnic nationalities see this as a pre-empt act to undercut the ethnic veto position in a federal set-up; and the successive regimes just follow the remake of Burma Proper for this is an advantaged position vis-a-vis the ethnic nationalities. The argument of the ethnic groups today is still the same as the demand spelled out in 1961, documented by the Shan Federal Proposal, i.e., the creation of a Bama State, as an equal constituent state like all the others; amendment of the 1947 Union of Burma Constitution, according to the 1962 Shan Federal Proposal; and last but not least, to refine or fine-tune the whole process according to the existing political nature of the day. 4. INTRA-SUBSTATES' MINORITIES EMPOWERMENT AND PROTECTION Whatever the case, whether the rebuilding of a federal form of governance happens within the mould of 8 States or 14 States and Regions, the empowerment and protection of the sub-states' or sub-national units' minorities have to be guaranteed constitutionally. A geographical configuration of a federal state, including one that heavily relies on ethnicity in the making of sub-national units, don't leave us with separate ethnically pure territorial units. Be it indigenous ethnic groups (i.e. indigenous to the area they inhabit) or ethnic migrants, there will always be ethnic minorities that are scattered in the midst of regional majorities. It is also indicated that federalism may not adequately respond to the security and respect of intra-substate minorities. A federal arrangement that grants a mother state to a numerically dominant ethnic group within a territorial unit often exposes minority groups to discriminatory policies of the regionally dominant group. Such an arrangement would only move the locus of inter-ethnic conflict and tension from the central government to the level of the constituent units. Of particular importance in any multi-ethnic federation is thus the need to take into account the interest and rights of intra-substate minorities. Securing the rights of minorities which are created by autonomy arrangements is crucial for the long term success of any federal arrangement It is submitted addressing the anxieties of regional minorities requires the state to accept that the constituent units are sharing with the larger state the same problem of accommodating ethnic diversities but only at a constituent unit level. In prescribing a particular response, however, a distinction has to be made between ethnic groups that are scattered throughout the country, on the one hand, and those that are territorially concentrated but do not have their own self-governing unit, on the other. For the former, the application of aspects of self rule and shared rule, owing to their territorial dimension, may not be appealing. The anxieties of such geographically dispersed ethnic groups can be addressed by adopting a judicially enforceable bill of rights. For geographically concentrated ethnic groups, on the other hand, the constituent units, recognising their multi-ethnic character, can apply, to the extent possible, processes and institutions of both self rule and shared-rule. (Source: IACL World Congress, Mexico 2010 - Federalism and intra-substate minorities: First draft) In Burma context, Shan State's Pa-o, Palaung, Danu, Intha, Wa and the likes will fall into sub-national units' minorities. In Kachin State, the Red Tai will fall into this category. In Irrawaddy Region, the Karen will be the case.In Sagaing Region, Shan, Naga and Chin will be minorities, while the Bama will be in majority, and so on. In short, any attempt made to transform the unitary to federal system will have to incorporate "self rule, shared rule and adopting a judicially enforceable bill of rights" for the sub-national units' minorities, if reconciliation and peaceful co-habitation is to be achieved in Burma. NOTE: "The Making of 6 States and Myanmar Pyi-Ma" part is written with the reference of 1947 Union of Burma Constitution, 1974 BSPP Constitution, Chao Tzang Yawnghwe's various articles and numerous other sources.)

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