Sunday, October 5, 2014

Democratic Voice of Burma

Democratic Voice of Burma


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.

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.

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.

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.

National News

National News


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.

Saturday, October 4, 2014

The Irrawaddy Magazine

The Irrawaddy Magazine


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)

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.

Democratic Voice of Burma

Democratic Voice of Burma


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.

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."

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".

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.

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.

 

Friday, October 3, 2014

The Irrawaddy Magazine

The Irrawaddy Magazine


Govt Plans ‘Visit Myanmar Year’ in 2016, Minister Says

Posted: 03 Oct 2014 06:39 AM PDT

Foreign tourists sightsee at Shwe Indein Pagoda near Shan State's Inle Lake. (Photo: JPaing / The Irrawaddy)

Foreign tourists sightsee at Shwe Indein Pagoda near Shan State's Inle Lake. (Photo: JPaing / The Irrawaddy)

RANGOON — The government has announced that it plans to make 2016 the "Visit Myanmar Year," in an effort to further boost the country's rapidly growing tourism sector and draw more foreign visitors to Burma.

"Myanmar hopes to celebrate the Visit Myanmar Year … in 2016," Tin Shwe, Deputy Minister for Hotels and Tourism, told lawmakers at the Lower House on Wednesday, according to a transcript of the discussion posted on the Parliament's website.

Tin Shwe said that tourism accommodation was expanding and that there would soon be enough suitable places to stay for foreign tourists. "Now there are around 1,100 hotels in the country, 267 hotels in Rangoon with over 12,000 rooms, so it is not difficult to implement the Visit Myanmar Year [in 2016]," he said.

The minister revealed the plan after Lower House military MP Maj. Aung Kyaw Hnin asked what the government was doing to boost growth of the tourism sector and whether a promotion year was being planned. "[The] tourism sector needs to be promoted more than at present in order to improve foreign income," he said.

Tin Shwe said the planned year-long tourism promotion campaign fits with the Myanmar Tourism Master Plan 2013-2020, a policy developed with support of international donors that sets out a strategy to develop the sector through focusing on areas such as training for tourism sector workers, developing tourism destinations, and addressing problems in connectivity and communication in Burma.

The minister said foreign tourist visitor numbers had been rising sharply, up from 800,000 in 2011 to about 2 million in 2013. He said that by August this year 1.8 million foreigners had come to Burma, adding that he believed the total figure this year could grow to 3 million visitors.

The Tourism Master Plan plans to raise foreign visitor numbers to 3 million by 2015 and 7.5 million by 2020. Under the plan, the Ministry of Hotels and Tourism will coordinate nearly US$500 million in spending on the sector through 2020. In turn, the ministry expects revenue from tourism-related services to rise from $534 million in 2012 to more than $10 billion in 2020.

The opening up of Burma by President Thein Sein's reformist government after decades of isolation under the former military regime has caught the attention of many foreign tourists, who are eager to visit the once-secretive country, which boasts major tourist draws such as the Bagan temple complex.

Tourist number have been steadily rising since 2012, but tourism experts have pointed to problems such as a lack of quality hotels and guesthouses, poor transport and communications infrastructure, the absence of tourist visa-on-arrival, and an underdeveloped domestic air industry with a poor safety record.

Phyo Wai Yar Zar, chairman of Myanmar Tourism Marketing and joint secretary of the Myanmar Tourism Federation, said a tourism promotion year could be a good strategy to boost visitor numbers, but he added that the government should develop a good plan and commit sufficient funding to it.

"If we will do that, the exact budget for that needs to be specified by the government and they have put the focus more on the traditional festivals across the country, and include activities in which everyone can happily participate and promote that through the media," he said.

"Other countries [that had a tourism year], they spent money on producing reports and advertisements that are shown on [foreign] TV—that will be needed too."

In 1996, the then-military regime organized a "Visit Myanmar Year," but the tourism promotion campaign—launched during the depth of political repression in Burma—was met fierce criticism from the international community, the National League for Democracy and political dissidents, who effectively dissuaded foreign visitors from coming.

Until the start of political reforms, Aung San Suu Kyi's party continued to advise foreign tourists against visiting Burma.

Phyo Wai Yar Zar said that in 2016 the time would be ripe for a successful promotion year, adding that he believed that Burma's tourism industry would be ready by then to receive a surge in visitors.

"We did this once before, but at that time it was not as successful as hoped, so it will be the second time in 20 years," he said. "Now, there are hotel rooms enough and they are quickly increasing… also there will be more airlines flying to Myanmar. So if we now implement a Visit Myanmar Year, the tourism sector is more developed."

Additional reporting by Paul Vrieze.

The post Govt Plans 'Visit Myanmar Year' in 2016, Minister Says appeared first on The Irrawaddy Magazine.

President Signs Amended Law Barring Non-Citizens From Politics

Posted: 03 Oct 2014 06:01 AM PDT

A man holds up a copy of Burma's original Political Parties Registration Law, enacted in 2010. (Photo: Aung Aung / The Irrawaddy)

A man holds up a copy of Burma's original Political Parties Registration Law, enacted in 2010. (Photo: Aung Aung / The Irrawaddy)

RANGOON — President Thein Sein this week signed into law an amendment to Burma's Political Parties Registration Law, removing the right of temporary citizenship cardholders to form political parties or serve as their members.

The change to the law appears targeted at the country's Rohingya Muslim minority, many of whom hold the so-called "white cards" that grant them status as temporary citizens.

Previously, the law allowed any "citizen, associate citizen, naturalized citizen or temporary certificate holder" to form and join political parties, but the amended legislation restricts that right only to individuals holding full citizenship status.

Hla Maung Cho, deputy director of the Union Election Commission (UEC), said the electoral body would draw up a by-law to accompany the amended legislation, including a determination on how long parties would have to comply with the new restriction.

Political parties will be responsible for vetting their memberships, with the UEC serving as an oversight body to ensure compliance. Asked how many party cadres might be affected by the change to the law, Hla Maung Cho said the UEC did not have an estimate, but had begun the process of scrutinizing party lists.

If a party is competing at the national level, it can be disbanded by the UEC if it fails to achieve a membership of 1,000 people within 90 days of registering as a political party, and a minimum membership of 500 people is required within the same period if it is a regional party.

Khin Maung Myint of the National Democrat Party for Development, one of at least three registered political parties that looks likely to be affected by the amended law, said his party was not worried about coming up short of the membership requirement.

"We will evaluate this. It's quite early to say whether this is targeting only an ethnic group or a religion," said Khin Maung Myint, joint general secretary of the party, who identifies himself as Rohingya and holds a so-called "Citizenship Scrutiny Card" conferring full citizenship.

The amendment will reduce the rights of the Rohingya minority in Arakan State, many of whom only hold such cards. There are three parties that claim to speak for Rohingya constituencies: the Union Nationals Development Party (UNDP), the National Democratic Party for Development (NDPD) and the Democracy and Human Rights Party (DHRP).

Burma's former military government issued white cards to many of the Rohingya population in northern Arakan State's Maungdaw and Buthidaung townships. The cards were issued to the Muslim group so that they could vote in support of a constitutional referendum in 2008, as well as for the Union Solidarity and Development Party (USDP) in the national elections in 2010. Despite this, the government maintains that the approximately one million-strong minority are not Burmese citizens and officially refers to them as "Bengalis," suggesting they are illegal immigrants from Bangladesh.

Recent reports in local media quoted a parliamentary committee as saying that there are some 850,000 white cardholders in Burma.

The law's change could also pose a problem for political dissidents who lack citizenship cards because they lived abroad for decades under the former military regime and have since returned to Burma as the country has undergone democratic reforms.

Aye Maung, chairman of the Arakan National Party, welcomed the restrictive amendment, saying that allowing non-citizens to participate in party politics was "concerned with sovereignty."

The amendment to the law comes as human rights groups condemn a plan that would effectively require Rohingya Muslims in Arakan State to identify as Bengali or risk detention.

About 140,000 Rohingya in Arakan State already live in temporary camps after anti-Muslim violence displaced them from their homes in 2012.

"The long-awaited Rakhine [Arakan] State Action Plan both expands and solidifies the discriminatory and abusive Burmese government policies that underpin the decades-long persecution of the Rohingya," Phil Robertson, Human Rights Watch's deputy Asia director, said in a statement on Friday. "It is nothing less than a blueprint for permanent segregation and statelessness that appears designed to strip the Rohingya of hope and force them to flee the country."

The post President Signs Amended Law Barring Non-Citizens From Politics appeared first on The Irrawaddy Magazine.

Fighting in Central Shan State Reportedly Kills 5 Soldiers, 2 Rebels

Posted: 03 Oct 2014 04:39 AM PDT

A government soldier stands outside a primary school in Wan Wap village in Kyaethee Township on July 16. Residents have complained that government troops have occupied half the homes on the village. (Photo: Hsenpai News Journal / Facebook)

A government soldier stands outside a primary school in Wan Wap village in Kyaethee Township on July 16. Residents have complained that government troops have occupied half the homes on the village. (Photo: Hsenpai News Journal / Facebook)

RANGOON — Burma Army units have clashed with Shan ethnic rebels in central Shan State's Kyethi Township since Thursday, and bouts of heavy fighting have left five government soldiers dead and about 50 injured, while two rebels were killed and three wounded, according to rebel sources.

Khun Sai, general secretary of the Shan State Progress Party, the political wing of the Shan State Army-North (SSA-North), said the army had repeatedly ordered rebels to abandon a jungle base at Wan Wap village, located about 13 km (8 miles) from Kyethi (Kesi) town, before launching offensive operations in the area.

"Clashes broke out in at least seven places in the area. They used artillery and are still shooting at our fighters," he said on Friday morning. "About 200 local people were displaced and took refuge at a Buddhist monastery."

Khun Sai said that about eight Burma Army battalions under the Northeastern Regional Command, including Light Infantry Battalions 247, 248 and 523, were deployed in operations against the rebels.

He said about 50 government soldiers were injured and five were killed, while 2 Shan rebels were shot dead and three were wounded. Khun Sai added, "It's better if we can solve this political conflict at the negotiating table."

The SSA-North is one the largest rebels groups in Burma and has had a bilateral ceasefire with the central government since 2012, but its officers have reported hundreds of armed skirmishes with government forces since.

All Wan Wap villagers had fled, some to the township capital and some to a neighboring Shan village, according to resident Shwe Thein, who had gone to Kyethi town.

He said that in Kyethi the fighting in the nearby mountains could still be heard. "There is major fighting going on. We could hear gun fire and artillery the whole day yesterday and also this morning," Shwe Thein said. "We saw lot of government troops heading to the fighting area yesterday. The situation in the town is normal."

He said violence had erupted in the area several times in recent months and some 300 Shan villagers had already left the area some time ago to stay at a pagoda elsewhere. Recently, the area appeared to have calmed down, but when the villagers moved back to Wan Wap they found that Burma Army soldiers had occupied about half of the houses.

Shwe Thein said the villagers had collected signatures for a letter to President Thein Sein last month, in which they asked for the army to leave their homes. "They sent it to president, but we did not hear any response from him yet," he said.

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Gaming With a Side of Culture? There’s a Burmese App for That

Posted: 03 Oct 2014 03:49 AM PDT

Burmese King Bayintnaung, second left, and the Siamese King Naresuan, right, will feature in 'The Age of Bayintnaung.' (Image courtesy of Total Gameplay Studio)

Burmese King Bayintnaung, second left, and the Siamese King Naresuan, right, will feature in 'The Age of Bayintnaung.' (Image courtesy of Total Gameplay Studio)

A team of Burmese videogame developers has hit upon a novel idea: using technology to help preserve the country's cultural traditions and revive its historical heritage.

Often viewed negatively in relation to its effect on time-honored customs, technology, for this team, is a tool.

"Our main mission is to promote Burmese culture in this age of technology," said Myint Kyaw Thu, chief technical officer at Total Gameplay Studio, an eight-member team of tech-savvy Burmese entrepreneurs who have created more than five videogames and mobile apps, and are in the midst of producing their most ambitious effort yet. "We believe we can maintain the Burmese culture by creating such games for youngsters in the digital age.

"Moreover, we want to create games owned by Burmese, and to distribute these Burmese games to the world," he added.

In 2013, their first effort to bring Burma's traditions to gamers produced "Chinlone," an app allowing users to play a simulated version of the popular pastime that, in real life, involves a simple rattan ball and some deft footwork.

Their "Maung Pein" app, in which gamers play a trishaw driver of the same name as he indulges in Thingyan water festival revelry, has already received many "stars"—in the world of apps, an indicator of popular approval—from users.

The famous Burmese cartoon character Thamain Paw Thut also gets a dedicated app, with users facing down bad guys as the heroic—and sometimes comical—ancient warrior.

Their latest effort, "The Age of Bayintnaung," is a strategy combat game in the mold of genre classics such as "Clash of Clans" and "Age of Empires," and is due out next year. The game will feature one of Burma's most powerful monarchs, King Bayintnaung, and the Siamese King Naresuan, who was taken hostage by Bayintnaung as a boy but would later go on to rule what is modern-day Thailand. Bayintnaung reigned during Burma's Taungoo Dynasty, which established Southeast Asia's largest empire in the 16th and 17th centuries.

Technologically Challenged

For millions of gamers worldwide, the title may appear as just one more addition to a saturated marketplace. But for the developers, the launch of "The Age of Bayintnaung" will mark a major milestone for a team that has for years struggled to program videogames in an unforgiving Burma where limited access to Internet and frequent blackouts pose perennial challenges.

The largely self-taught young developers have been turning out games from their Total Gameplay Studio office in Rangoon, where they acknowledge conditions for techies are not ideal.

"We do not have special equipment and have to work with just ordinary computers. When there was limited access to Internet, it was very difficult for us to find the required technical information for our games, not to mention the blackouts," said Zaw Ye Myint, Total Gameplay Studio's CEO, recalling the days back in 2006 when they created their first ever turn-based strategy game, "The Mastermind."

Members of the team, all graduates with bachelor's degrees in computer science, spent some of the last 10 years learning about traditional arts and designs from veteran Burmese artists, an effort that shows through in the intricately detailed digital renderings of the Taungoo era characters.

"The Age of Bayintnaung" attracted the attention of publishers from Thailand and Malaysia, during gaming conventions in Tokyo earlier this year and Kuala Lumpur last month. According to the team, Thai and Malaysian businessmen have expressed interest and made offers to help promote and distribute the game.

"The foreign developers and businessmen said it was a wonder that we could create these games with just eight developers, right from Yangon [Rangoon]. We are so proud that we made it and we could show off the talent of our Burmese developers," Myint Kyaw Thu said.

Total Gameplay Studio is also in the process of developing "Range of Rama," a multiplayer strategic combat game based on the Hindu epic Ramayana.

All the games that have already been released are available for both iOS and Android mobile operating systems and can be downloaded for free at www.tgpsdownload.com. "Range of Rama" and "The Age of Bayintnaung" will also be available on PlayStation 3.

"We are currently trying to improve 'The Age of Bayintnaung' to get it ready before the launch. We are hoping to expand our market to Southeast Asia as well," said Zaw Ye Myint, the CEO.

"We also want to encourage the Burmese youth who are interested in programming and game developing to work hard and work smartly. If we try without giving up, we can surely take it to the international level," he added.

The post Gaming With a Side of Culture? There's a Burmese App for That appeared first on The Irrawaddy Magazine.

El Nino Threatens Export Plans as Burma’s Rice Industry Revs Up

Posted: 03 Oct 2014 02:57 AM PDT

A truck loaded with rice bags drives by a port in Rangoon. (Photo: Reuters / Soe Zeya Tun)

A truck loaded with rice bags drives by a port in Rangoon. (Photo: Reuters / Soe Zeya Tun)

Hopes that Burma's rice exports would reach 2 million tons this year look unlikely to be achieved due to the disruptive weather phenomenon known as El Nino, experts say.

Monsoonal rains needed to boost Burma's late rice crop are expected to be lighter than usual due to the El Nino effect, leading to drier conditions.

Observers of the El Nino weather pattern, which occurs every few years due to warmer air currents generated in the Pacific Ocean, suggest it might be less severe than on previous occasions but could still disrupt various forms of agriculture across Southeast Asia. It could last until June 2015 and some meteorologists have suggested that December might be the worst month affected.

This year's major wet season rice crops across Southeast Asia might escape the worst of El Nino, the US Department of Agriculture (USDA)'s Foreign Service said, "[but] dry season rice and corn crops, as well as palm oil, will become more vulnerable if El Nino develops and persists from October 2014 to April 2015."

Burma exported 1.27 million tons of rice in 2013 and the Burma Rice Federation had said the figure for this year might reach the 2 million tons mark, boosted by higher demand from China and dislocation in the rice industry of rival exporter Thailand. However, even without any El Nino effect, the 2 million tons target is over-optimistic according to estimates made by the USDA.

The US agency predicted that rice production in Burma in 2014-2015 would most likely increase by 1 percent to 12.16 million tons, due to growing area expansion and improved water supply, and that rice exports would also be only marginally higher than last year—up about 1 percent to 1.31 million tons.

Burma's government was "making an effort to provide farmers support in infrastructure development, mechanization [and] technology assistance," the USDA said. But despite support programs, rice farmers in Burma could still not compete with other farmers in the region, including in Thailand and Vietnam, who received government support to compensate for lower prices, the agency said, citing trade sources.

Burma is forecast to be the fifth-largest rice producer in the Association of Southeast Asian Nations (ASEAN) region in the 2014-15 financial year —behind Indonesia, Vietnam, Thailand and the Philippines. But of these four, only Vietnam and Thailand are exporters.

"On the surface, rice markets remain calm and stable, but underlying market sentiments are rapidly changing because of weather disruptions in many rice-growing nations," market watcher and rice scientist Sam Mohanty of the International Rice Research Institute said in a recent assessment.

"The global rice market faces the possibility of a production shortfall in the major rice-growing regions in South and Southeast Asia and also in China because of El Nino events. So far, the market has been quite nonchalant about this possibility because of large buffer stocks in key rice-growing countries."

India, China and Thailand are well stocked with rice to see them through any possible disruptions in supplies, Mohanty said.

Burma's rice federation sees China as offering the best market for expanding Burmese exports in coming years. About half of Burma's rice exports went to China in 2013, despite the fact that the exports are technically illegal as there is not yet a health standards agreement on rice in place between the two countries.

The post El Nino Threatens Export Plans as Burma's Rice Industry Revs Up appeared first on The Irrawaddy Magazine.

3 Arrested, 200Kg Heroin Seized in Shan State Drugs Bust

Posted: 03 Oct 2014 02:49 AM PDT

Police photos show how the drugs were hidden, the haul of weapons and heroin seized, along with the three suspects who were detained. (Photos:Tachilek Township Anti-Drug Squad No. 30)

Police photos show how the drugs were hidden, the haul of weapons and heroin seized, along with the three suspects who were detained. (Photos:Tachilek Township Anti-Drug Squad No. 30)

CHIANG MAI, Thailand — Burmese authorities in the Shan State border town of Tachilek seized about 200 kilograms of heroin along with a number of firearms on Tuesday, before it was about to get smuggled into to northern Thailand, police said, adding that three suspects had been detained.

Anti-Drug Force No. 30 Police Capt. Phone Kyaw Oo told The Irrawaddy that the squad had received a tip about a 10-wheeler truck that was arriving from Mong Hsat Township and due to cross the border.

He said his officers brought the truck to a halt on Tuesday and the drugs and guns were found in a hidden compartment under the truck's flatbed area that was carrying cement bags.

A total of 665 heroin blocks weighing 199.5 kilos worth about US$3 million were seized, along with two .38 handguns, two magazines, 18 bullets, one shotgun, 45 Remington bullets, and one unnumbered M-79 grenade launcher with 10 grenades, according to Phone Kyaw Oo.

"We are still questioning the three detainees about where it [drugs and arms] would have been sent to and who the owner is," the police captain said, adding that the truck's driver Ai Than was detained along with his colleagues Ai Sai and Ai Su.

A news report in Thai newspaper The Nation, published earlier this week said the operation had been conducted in cooperation with Thai authorities.

Tuesday's operation is the latest in a number of large drugs busts carried by authorities along the Burma-Thai border in recent months.

In mid-September, a vehicle was seized carrying chemical fluids used as precursor drugs for producing methamphetamine on the Tachilek-Mong Hsat road. Several suspects reportedly fled after an exchange of fire with officers.

In July, Burmese police seized more than US$2.3 million worth of opium and several automatic weapons in Tachileik. In Burma's south, in Tenasserim Division, authorities seized about 2.4 million Ecstasy pills valued at more than $17 million in August, in what is believed to be the largest drug bust in the country's history.

A Tachilek resident said the busts had become more frequent in recent months but doubted that the actions would stem the drugs trade as the ring leaders and major drug producers were not being targeted.

"[The forces] have seized drugs many times, but the main producers still can't be found," he told The Irrawaddy, speaking on condition of anonymity out of fear for retribution.

"As far as I know, the large seizures of drugs mostly come from People's Militias, which are under the control of government. Most of the times, arms were seized along with drugs. But they [authorities] do not inform the public about follow-up actions," he said.

"Both the police and the army know who are producing heroin and where it is produced. They just did not take actions. They just started these arrests this year. However, they do not arrest drug barons. It seems that only those who carry drugs will be prosecuted," the man said.

Opium and meth have long been produced in northern Burma, where the trade is directly tied to the country's decades-old ethnic conflict, which continues to fester in many parts of Shan and Kachin states.

Ethnic rebel groups, criminal gangs, pro-government militias and local authorities are said to benefit from the lucrative trade, either by producing and smuggling the drugs into Thailand and China, or by taking bribes.

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Tourism’s New Trails

Posted: 02 Oct 2014 05:00 PM PDT

U Phyo Wai Yar Zar is the chairman of Myanmar Tourism Marketing and joint secretary of the Myanmar Tourism Federation. (Photo: JPaing / The Irrawaddy)

U Phyo Wai Yar Zar is the chairman of Myanmar Tourism Marketing and joint secretary of the Myanmar Tourism Federation. (Photo: JPaing / The Irrawaddy)

YANGON —The government expects some 3 million tourist arrivals this year and is targeting 5 million for 2015. However, many ongoing issues continue to hamper the local industry. The Irrawaddy spoke with U Phyo Wai Yar Zar, chairman of All Asia Exclusive Travel, as well as chairman of Myanmar Tourism Marketing and Joint Secretary of the Myanmar Tourism Federation, on the recent rise of the tourism industry.

Question: What were the difficulties when you first started?

Answer: I've always believed these are not difficulties, these are challenges. If you can pass over these challenges, you will be able to reach the next stage. The first challenge was in getting customers in that period. And then, poor communication [infrastructure] in Myanmar created further challenges even after we got customers. The Internet connection was very slow. We've now tried to upgrade our own website to promote the company and seek new customers. The big challenge was how to receive payment from customers as we didn't have foreign bank accounts here. Myanmar companies were facing problems regarding payment by foreign customers due to US sanctions at that time. So the options were that we received payment when the customers were in Yangon or by using our relatives and colleagues' bank accounts. It was no issue for joint-venture companies, but for small companies, we faced this problem. After three or four years, hotels and airlines started to know what we were doing. The relationship with them has become stronger.

Q: Where were the main tourist destinations at that time? Have any destinations changed?

A: Major destinations have not yet changed. [They still include] Bagan, Inle Lake, Mandalay, Ngapali Beach, Ngwe Saung beach and Kyite Htee Yoe in Mawlamyine. After the country has fully opened and we have ceasefire agreements with armed groups, there will be many new potential destinations in Karen State and Mon State. There are no big difficulties in developing new tourist attractions there. For example, Myawaddy on the Thai-Myanmar border is very easy to access for tourists. There are no restrictions at all now. [In the past] we had to obtain permission to enter from the local authorities.

Q: Has the government's decision to open more border checkpoints helped increase tourist arrivals in Myanmar?

A: There is no disadvantage by opening border checkpoints. We were only selling Myanmar packages before but now we can sell package tours to Myanmar and Thailand's north and west together. We can also sell tour packages to Muse [in Shan State] and Shwe Li [in China] areas. There are some restrictions on the China side, but the Myanmar side is ready.

There are many new tourist destinations in Myanmar and we have more than 130 ethnic groups living here. There are very big changes in cities like Mandalay, with some people saying that it has become a Chinese city. It has become popular with foreign visitors. If the transportation infrastructures get better, we can reach many new destinations. A new Loikaw [Kayah State] to Mae Hong Son [Thailand] road will open in the coming peak season. The road to Dawei from Thailand's Kanchanaburi Province will also boost tourism, although we will have to wait for better road conditions.

Q: Can you see any other new potential destinations in Myanmar for the future?

A: The Myeik Archipelago is also a potential tourist site. Many foreign investors are quite interested to invest there. There are many places to visit in Dawei city too. With better road conditions in this area, tourists can go through Thailand from Mawlamyine [Mon State] within one day.

Q: How important is the role of State and Regional governments to improve the tourism industry in Myanmar?

A: We need their involvement. I heard that they have been given authorization by the Union Ministry to improve the tourism industry. Many State chief ministers are very eager to promote tourism in their region. Kayah Chief Minister U Khin Maung Oo and Karen State Minister U Zaw Min are very willing to promote tourism in their areas. There will be a workshop for tourism and the peace process in Kayah State next month. In Chin State also, there are many potential tourist sites and their chief minister is also very willing to promote the region.

Q: How have the conflicts in northern Kachin State and western Rakhine State impacted the tourism industry?

A: Security and tourism are directly related. Local or foreign visitors won't go to such conflict areas. As I am chairman of the Myanmar Tourism Marketing, I have to lobby my industry to other people too. When I met British Ambassador Andrew Patrick last week, I informed him on the current situation. Some countries have told their citizens which places they shouldn't visit. In Mrauk U, Rakhine State, there is no more conflict but they will have to pass through from Sittwe where there is still some conflict. So I requested that the ambassador reduce some warnings telling their citizens not to go there. He said he would like to do it, but it depends on the political situation here, and he has a responsibility to his country's citizens. He said there were no changes to warnings for British citizens to avoid Rakhine State. The conflict in Rakhine State is still hard to solve, it will take time. Kachin State is not worse than Rakhine State, because conflict is not happening in city areas.

Q: Do you agree that air safety in Myanmar is an issue for foreign visitors?

A: My view on the air industry is that there will be internal and external factors that impact it. What I see in this sector is the impact of external factors. Internal factors, such as regulations by the Ministry of Transport, are not the issue. There are no restrictive rules for the air industry; they can buy new aircrafts freely. But regarding external factors, travel insurance for travelers, life insurance and flight insurance are still causing difficulties. Some local airlines are trying their best, but I understand that some are still having problems. So I see growth happening in some years.

Q: Do you think the government is going to allow homestay services for foreigners? What about the bed & breakfast program that the government is going to initiate?

A: The government definitely won't allow homestay for foreigners. Homestay means visitors can be living in local people's houses. [Although] before hotels and guest houses, visitors stayed in their houses in the past. I expect that the government is going to enact a policy for Bed and Breakfast services soon. When that happens, small enterprises will grow, as well as many job opportunities for local people. The tourism industry will also grow.

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UN Concerned About Burma’s Ethnic, Religious Tensions

Posted: 02 Oct 2014 10:21 PM PDT

UN Secretary General Ban Ki-moon, left, talks to Cambodia's Prime Minister Hun Sen, right, while Burma's President Thein Sein looks on at the 5th Asean-UN Summit in Bandar Seri Begawan in October 2013. (Photo: Reuters)

UN Secretary General Ban Ki-moon, left, talks to Cambodia's Prime Minister Hun Sen, right, while Burma's President Thein Sein looks on at the 5th Asean-UN Summit in Bandar Seri Begawan in October 2013. (Photo: Reuters)

UNITED NATIONS — UN Secretary-General Ban Ki-moon's latest report on Burma raises serious concerns about ethnic and religious tensions that have led to violence against Rohingya Muslims, though he praises the government's attempts to press ahead with democratic reforms.

The situation is especially worrying in Arakan State, Ban said, where deep rifts between the Buddhist and Muslim communities have widened and the conditions at camps for internally displaced persons have deteriorated.

"The deep-seated inter-ethnic and inter-religious tensions that have re-emerged around the country have given rise to further violence, loss of life, displacement of populations and destruction of property," the UN chief said in his annual report to the General Assembly's Third Committee.

The Third Committee, which focuses on human rights, will be discussing Ban's report on Burma in the weeks ahead. It is also expected to adopt a resolution about its concerns—an annual ritual to which Iran, North Korea and Syria are also subjected.

"The situation in Rakhine [Arakan] State continues to cause widespread concern and alarm both domestically and internationally," Ban said.

Most of Burma's 1.1 million Rohingya Muslims are stateless and live in Apartheid-like conditions in Arakan State on the western coast of the predominantly Buddhist country. Almost 140,000 Rohingya remain displaced after deadly clashes with ethnic Arakanese Buddhists in 2012.

Condemnations from Burma's leaders have not improved the situation, Ban said.

"While the government of Myanmar has repeatedly made strong statements of actions to be taken against perpetrators of violence, these have not been conveyed with sufficient firmness to the local level," the report said.

He also praised the administration of President Thein Sein for the progress it has made on democratization, national reconciliation and economic development over the past three years.

Ban suggested he was concerned about the 2015 general election, in which Nobel Peace Prize laureate Aung San Suu Kyi, who spent nearly two decades under house arrest for her efforts to promote democracy, is barred from running for president.

"Addressing the legitimate concerns of various political parties about the restrictions and conditionalities imposed by the [Union] Election Commission will be important," the report said.

Next year's parliamentary elections will be the first since Thein Sein embarked on landmark reforms in 2011, dismantling the control of the military, which had ruled since seizing power in a 1962 coup.

The annual scrutiny to which Burma is subjected at the Third Committee and at the UN Human Rights Council in Geneva has long annoyed Burma's leaders. They have insisted they be dropped from the bodies' agendas, a demand Burma's foreign minister reiterated last week in his address to the UN General Assembly.

"All major concerns related to human rights have been addressed to a larger extent in the new Myanmar," Wunna Maung Lwin said. "Therefore we are now fully convinced that Myanmar should no longer remain on the agendas of the Human Rights Council and the Third Committee of the General Assembly."

Western diplomats say their governments and delegations from over 50 Muslim countries agree that Burma should remain under UN scrutiny for the foreseeable future.

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Thai Police: 2 Burmese Men Admit Killing British Tourists

Posted: 02 Oct 2014 10:18 PM PDT

Thai police take sample for DNA testing as data is collected from people who work near the spot where bodies of two killed British tourists were found, on the island of Koh Tao on Sept 19. (Photo: Reuters) September 19, 2014. 

Thai police take sample for DNA testing as data is collected from people who work near the spot where bodies of two killed British tourists were found, on the island of Koh Tao on Sept 19. (Photo: Reuters) September 19, 2014.

BANGKOK — Two workers from Burma have confessed to killing a pair of British tourists whose battered bodies were found on a beach in southern Thailand last month, and police said Friday that the suspects’ DNA matched that collected from one of the victims.

The news followed weeks of pressure on police to solve a case that has threatened to damage the country’s tourism industry, which has been struggling to recover since the army staged a coup and imposed martial law in May.

Police Maj. Gen. Kiattipong Khawsamang said that three Burmese workers were detained and questioned by police, and two of them had admitted murdering Hannah Witheridge, 23, and David Miller, 24. He said the other worker denied involvement in the attack on the island of Koh Tao, which is renowned for its quiet beaches and popular diving sites.

"We are interrogating them. So far, accounts from the two men matched and they confessed they killed the tourists," Kiattipong said by telephone on Thursday.

Police have so far declined to provide details on the identities of the migrants, but 2.5 million people from Burmar work in this Southeast Asian country, most as domestic servants or in low-skilled manual labor industries like construction, fisheries or the garment sector.

On Friday, regional police commissioner Maj. Gen. Decha Budnampetch told AP that DNA samples collected from the two suspects matched evidence taken from Witheridge’s body. Both men are in custody and a court is expected to issue formal arrest warrants before charges are issued.

"Together with other evidence and [testimony from witnesses] that we have collected thoroughly throughout the investigation, we are convinced that these two migrant workers were the killers," Decha said.

The bodies of the two tourists were discovered on Sept. 15 in a rocky alcove along the shore close to the hotel where both were staying. Autopsies showed that Witheridge died from head wounds while Miller suffered severe blows to the head and drowned in the surf.

It is still unclear what prompted the killings.

Thai police had searched for clues and collected DNA samples from more than 100 men on the island in the Gulf of Thailand.

Two of the Burmese workers were detained on Koh Tao and the other in mainland Surat Thani province.

Koh Tao, about 410 kilometers (250 miles) south of Bangkok, is a quiet, small island a short boat ride from Koh Samui and Koh Phangan. The latter is known for raucous "full moon" parties that attract young foreigners and Thais.

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US Eases Ban on Lethal Arms Sales to Vietnam 

Posted: 02 Oct 2014 10:09 PM PDT

US Secretary of State John Kerry, right, shakes hands with Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh in Washington on Oct. 2, 2014. (Photo: Reuters / Yuri Gripas)

US Secretary of State John Kerry, right, shakes hands with Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh in Washington on Oct. 2, 2014. (Photo: Reuters / Yuri Gripas)

WASHINGTON — The United States announced Thursday it was partially lifting its ban on sales of weaponry to Vietnam to help its maritime security in a sign of deepening ties between the former enemies.

The move is intended to support Vietnam's ability to defend itself in the South China Sea, where it is among Asian nations facing an increasingly assertive China.

Secretary of State John Kerry informed Vietnamese Deputy Prime Minister Pham Binh Minh of the US decision as they met in Washington.

State Department spokeswoman Jen Psaki told reporters the United States will now allow sales of lethal maritime security capabilities and for surveillance on a case-by-case basis.

US officials said it could include both boats and air assets, subject to discussion with Vietnam and evaluation of its needs, particularly its coast guard.

Psaki said the decision was not directed at China, which is likely to be irritated by the move. Beijing eyes increased US military engagement in Asia as an attempt to contain its rise.

US officials said the easing of the ban recognized improvements by Vietnam's authoritarian government on human rights, including the release of 11 prisoners of conscience this year and progress on religious freedom, but the move was primarily driven by America's national security interests.

Human Rights Watch objected to the easing of the ban, saying Vietnam had not earned it. Spokesman John Sifton said Vietnam's record on political prisoners is "bad and getting worse." He said numerous churches are still unable to officially register and remain illegal.

Vietnam is a one-party state that squelches dissent, and Amnesty International says scores are still being detained for exercising their right to freedom of expression.

Psaki said Vietnam needs to do more on human rights, and the United States continues to evaluate its security relationship with Hanoi.

The United States has not transferred lethal arms to Vietnam since communists took power at the end of the Vietnam War. A 1984 embargo prohibited arms sales because of concern over the authoritarian government's human rights record.

Relations between the United States and Vietnam were normalized in 1995, some 20 years after the war's end. Washington approved non-lethal arms sales in 2006, and ties have since deepened further, particularly as the Obama administration has sought to expand US engagement in Asia.

The State Department characterized Thursday's move as part of a broader effort to help countries in the region boost their maritime security.

Last December, during a visit to the Southeast Asian nation, Kerry announced US$18 million in assistance to Vietnam to provide its coast guard with five, unarmed fast patrol boats. The United States is also striving to build the capabilities of another South China Sea claimant, the Philippines, to patrol and monitor its waters.

Despite fraternal ties between the ruling parties of Vietnam and China, tensions spiked this year after China deployed a deep-sea oil rig near the disputed Paracel islands. Vessels from the two sides repeatedly rammed each other near the rig. The standoff triggered deadly anti-China protests and riots in Vietnam.

The United States says it has a national interest in peace and stability, and the diplomatic resolution of territorial disputes in the South China Sea, a major conduit for world trade.

Vietnam has been vying for the lifting on the US ban. Last week, Minh, who is also Vietnam's foreign minister, said it's been nearly 20 years since Washington and Hanoi normalized relations, and so it's "abnormal" to retain the ban.

"If we do not buy weapons from the United States, we [would] still buy from other countries," Minh said at the Asia Society in New York. "Why should China bother about that?"

Russia is currently Vietnam's main source of armaments. Vietnam has earmarked hundreds of millions of dollars to build more vessels to improve its maritime capability.

Associated Press writer Lara Jakes contributed to this report.

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North Korea Envoy Says Door Is Open on Nuclear Issues, Rights, Abductees

Posted: 02 Oct 2014 10:03 PM PDT

North Korea's Ambassador to the United Nations So Se Pyong smiles during an interview with Reuters at the Permanent Mission of North Korea in Geneva on Oct. 2, 2014. (Photo: Reuters / Denis Balibouse)

North Korea's Ambassador to the United Nations So Se Pyong smiles during an interview with Reuters at the Permanent Mission of North Korea in Geneva on Oct. 2, 2014. (Photo: Reuters / Denis Balibouse)

GENEVA — North Korea is ready to resume six-party talks on its nuclear program but must maintain its readiness in the face of joint US-South Korean military exercises, a senior envoy in Geneva said on Thursday.

So Se Pyong, the Democratic People's Republic of Korea's (DPRK) ambassador to the United Nations in Geneva, told Reuters that his country was not planning a nuclear or missile test.

In a wide-ranging interview, he said that reports about the ill health of its leader Kim Jong-un were "fabricated rumors" and that it was not clear whether the United States was willing to negotiate the release of three detained Americans.

Russian Foreign Minister Sergei Lavrov said after talks with North Korea's foreign minister in Moscow on Wednesday that he saw a possibility that stalled talks on Pyongyang's nuclear program could resume, but it would take time.

"For the six-party talks we are ready, and as far as I think, China and Russia and the DPRK are ready," So said in the rare interview in the DPRK's mission overlooking Lake Geneva.

"But America, they don't like that kind of talks right now. Because America does not like that, so that's why the countries like South Korea, Japan also are not ready for those talks."

North Korea promised to abandon its nuclear program in 2005 but appeared to renege on the agreement when it tested nuclear devices in 2006 and 2009.

Already heavily sanctioned by the world body for its missile and nuclear tests, it has completed a major overhaul of its rocket launch site, a US think tank said on Thursday, enabling it to fire larger, longer-range rockets.

So, without being specific, linked North Korea's military preparations to "very serious" US-South Korean exercises earlier this year that he said had deployed nuclear-powered aircraft carriers, submarines and B-52 bombers.

"We have to be alert also, we have to be prepared to make counter measures against that military exercise which are against us."

Asked specifically whether North Korea was preparing a nuclear test or to fire a missile, he replied: "No, no.

"In case, in case, if they do that kind of joint military exercise, the joint nuclear military exercise against my country continuously, we have to, also."

North Korea's nuclear weapons program protected it from the United States, So said.

"In case if we give [the weapons] up like other countries, then of course I think they would have attacked us already," he said.

North Korea is not believed to have mastered the technology to miniaturize a nuclear warhead small enough for any of its existing rockets, although analysts say subsequent nuclear tests increase the chance of refining its existing nuclear technology.

It has previously threatened to turn Seoul and Washington into a "sea of flames."

'Party Policy'

Asked whether North Korea's leader Kim was committed to denuclearization, So said: "It is the party's policy."

Kim failed to appear at the Supreme People's Assembly last month and state media said he was suffering from "discomfort." He had been seen walking with a limp since an event in July.

Asked about the nature of his ailment, So said: "That is rumors, fabricated rumors."

He said that media reports Kim may have had surgery on his ankles were wrong.

Three Americans are currently being held in North Korea on charges of crimes against the state. A pro-North Korean daily published in Japan on Thursday quoted one of them appealing to the US government to help to secure their freedom.

"It is true that three Americans are detained in my country now … They came into my country illegally and also they committed some crimes against my country, that is why they are on trial and then they were sentenced," So said.

He added: "I was told that they asked for the government of America to have negotiations on those problems, but I don't know whether America is ready or not to release them or have some understandings or the recognition of those crimes they made."

US special representative for North Korean policy Glyn Davies said on Monday that North Korea has rejected US efforts to discuss the detentions, adding that the secretive state was missing a chance to build relations with Washington.

So disclosed that North Korea has sought closer cooperation on human rights, first with the United Nations for technical assistance, and also through dialogue with the European Union.

"Actually we just gave a hint to have that kind of dialogue to one of the EU member countries, but still they don't give us any feedback, any answer," So said, noting that the EU has taken the lead in criticizing North Korea at UN rights forums.

A report by UN investigators this year denounced its system of labor camps holding political prisoners. US Secretary of State John Kerry, speaking in New York last week, called on North Korea to close its camps.

"Of course every country has prisons. That is true. We have also prisons. But not labor camps they are talking about," So said. "That is a totally fabricated discrimination."

On the politically charged issue of Japanese nationals abducted by North Korea over the years, So said that he did not know how many abductees there had been, but noted there had been recent contacts on the issue.

"Whether it is a hundred, or 200 or 500, I don't know exactly. We don't know the exact numbers, those are very difficult problems there," So said.

In 2002, North Korea admitted kidnapping 13 Japanese citizens in the 1970s and 1980s to help train spies. Five abductees and their families later returned to Japan.

Officials from North Korea and Japan have met in China on the issue, and Japan's Prime Minister Shinzo Abe, who has made resolution of the dispute a top priority, said this week that North Korea had invited Japanese representatives to Pyongyang.

So said he did not know if a trip would take place.

"I was told also there were some more contact last week," So said. "So anyway, we are ready to solve that problem because we are very frank."

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Hong Kong Leader Refuses to Resign But Offers Talks With Protesters

Posted: 02 Oct 2014 10:00 PM PDT

Hong Kong Chief Executive Leung Chun-ying waves to onlookers as he attends a flag raising ceremony in Hong Kong on Octo. 1, 2014. (Photo: Reuters / Bobby Yip)

Hong Kong Chief Executive Leung Chun-ying waves to onlookers as he attends a flag raising ceremony in Hong Kong on Octo. 1, 2014. (Photo: Reuters / Bobby Yip)

HONG KONG — Hong Kong leader Leung Chun-ying defied pro-democracy protesters' demands to step down by Friday, with pressure also increasing from Leung's backers in Beijing over one of the most serious political challenges they have faced in decades.

Leung refused to bow to an ultimatum from protesters to resign and repeated police warnings of serious consequences should they try to block off or occupy government buildings.

He told reporters just minutes before the ultimatum expired at midnight that Chief Secretary Carrie Lam would meet students soon to discuss political reforms, but gave no timeframe.

Tens of thousands have taken to Hong Kong's streets in the past week to demand full democracy, including a free voting system when they come to choose a new leader in 2017.

The protests have ebbed and flowed in the days since police used pepper spray, tear gas and baton charges last Sunday to break up the biggest demonstrations seen since the former British colony was handed back to Chinese rule in 1997.

China rules Hong Kong through a "one country, two systems" formula underpinned by a "Basic Law," which accords Hong Kong some autonomy and freedoms not enjoyed on the mainland and with universal suffrage as an eventual goal.

Beijing, however, decreed on Aug. 31 that it would vet candidates who want to run for chief executive at an election in 2017, angering democracy activists who took to the streets.

While Leung made an apparent concession by offering talks, Beijing restated its resolute opposition to the protests and a completely free vote in Hong Kong.

"For a few consecutive days, some people have been making trouble in Hong Kong, stirring up illegal assemblies in the name of seeking 'real universal suffrage,'" China's official People's Daily said in a front-page commentary on Friday.

"Such acts have outrightly violated the Basic Law, Hong Kong's law, as well as the principle of the rule of law, and they are doomed to fail," the commentary warned.

Thousands of protesters had gathered outside Leung's office in central Hong Kong in anticipation of the ultimatum, but were disappointed when Leung stood firm.

Their numbers fell to hundreds as the sun rose on Friday and Hong Kongers prepared to go back to work after the two-day National Day holiday, although there were tense moments with about 100 police guarding the building.

Protesters refused to allow two trucks carrying supplies for police guarding Leung's office through their lines, although the stand-off remained peaceful.

But there were signs of tension between public employees trying to go back to work and the protesters who have barricaded the area outside Leung's office.

"I need to go to work. I'm a cleaner. Why do you have to block me from going to work?" said one woman as she quarreled with protesters. "You don't need to earn a living but I do."

Other government workers milled around outside the building, waiting for instructions before the government later declared its main office building would remain closed for the day, with workers to go to secondary sites.

Other protest sites in the Central business district, the luxury shopping area of Causeway Bay and in the densely populated residential Mong Kok district of Kowloon were quiet.

Disappointment, Suspicion

Some protesters now suspect authorities are trying to buy time with their offer of talks while they wait for demonstrations to dwindle.

"The government already has an answer in its heart. They will not let us have real universal suffrage," said Isaac Chan, a 22-year-old private music tutor.

"We think this is a tactic being used to cool the crowd because [Friday] is a work day, not a holiday," he said.

The protests so far have been an amalgam of students, activists from the "Occupy" movement and ordinary Hong Kongers, under the "Umbrella Revolution" banner adopted after many protesters used umbrellas to ward off pepper spray used by police almost a week ago.

Some now fear that the lack of any clear leadership could prove to be a telling weakness for the disparate groups.

"We are not worrying about excessive violence from police, as we don't expect they will repeat it again when the whole world is watching," said Kenneth Mok, 22, a civil engineering graduate, at the Admiralty protest site near Central.

"We are worrying the movement will lose steam without a clear leader leading. We are worrying that people will go back to normal like nothing has happened," he said.

Student groups welcomed the offer of talks, but they urged followers to stay where they were to keep up the pressure on the government. The "Occupy Central with Love and Peace" movement reiterated its demand that Leung step aside.

The protests have brought parts of the Asian trading hub to a standstill. ANZ economists sent out a research note on Friday estimating that the protests may have cost retailers HK$2.2 billion ($283.5 million) so far, with retailers of luxury goods, cosmetics and consumer durables hardest hit.

Leung's widely anticipated refusal to resign underlined that both sides appear to have dug in for a protracted stand-off.

"In any place in the world, if there are any protesters that surround, attack, or occupy government buildings like police headquarters or the chief executive's office … the consequences are serious," Leung said, echoing warnings from the police that their response to any such action would be robust.

The "Occupy Central" movement presents one of the biggest political challenges for Beijing since it violently crushed pro-democracy protests in and around Tiananmen Square in 1989.

Cracking down too hard could shake confidence in market-driven Hong Kong, which has a separate legal system from the rest of the country, but not reacting firmly enough could embolden dissidents in mainland China.

China's ambassador to Germany, Shi Mingde, told Reuters in Berlin that the protests could tarnish Hong Kong's image as one of the world's leading financial centers if they continued for a prolonged period.

Hong Kong's benchmark share index, the Hang Seng, plunged 7.3 percent in September, in part because of the uncertainty surrounding the protests. It was down 1 percent Friday morning, echoing falls in global markets. Spooked by the protests, some banks and other financial firms have begun moving staff to back-up premises on the outskirts of the city.

Additional reporting by John Ruwitch, Charlie Zhu, Yimou Lee, James Pomfret, Irene Jay Liu, Farah Master, Diana Chan, Twinnie Siu, Kinling Lo, Diana Chan and Jason Subler in Hong Kong.

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