Shan Herald Agency for News

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Peace: Harder to win than war Posted: 06 Oct 2014 02:09 AM PDT I'm not supposed to write anything about the Shan leaders meeting, 2-4 October, that had just concluded. But since the cat is out of the bag and I believe I won't be compromising anybody and, moreover, the people have a right to know what had taken place so they can come to what they believe as the right decision, the following journal is presented with "some gloss-overs"  that are essentially factual. Day One Wednesday, 9 October 2014 I am one of those who believe that the Shan's Toe(Toe Naya in Burmese), the mythical 4 legged creature featured in most of their traditional dances, is actually the Yak that live in the far and cold north of Asia. That they died during the Shan exodus to the south. And that Shans have since then started the Toe dance in their honor. My belief is once more assured by the Thai Airway's Sawasdee in-flight magazine spotlighting Yaks in Li Jiang, northern Yunnan, where one of the Shans' cousins, Yi, live. "Perhaps they don't dance like Toe?" the doubtful Shan officer who sits beside me says. "They do," I reply. "I have seen Mongols featuring them in their circus shows." The hotel in Bangkok is right on the east bank of the Chao Phraya. Its guests are overwhelmingly Chinese. Naturally conversations in Shan, Burmese, English and others are hopelessly drowned out by Chinese. We find Shan leaders from Burma, escorted by Naypyitaw's foremost peacemaker U Aung Min, already checked-in by the time we arrive there. After lunch we hold a preliminary review of the 6thand latest meeting between the rebels' Nationwide Ceasefire Coordination Team (NCCT) and the government's Union Peacemaking Work Committee (UPWC) with the Karen National Union (KNU) and the Myanmar Peace Center (MPC) representatives. The following is the gist: ·       The deadlock at the latest parley took place because the military's smoldering suspicions were aroused by the United Nationalities Federal Council (UNFC) that had concluded its first congress on 2 September. It believes that the 12 party armed alliance will try to footdrag the signing of the Nationwide Ceasefire Agreement (NCA) until 2016 after the new government, preferably under Aung San Su Kyi, has been in place ·       The result of it was the toughening of the military's position like reiterating the Commander-in-Chief's 6 point prerequisite which requires the ethnic armed organizations to accept the 2008 constitution it had drafted and ratified ·       The MPC appears to be of the opinion that negotiations for the Framework for Political Dialogue should begin whether or not the NCA is completed in order to sustain the momentum Meanwhile Shan leaders also meet to discuss their growing concern over the impending attack by the Burma Army against the Shan State Army (SSA) at the Ta Phasawng Bridge over the Haen river in Kehsi township. "The Burma Army doesn't need it," says a leader. "It is already in occupation of the main crossing. This is only a pretext to remove the SSA." The Burma Army had issued an ultimatum: Move out before 12:00 today or face the consequence, according to the SSA.

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Democratic Voice of Burma

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• Burma’s capital and labour market challenges
• ‘Burma will become a responsible timber-trading country’
• Will Burma’s Reforms Sideline Suu Kyi’s Political Influence?

Burma’s capital and labour market challenges Posted: 04 Oct 2014 11:38 PM PDT Just a little more than a generation ago, many countries in Asia, with the exception of Japan, were associated with endemic poverty, hardline ideological regimes, and state-controlled economies that barely met the needs of the people. The people power uprising in Burma, now Myanmar, in 1988 was quickly crushed by military regimes intolerant of political change as was the movement pushing for democracy which occurred in China's Tiananmen Square in 1989. Fast forward to 2014, and, with apologies to Bob Dylan, it can definitely be concluded that The Times They Are A-Changin. Or perhaps more appropriately – The Times They Have A-Changed. “Although the argument can be made that foreign investment creates efficiency in the market due to increased competition, the long-run result may simply be the monopolisation of the market by the foreign investor due to deep financial resources.” One of the major reasons for this reversal of fortunes has been the opening of markets in this region and the associated massive flow of capital that followed. Financial consultants, business executive and central bankers have come a-calling preaching the gospel of the market economy with pockets full of money for foreign investment that may create business and employment opportunities or exploit a country's resources for the benefit of a few. For a country like Burma the benefits and cost to these new developments are far from certain. Economics by nature is not a generous science. The best of all world scenarios are usually exceptions to the rule, with a number of trade-offs being the norm. Growth often is accompanied by the negative effect of income equality, inflation and environmental degradation. The adage that economic growth is an essential condition for economic development it is not necessarily sufficient. And there is no guarantee the opening of the market will improve human rights, though proponents at least give lip service to this goal. Capital Markets While Burma has become a population destination of choice for foreign investment, investors face both substantial opportunities and threats. Burma's challenge is to ensure the investment benefits the nation. The inflow of capital provides less developed countries with much needed funds for development that cannot be generated in the domestic market due to a lack of savings. Foreign investment, for example, serves to foster the creation of the infrastructure and industrial base deemed necessary for a market economy to develop. This capital can also fund local entrepreneurs willing to take the risk of starting business ventures. As growth begins, the allure of profits and the desire of firms and individuals to improve their economic standing provide the catalyst for even further investment. This puts the country on the development path and, theoretically, these benefits of the market should significantly contribute to economic growth and in the long-run spread to all sectors of the economy. At the same time, however, forces are at work that may negate some of the investment benefits. Foreign investment, for example, may mainly drive out local producers. Although the argument can be made that foreign investment creates efficiency in the market due to increased competition, the long-run result may simply be the monopolisation of the market by the foreign investor due to deep financial resources. If most of the profits of the foreign investor are repatriated, the positive effects on the domestic market may be negligible and generate fear of exploitation of a country’s resources. “Cheap labour – the comparative advantage of a nation –turns out to be its worst enemy.” In addition, the foreign investments, which tend to flow to those areas with the highest expected rate of return, are often not necessarily the types of investment the population at large needs most. The construction of five-star hotels, office space and golf courses receive investment priority and tend to continue even if a glut occurs. Overseas development aid has too often placed emphasis on providing opportunities for companies associated with the aid-provider rather than the recipient with the end result harmful real estate speculative bubbles. The phenomenon can be found particularly in Burma which has become the new darling of both donors and foreign investors despite significant human right violations against ethnic and religious minorities. Although criticism of this opening up has come from some sources, perhaps the best way of understanding the change in philosophy is to quote British economist Joan Robinson, who postulated that "The misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all." It is also somewhat easier for the leaders in Burma to allow such "exploitation" since much of the present wealth is concentrated in the hands of the ruling military, who despite their claims of promoting democracy and market economics, maintain firm control over the economy. Investors desiring to enter the market in Burma realise they have to deal with these people; the pursuit of profits is rarely hindered by moral concerns. Related Stories Tokyo considers investing in Dawei deep-sea port Lion’s share of Burma’s new bank licenses awarded to Japan Land sales plummet following Rangoon New City project suspension International organisations such as the World Bank and the International Finance Corporation, for example, still subscribe to the belief that increasing profits of the private sector (and mainly the high income sector) will in the long run benefit the poor. This is just a version of the controversial and frequently discredited trickle-down economic policy of free-market economists. Yes, the benefits may trickle down, but often the amount is a drop of water to the poor for every bucket of water given to the rich. Yes, the luxury hotel will have to hire staff which one can argue benefits the lower income groups. Granted, over the long run, the growth of the country’s economy may have positive effects for the nation as a whole, while the poor (mostly rural sector) may see marginal improvement in their standard of living. However, quite often their relative position declines as prices rise and environment degradation of these areas occurs due to an attitude of "develop at all costs". Labour Markets The opening of the Burmese economy will no doubt benefit the labour market. The market economy will provide the incentive for workers to improve their productive capacity in order to receive higher wages. Higher wages, or the ability to purchase more goods, should in turn foster business and job creation – a.k.a. economic growth. And observing the economy standing of most workers in newly developed economies makes it hard to dispute the advantages of the market economy. However, in many less developed countries, Burma as a good example, the influx of foreign firms also serves to exploit the excess supply of unskilled workers. These firms, relying on the low-cost worker for labour-intensive production, have no incentive to teach these workers more than the rudimentary skills necessary to work on a crude production line. This translates into a long-run situation where the productive ability of the workers does not improve, thus placing the country in a low wage equilibrium trap. Cheap labour – the comparative advantage of a nation –turns out to be its worst enemy. The benefits of opening the economy of Burma will depend on the extent to which market failures are recognized. Addressing the many issues that come up will take time and investors, international agencies, and the Burmese government must be cognisant of the often opposing factors which are unleashed. Politico-economic skills must be fully harnessed to avoid instability, disruption, and a return to the violent past. It would be naive in the extreme to assume that historically massive capital inflows and changing labour markets will not create a mixed bag of cost and benefits. The challenge of Burma is to create a framework which benefits the economy and society.   Dr. Dennis C. McCornac teaches economics at Loyola University Maryland USA specializing in economic development and the economies or East Asia. Dr. Anne Cullen is an Associate Dean at the American University in the Emirates with a specialty in Asian Politics. dcmccornac@loyola.edu, http://www.loyola.edu/sellinger  The views expressed in this article are the authors' and do not reflect DVB editorial opinion.

‘Burma will become a responsible timber-trading country’ Posted: 04 Oct 2014 09:35 PM PDT A workshop on exporting Burmese timber and other forest products to Western countries was held on 30 September at the Myanmar Timber Merchants Association office. The workshop was attended by timber merchant organisations from Britain, Denmark, USA, Australia and the Netherlands, as well as officials from Burma's Forestry Department and related NGOs. During the workshop, a joint working group was created, in part to ensure that forest products are exported in accordance with local and international law. DVB's Aye Nai interviewed Bar Bar Cho, joint secretary of the Myanmar Timber Merchants Association, about the workshop and how Burma's new logging export ban will affects industry. Q: What was the outcome of the meeting between the EU delegation and the Myanmar Timber Merchants Association on 1 October? A: Actually, we met with three groups on 1 October: the EU delegation; an American group called the International Wood Product Association (IWAP); and the Australian Timber Importers Federation. They all wanted to learn about Burma's forest product supply chain in a step-by-step manner. They also wanted to know about our standards and how our industry works. We all talked about how to cooperate in order to reach the higher standards of developing countries. We invited the foreign groups in order to establish a market for our products, learn how to enhance the value of our products, and give Burmese industry players a chance to express their ideas. Q: What does the EU want to import? Do they want to invest in logging, timber or processed wood? A: As you know, the export of logs has been prohibited. However, foreign buyers don't mind whether they import timber or processed wood. According to many countries' laws, imported forest products must be harvested in accordance with certain laws and standards. This is their main challenge, as they can only import forestry goods if there is a guarantee that the wood comes from forests that are "legal". If no such guarantee exists, foreign buyers are in danger of breaking the laws of their own countries. This is why the foreigners came to meet with us, as they don't want to break their own laws when importing Burmese forest products. It's not their intention to establish wood processing operations or make other investments in Burma." Q: Do you expect that Burma’s timber or furniture businesses will benefit from the meeting? A: For both furniture and wood, the main issue is whether the market is willing to accept the products. In some cases, even if there is market demand in a particular country there may be legal or political factors which limit our ability to trade with that country. Accordingly, our meeting was designed to find ways to implement responsible trade practices that would be acceptable to NGOs and foreign governments. We didn’t necessarily focus on the quality of the product itself. Q: Could you say this meeting marks the initial opening of Burma's timber industry after the EU and US relaxed their human rights-related sanctions against Burma?  A: Actually, the EU and US sanctions were lifted at different times. We have already been engaged with the EU for a period of time because the Europeans relaxed their sanctions earlier. But we've told the buyers that it's inconvenient if they all come separately, as we have to keep answering the same questions when the Americans come, the Australians come, etc. So we organized this event in order to talk with everyone together and make sure we're all on the same page. Many customers were invited to the meeting, and on our side we invited the relevant government departments. Q: Could you talk about the outcome of the meeting and your hopes for the future of the industry? A: I want people from other countries to remember this meeting and I want to see the industry develop. The participants said there should be a timeframe, so a proposal was put forward to form a working group or a task force. Since the participants agreed on this point we have formed a working group with representatives from the Myanmar Timber Merchant Association, NGOs and the government. The working group will be in touch with buyers and consider how our side should proceed and what the buyers can provide. We will also discuss what kind of technical support and capacity building they can give us, and the buyers will tell us more about these issues after returning home. The foreign attendees also told us to provide our time framework, and we agreed to work on this. Anyway, I think this meeting marks the beginning of Burma's history as a responsible timber-trading country. Related Stories Rakhine Action Plan a 'blueprint for segregation and statelessness' Burmese army launched 'unprovoked attack', say Shan rebels Lion’s share of Burma’s new bank licenses awarded to Japan

Will Burma’s Reforms Sideline Suu Kyi’s Political Influence? Posted: 04 Oct 2014 07:56 PM PDT Burma's military rulers have wised up since 1990. After Aung San Suu Kyi was elected in a landslide victory the military rulers quickly discovered that Democracy threatened control over their self-interests. They promptly placed Suu Kyi under house arrest and returned to their business as usual. Prior to Suu Kyi's release in 2010 Burma's dictatorship announced its new Constitution. The recent “reforms” rolled out in 2012 by a former general, President Thein Sien, was touted as amazing progress by governments, institutions and people across the globe itching to get their hands on a piece of Burma's vast resources and access to its low wage manufacturing workforce. In the early days of reforms even U.S. President Barack Obama took his entourage to Burma gleefully visiting Suu Kyi and President Thein Sein. Burma is slowly and chaotically adapting to the economic newness of, well, everything. Though due to a countless number of reasons, Burma has a long way to go before rising just slightly on the list of least developed nations. For example the Burmese military leaders' recent admission of using child soldiers led them to "pledge" an end to the practice in a few months time rather than immediately. Read – not really. Since Suu Kyi and President Thein Sien made worldwide diplomatic tours, received awards and showers of praise, the world's exuberance over reforms has quieted. Burma's leaders had their promised time as the ASEAN Chair in exchange for reforms. They are now looking at the 2015 national elections with a sentimental eye on the past and one worried eye on the future. With real estate values blown off the charts, pre-reform-like stifling of political critics, arrests of land rights activists and journalists now occur more frequently. According to the Assistance Association for Political Prisoners not all political prisoners have been released from prison as promised by President Thein Sein. Government rule is softly moving into a nebulous conditional domain described by key government officials and military leaders as a "Disciplined Democracy." Pre-empting Suu Kyi's release, a new constitutional law was written by Burma's rulers to prohibit her from running for President. The massive crowds she raised at campaign events leading up to recent by-elections, they said, reminded them of the famous 1988 uprisings. More to the point, such large crowds supporting Aung San Suu Kyi scare the hell out of the military leaders. They have no way to counter the support for the one person in Burma capable of effectively opposing them for years on end simply by remaining in her own home. If she is also prevented from campaigning outside her home district prior to the 2015 elections, Suu Kyi's affect on Burma's people will be severely limited. If Suu Kyi obeys the prohibitive law, its legitimacy will be enforced. If she runs a national campaign, she will break the law created to prevent her from refreshing support for her and other NLD candidates. Either way, the government's response to Suu Kyi's actions will reinforce the "disciplined democracy" approach desired by Burma's current leaders. Preventing Suu Kyi from campaigning for the NLD sets her on the margins of authority. Politically, she may as well be under house arrest. With Suu Kyi nudged out of the top political sphere, her influence on national and regional issues may equally vanish. As Suu Kyi ages and with no national leader remotely as popular in opposition to the military rulers, the NLD may be in danger of permanent collapse. Suu Kyi, NLD followers and like-minded supporters recently made brisk progress, using basic principles of democratic freedom, by gathering millions of signatures to petition the government to amend the law barring her from the Presidency. The law disqualifies Suu Kyi because her adult children are not holders of Burmese passports. Will Burma's current rulers listen to Burma's citizens? Or, will they listen to the Chinese investors, IMF, and other foreign investors currently planning to convert greater Rangoon and Mandalay into enormous enterprise zones? Mainland South East Asia, with over 300 million people nestled between three of the world's most populous nations, India, China and Indonesia, is preparing for unprecedented change. Rangoon and Mandalay are merely puzzle pieces to mainland ASEAN's planned regional development. Overland trading by road and rail connecting India and China with Vietnam, Lao PDR, Cambodia, Thailand, Malaysia, Singapore and Burma are underway. Currently not one mainland ASEAN nation has a democratically elected government and only Burma possesses a formidable opposition leader. Foreign leaders and dignitaries have no option but to deal with the current and retired military leaders in Napyidaw no matter how much they admire Aung San Suu Kyi. Recently, US Secretary of State John Kerry visited Burma's leaders to discuss the approaching national elections and to meet with gathering ASEAN leaders. Some observers unfairly rebuked Kerry for using a hotel owned by a military dictatorship crony, still sanctioned under US policy. Related Stories PR, FPTP or five other electoral systems: Shwe Mann Tokyo considers investing in Dawei deep-sea port Lower house approves Rule of Law Committee report None can visit Burma now, or could have in the past, without their cash going to the government and its cronies. One could optimistically argue that Kerry can sleep anywhere in Burma if he helps create an opening that allows Suu Kyi's candidacy for President. More importantly than where Mr. Kerry slept, the United States is a consistent supporter of Suu Kyi and the Burmese people's quest for democracy. Mr. Kerry didn't fail to mention that, lest anyone forget it, now that Burma is awakening to the world beyond its borders. A more prophetic part of Kerry's trip was that he nearly missed a meeting with Suu Kyi at her home in Rangoon. An excellent question was quickly raised by Irrawaddy journalist Kyaw Zwa Moe in an article titled, "Has the United States Forgotten Suu Kyi?" He noted: "In the past, when Suu Kyi said something, world leaders listened. Their policy reflected well on her words. But now, the situation is different. These days, Washington and other Western governments seem to need Thein Sein more, while Suu Kyi is becoming a mere symbol for the international community. Foreign diplomats aren't missing meetings with the Nobel Peace Prize laureate, but their meetings are more and more appearing as courtesy calls." The reality is that while Suu Kyi remains the most influential opposition leader to the current government, she is not the leader of the government. Neither is Suu Kyi just a symbolic figure. Mr. Kerry's trip correctly reflected that. In the past Suu Kyi's public approval to the lifting of US-led sanctions was all but a requirement. If Suu Kyi is unable to run for President in 2015 one must wonder if the politician Aung San Suu Kyi will remain equally relevant. With such high stakes looming for economic engagement with fast developing ASEAN nations it seems less likely she will. A utopic vision for the future of a democratic Burma is nice but the realities on the ground reflect a startlingly complex story. Millions of Burmese people simply survive day to day. Sadly, there are no easy answers for the myriad troubling issues in Burma. If Aung San Suu Kyi does become President, expectations for her will be set incredibly beyond her reach. If barred from a run at president, Suu Kyi's wildcard option is to boycott the elections. Doing so could lead to disastrous and violent civil unrest if mass protests occur. Burma's military leaders have historically proven they're very willing to massacre and imprison their own citizens. Yet, a boycott could prove meaningless without a government reaction or crackdown on mass demonstrations. To avoid a repeat of past violent reaction by Burma's military, at some point one must ask the question, is something, such as the current pace of reforms, better than nothing? The time could be approaching for Aung San Suu Kyi to declare victory in that any kind of progress in Burma is forward progress. However, some leaders in Naypyidaw are unwisely regressing into pre-reform political rule while allowing economic development. This innate behavior by Burma's military, may unfortunately force mass demonstrations should Suu Kyi boycott the elections. To that end, thousands of ex-political prisoners have no fear of recriminations for their political activism. It should be clear to Burma's current rulers that no one wants a repeat of the past. Is the military willing to allow more civilian governance by relaxing their grip on the throat of its citizens? Until the current rulers stop imprisoning journalists, land rights activists and protestors while ignoring the near-genocidal treatment of the Royhinga people in Arakan State, as well as other ethnic people on the border regions of Burma, it's doubtful that Suu Kyi will just give in and consign her supporters to sweat shops and shopping malls. Burma needs solutions to solve issues of basic human rights, to end the misery and suffering of the poor, the uneducated, the hungry, the homeless, and to set free its child soldiers.   Daniel Opacki is an educator who occasionally writes about Burma. He is currently writing a collection of stories about Burma and can be reached through his blog Bamboodazed.com   The comments and opinions expressed in this article are the author's and do not reflect DVB editorial policy.

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National News

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MCM prepares for expansion as founder hands over to new CEO Posted: 03 Oct 2014 03:02 AM PDT Myanmar Consolidated Media – publisher of The Myanmar Times – has embarked on a new era, with co-founder and managing director Ross Dunkley handing over management responsibilities to a new chief executive officer, Tony Child, on October 1.

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The Irrawaddy Magazine

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Now Available in Burma: Coffee With a Conscience Posted: 03 Oct 2014 05:30 PM PDT The interior of Genius Coffee, a café in downtown Rangoon that serves up coffee from the Shan highlands. (Photo: Steve Tickner / The Irrawaddy) Genius Coffee is producing Burma's first international-standard specialty coffee, with an eye toward ethical standards and ensuring minimal negative environmental impacts. In a country known for its tea and dominated by powdered coffee substitutes, decent coffee is in lamentably short supply. Enter Burma's first specialty coffee producer, Ngwe Tun. Together with his wife, Lay Lay Myint, Ngwe Tun is pioneering the production and sale of high-quality coffee grown in the Shan highlands, through his business Genius Coffee. "Everyone can drink coffee!" he says, explaining his intention to take advantage of Burma's ideal coffee-growing climate to produce a high-quality, export-ready commodity. "We are working in the local, but we are working [to] international standards." The family business has started a plantation in Ywar Ngan, a small hill village in Shan State, using an Arabica coffee bean imported from Costa Rica. Though the beans will only be ready for harvest in three years, Ngwe Tun is impatient to see results, and is now working with a select group of local farmers, training and supporting them to harvest beans of the highest quality. The beans are then hand-roasted in the family's home in Rangoon's South Okkalapa Township, and sold in the commercial capital at Ngwe Tun's newly opened coffee shop. He describes the taste as mild and clean, without bitterness and evincing a sweet undertone. Sipping a freshly made cup, the flavor is impressively robust (I like my coffee strong) and both the espresso and cappuccino pack a punch, served exactly right. The espresso is not watery, and the cappuccino not drowned in milk—both horribly common, unforgivable sins. At just 1,000 kyats (US$1) for an espresso and 1,500 kyats for a cappuccino, prices are astonishingly cheap—Ngwe Tun explains that local production helps keep costs down—and located centrally on 31st Street, just behind the Sule Shangri-La hotel (formerly Traders). Throw in the free Wi-Fi, and this tiny café is a gem of a place. Equally passionate about the environmental and ethical footprint of the business, Genius Coffee sells its beans in reusable bags, and customers are encouraged to refill their coffee at the shop for a discount, rather than buy a new bag. "We care a lot about the environment," Ngwe Tun explains. With cool mountain regions and a strong rainy season, Burma has an ideal coffee-producing climate, with both Arabica and Robusta beans growing well in different areas. Though local farmers produce coffee in many of the mountainous areas across Burma, and there is a small selection of fresh Burmese coffees for sale in the supermarket chain CityMart, there is little coffee produced for the international market. Among local palates, the popular processed "coffee mix" powders dominate. Ngwe Tun is clearly determined to change this. Already a member of the Specialty Coffee Association of America (SCAA), Genius Coffee uses SCAA quality standards and their coffee has been awarded "specialty" certification and a "very good" scoring of 81/100 by SCAA's coffee analysis. They are in the process of seeking Fairtrade certification. Yet Ngwe Tun's is an unlikely story. Raised in Rangoon to a family of car traders, he initially trained in web programming, and still works as the technical director of an IT company. But unsatisfied with his IT career prospects, he turned to agriculture after an opportune conversation with a coffee expert in Singapore helped him realize the potential of Burma's untapped coffee market. Ngwe Tun taught himself the complexities of specialty coffee production through online training courses, and support from a coffee research center in Pyin Oo Lwin. Genius Coffee is a pioneering business with a heart. Ten percent of profits go toward ethnic Danu hill tribe development projects, and Genius Coffee has provided stipends for three promising young people from the Ywar Ngan area to attend medical school. "We are a social enterprise," Ngwe Tun explains. "For our coffee we are trying to make [added] value by [creating] local jobs or local opportunity. If we sell the green bean, we cannot create jobs for the roaster—like roasting the coffee bean, or selecting the coffee bean." The post Now Available in Burma: Coffee With a Conscience appeared first on The Irrawaddy Magazine.

The Irrawaddy Business Roundup (Oct. 4, 2014) Posted: 03 Oct 2014 05:00 PM PDT Thailand Silent on UN Appeal Over Firms' Abuse of Burmese Claims The government of Thailand has failed to respond to the UN Human Rights Council about "persisting allegations" of the abuse of Burmese migrant workers employed in the Thai food-processing industry. A report on allegations against two Thai firms, Vita Foods and Natural Fruit, was made six months ago by the UN Working Group on the issue of human rights and transnational corporations and other business enterprises, as well as the special rapporteur on the human rights of migrants. It alleged that Burmese were duped by labor brokers, had documents such as passports confiscated, were physically abused, underpaid and charged exorbitant fees. "Some workers from [Burma] have been deceivingly taken to Thailand, not knowing that they would be traveling outside their country; were kept in locked rooms and forced to work at Vita Food Factory to repay labor brokers the imposed debt of 19,000 baht [US$600] for their travel," said the UN report. "These practices are said to have resulted in the workers being in debt bondage to Vita Food Factory." A letter from the UN group had given the Thai government two months to explain what it is doing "specifically to implement the UN's Guiding Principles on Business and Human Rights in the food industry and other business sectors in Thailand." It was made public this week to draw attention to the issue after having received no response from Bangkok since April. A criminal libel case is in process in Thailand brought by Natural Fruit against a British human rights campaigner, Andy Hall, who has separately made similar allegations against the company. A verdict is due at the end of this month and he could face prison time. Investment Sought for Luxury Tourist Trains as Burma Railway Rusts Burma's state railway company is planning to introduce luxury old steam train journeys through the country just for foreign tourists. The company is inviting tenders from foreign and domestic firms to bid to become partners to provide the special trains, Myanmar Business Today said. Bids can be made after Oct. 15, but Burma Railways gave no other timetable for the development, nor did it mention anything about a need to upgrade dilapidated railway tracks. Luxury train carriages will have to be imported but it may be possible to renovate old steam engines still in Burma, general manager Zaw Phay Sein was quoted saying "We will initiate the operations after carefully scrutinizing the bidders and choosing the winner," Zaw Phay Sein said. Burma has been attracting increasing numbers of overseas tourists, who range from backpackers to well-heeled five-star travelers. There were two million overseas visitors in 2013, said the Ministry of Hotels and Tourism, which is aiming to raise the number to 5 million by the end of 2015. "The main thing is to be able to provide full service to foreign tourists. Some tourists like to experience luxury train rides," the joint secretary of the Myanmar Travel Association, Tin Tun Aung, told Myanmar Business Today. Japan Biggest Winner in Foreign Banks' Race to Obtain Burma Licenses Japanese banks have been the most successful among foreign financial institutions winning licenses to operate in Burma. Three of the nine licenses awarded out of 25 banks that bid have gone to banks from Japan—Bank of Tokyo-Mitsubishi UFJ, the Sumitomo-Mitsui Banking Corporation and Mizuho Bank. The other six licenses went to banks from Australia, Thailand, China, Malaysia and Singapore. Two Singaporean banks secured permits, an official statement said. Japan has been one of the biggest investors in Burma since the President Thein Sein-led reforms began, observers noted. "Japan's substantial investments in their relationship with [Burma] is now paying dividends," Macquarie University economics professor Sean Turnell told The Myanmar Times. Ships, Cargo Growth in Rangoon Harbor 'Requires Law to Curb Pollution' The number of ships docking in Rangoon port has more than doubled in the past 10 years, rising from 970 in 2004 to 2,334 in the last financial year, the ministry of transport said. The volume of cargo meanwhile is now eight times greater than 10 years ago, with 610,000 containers moving through the port last year compared with 70,000 a decade ago. The sharp growth in traffic is now posing a water pollution problem and new legislation is needed to impose tougher controls, a report in the Myanmar Times said. "An update to the Merchant Shipping Act with clauses to tackle pollution from cargo ships has been sent to the attorney-general ahead of its formal submission to Parliament," the paper reported. Proposed changes to the law include heavier fines for water and air pollution and a more developed maritime security framework, it said, quoting Ye Myint, a director in the transport ministry. Economic Reforms 'Given Greater Priority' Than Political Freedom Economic reform has taken preference over political reform in Burma, said an international human rights group campaigning for the release of what it terms political prisoners still jailed in the country. The Burma Campaign UK is urging Britain's foreign secretary to pressure the Naypyidaw government as part of its No Political Prisoner Left Behind campaign. "Economic reform has been given greater priority than political reforms by the Burmese government, yet still Burma is being ranked as one of the most difficult countries in the world to do business in," campaign director Mark Farmaner told The Irrawaddy. He was referring to a recent World Bank global study that ranked Burma as one of the worst places to do business because of numerous bureaucratic and legal obstacles. For example, a company wishing to build a warehouse has to go through 16 application processes which on average takes 159 days. "The real beneficiaries of economic reforms in Burma are the same business cronies who were dominating the economy before the reforms began. The business cronies have key sectors of the economy stitched up, making it hard for foreign businesses or small and medium size Burmese businesses to compete," said Farmaner. Burma Campaign UK is petitioning the British government to pressure Naypyidaw to free Htin Kyaw, a leader of the Movement for Democracy Current Force that campaigns against land grabbing. He was arrested in May for protesting without permission and distributing leaflets that criticized the government, said Farmaner. Htin Kyaw is now serving a nine-year sentence in Insein prison. The post The Irrawaddy Business Roundup (Oct. 4, 2014) appeared first on The Irrawaddy Magazine.

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Democratic Voice of Burma

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• Making a living on Rangoon’s roads
• PR, FPTP or five other electoral systems: Shwe Mann
• Michaungkan protestors stand fast as deadline passes
• Burma, US pledge to fight hate speech
• Rangoon police force short on manpower

Making a living on Rangoon’s roads Posted: 04 Oct 2014 12:33 AM PDT Migrants from across Burma have long converged on Rangoon in search of work. Now, one local philanthropist is helping new arrivals to saddle up onto the trishaw, as a simple and popular job.

PR, FPTP or five other electoral systems: Shwe Mann Posted: 04 Oct 2014 12:28 AM PDT Lower House Speaker Shwe Mann has instructed his parliamentary commission to submit at least seven options for electoral systems that could be suitable to Burma. His instructions to the 24-member commission came this week after the upper house of Burma's parliament passed a proposal in June recommending that a system of proportional representation (PR) be adopted for future elections. Debate was held in July in the House of Representatives, or lower house of parliament, over whether Burma should change from the present first-past-the-post (FPTP) electoral system to PR. On 31 July, Shwe Mann formed a 24-member parliamentary commission to study the proposed change ahead of landmark elections in 2015. The ruling Union Solidarity and Development Party is known to support the move to a PR system, while the opposition National League for Democracy is vehemently against any change. Related Stories PR protestors denounce Rangoon MP Images of the week Opposition party 'did not say' it would support Shwe Mann Speaking to DVB on Friday, Commission Chairman Tin Maung Oo said, "There are more than 100 different election systems in the world. PR is just one of them. Older people generally support FTPT, while the young prefer a PR system. So, we the Commission have submitted a third option, which is half FPTP and half-PR." Tin Maung Oo called on Burma's media to help explain the different election systems to the public. "Our first priority is to inform the public about the various electoral systems," he said. "Answer people's questions: What is FTPT? What does it mean? Which countries use this system and why? What is proportional representation? What is its benefit?" MP Khine Maung Yee said that everyone needs to make an informed choice on this matter. "People don’t know much about this issue," he said. "We need to conduct an educational campaign, supported by the government, NGOs and the international community."

Michaungkan protestors stand fast as deadline passes Posted: 03 Oct 2014 11:15 PM PDT As Saturday dawned, dozens of protestors from the Rangoon suburb of Michaungkan, who have been conducting a vigil outside Maha Bandula Park in the city centre to protest land grabs, were still occupying the public street despite a 3 October deadline ordered by local police to dismantle their camp and leave. As Friday's deadline struck, police did not appear at the protest site where many feared that force might once again be used to disperse the villagers. Many of the protestors were in a defiant mood as they spoke to DVB reporters from their protest camp on Maha Bandula Road, just 400m west of Sule Pagoda and Rangoon City Hall. "We are staying until our demands are met!" shouted one Michaungkan resident, pumping her fist to the sky. Another protestor, Saw Sandar, said that the municipal authorities had earlier approached and asked them to take down their shelters because they were blocking a footpath. "We told them we could not do that as we have several elderly people here who need protection from the weather," she said. Asked what the protestors would do if police were called in to remove them, she replied, "We don’t have any weapons and we will not fight back." Nay Nwe, a villager who said she has been involved in the protest from the beginning, said the authorities have handled the situation all wrong. "We are peaceful demonstrators waiting for a response [from the local government], and a resolution to the matter," she said. "I think they will come and use force to remove us in one or two days. But this is not the way it should be handled. We will not accept this as a solution." Related Stories Michaungkan activists ordered to leave park by 3 Oct 'Colonial style' red tape blamed for delay in returning seized land Thegon MP low-balled amount of confiscated land, say farmers More than 100 residents of Thingyangun's Mighaungkan village have participated in a series of sit-ins and other demonstrations demanding the return of land they say was confiscated by the Burmese military in 1990. A group of about 200 had initially set up camp at Thingyangun's Myasaryan Pagoda in late November 2013. About one week after the demonstrations began, on 2 December, approximately 400 villagers showed up at the site to receive funeral rites from local monks, proclaiming that they were "ready to die" for their land. Shortly after, demonstrators reported that they were attacked by a group of thugs who claimed to be military cleaning personnel. Within days of the incident, which reportedly left at least eight people injured, police issued an eviction order demanding that the site be cleared by 9 December. Protest leaders and the Land Investigation Commission negotiated a three-month hiatus of the occupation after the commission promised to deliver results within that time. Parliamentarian and Commission member Aung Thein Linn told DVB in December that the government was committed to solving the dispute. "Otherwise," he said, "it will be damaging to our country's image, especially while the SEA Games are being held." The country was at that time hurrying to prepare for a major regional sporting event, the Southeast Asian Games, which drew international attention and visitors. Three months later and still unsatisfied, about 100 protestors resumed the sit-in, this time bringing their grievances to Maha Bandula Park in downtown Rangoon, across the street from City Hall. One week later, on 30 March, they were forcibly dispersed in an early morning raid by city officials and dozens of plain-clothed men. The demonstrators vowed to keep fighting and have maintained a presence at the park ever since. In August, a 72-year-old protestor died at the encampment after 138 days of her sit-in. At that time, her fellow activists reiterated that nothing would make them accept the loss of their land, even death. During the military regime, land was routinely confiscated by the government for state use. Since the reforms began in 2011, protests have been increasingly common all across Burma as villagers have attempted to reclaim lost assets. New land legislation introduced in early 2012 has met major criticism, with some claiming that the new laws legitimise government and corporate acquisition while offering little protection for individuals. A government commission established in 2012 has begun fielding Burma's thousands of land-grab claims but has yet to provide satisfactory recourse.

Burma, US pledge to fight hate speech Posted: 03 Oct 2014 10:23 PM PDT The Burmese government will cooperate with the United States to fight against hate speech. Burma's Information Minister Ye Htut said he had made an agreement to fight against the use of hate speech on the internet at a meeting on Friday morning with US Ambassador Derek Mitchell. Ye Htut told DVB he and the US ambassador had discussed matters relating to media management at the upcoming ASEAN summit in Naypyidaw, media development, and the prevention of hate speech on the internet. Ye Htut said the Ministry of Information had previously worked with the US's Rangoon embassy in hosting a workshop aimed at deterring young people in Burma from posting provocative or racially abusive comments on the internet. "Last year, we organised a workshop with the US embassy, and we have also supported civil society groups such as the Panzagar Campaign," he said. Launched in April this year, the Panzagar (meaning "flower speech") Campaign was the creation of well-known blogger and former political prisoner Nay Phone Latt. Ye Htut said the government was now planning similar workshops for later this year to educate young internet users on "how to follow and understand information on the internet and in the media". Related Stories Irrawaddy news site hacked following Wirathu article Wirathu attends conference of nationalist Sri Lankan monks Karen State parliament closes with passage of two laws The opening of the internet in Burma has seen rampant abuse by extremist groups spreading misinformation, inciting violence and circulating false reports and pictures. In Mandalay in July, a false claim of rape levelled at two Muslims that was circulated on Facebook by nationalist monk Wirathu and his followers led to mob violence and riots in which two people were killed and 20 injured. The government shut down the Facebook social media site for several hours to quell the spread of the false report after thousands of comments circulated online urging revenge against the two brothers, who were named and their address and telephone numbers published. The number of internet users in Burma has jumped from 66,000 in 2011-12 to 2.5 million in 2013-14, a 38-fold increase. State-owned provider Myanmar Posts and Telecommunications (MPT) says it plans to increase bandwidth by 700 percent to meet the ever-growing demand. According to MPT, there are currently around two million internet users in Burma, a number that is expected to increase to three million in the next year. In addition, the roll-out of services by international telecommunications firms Ooredoo and Telenor could see that figure multiplied exponentially as the two foreign telecoms compete to offer telephone and internet services to even the most remote parts of Burma. Information Minister Ye Htut also told DVB that during his talks with Ambassador Mitchell, they also "discussed possibilities of cooperating on media management during the upcoming ASEAN summit." US President Barack Obama is scheduled to attend the East Asia Summit, which will be hosted in Naypyidaw on 11-12 November, while Bagan hosts an ASEAN Defence Ministers Meeting on 12-13 November.

Rangoon police force short on manpower Posted: 03 Oct 2014 08:16 PM PDT Rangoon's police force has just over 5,000 officers, enforcing the law and dealing with the crime in a city of more than seven million people. The ratio of population to police indicates that for every one police officer there are 1,365 persons, much higher than international standards Rangoon Division Deputy Police Chief Myint Htwe pointed out the shortage of police officers during the 50th anniversary celebration of the Myanmar Police Force. "Currently there are 5,538 police officers in Rangoon, each of whom is responsible for 1,365 people," said the deputy police chief. He further highlighted the shortage of manpower in Rangoon police force by comparing the ratio to an international standard, which is ideally 400-to-one. Related Stories Census-takers fail to count Rohingyas Burma’s first census in 30 years begins Building consensus on the census However, despite Rangoon's shortcomings, it still fairs better than other cities and regions in Burma. In fact, Rangoon has 62 percent of the entire Burmese police force, leaving the remainder of the country with less than 3,400 officers to patrol more than 40 million people in an area – at 676,578 km2, a little larger than France – a country not densely populated compared to its neighbours. Myint Htwe pointed out that he believes there has been an increase in public cooperation and acceptance of the police force, ever since the EU imparted training to the police force in Burma earlier in February. The deputy chief said that, "We have found more acceptance from the people." He added that, "More often than not, when people need help, they are now calling 199 or their local police station." In stating how the Burmese police force has incorporated the training into their system, the deputy chief noted that the number of patrols has increased across the city. Furthermore, he said, police are implementing preventive measures and undertaking more thorough investigations before a case is presented in court. As of September 2014, police logs recorded 340 serious criminal cases along with 1,468 other cases of crime in Rangoon Division. It also listed 1,800 preventive cases of arrest. Earlier in September, the Asia Human Rights Commission notified the United Nations about the widespread use of torture by the Burmese police. The police force has, in the past, received flak for arresting and torturing innocent civilians and framing them with crimes. The Burmese Police Force was formed 50 years ago on 1 October 1964. On Wednesday, "Golden Jubilee" events were held in Naypyidaw and Rangoon to mark the occasion.

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