In Brief
YSX hits low in second week of 2018
Reuters reporters remain in custody
Rohingya return to Myanmar delayed
TMH Telecom starts trading on YSX

​Politics
Russian Arms Deal- Russia will stand by a deal to sell military aircraft and provide technical cooperation to Myanmar’s military, Moscow said after the agreement drew criticism from the U.S. The Kremlin reaffirmed its commitment to the deal, which was signed on Jan. 20 during Russian Defense Minister Sergey Shoigu’s visit to the country that will see Moscow sell six SU-30 fighter planes to the Tatmadaw. U.S. State Department spokeswoman Heather Nauert earlier urged Moscow to reconsider the agreement. In its response, Moscow said the sale of military equipment to Myanmar was aimed at helping the country boost its defense capability.
More NCA Issues - The Karen National Union agrees with its armed wing, the Karen National Liberation Army, that the upcoming 21st Century Panglong Union Peace Conference should be postponed until differences over the Nationwide Ceasefire Agreement (NCA) between the government, Myanmar Army, and the ethnic armed organizations (EAOs) are resolved. KNU Secretary Padoh Saw Ta Doh Moo said that both the political and military branches of the Karen revolutionary group had agreed to this stand, as clarification of the security sector issues is needed before progress can be made in other areas. The concerns of the EAOs arose after a representative of the Myanmar Army, or Tatmadaw, said in a November joint review meeting that security sector re-integration was the same thing as the disarmament, demobilization and reintegration process, an interpretation that the EAOs could not accept.

Kachin Parties Amalgamate - After five years of effort, three Kachin political parties agreed to merge recently to meet a desire among ethnic Kachin for a single, strong party. The Kachin Democratic Party (KDP), the Kachin State Democracy Party (KSDP), and the Kachin National Congress (KNC) agreed to the merger at a meeting of the Kachin Political Parties Coordination Committee in the Kachin State capital of Myitkyina. They finally managed it hoping that the 2020 general election will not see them repeat the poor showings they suffered in 2015. The decision to merge was to constitute a party that represents the Kachin State residents and to fulfill the Kachin people’s desire. People were confused by the array of Kachin parties in 2015, causing all of them to lose votes. The KDP chairman said the three-party leaders will chose a name, logo and emblem for the new party and let the public decide whether to adopt it on Feb. 20.

Bill Richardson Resignation - Veteran US diplomat Bill Richardson has resigned from an international panel set up by Myanmar to advise on the Rohingya crisis, saying it was conducting a “whitewash”, accusing the country’s leader Aung San Suu Kyi of lacking “moral leadership.” Richardson, a former Clinton administration cabinet member, quit as the 10-member advisory board was making its first visit to western Rakhine State, from where nearly 700,000 Rohingya Muslims have fled in recent months. “The main reason I am resigning is that this advisory board is a whitewash,” said, adding he did not want to be part of “a cheerleading squad for the government.” Richardson said he got into an argument with Suu Kyi during a meeting with other members of the board, when he brought up the case of two Reuters reporters who are on trial accused of breaching the country’s Officials Secrets Act. He said Suu Kyi’s response was “furious,” saying the case of the reporters “was not part of the work of the advisory board.” The argument continued at a dinner later that evening, the former New Mexico governor said. “She’s not getting good advice from her team,” Richardson said of Suu Kyi, whom he said he has known since the 1980s. “I like her enormously and respect her. But she has not shown moral leadership on the Rakhine issue and the allegations made, and I regret that.”

Business
Bus Stop Advertising - A French-Myanmar joint venture, FMIDecaux, a joint venture between First Myanmar Investment Company (FMI) and JCDecaux, has won an exclusive 20-year contract to sell advertising on street fixtures in the commercial capital Yangon, including the installation of 500 hi-tech bus stops. In a press release, JCDecaux announced that under the new contract, the joint venture will design and install 500 new bus stops featuring advertising displays and city information panels (CIPs). The bus stops will be equipped with USB ports. LED screens on the roof will show buses’ estimated time of arrival. All 500 new bus stops will be finished in three years. FMIDecaux’s winning bid proposes total investment of US$13 million in the project, including operation and maintenance of new bus stops and CIPs.

Rice Focus - Rice exports are expected to increase in 2018 on the back of demand from China, the largest importer of Myanmar rice, as well as other countries like Bangladesh and Sri Lanka, traders say. Rice exports are at their highest level in 60 years. Since the start of the 2017-18 fiscal year on April 1, 2017 up until January 5, Myanmar exported more than 2.6 million tonnes of rice. By the end of the fiscal year on March 31, total exports are expected to reach 3 million tonnes, backed by China and new demand from Bangladesh, which has committed to importing a million tonnes of Myanmar rice this year. Local consumption has also been on the rise, with the rice prices up by K10,000 per 50 kilograms compared to K2,000 in the export market. Myanmar currently produces 13 million tonnes of rice, around 60 percent of which is consumed locally. Meanwhile, more farmers are entering the rice production business since the pulse and bean sector collapsed. “Rice is the most important export crop, so the government should play a greater role in supporting an effective and efficient market for the trade,” said Tin Hlaing Win, chairman for the Paddy Producing and Distribution Association in Mandalay.

Infrastructure
IFC Not Listening - Action for Shan State Rivers (ASSR) said recently that locals were disappointed by a meeting of the International Finance Corporation (IFC) concerning the controversial hydropower projects on the Salween River in Shan State. “Despite disagreements, the IFC held a stakeholder discussion in Taunggyi on Monday, without representatives of impacted locals or local civil society organizations (CSOs) present,” said Sai Khur Hseng, an ASSR spokesperson. The ASSR said the discussion was part of a series of meetings to finalize a countrywide strategic environmental assessment (SEA) for hydropower development projects on the Salween River, including Naung Pha dam, which alarms the locals. The Naung Pha dam, located between Lashio and Hopong townships, is like other planned hydropower dams in the region, an armed conflict zone. “Locals, including us, and many other local CSOs, have been against the hydropower projects and the dam building on the Salween River for many years. We were angered and saddened by the ignorance of responsible organizations like the IFC,” said Sai Khur Hseng. Six large hydropower dams are planned to be built along the river in Shan, Karenni and Karen states, which would collectively generate 10,000 megawatts of electricity. Most of the electricity produced from these hydropower dams will be exported to neighboring countries, mainly China. The locals have been against hydropower development on Salween River for many years, urging for transparency, and concern for natural disasters, as well as environmental and social impact.

Dawei - The Dawei Special Economic Zone (SEZ) will be developed in full to accelerate its completion after a five-year delay. A public forum was held in Dawei SEZ area for the purposes of sharing information and discussing action plans by the management committee and Italian-Thai Development company(ITD), the developer selected to construct the initial phase of the SEZ, recently. The government has been exploring ways to restart development of Dawei SEZ, which has been suspended since 2013, when ITD withdrew from the agreement to develop the $8 billion SEZ due to financial constraints. There were also community complaints regarding lack of adequate compensation for the construction and potential pollution and disruption caused. ITD resigned the concession agreement in 2015. Currently, Japan International Cooperation Agency is drawing up a full phase master plan for Dawei SEZ. The plan will be finalised and submitted to the relevant SEZ authorities in April. Full phase implementation will commence in tandem with development of the initial phase of the SEZ, which involves the construction of roads and a port as well as electricity generation, said Myint San, Vice President of Dawei SEZ. “There were many complications in terms of agreement with the previous government and land compensation issues to be tackled with the initial phase developer ITD. So, we can’t wait for the initial phase to be finished to start the full phase. We have to develop both phases together,” he said. Aye Min, President of Dawei Nationalities Party said while it is a good sign that the project will be restarting after the long pause, the SEZ has to be developed with least possible negative impact to the community. “The restart must avoid the mistakes initiated under the previous government. Compensation must be fair. The suspension of the project was largely due to protests over unfair compensation,” he said.  Two taskforces have already been formed to investigate restarting development of Dawei SEZ. One will focus on problems encountered with ITD for the initial phase, while the second task force will focus on upgrading an existing 150-kilometer road connecting the SEZ to Htee Khee. At $8 billion, Dawei SEZ will be one of the biggest mega-projects in Southeast Asia once complete. Development of the initial phase alone would cost more than $1 billion. The Dawei SEZ project is one of three SEZ projects in Myanmar. Currently, Thilawa SEZ in southern Yangon is the only one in operation while Kyaukphyu SEZ in Rakhine has stalled due to a deadlock in stakeholder negotiations between China’s CITIC-led consortium and the Myanmar government.

Culture and Tourism
Flower Power - The Chin State government is planning to revive Buran trees (Rhododendron arboreum), the state flower of Chin State, to promote tourism in the region. Burans are small evergreen trees with bright red flowers. The Chin State government and locals say the number of these trees in the area has declined due to negligence and deforestation. “They have been neglected for many years. There isn’t a culture of valuing these trees and locals have cut them down for wood and their flowers for many years,” said Salai Isaac Khen, the state minister of municipal works, electricity and industry. The minister said the Chin hills were once covered with Buran trees, especially in the Kanpetlet, Tedim, Mindat and Falam regions. When the Buran flowers blossom, the Chin hills become picturesque, attracting visitors. Since the Burans are unique to this region in Myanmar, visitors flood Chin State from November until March, especially Mt. Victoria in Kanpetlet Township, to see the flowers, birds and butterflies.

Mrauk-U - A work coordination meeting on the nomination of Mrauk-U to the UNESCO World Heritage List scheduled to be held from Jan. 26–27 has been postponed following protests in the old Arakanese capital. Hundreds of Mrauk-U residents took to the streets to protest the government’s ban on celebrating the 233rd anniversary of the fall of the Rakhine Dynasty. The government said it had banned the annual event because the venue was a former palace that had been listed as a national heritage site. Seven residents were killed, and 12 others were injured during the police crackdown on protestors. “We sent invitations to the meeting. But, it is now difficult to come to the town because of security concerns. The meeting will likely be held in Yangon instead, but that has not yet been officially confirmed,” said Khin Than, chairwoman of the Mrauk-U cultural heritage conservation group. The draft nomination to include Mrauk-U as a World Heritage Site is set to be submitted in September with the final submission to be delivered by January 2019, according to Khin Than. “The image of Mrauk-U is severely damaged by the incident]. We have been trying to enhance its image to get UNESCO’s recognition. While we are trying every means to make the world know Mrauk-U and there is certain progress toward this end, this incident has exerted serious impact,” she said.
She hopes that adding Mrauk-U to the UNESCO World Heritage List will help solve the sectarian divide in Rakhine State to some extent. UNESCO officials started their survey of the old Arakanese capital in February last year. Mrauk-U is located on the Kaladan River in northern Rakhine State, some 60 kilometers inland from the state capital Sittwe. From the 15th century to the late 1800s, Mrauk-U was the seat of Arakanese kings, who at the height of their power controlled an area covering large parts of eastern Bengal, modern-day Rakhine State and the western part of Lower Myanmar. Much of the city’s remains are well preserved and some 380 historic temples are scattered among the hills of northern Rakhine. Internal violence between Arakanese Buddhists and Rohingya Muslims that erupted in mid-2012 has driven down tourist numbers.

Wishing Everyone A Wonderful New Year!

​In Brief
New Companies Act passed by Parliament, but implementation delayed until August 2018
Myanmar opium poppy cultivation dropped by a quarter between 2015 and 2017
Two Reuters reporters arrested using antiquated law
Fighting between Kachin Independence Organization (KIO) fighters and Tatmadaw, has intensified
Journalism visas difficult to get since Rakhine situation

Politics
Beware The Blame Game - The International Crisis Group suggested recently that policymakers in the West should resist the urge to disengage with Myanmar, while warning of potential negative consequences of any punitive action taken against the country. Myanmar has faced international criticism for its army’s recent campaign against Rohingya Muslims in the western part of the country, where more than 600,000 Muslims have fled across the border to Bangladesh. The army has been condemned for committing human rights violations including torching homes, arbitrary killing and rape. In the wake of the exodus, the European Union and the United States imposed sanctions against Myanmar’s military leadership. The warning by the Brussels-based NGO urged international policymakers not to lose sight of the distinction between the government and the people, “who should not pay the price for the actions of a military that is constitutionally outside of democratic control.”
China Conundrum - Facing political pressure and the threat of sanctions over the situation in Rakhine State, the government is seeking China’s diplomatic and economic support. However, Myanmar’s approach will be cautious and calculated as it also fosters other friendships in the region. The government of Myanmar and its powerful military consider China an important and strategic partner but don’t want to be seen to rely on China alone. The government is expanding its economic cooperation with other countries including Singapore, Vietnam, Thailand, South Korea, India and Japan. However, while important regional allies, they are not political heavyweights in the international arena with the clout to protect Myanmar. Even so, Myanmar’s armed forces will be cautious with China, given that it has provided arms and logistical support to rebel groups in the north for decades. It’s not clear just how much trust and confidence Myanmar’s generals have in Beijing.

Message From Arakan Army - The head of the Arakan Army (AA) has called on the Arakanese people not to let their emotions lead them to become involved in the conflict in Rahkine State. AA chief Tun Myat Naing spoke in a video posted on the AA’s Facebook page in which he described the conflict between Muslims and the Myanmar Army in Rakhine as a “political trap.” “The enemy has surrounded our Arakan land,” Tun Myat Naing said, referring to the Myanmar Army in Rakhine. “There are many conflicts in Arakan. For example, the problem of the Kalar (a derogatory term used against those of South Asian descent, and increasingly as an anti-Muslim slur) is a political trap for us. It has divided our people. We give warning to our people. This is a sensitive issue, and we should not become involved emotionally,” he said. “Whenever there has been a conflict with the Kalar, the Myanmar Army have wanted to create a split between the AA and the world. They have tried to lead us into an international trap,” he said. The AA intends to protect the land of Arakan and the Arakanese people, but the rebel group will stay on the sidelines whenever conflict breaks out between Muslims and the Myanmar Army in Rakhine State, he said. “This has  prompted some people to criticize the AA. But we need to be careful with our political stand. The Myanmar army attacked those Kalar with the intention of protecting the land for themselves and to keep it for themselves. It was not to defend our people. Our people must understand this,” Tun Myat Naing, said.

Myanmar Responds - Myanmar has launched a diplomatic offensive as international criticism mounts over their treatment of the Muslim Rohingya. It is a three-pronged assault, aimed at the UN, combatting calls for renewed sanctions and an effort to engage the international community in plans for the reconstruction and reconciliation of Rakhine. This charm offensive is largely aimed at the countries in the Middle East and Muslim nations in Asia, which it sees as the main movers behind attempts to get the UN Security Council to renew sanctions. In the past week diplomats have been instructed to reach out to members of the Organization of Islamic Countries (OIC) to clarify the government’s position. They have been instructed to explain that the Myanmar government plans to accept back all the refugees in a “phased return,” according to diplomats in Yangon. But at the same time  Aung San Suu Kyi, has announced the formation of an international advisory body to help implement the government’s plans for Rakhine, to be chaired by the former Thai foreign minister, Surakiart Sathirathai.

Business
New Companies Law - the new Companies Law, replacing the colonial-era Myanmar Companies Act of 1914, will come into effect as of August 1 next year, according to the Directorate of Investment and Company Administration (DICA). “All the preparations to apply the law should be completed before next August. So, the law will be brought into effect on August 1,” said Director-General of DICA, Aung Naing Oo. Until then, DICA will conduct a trial for electronic registration of companies, hold discussions with stakeholders and educate the public about the new piece of legislation. The new law combines elements of the Myanmar Companies Act of 1914 and the Special Companies Act of 1950, reworked in hopes of attracting foreign investment, Deputy Minister for Planning and Finance Maung Maung Win told Parliament as he submitted the draft law in July. The eight-part law was formulated with input from the attorney general’s office, concerned ministries and economic partners plus technical assistance from the ADB. There are more than 60,000 companies registered with DICA under the old law, and those companies will have to register online under the new law over the next six months, he said. “Online registration is not complicated. It is just filling out forms,” said Aung Naing Oo. The new law no longer defines any company in which a foreigner holds a minimum 1 percent of shares as a foreign-owned company, but only those where foreign ownership exceeds 35 percent, it will also allow foreigners to own condominium flats and moveable property.

Coffee Deal - A coffee growers cooperative in Shan State and a French roasting company signed a memorandum of understanding recently that pledges the roaster to buy from the farmers for five years in a bid to combat opium cultivation in the region. “We’ll pay higher than the market prices. We’ll buy coffee for five consecutive years. But because it’s meant for the international market, it is important that quality is not compromised,” Jean-Pierre Blanc, executive director of Malongo Coffee Co., said at the signing ceremony.According to the agreement, Malongo will buy coffee from Green Gold, a cooperative of coffee growers from over 60 villages in Hopong, Loilem and Ywangan townships for the next five years.

Infrastructure
Culture and Tourism
American Help - Restoration work on the 190-year-old Judson First Baptist Church in the Mon State capital of Moulmein will continue thanks to a second round of financial support from the US Ambassadors Fund for Cultural Preservation and help from conservation experts with the World Monuments Fund.Built in 1827 by Adoniram Judson, an American missionary who spent nearly 40 years in Myanmar in the early 19th century, the church will receive an additional US$100,000 for its preservation. The church received US$125,000 in February 2016 from the same program. The World Monuments Fund aims to use the new grant to complete the two-year project.

NGOs – Help or Hinderance?
The following article originally appeared in Tea Circle, a forum hosted at Oxford University for emerging research and perspectives on Burma/Myanmar. It is worth reporting in full.
With the transition in 2011 to a new hybrid civilian-military government in Burma, a number of international development/assistance carpetbaggers – organizations and individuals – have flocked to the country. Many of them are opportunist international nongovernmental organizations (INGOs), United Nations organizations (UNOs), international development agencies (IDAs), and consultants which go into the conflict and ceasefire ethnic areas in countries to take advantage of the unsettled social, economic, and political conditions for organizational and/or individual self-interests.
Carpetbaggers is a term that was used to describe those persons who moved, immediately after the US Civil War, from the North to the former Southern rebellious states to take advantage of the unstable social, economic, and political climate. The term came to be associated with opportunism and exploitation by outsiders. Their name came from their luggage, which was manufactured from old carpets. The present day international development/assistance carpetbaggers, who carry backpacks now, are conflict/disaster seekers who prey on disaster areas and weak/collapsed states, such as Burma, in a similar manner as do “ambulance chasing” lawyers who rush to the scene of an accident to take advantage of any injured parties.
These international development/assistance carpetbaggers do not conduct any Do No Harm/conflict analysis; or if they do, they don’t use it to understand the conflict dynamics and power/influence relationships of the situation on the ground so as not to really “Do No Harm.”  Moreover, there is no sharing of these Do No Harm/conflict analyses with local stakeholders to ensure their validity.  Consequently, the international development/assistance carpetbaggers strengthen the centralization of the political, administrative, and fiscal powers of the Burma Government in social services while the ethnic people seek decentralization – an important aspect of their economic and political aspirations for the past seventy years.
Such actors undermine the social services provided by the ethnic armed organizations (EAOs) in their administered areas by not obtaining operating permission from local EAO administrative officials; degrade local ethnic community-based organizations (CBOs)/civil society organizations (CSOs) by drawing experienced staff away with compensation packages above local prevailing terms; pay above local market rates for facility leases, driving up local lease rates; provide direct overlapping local services, such as in health care; and, use logframes to push their own priorities which are not that of the local community or ethnic partnership organization(s).
This situation also plays into the hands of local Burman and ethnic business cronies who utilize their networks within the Burma Government, state/region/township governments, and/or Tatmadaw to influence decisions regarding local international development/assistance for the benefit of their own business interests.
The Burma Government and Tatmadaw take advantage of this “ignorance” or “Do Not Care” attitude of the international development/assistance carpetbaggers in a proxy economic counter-insurgency strategy involving development, nation building, humanitarian assistance, and conflict resolution/peace building programs in the ethnic areas.
In essence, international development/assistance is co-opted and “weaponized” by the Burma Government and Tatmadaw against the EAOs by undermining the social and economic support given by the EAOs to their supportive ethnic populations as well as to push the EAOs toward the acceptance of unfavorable ceasefire terms and political compromises.
The international development/assistance carpetbaggers take political sides by complementing the economic concessions given by the Burma Government to those EAOs, which have signed the Nationwide Ceasefire Agreement (NCA), while failing to similarly engage with EAOs which have not signed the NCA.
As one ethnic leader commented to a visiting INGO, “You Doing No Harm is harming us.”
The international development/assistance carpetbaggers are driven by basic human greed for financial rewards (e.g. salaries and grants), status/recognition (e.g., official posting titles, CV citations, and housing/transportation special benefits), and/or other personal gains through the exploitation of situations involving development, nation building, humanitarianism, and conflict resolution/peace building. There are multiple types of international development/assistance carpetbaggers:
Development carpetbaggers
The international development carpetbaggers fund/build roads, bridges, and communications systems in the ethnic areas that extend the administrative and military reach of the Burma Government and Tatamdaw. They may or may not conduct Conflict Analyses, Environmental Impact Assessments, or Social Impact Assessments. However if done, they may only be paper-based, fill-in-the-blank exercises. Consequently, there are issues of environmental degradation and uncompensated/poorly-compensated land confiscations, resulting in displacement of ethnic people. Moreover, the resultant physical infrastructure may allow penetration by the Tatmadaw of vehicles and heavy armaments into conflict areas which were previously inaccessible. Of course, corruption follows as well.
Nation-building carpetbaggers
The ethnic areas are targeted for nation building, which strengthens the control of the Burma Government and extends its administrative and Tatmadaw reach without the necessity of any power/resource sharing arrangements with the ethnic people. These opportunist nation-building carpetbaggers are eager to assist the autocratic Aung San Suu Kyi’s Burma Government to become more efficient and effective in entering, controlling, and exploiting the ethnic areas. They have agreed with the Burma Government, in the so-called Naypyitaw Accord, to align their projects with Burma Government policies. It does not matter that nation building, without sustainable peace, undermines the now seventy-year ethnic quest for political, administrative, fiscal, resource, and security power sharing and ethnic equality promised to them by General Aung San, Aung San Suu Kyi’s father, when they formed the Union of Burma in 1948 with Burmans.
Humanitarian carpetbaggers
There is the proliferation of humanitarian activities into the ethnic areas, especially in regard to health, education, and poverty reduction by some opportunist INGOs, UNOs, and IDAs. This allows for the further extension of Burma Government’s administrative and Tatmadaw control in the ethnic areas through these proxies to undermine the relationship of the EAOs with their ethnic peoples’ support base. These humanitarian carpetbaggers also must adhere to the Naypyitaw Accord. Many do not obtain memorandums of understanding (MoUs) from the EAOs which may control their targeted areas of operations or work with local CBOs/CSOs which are equipped to provide any necessary international assistance directly to their own people. Of course, the humanitarian assistance is also a source of additional overhead/administrative funding, salaries, housing/transportation special benefits, CV citations, and donor and organizational publicity for these humanitarian carpetbaggers. An Afghan analyst is reported to have remarked, “INGOs are the cows that drink the milk themselves” (Quoted in Making States Work, July 2004: P. 13).
Conflict resolution/peace building carpetbaggers
One cannot forget the conflict resolution/peace building carpetbaggers who prey on conflict situations such as in the ethnic areas. These are the opportunist international academicians, institutes/think tanks, foreign governments, and foundations that are advising the Burma Government and EAOs about ceasefires and political dialogue. They are there to “help” the EAOs to “return to the legal fold”. These carpetbagging consultants get grants and publicity for their ceasefire/peace building “back seat driving” and Western “cookie-cutter” solutions which, in any case, are not contextually-based to the unique Asian/Burma social, economic, political, and security sector realities in Burma. In short, they are more “cows that drink the milk themselves”.
With the signing of the Nationwide Ceasefire Agreement in 2015 by some EAOs and the accession of the Aung San Suu Kyi’s National League for Democracy party to government offices in 2016, the door is now wide open to even more international development/assistance carpetbaggers to reap organizational and/or individual benefits in the ethnic areas of Burma.
International development/assistance carpetbaggers have been “called-out” in numerous books and articles over the past half century. They ignore or dismiss such “calling out”, as in this article, since they know that recipient countries need international development/assistance.
They give a bad reputation to those international development/assistance organizations which do good transparent and impartial work, and understand and properly respond to local social, economic, and political environments. While there has been some progress in reining these international development/assistance carpetbaggers in, many are still “out there”. In this sense, they have come to Burma and are now spreading, like a virulent development/assistance virus, into the ethnic areas of Burma.
The ethnic people have been striving for self-autonomy, ethnic equality, and peace for almost seventy years. They desire sustainable peace through equitable power/resource sharing and security sector reform before international development/assistance.  International development/assistance are aspects of peace building, which should occur after, not before, peacemaking and peacekeeping. The Burma Government and Tatmadaw use peace building to avoid power/resource sharing with the ethnic people.
However, if the EAOs cannot resist the lure of international development/assistance, then they must vet and control access into their administered areas by international development/assistance organizations to ensure they don’t undermine the EAO’s popular support base, fracture the EAO or its alliances, and contribute to corruption. Moreover, wherever possible, international development/assistance must be channeled through local ethnic CBOs or CSOs in a fully transparent and responsible manner
The following are recommendations to control international development/assistance organizations seeking to implement activities in EAO-administered areas:
All international development/assistance organizations, operating in EAO-administered areas, should be required to register with the governing EAO and only those who receive approval would be able to implement their project(s). Registration applications would include, as appropriate, local CBO/CSO partnerships, Conflict Analyses, Environmental Impact Assessments, and/or Social Impact Assessments.
MoUs are signed between the EAO and registering international development/assistance organizations and such MoUs will govern the scope and terms of operations.
The registration documentation is shared with the locally-affected communities for their comments and concerns.
For approved registrations, written official authorization and personal identification cards are issued by the EAO.
The activities of registered organizations are monitored by the EAO or an approved local ethnic CBO/CSO on a quarterly basis to ensure that they are in active and full compliance with the terms and scope of their MoUs, including expected outcomes, impact, and utilization of funding. Intentional noncompliance would be cause for termination of the project and exit of the offending organization(s).
Engagements with conflict resolution/peace building organizations and individuals must be evaluated as to appropriateness in respect to the political-military situation in Burma, Burma/Asian values, conflict history, conflicts-of-interest, political bias, conflict resolution/peace building experience, and other relevant factors.  Burma is an Asian multi-ethnic, multi-lingual, and multi-religious country with a long history of insurgency and dissent. There are no Western counties which have similar characteristics and can serve as a conflict resolution model for Burma. Consideration should be given to power/resource sharing models in Asia, such as in India, and to extent, models in Africa.
The ethnic people have suffered enough from the Burma Government and Tatmadaw since Independence. They don’t need to be also deceived or exploited by some international development/assistance organizations and individuals which say “we have come to help you” with development/assistance, but really want to drink the milk themselves or serve as the willing or unknowing economic counter-insurgency tool of the Burma Government and Tatmadaw.
The EAOs must strictly vet, control, and monitor international development/assistance organizations and individuals and say “No” to international development/assistance carpetbaggers: they are not welcome to do their “carpetbagging” in Burma’s ethnic areas.

In Brief
ANA cancels JV with local tycoon Shwe Than Lwin
ASSK visits Rakhine
UN names Norwegian, Knut Ostby as interim UN resident coordinator for Myanmar
SHC Capital Asia is planning to acquire MM Myanmar from FMI, Yoma Strategic Investments and Exemplary Ventures for S$69.7 million.
Jotun, Norwegian paint company, opens factory in Bago region
Pope avoids using “rohingya” word during visit

​Politics
NLD: The Scorecard - Two years ago, on Nov. 8, 2015, a majority of Myanmar voters gave the National League for Democracy (NLD) led by Aung San Suu Kyi a mandate to form a new government. An NLD-dominated Parliament convened on Feb. 1, 2016, and got off to a good start, releasing hundreds of political prisoners — including detained student activists — downsizing ministries, scrapping oppressive laws that had long been used by military rulers to jail political dissidents, amending other controversial laws and issuing guidelines limiting the gifts civil servants may receive. Parliament revoked the 1975 State Protection Law and the 1950 Emergency Provisions Act — which were widely used to jail individual political dissidents under successive military administrations. It also abolished provisions of the Ward or Village Tract Administration Law requiring citizens to report overnight guests to authorities. The measures had been used to hunt down political activists. Parliament is also working to revise the 1993 Child Law and to enact a long-awaited bill that would take steps to protect women against violence. The NLD has increased health spending since taking office. On her government’s first anniversary, Aung San Suu Kyi cited this significant progress in the public health care sector, adding that the international community had acknowledged it. She said significant progress had been made in the fight against three diseases: tuberculosis, malaria, and HIV/AIDS. Myanmar, once ranked near the bottom in terms of global efforts to fight against the three diseases, is now near the top, she said. The Global Fund established to fight the three diseases has commended Myanmar’s achievements in this area and pledged US$500 million to fund the effort for the next three years.
During the government’s first year, ASSK said that the aspect of the administration’s track record she was most proud of was the fact that her ministers were free of corruption. She has repeatedly spoken out publicly against corruption and called for the public to submit complaints against corrupt government officials, ensuring the confidentiality of all submissions. The economy however has been in decline since 2014. Between 2015 and 2016, when the election was held and the new government assumed power, investors and business owners adopted a wait-and-see approach. In 2016 and 2017, the new government was preoccupied with downsizing the number of ministries from 36 to 21, and couldn’t focus much on economic development, and thus the economy continued to deteriorate. The unexpected escalation of unrest in Rakhine State has had some economic consequences as well. While the crisis hasn’t had a direct impact on businesses, as the area affected by the conflict was limited, it had influenced international opinion and that has had consequences for investment flows into the country.
Political analyst Maung Maung Soe said “I don’t see much to be satisfied with — only the fact that a civilian government took power,” he said. “It is good to see a civilian government after the junta had ruled for so long. But , the military remains a powerful influence under the 2008 Constitution.” Constitutional reform is no easy task for the NLD, as the military — the country’s most powerful institution — sees its main duty as safeguarding the charter, which guarantees that it maintains an important leadership role. Constitutionally, 25 percent of seats in all national and regional parliaments are reserved for the military. It also holds three key ministerial portfolios — Defense, Home and Border Affairs — and appoints a vice president. Nonetheless, the NLD has vowed to reform the Constitution before the current government’s term expires in 2020.

Hurt Feelings – The government feels “wronged” over a UN Security Council statement on the Rohingya refugee crisis that reflected international media’s perceived bias of the issue, said presidential spokesperson Zaw Htay. “We feel wronged that UN Security Council members have echoed those allegations. What I would like to tell the international community on behalf of the government is that we are trying to find a long-term solution for the Rakhine issue,” he said. The government will continue doing what it takes to solve the problem, he said, but would not try to counter the UN Presidential Statement because it has already asked the international community to present evidence of the alleged human rights violations and abuses. The UN statement released on Nov. 6 expressed concern over reports of human rights violations and abuses by Myanmar security forces in Rakhine State against Rohingya, saying that abuses involved systematic use of force and intimidation, killing of men, women, and children, sexual violence as well as destruction and burning of homes and property. International groups such as Human Rights Watch have also documented killings and rape of Rohingya and satellite imagery showing razed villages, while access to northern Rakhine is heavily restricted. The statement also called on the Myanmar government to end the excessive military force and intercommunal violence that had displaced more than 600,000 people, the vast majority Rohingya in Rakhine State. “We don’t necessarily have to do as the statement asks. But we can’t ignore it,” said Zaw Htay. The statement also urged the Myanmar government to work with the Bangladeshi government and the UN to allow the voluntary return of all refugees to their homes in Myanmar with safety and dignity. In response, the State Counselor Office issued a statement on Nov. 7, saying that it regretted a Presidential Statement was issued about a situation that is in the process of being resolved amicably between two neighboring countries. The United Nations is turning a blind eye to measures being taken by the Myanmar government, said an MP, adding that the public should stand by the government on the Rakhine issue. Public trust is a necessary condition for the government to make the country’s democratization a success and solve its pressing economic and social problems, Zaw Htay added.

Health Budget - The Myanmar government has granted one billion kyats for research and development in the health sector, according to the minister for health and sports Dr. Myint Htwe. Addressing a meeting of the Food and Drug Administration (FDA) in Naypyitaw he said “All our work, without research, is like fumbling with our eyes closed.” This is the first time in the country’s modern history since independence in 1948 that the Health Ministry has received a research and development budget, with the NLD government planning to double the amount next year. The funds will be used for research in all the departments under the ministry for teaching, food safety and pharmaceutical production, said director-general of the FDA Dr. Than Htut. “Nothing will develop without research. Not only manufacturing but services also need research. According to international practices, organizations use up to 40 percent of their budget on research and development,” said Dr. Than Htut. The research budget is a separate fund from the medical research budget, an annual allocation for the Medical Research Department under the Health Ministry. The ministry comprises the Department of Public Health, Department of Medical Services, Department of Medical Research, Department of Human Resources for Health, Department of Traditional Medicine, Department of Sports and Physical Education, and FDA. The national health plan of Myanmar (2017-2021) aims to extend access to a basic essential package of health services to the entire population by 2020. According to the health ministry, the country’s life expectancy is 64.7 years, the lowest among ASEAN countries.

Business
ANA Backs Out - Japan’s ANA Holdings Inc has dropped a plan to form a joint venture in Myanmar after its application for an air operator’s certificate (AOC) was rejected by Myanmar authorities. ANA established the Asian Blue joint venture last year with local investor Golden Sky World, owned by tycoon Shwe Than Lwin. ANA had agreed to take a 49 percent stake in the airline, which would have focused on international routes, in anticipation of growing demand as Myanmar opens up following decades of military rule. Asian Blue was ANA’s second attempt at investing in Myanmar. In 2014 it scrapped a plan to buy a 49 percent stake in Asian Wings Airways after growing competition made the investment too risky. “We can’t find a reason,” said ANA’s Myanmar representative H. Sammy Aramaki, referring to the government’s refusal to issue the operating license. He said ANA’s operation in Myanmar would continue as usual.

Infrastructure
China State - With a population of 478,801 as of 2014, is the least developed region in Myanmar and the second least populated. Basic infrastructure is still largely absent, and this has been a major hurdle for the Chin economy. Now, the regional government wants to attract investors by improving Chin’s road and maritime connectivity with other regions of the country as well as with neighbouring India. They are trying to establish the Paletwa Port and highways in order to have maritime and road access from Paletwa to Mizoram in India. Five areas in northern Chin are going to have bridges and road networks with India. The regional government has plans to develop border trade markets. The airport project in Falam is also moving ahead. Additionally, they are about to implement the Manipur hydropower project.

Outlook - THE lack of roads and other key infrastructure threatens the sustainability of Myanmar’s economic growth, which has been accelerating at over 7 percent for the past several years, according to a November report by the Economist and Baker McKenzie. It says the country’s “positive economic trajectory will be challenged by a massive infrastructure need that the government does not have the resources to meet alone.” “While Myanmar's economic growth is predicted to continue to sit above an average of 7pc for several years to come, sustaining this growth will depend on massive investment from the government, development finance institutions and the private sector,” it said. “If it is not forthcoming, the growing infrastructure gap could put the brakes on Myanmar’s economy.”
Nevertheless, there are still a lot of opportunities for investors to engage in infrastructure projects in the country. One of bright spots for Myanmar is its telecoms sector. “Prior to the reform period, Myanmar had one of the world’s lowest rates of connectivity, with very limited internet access and active SIM cards measured in the thousands,” it said. “This has changed virtually overnight, and Myanmar now has more than 50 million active SIM cards, as well as the region’s fastest mobile internet speeds,” it added. Among the infrastructure that the Myanmar government has prioritised are the areas of power, as well as water and transport, the report said, adding that the government is actively seeking foreign investors in these sectors.

Culture and Tourism
The Royal Family - The national premiere of “We Were Kings”, a documentary about the forgotten royal descendants of King Thibaw, the last king of Burma, kicked off a nostalgic atmosphere at the Irrawaddy Literary Festival in Mandalay recently. The 58-minute film features interviews with the grandchildren and great grandchildren of King Thibaw. Author of “The King in Exile,” Sudha Shah, was joined by the only two living grandchildren of King Thibaw, their descendants and royal descendants of the penultimate King Mindon. “We Were Kings,” directed and produced by Alex Bescoby and Max Jones of Grammar Productions, has won the Whicker’s World Foundation Award 2016. The film brings the lost descendants of King Thibaw into the spotlight by focusing on the struggle of U Soe Win, the great grandson of King Thibaw, as he tried to bring the remains of the exiled king back to Myanmar. King Thibaw was sent to India by the British in 1885 and died in exile in 1916. 
Some of the last king’s descendants had hoped and planned for years to return the remains. “There are many different views, even in our family, about bringing back the remains, as were featured in the film,” said Soe Win. “My uncle Taw Phaya said let it be and my cousin Devi said it was not yet time. But I still wanted to keep trying simply because I do not want him to rest in exile, not because I want to reestablish the monarchy.” Soe Win led his family to restore the abandoned tomb of King Thibaw and the first princess in Ratnagiri, India. Since King Thibaw did not receive a proper royal ceremony or religious rituals at his funeral, Soe Win struggled to perform these rituals by seeking support from the governments of Myanmar and India. “But bringing back the remains was another story. It was not only up to the royal descendants. It became the affair of the entire country and the decision rests in the hands of the people,” he said. “We also need to think about the descendants of the first princess, who are living in India. Maybe, the time hasn’t come yet to move her remains.” Prince Taw Phaya – the third son of the fourth daughter of King Thibaw, Princess Hteik Su Myat Phaya Galae – said the remains should be left where they are as the country and the world have changed greatly. “May he rest in peace. Let’s not dig this up again,” he added.
On the other hand, for the royal descendants of King Thibaw and King Mindon, “We Were Kings” revisits their lives in Mandalay, the last royal capital where King Thibaw spent his final days as monarch. “I do not want to recall the bitter past. When I watched this film with my brother, family and other royal family members, I was sad remembering that my mother had to struggle a lot,” said Princess Hteik Su Phaya Gyi, the only living granddaughter of King Thibaw, who presented at the premiere. Princess Hteik Su Phaya Gyi, 95, widely called Phwar May or Aunty Su among the royal descendants, is the second daughter of the fourth daughter of King Thibaw, Princess Hteik Su Myat Phaya Galae. “Since stories of us have been wiped from the pages of history for a long time, youth today have no idea what is happening with King Thibaw’s descendants. I thank Alex, Max and Sudha Shah,” she said. “However, I no longer want to live as royals after all the time and troubles. Things have changed. I am now at peace living as an ordinary person. Do not call me princess or a royal, for I am not anymore. It was history and let it stay history,” she said.
Together with the film’s Myanmar premiere, one mystery has entered the spotlight again—the disappearance of an enormous ruby of the royal family. According to an article by Alex Bescoby, Soe Win travelled to London for the first time and visited the Victoria & Albert Museum to see valuable artifacts that once belonged to his family. Accompanied by Bescoby, Soe Win’s visit had another purpose—a treasure hunt for an enormous ruby, also known as “The Nga Mauk” of the then-royal family that was said to be “worth a kingdom”. Hundreds of gold and gem-studded items were seized from King Thibaw by the British and the then British colonel Edward Sladen, who was the chief political officer of the invasion force and has been the main suspect in the disappearance of the ruby. There are rumors within the royal descendant’s family that the ruby was given to Queen Victoria as a gift by the colonel and might have been kept as part of the Royal Collection since then.

In Brief
Drop in tourism due to Rakhine troubles
Nationwide ceasefire a “forlorn hope”
TPG sells Myanmar Distillery stake to ThaiBev for undisclosed sum
Kandawgyi Palace Hotel completely ravaged by fire
ICG warns Europe re-imposing sanctions may not be helpful to the Rohingya crisis

Politics
Some Cooperation - Myanmar and Bangladesh have agreed to cooperate to restore stability in Rakhine State but failed to reach an agreement over the repatriation of refugees. “Bangladesh wants to repatriate as soon as possible. But we will go step by step and form a joint working group for repatriation,” Kyaw Zeya, permanent secretary of Myanmar’s foreign affairs ministry, said. About 600,000 Rohingya Muslims have fled Myanmar since Aug. 25, when insurgent attacks on police outposts in Rakhine State prompted clearance operations by the Myanmar Army. Myanmar’s home affairs minister Lieutenant General Kyaw Swe and his Bangladeshi counterpart Asaduzzaman Khan agreed to halt the mass exodus of refugees to Bangladesh, and restore normalcy in Rakhine State to make repatriation possible. “We are however yet to rebuild infrastructure and draw up resettlement plans to accept them back. These works are being handled by state leaders themselves, and so it is difficult to predict when they will be complete,” said Tint Myint, permanent secretary of the Home Affairs ministry. However, the two countries only signed two agreements covering security and border cooperation, but not on the repatriation of refugees. There is a huge gap regarding the numbers of people who fled to Bangladesh between the ground survey of Rakhine State government and UN statistics, according to the President’s Office.

Army Rejects Criticism - The Myanmar Army chief rejected accusations of abuses by his troops during operations in northern Rakhine State in a meeting with the US ambassador saying, “no action goes beyond the legal framework.” Snr-Gen Min Aung Hlaing told US ambassador Scot Marciel  “unlawful acts are not allowed” in response to the ambassador raising concerns over the exodus of more than 500,000 people to Bangladesh and reports of excessive use of force and genocide by the security forces in Rakhine. Most of those who have fled since militants attacked police outposts on Aug. 25 are Rohingya Muslims. Reports of killings, rape, and arson by security forces have stoked claims of ethnic cleansing in the international community. Despite the army’s denial of crimes, the UN human rights office said that Myanmar security forces began its “clearance operations” before the Aug. 25 militant attacks, brutally driving out Rohingya Muslims from the region, torching their homes, crops and villages to prevent them from returning. In a report based on interviews with refugees who have arrived in Bangladesh in the past month, the UN human rights office said that the destruction by security forces, often joined by mobs of armed Arakanese Buddhists, of houses, fields, food stocks, crops, and livestock made the possibility of the Rohingya returning to normal lives in northern Rakhine “almost impossible.” “Credible information indicates that the Myanmar security forces purposely destroyed the property of the Rohingyas, scorched their dwellings and entire villages in northern Rakhine State, not only to drive the population out in droves but also to prevent the fleeing Rohingya victims from returning to their homes,” the report said.

Business
Loan Delayed - The World Bank has delayed a US$200 million loan to Myanmar amid intensifying international pressure over the exodus of more than 500,000 Rohingya from Rakhine State. In a statement the World Bank said it was “deeply concerned by the violence, destruction and forced displacement of the Rohingya” and would withhold the loan until conditions improved. Militant attacks on 30 police stations and an army base in northern Rakhine on Aug. 25 triggered an army crackdown that has caused the exodus. Meanwhile, about 30,000 Arakanese and Hindus were internally displaced by militant violence. The World Bank stated it would continue “high-impact projects that support education, health services, electricity, rural roads and inclusion of all ethnic groups and religions, particularly in Rakhine state.” “We also assessed the conditions of our recently approved development policy loan and concluded that further progress is needed for the loan to be made effective,” the statement added.

​Water Bus - After a delay of three months, a water bus service on Yangon’s rivers was begun recently, offering a new transport option to the city’s 5.2 million residents. Thirteen boats will connect Bohtataung and Insein townships with seven stops in between under the first phase of the project, Tint Tint Lwin, the chairwoman of Tint Tint Myanmar company which won a tender to provide water bus services in February, said at the launching ceremony. Three imported boats from Australia which can each carry 180-230 passengers, three boats from Thailand which can carry 60 passengers and seven locally constructed boats which can carry 150 passengers will run between 6:30 a.m. to 6:30 p.m. every day. It takes about two hours to drive from Insein to Botahtaung, but by the water buses, it will only take around 45 minutes. The initiative falls under the regional government’s plans to upgrade public transport services to relieve worsening traffic jams in the city, following the new bus system that launched in January. The service was previously planned to launch in late June but there had been some delay in importing boats because of bad weather and in arranging the required documents with the related government departments for the project. Based on the customers’ demand, the routes and stops will be expanded under the Yangon regional government’s instructions. Two routes along Nga Moe Yeik Creek and Thanlyin Township will follow within three to six months after the jetties have been constructed, she added. Some 56 to 67 boats are expected to be in service for the full operation, which aims to serve an annual 12 million commuters this year and a projected 24 million by 2020. She added that Yangon Region Transport Authority is also arranging to expand the bus lines that connect the water bus terminals. Commuters will use a top-up card payment system with water bus rides costing between 300 and 500 kyats.

Infrastructure
Electricity in Rakhine - The government has earmarked US$5.75 billion to provide electricity next year to more than 40 villages in the troubled northern Rakhine State. More than 500,000 Rohingya Muslims have fled the region since militant attacks on police and army outposts triggered an army crackdown that has involved extrajudicial killings, rape, and the burning of Muslim villages, according to refugees in Bangladesh and satellite imagery. Access to the area is heavily restricted, but a UN Human Rights Office report released recently based on 65 interviews conducted in Bangladesh with individuals and groups stated the security operations began before the militant attacks, with the intent not only to drive out the population but also prevent them from returning to their homes. Deputy director-general of the electricity and energy ministry Ye Toe Thwin said that certain Rakhine townships have already been connected to the national power grid and more added during 2018. Tenders have been invited for electrification of some 44 villages throughout the state according to the ministry. Only 38 percent of the country’s population is connected to the national grid, leaving 62 percent of the population, most of them in rural areas, without access to government-supplied electricity, deputy electricity minister Dr. Tun Lwin told Parliament in June. The production cost of electricity by state-owned and private power plants is around 92 kyats per unit, but the price sold to users is 69 kyats on average. The government had to subsidize the gap, which created a loss of 337 billion kyats during the 2016-17 fiscal year, said the deputy minister.

In Brief
No Newsletter in September, Editor on holiday
First Credit Bureau to be opened next month
H1N1 death toll continues to rise
To boost the number of companies listed on YSX an incentive of 20% income tax, down from 25%, is being offered
Advisory Commission’s final report recommends “Muslim children born in Rakhine State be granted citizenship, to prevent further statelessness”
Death toll in recent Rakhine unrest passes 100
Pope to visit Myanmar in November

​Politics
Progress In Peace Talks? - Government representatives expressed hope of reaching an agreement in peace discussions with the United Nationalities Federal Council (UNFC) recently, despite UNFC representative Khu Oo Reh saying the trust-level between the parties was zero. The comments were made in opening remarks at the sixth round of formal talks between the government Peace Commission and the UNFC’s Delegation for Political Negotiation (DPN) at the National Reconciliation and Peace Center in Yangon. An agreement to have UNFC members sign the nationwide ceasefire agreement (NCA) would be reached at this round of talks after 14 months of negotiations, said Peace Commission chairman Tin Myo Win in his opening remarks. The Peace Commission and the UNFC discussed the DPN’s nine-point proposal of conditions leading to the bloc’s groups signing the NCA—one of which being that all five members of the UNFC are invited to sign. Tin Myo Win added that chairperson of the National Reconciliation and Peace Center, Aung San Su Kyi had sent a message to say she strongly believed the talks could finalize the ethnic bloc signing the NCA and she hoped they could “walk forward towards peace” at the next stage of the 21st Century Panglong Union peace conference. Active members of UNFC which will decide whether to sign after talks are: the New Mon State Party (NMSP); the Karenni National Progressive Party (KNPP); the Lahu Democratic Union (LDU); the Arakan National Council (ANC); and the Shan State Progress Party (SSPP). Government spokesperson Zaw Htay said that after heated discussions, the two parties were in a position to reach an agreement. Under discussion were the location of Myanmar Army outposts and the inclusion of international observers in the ceasefire monitoring. In July four non-NCA signatory ethnic armed groups resigned from the UNFC: the Kachin Independence Organization (KIO), the Ta’ang National Liberation Army (TNLA), the Myanmar National Democratic Alliance Army (MNDAA) and the Wa National Organization (WNO). Under the Thein Sein administration, eight ethnic armed groups signed the NCA in October 2015. The current National League for Democracy-led government held two rounds of peace conferences in August 2016 and May 2017. The next round is scheduled to take place within the next six months.

China’s Charm Offensive - Aung Sang Suu Kyi hosted an important guest for dinner in Naypyitaw residence on August 4. He was Song Tao, head of the International Liaison Department of the Communist Party of China, on his second official trip to Myanmar. During his first visit, in August, he met the reclusive ex-junta head Snr-Gen Than Shwe at his residence, a testimony to China’s reach and influence in the country. Although details of the meeting were not released, sources said the discussion touched on a wide range of issues, including the peace process.
Sources familiar with China-Myanmar relations suggested that Song Tao was laying the groundwork for a high-level visit by China to Myanmar. Whatever the case, China’s engagement with Myanmar is paying off. On the same day as the dinner, it was reported that the two countries were holding initial talks about buying electricity from China since Yunnan had been left with a surplus of power after a switch to less energy-intensive industries amid an economic slowdown.
Three days later, Aung San Suu Kyi told villagers in central Myanmar that peace and power supply are priorities. As part of its ambitious “Belt and Road” initiative, a development strategy that links China with the rest of Asia, Beijing will likely fund infrastructure projects, trade and investment that will stimulate the economy in Myanmar. With that, Beijing is likely to push for stability along the China-Myanmar border, where powerful ethnic armed groups are based. Chinese officials have told the groups to sign the nationwide ceasefire agreement (NCA). Regardless of whether they follow the directive, the groups will remain under China’s influence, a part of Beijing’s strength over Naypyitaw.
Song Tao’s trip, coupled with his briefing and assessment delivered to Beijing’s top leaders, could shape Beijing’s future policy toward its southern neighbour. During his visit, Song Tao also met top army leaders, with the exception of army chief Snr-Gen Min Aung Hlaing, who was visiting Japan at the invitation of Nippon Foundation Chairman Yohei Sasakawa. Japan’s Sasakawa Foundation is also involved in the peace process, but it is known to have more contact with ethnic armed groups in southern Myanmar. China also promised to assist in the peace process, and last May, a Chinese special envoy, Sun Guoxiang, helped to negotiate a trip involving members of several ethnic armed groups based in northern Myanmar to Naypyitaw so that they could attend a government-sponsored peace conference. Despite its involvement in Myanmar and its promise to assist in the peace process, China has little influence on ethnic armed groups in the south.
China as Big Brother
When Western nations, including the United States and those in the European Union, imposed sanctions and condemned Myanmar’s former military regime, China was the government’s main backer and largest investor. As a powerful neighbour, Beijing supported Myanmar through aid and investment, helping build strategic infrastructure projects such as oil and gas pipelines, ports and dams. China has poured money into hydropower projects in the country’s ethnic regions, and its three major oil corporations have a strong foothold. However, China did not win the hearts and minds of the Myanmar people, this was Beijing’s disadvantage.
Many in Myanmar worry that Chinese investments and aid programs are like a Trojan horse. They view the activities of its resource-hungry neighbour in Myanmar as exploitation. Song Tao’s recent visit, or soft diplomacy, may not help to lessen the public’s anti-China sentiment, either. But the government in Myanmar needs China. For decades, Myanmar’s leadership has seen China’s rising power differently.
Song Tao has been enforcing the closeness between the two countries on his recent visit by meeting key figures in the political landscape of Myanmar, including leaders of the USDP. Interestingly, he also visited former commander-in-chief Gen Tin Oo, who has been hospitalized since May. Tin Oo went on to become a founder and patron of the National League for Democracy (NLD). Paying respects to Tin Oo, some China analysts in Yangon concluded, was Beijing showing its long lasting gratitude to Myanmar generals who fought against the Kuomintang (KMT) troops on Myanmar soil in the 1960s.
Beijing has a long memory when it comes to its southern neighbor, both political players and the military.
The West is Losing on Myanmar
Since taking office Aung San Suu Kyi has surprised her Western friends and supporters by developing a warm relationship with the Chinese. Equally, Beijing was also ready to repair the strained relationship with Myanmar. China was trying to bring back Myanmar into its fold even before Aung San Suu Kyi came to power. Months before the election in 2015, she was invited to visit China where President Xi Jinping received her. The political gambit was well calculated. The NLD won a landslide election, and soon after, China sent its foreign minister Wang Yi to meet Aung San Suu Kyi, the first foreign official to do so.
While Beijing has shown support, the West has lost its interest and position in the country, putting its focus on the human rights issues concerning the Rohingya people in Rakhine State and applying pressure on the government and Aung San Suu Kyi. This has not gone unnoticed in Naypyitaw. Myanmar’s past connections with North Korea have also resurfaced under the Trump administration, with US Special Envoy for North Korea Joseph Yun visiting Myanmar in June. He met with leaders including Aung San Suu Kyi and Snr-Gen Min Aung Hlaing to try and ensure that Myanmar does not pursue any links with North Korea.
It remains to be seen how Song Tao’s visit will yield any major change in Beijing’s engagement policy with its troubled neighbor. But one thing is certain: China has revealed its imposing strategy of regaining its foothold in Myanmar.

Bad Press - Prior to becoming Myanmar’s State Counselor, Suu Kyi was considered a hero among Western democrats due to her role as a leader during the 1988 uprisings against the military-run government, which resulted in her being placed under house arrest repeatedly from 1989 until 2010. In 1991, she won the Nobel Peace prize for her efforts. Now, however, that image has been sullied. Human rights advocates and journalists are alarmed by her treatment of the media and fear the erosion of gains in freedom of speech. As reported recently, she is calling on the nation to follow state-run news reports about government activities and keeping independent media at a distance. Foreign media are given more access her than the domestic press, but their movement in conflict zones is still sharply limited. Suu Kyi’s security detail has even physically prevented foreign reporters from asking her questions. “Despite hopes a Suu Kyi-led government would improve press freedom conditions in Myanmar, the situation for reporters has not materially improved,” says Shawn Crispin, the Committee to Protect Journalist’s Southeast Asia senior representative. “It’s been eye-opening for anyone who remembers her as a pro-democracy icon standing up to military power.”
In 2013 Myanmar’s legislature enacted the Telecommunications Law, the most controversial aspect of which is arguably section 66d. Under 66d, anyone can press charges over internet, telephone, radio and television content, regardless of whether he or she is the subject of the content. The maximum prison sentence for being convicted on 66d charges is three years, though fines may also be imposed. According to the free speech advocacy organization PEN Myanmar, at least 80 cases invoking 66d have been filed since the law passed; 73 of those occurred since Suu Kyi came to power in 2016. Some of the law’s victims were prosecuted, and served months in prison, for making controversial comments about Suu Kyi. There are small signs that Suu Kyi’s party is beginning to reform media law. The upper house of Myanmar’s Assembly approved amendments to 66d in August that would prevent third parties from pressing charges without permission from the aggrieved individual, and make it easier for defendants to obtain bail. A proposal to abolish 66d entirely, however, stalled.
Then there’s the Unlawful Associations Act’s section 17(1), in which even covering an event can land a journalist in jail if the government disapproves of a person or group present. While the act has been on the books since 1908, it’s still wreaking havoc under Suu Kyi’s pro-democracy government. Earlier this month, three journalists were denied bail after they were detained under the Unlawful Associations Act for covering a ceremony organized by the Ta’ang National Liberation Army, the armed wing of a rebel group based in Myanmar’s northeastern Shan State,. Suu Kyi herself doesn’t speak in direct opposition to these laws and the fallout from them, opting instead to talk in broad terms about potentially changing them. Perhaps that’s because of the fragility of her country’s first steps towards democracy and constitutional liberty. The Burmese military has 25 percent of seats in the legislature and it could retake power under an emergency clause in the Constitution, which requires over 75 percent approval in the legislature to be modified. So legislators from the military can undo any progress if they think reformers have gone too far.

Business
The Poor Economy - The NLD’s economic advisor Myo Myint blamed a legacy of inept bureaucracy, deep-rooted corruption, military control, and a lack of cooperation among ministries for his party’s poor economic performance. “The lack of cooperation is a big challenge. As there is no cooperation between the government departments, the NLD has not been able to adopt comprehensive plans,” said the economic advisor while discussing the challenges of a shift from a centralized economy to a market economy at a recent forum in Naypyitaw. He described the military-drafted 2008 Constitution as the first obstacle in revamping the country’s economy. Myo Myint listed the reasons behind Myanmar’s stagnant economy: Armed clashes, drug abuse and trade, declining export values, low productivity in the workforce and low utilization of farmland. “The first challenge to improve the stagnant economy is the constitution and its limitations: the Tatmadaw takes 25 percent of seats in the parliament and three ministries are under the control of the military,” he added. Myanmar Army representative Col Aung Myint Oo said the role of the military could be reduced when there was stability and good economic performance in the country. He said the country’s economy was an urgent issue for the government. “People’s anger builds up with economic hardship, the explosion of anger is followed by revolution. So, the government needs to urgently provide secure livelihoods for people,” he said. “Only after that, the government can work to adopt a strategy in cooperation with experts, military and other members of society,” he added. Another NLD economic advisor Lay Nyunt admitted the government had not fulfilled the expectations of farmers. “There is a need for immediate reforms in the agricultural sector. I hate to ask farmers to wait until the agricultural development strategy is adopted.” He suggested amending the 2012 Farmland Law, as well as policies regarding provision of agricultural loans and investment, and taxation. “I think it is time we made bold changes no matter what the obstacles are,” he said. He also pointed out the country’s failure to produce animal feed at home. “We have 26 animal feed processing plants in our country, but only six of them are operating and are not even running at full capacity. This is a big loss for our country”.

Budget Woes - The budget deficit for the 2016-2017 fiscal year ended March 31, 2017 was a little over half of the official target because of government under-spending, according to preliminary data released recently. A statement presented in parliament revealed that the fiscal deficit for 2016-17 had halved. The data revealed an actual deficit of just K2.62 trillion compared to the official target of K4.01 trillion for the fiscal year. This was mainly due to a shortfall in government spending, which amounted to K18.6 trillion versus the target of K21.1 trillion. However, the government only managed to collect K16.54 trillion in revenues compared to its target of K17.09 trillion. In comparison, during the 2015-2016 fiscal year under Thein Sein’s government, total revenue collected was K16.29 trillion while total expenditure amounted to K19.33 trillion, resulting in a deficit of K3.16 trillion. While spending less than anticipated implies that the government is making progress towards reducing the fiscal deficit, Ba Shein, the chair for the Bill Committee, said “it cannot be taken as a good sign.” “It’s not good to have big difference in either the deficit, the spending, or any of the targeted revenues,” he said, as huge differences between the government’s targeted and actual spending could have an adverse impact on Myanmar’s economic goals.

Infrastructure
Power Generation - In 2017, Myanmar is projected to generate a maximum of 2,700 megawatts of electricity, up from around 2,500 MW in 2016, as the population expands and demand for power in the country continues to rise. Yangon, its largest city, is expected to generate almost half, or 1,300 MW of the country’s maximum electricity demand for the year, and that is expected to rise by 30 percent per year in 2018 and beyond.
Yet, that is just a fraction of the total energy consumed in Myanmar and 10pc of Thailand’s annual maximum demand. According to the Asian Development Bank’s (ADB) Energy Sector Assessment, Strategy and Roadmap dated December 2016, total final energy consumption in the country totaled some 14,000 MW in 2012-13.
But things are changing quickly as the economy develops. With foreign investors taking a keener interest in Myanmar, the government is under pressure to provide companies and businesses with reliable sources of electricity to operate. “We need lots of power. We need billions in investment,” said Aye Kyaw Kyaw, secretary of the Yangon Region Electricity Development Management Committee.
To that end, two major master plans setting out targets and strategies for electricity supply and demand have been drawn out. One is the Myanmar Energy Master Plan by the ADB and another is the National Energy Master Plan by the Japan International Cooperation Agency. “Any plans for power generation at the regional level in Yangon must be in line with these two master plans. But, all the goals set out in previous master plans have hardly been implemented and we have missed all the targets,” Aye Kyaw Kyaw said.
Loss-making tariffs
The main reason for the persistent shortfall is overly low electricity tariffs. Currently, the government is losing US$300 million a year by subsidising tariffs, particularly to the residential sector. Meanwhile, it is running a fiscal deficit that is fast approaching 5% of GDP. As such, building new infrastructure to expand the production of energy in the country is stymied by the government’s lack of fiscal flexibility.
“The electricity tariff to residential consumers is very low and day by day their demand is rising. Even now, some shopping centers have resorted to running their own generators because we cannot supply enough power for them,” said Aye Kyaw Kyaw. “This is the biggest obstacle in the energy sector. Investors come with financing and ideas to boost energy production. But we cannot connect the funds to the demand until the government is able to get out of the red,” he said. “We can only move ahead with expanding power production when the tariffs are revised to more sustainable levels. The government is preparing a national energy policy. After it is approved, they will be able to review and revise the tariff policy to more sustainable levels.”
 
Confusing policies
Another obstacle is the lack of clear and transparent policies. For example, under the new electricity law, regional governments are permitted to authorise new power plant projects with power generation capacities of not more than 30 MW. “However, according to the constitution, regulations enforcing the law must follow within 90 days. But since 2014, those regulations are still under preparation,” said Aye Kyaw Kyaw.
Even if the region had the authority to approve, there is still a grey area over which level of government signs the power purchase agreement and who sets the tariffs. “That is the biggest issue. For foreign investors who want to invest, they will need bankable documentation like the PPA, which the regional government may not be able to sign. That needs to be sorted out.”
Sometimes, regional governments must also negotiate with the state government for approvals to build new plants under their own regional master plans. For example, Yangon is planning to upgrade and expand its aging power infrastructure. “However, we always have to wait for the Union government to review and approve so things move very slowly. That is why we have never our achieved our targets in the past two years. Of the 10,000MW of installed capacity targeted for 2017-18, we have only achieved half. And, as time passes, the gap between our targets and reality widens,” he said.
All that deters potential investors, many of which can easily help the government generate pockets of additional energy across the country. “Many independent power producers can easily generate 30MW of power through renewables and other means. The private sector can help to generate power for the country but this is inhibited by the lack of communication between the regional and state governments,” one member of the Renewable Energy Association of Myanmar said.
What needs to be done? The way Aye Kyaw Kyaw sees it, “we must have a clear energy, tariff, investment and financial policy so that we can draw up a practical master plan and implement it.”
“Investors from Germany, the US, China, South Korea, Singapore, Malaysia and Japan have been knocking on our doors wanting to invest in our energy infrastructure and other sectors of the economy. There is a lot of opportunity. But, to be practical, we first need to do our homework and set up the proper policies so that everyone benefits from these investments,” he said.
And how long will it all take? Aye Kyaw Kyaw said: “We know our problem. And sooner or later we will solve it.”

Dawei Revisited - Japan is looking to revive the long-delayed Dawei Special Economic Zone (SEZ) project, according to deputy commerce minister Aung Htoo. “Japan International Cooperation Agency (JICA) is conducting a master plan survey. The Dawei project has been delayed for various reasons, but the current government is encouraging the resumption of the project with fresh momentum,” said the deputy minister in response to a question from lawmaker Thet Naing Oo in the Lower House. “The project is big, but I’ve heard there have been many delays. Myanmar migrant workers in Thailand hope to come back if this project resumes. People want to know when exactly that could happen,” Thet Naing Oo said. Dawei local Lay Lwin questioned the electricity supply for the project as Dawei residents have to pay 210 kyats – five times more than average prices in Yangon – per unit of electricity from private power suppliers. Myanmar and Thailand formed a joint task force comprised of representatives from the National Economic and Social Development Board and the Fiscal Policy Office of Thailand and Myanmar to supervise implementation of the initial phase of the project. “The task force will review the initial works from various perspectives and complete the works on schedule,” said the deputy minister. Thailand and Myanmar signed a memorandum of understanding to develop the billion-dollar Dawei Special Economic Zone in 2008, and expected to complete it in 2015. Myanmar initially granted Italian-Thai Development PCL (ITD) a 75-year concession to develop the project in 2008. But the project has been suspended since 2013 and construction on the project has been minimal due to funding shortfalls. In 2015, Japan joined as a third equal partner in the project, but new delays arose when Japan called for modifications to the original drafts. Meanwhile, there is also local opposition to the project for environmental concerns and issues of land compensation. According to a new, 2015 plan by ITD, the initial phase will include the construction of 160-kilometer road to the Thai-Burmese border, as well as the construction of a small port, reservoir, telecoms network and other basic infrastructure within five years.​

In Brief
Thousands of Myanmar workers return home after Thai crackdown on illegal workers
IFC seeking to play a wider role in supporting agriculture in Myanmar
UN Special Rapporteur for Human Rights in Myanmar Yanghee Lee ended her recent visit saying she was “disappointed”
US puts pressure on Myanmar to cut military links with North Korea
Yusen Logistics has opened a 68,000 square-foot logistics center in the Thilawa Special Economic Zone
Swe Win, chief editor of Myanmar Now, arrested at Yangon International Airport on July 30th

​Politics
Officials in the Spotlight - The NLD party will take action against underperforming, corrupt or misbehaving government officials, party spokesperson Win Htein said recently. “Officials failing to do their public service will initially receive a warning, informing them that the party will observe their work for one year,” he said, adding that if requirements were not met within a year they would be removed from their position. “We have received complaints from almost every state and region in Myanmar,” Win Htein said at a meeting of government officials, parliamentarians, and NLD members in Mandalay. In recent years, the NLD has expelled many of its own members for disloyalty to the party or over complaints of bad behavior. Political analyst Dr. Yan Myo Thein said a balance of cooperation between the government, parliament, and the party was required and the NLD should be careful of interfering in government matters. He welcomed NLD’s bid to combat corruption and said action should be taken immediately but warned that “if a party attempts to control the government directly, there will be controversy.”

Inactive Land - More than 100,000 acres of land permitted to some 270 private companies for business activities in Irrawaddy Division’s Maubin District remain inactive more than 20 years after confiscation. According to Hawk Sawm Man, the secretary of the Maubin District Committee on Confiscated Farmlands and Other Lands, more than 170,000 acres of land were given to private companies under the previous governments, but only around 67,000 acres had been utilized by the end of November 2016. “We will require that companies return all inactive lands,” the secretary said. The Central Committee on Confiscated Farmlands and Other Lands has finalized a list of inactive lands and has said that it would seize the lands on the list, even if they were used by private companies after that date. The NLD government, after it came to power in April last year, called for a review of lands confiscated by the previous governments, Hawk Sawm Man said. Following reports that the government would seize the inactive land, companies began digging ponds to breed fish, said Than Win, chairman of the farmer’s organization in Nyaungdon Township. “This month, companies began using machinery to dig breeding ponds on land that had been inactive for years. They briefly stopped when officials from the Maubin administrative department instructed them to do so, but they have started again,” he said. Before the enactment of the Vacant, Fallow and Virgin Lands Management Law in 2012, more than 2.2 million acres of vacant land were permitted to 4,922 companies, businesspeople and organizations. After the enactment of the law, around 96,000 acres of lands were permitted – totaling 2.33 million acres, according to deputy minister for agriculture, livestock and irrigation U Hla Kyaw. The deputy minister told the Lower House on July 3 that confiscated land committees had found that more than 1.3 million acres of the 2.33 million acres were inactive, and the government would seize them back in line with procedure.

Business
IFC Lends To Microfinance Companies - IFC has committed a financing package of $13.5 million for Myanmar-based microfinance institutions. The package includes a $1.5 million stake in Maha Agriculture Public Company and $6 million in loans each to Fullerton Finance (Myanmar) Company, in which the IFC already holds a 15 percent stake, and Early Dawn Microfinance Company. The move is intended to support microfinance businesses to engage the largely untapped rural, low income market segment. Demand for microcredit for small enterprises and poor households underserved by mainstream banks is estimated to exceed supply by three-fold, according to an IFC statement. “Improving access to microfinance will help unlock the great potential of the rural sector and small enterprises by providing much needed financing to increase productivity and create jobs, incomes and prosperity for a significant number of workers in this country,” said Vikram Kumar, IFC country manager for Myanmar. The deals “fit with a strategic IFC focus in Myanmar to develop a sustainable and responsible commercial microfinance sector to serve urban and rural poor’’. IFC is mitigating lending risks through development of a central credit bureau, expected to be launched later this year following the issuance of a landmark IFC-supported credit reporting regulation in March.

Serge Pun Speaks Out - Myanmar tycoon Serge Pun, one of the wealthiest men in Asia, said recently that the government led by Aung San Suu Kyi has neglected the nation’s much-needed economic reform. Pun, head of conglomerate First Myanmar Investment, urged authorities to give more attention to growth in one of the region’s poorest countries. He said Myanmar’s economy “has not performed well enough” more than one year after its first de facto civilian leader swept to power in a historic vote. Myanmar’s economic growth, albeit still relatively strong, has slowed since she took power, while foreign direct investment has fallen sharply. Its gross domestic product growth fell to 6.3 percent in 2016, a full percentage point lower than the previous year, according to the International Monetary Fund. “They have definitely neglected on the economy side. They have not realized the importance of the economy,” Pun told an event held by Singapore Management University in Yangon. Aung San Suu Kyi has made the push to end decades of fighting between the military and myriad rebel groups a priority for her administration, but Pun said the country’s economic development is “the most effective tool” to attain those goals. While she has achieved a lot in Myanmar’s peace process, Pun said, “without a vibrant economy, those objectives can be very vulnerable. Peace may not be sustainable.”

Shell Comes To Myanmar - Max Energy has signed a license agreement with the international energy firm Shell to introduce its brand of retail sites in Myanmar. The deal is with Shell Brands International AG, a subsidiary of Royal Dutch Shell, and it will see a nationwide roll-out of the branded petrol stations and retail outlets on sites owned and operated by Max Myanmar over three years. Fuel supply will be handled by Shell International Eastern Trading Company based in Singapore, the company announced. “This will benefit Myanmar by raising the quality and standard of fuels and providing an unrivalled customer service and experience for people,” said Zaw Zaw, chairman of Max Myanmar.

Asia Foundation Looks To Improve Business - A three-year plan to improve business competitiveness and economic growth in the states and regions has been launched by the Asia Foundation and the DaNa Facility, with funding from the UK’s DFID. The keystone of the program will be a survey called the Myanmar Business Environment Index (Myanmar BEI), which will identify constraints and areas for improvement in the regulatory environment for business at both the state and regional level. The goal is to facilitate private sector development and remove unnecessary bureaucratic obstacles as well as opportunities for rent-seeking. “For many Myanmar micro, small, and medium enterprises, the first engagement with government is at the township level, whether this involves business registration, tax collection, or inspection of a business,” said Dr. Kim Ninh of the Asia Foundation. “To improve the business environment in Myanmar, a better understanding is needed of the aspects of local economic governance that facilitate or restrain day-to-day business activity.” “Achieving sustainable and inclusive economic growth in Myanmar requires a better business environment in each of Myanmar’s states and regions,” said Peter Brimble, team leader for the DaNa Facility which will operate the program. The BEI will also reinforce efforts to develop state and region investment promotion and facilitation strategies. The project will involve nationwide surveys in the first and third years, with extensive outreach and dissemination in years two and three.

Rice Initiative - Two Myanmar organizations have signed a memorandum of understanding with CITIC Construction to implement an agronomics service center project. The deal between the Myanmar Rice Association and the Myanmar Agronomics Public Corporation and CITIC was signed in Naypyitaw recently. The project is due to work to boost rice production per acre production rate, enhance rice quality, mitigate production costs and increase internal and external investment in production, milling and trading. Myanmar exports a variety of Emata rice, Ngasein rice, sticky rice, parboiled rice and broken rice to international markets including China, Sri Lanka, the European Union and South Africa. But productivity is low compared to the production of neighboring countries such as Thailand and Vietnam. China is by far the largest market with about 1.5 million tons of rice exported to the country through border gates during the fiscal year 2016-2017.

Culture and Tourism
Myeik Archipelago Starts To Open Up - Nine local and foreign companies building hotel accommodation on twelve islands of the Myeik Archipelago will offer rooms to visitors in the coming high season. The archipelago has more than 800 islands and is an area of world-class outstanding natural beauty that was little visited during the decades when Myanmar was under military rule. The permissions were granted by the MIC. The new hotels will be ready for the coming high season on Nyaung Oo Phee Island, Wa Ale Island, Hlainggu Island, Ngakhinnyogyi Island, 115 Island, Phoni Island, Balar Island and Thahtay Island, according to Hlwan Moe of the Directorate of Hotels and Tourism, with a total of some 200 rooms available. Plans for Myeik Archipelago are being developed in collaboration with the Tanintharyi Region Development Committee and include a provision that “only one kind of business” will be allowed on each island, to protect the natural environment, said Ohn Myint, deputy director-general of the Ministry of Hotels and Tourism. Of 300,000 foreigners who visited the region last year, 250,000 were from Thailand.

Myanmar’s Ethnicity Problem - This article originally by Matthew J Walton, Aung San Suu Kyi Senior Research Fellow in Modern Burmese Studies at St Antony’s College, Oxford appeared in Tea Circle, a forum hosted at Oxford University for emerging research and perspectives on Burma/Myanmar.
The myths of ethnic unity are alive and well in contemporary Myanmar. While we might expect misleading historical claims from previous military-led governments or even the current NLD government, incorrect and problematic statements about the country’s ethnic past even come from those attempting to paint a more complex, even sympathetic picture.
A recent op-ed from Myanmar political analyst Sithu Aung Myint is a good example of this. Considering the dispute over including a “non-secession” clause as part of the agreements to come from the 21st Century Panglong meetings, Sithu Aung Myint writes in support of the position adopted by most of the non-Bamar ethnic representatives, that the clause is unnecessary and insulting, given their stated commitments to being a part of Myanmar.
However, in making this argument, he also perpetuates one of the most problematic and ahistorical perspectives on the independence period, which is that the Bamar and the other ethnic groups fought together against the British for independence.
This simply is not true. While the Bamar-dominated Anti-Fascist People’s Freedom League (AFPFL) included members from non-Bamar ethnic groups as well as allied groups among the other ethnicities, responses to the end of British colonial rule were much more varied among the wider non-Bamar ethnic communities.
First, it wasn’t actually the case that anyone “fought against the British for independence.” Independence was a struggle for Burma but didn’t involve actual fighting against the British after WWII. And even during that political struggle, opinions were often divided along ethnic lines.
Shan saophas (hereditary leaders) were castigated as oppressive feudalists by Bamar nationalists but those supporting the saopha system saw more benefits to the British system of allowing local forms of rule to exist than to the political centralisation proposed by the AFPFL.
This included not just those who materially benefited from the system, but also those who believed in its broader cosmological legitimacy. Accounts of the 1947 Panglong Conference also make clear that most non-Bamar ethnic representatives were convinced more by the instrumental arguments in favour of joining with the Bamar, rather than an emergent “nationalist” spirit or even anti-British sentiment.
The Karen were perhaps the most sceptical of the Bamar-led independence movement, in part owing to the strong ties between some Karen leaders and British colonial soldiers and administrators, fostered by Christian missionary zeal among the converted Karen.
Karen desires for a separate (independent) state at the time were encouraged by sympathetic writings and public statements by prominent British figures. While views among the Karen overall varied widely, some of the most influential Karen leaders of the late 1940s advocated for a hypothetical “Karen Country” to remain under British dominion, as part of the Commonwealth.
Many of them justifiably feared a Bamar-dominated independent Burma, given past violence perpetrated against Karen communities by Bamar-led militias.
Also left unaddressed in this claim of ethnic unity in the independence struggle is the fact that, because the group of Bamar leaders that would become the core of the AFPFL initially allied themselves with the Japanese in World War II, that conflict in Myanmar played out largely as battles between the Japanese and the Bamar on one side, and the British and most other ethnic groups on the other.
Fierce combat during the war meant that Aung San’s defectors, once they finally grew disillusioned with Japanese rule, were met with scepticism and suspicion when they declared their willingness to join with the British Allied Forces. Even after the Japanese had been ousted, inter-ethnic conflict persisted across parts of Burma, putting the lie to any overarching claims of ethnic unity, either before or after the historic conference at Panglong.
Why is this minor misstatement important in an article that is ultimately advocating for something on the side of the ethnic armed groups?
I would argue that this myth of unity against the British is a damaging and intentional misremembering of the complex dynamics of a key foundational moment in Myanmar’s past that continues to have delegitimizing effects on non-Bamar ethnic communities and their political aspirations in the present.
There are many reasons to be critical of British colonial policies, whether they were intentionally designed to divide and weaken Burmese groups or simply misguided and based on ignorance of the multifaceted nature of identity in Burma at the time.
However, persistently positing the British as the enemy in the independence struggle has the effect of painting any groups that supported or were friendly with the British as insufficiently committed to the Burmese national project, of suspect patriotism and motivated by self-centred interests, rather than collective good.
Inaccurate claims of pre-independence ethnic unity also undercut contemporary grievances of ethnic armed groups and representatives of non-Bamar ethnic groups. As I argued in my 2008 article on “The Myths of Panglong,” the predominant version of the NLD’s narrative of Panglong is that it has been prolonged military rule that has denied the promise of equality that was generated from the 1947 conference.
This narrative relies on accepting the myth that the entire Burmese nation was united at the time of independence, but that military aggression through the 1950s and military rule from 1962 undermined this dream. The logical extension of this argument is that, with civilian (NLD-led) rule at least partly established, the country can now return to its independence-era condition of ethnic unity.
Any continuation of an ethnic-oriented struggle would then be seen as illegitimate and narrowly focused on the interests of one’s own group, rather than the country as a whole.
I had this point brought home to me several years ago when I was invited to speak to a multi-ethnic gathering of young people in Yangon, about my work on Panglong and their own perspectives on the event and its mythos.
The most consequential part of the discussion wasn’t about my own work, but was rather a heartfelt statement to the group from a young Bamar scholar who was assisting me with some research. He spoke openly about how, until he had begun reading independently, what he had been taught from textbooks, teachers and family was that contemporary ethnic struggles were based on selfish material concerns, not on legitimate political grievances.
His apology, and recognition of the validity of these struggles, was a powerful moment, but one that suggests that many Bamar people likely still hold at least partially biased and misinformed views on Myanmar’s ethnic history, even if they hold some sympathy toward the groups that have borne the brunt of military abuses over the past five decades.
The national reconciliation process in Myanmar should not be looking back to some constructed historical moment of fictional ethnic unity but rather recognising Panglong as aspirational. At best, Bamar political leaders in 1947 made promises that were never fully kept, not even in the 1947 Constitution.
But the original Panglong conference was even less inclusive than today’s elite-dominated discussions and the provisional nature of the agreement made there is an essential part of the narrative that underlies every continuing struggle for ethnic equality in Myanmar today.
I am sure that many from non-Bamar ethnic groups appreciated Sithu Aung Myint’s support for their position on a “non-secession” clause. However, their broader cause would be better supported by a more concerted effort from Bamar elites to accurately represent Myanmar’s complicated ethnic past and in doing so, lay the groundwork for a national dialogue based on honesty, inclusion and recognition.

Kin Oung is the author of the book “Who Killed Aung San?” He is the son of Tun Hla Oung, the deputy inspector general of police, CID department, who was credited with the rapid capture and arrest of U Saw and his men after the assassination of Gen Aung San. He is also the son-in-law of Justice Thaung Sein, who played a vital role in bringing the assassins to justice.
Kin Oung spoke to Kyaw Zwa Moe, editor of The Irrawaddy magazine, in 2010, just before the 63rd anniversary of Martyrs’ Day, which commemorates the anniversary of the assassination of nine heroes of Burma’s independence movement—including Aung San—on July 19, 1947, just six months before Burma won independence from Britain.
Aung San, the father of democracy icon Aung San Suu Kyi, is also considered the father of Burmese independence, and led the fight for colonial liberation from Britain, which had ruled Burma since 1885.
Were the British thought to be involved in the assassination of Aung San?
Aung San wanted independence and wanted the Burmese to be wealthy. He also wanted the Burmese and ethnic nationals in hill areas to be united and friendly. Then some British companies got involved because it was important for them to stay on in Burma and for Burma not to gain its independence. Aung San’s ideology was close to socialism and he gave some speeches about it and hinted that nationalization should take place for the sake of the Burmese people. But whether they [the British] had an intention to kill Gen Aung San and his ministers is unclear.
So Aung San could potentially have united the whole country and seemed to be a left-wing leader who sympathized with socialism. Were these the two main factors that caused him to be assassinated? Were there other factors?
Among the British there were differing points of view. It’s possible that some British companies financially supported the ambitious politicians who disliked Aung San. But British governments, first [Winston] Churchill’s and then [Clement] Attlee’s, were not able to provide such support. The government could not give openly, but the British companies could give clandestinely. They did provide financial support to U Saw [a rival of Aung San who plotted to kill him]. At that time, Maung Maung Gyi, the brother of U Saw, was in London. U Saw would take as much as they were willing to give. And there was a black market after the war.
At that time I was in Burma’s navy and knew such things well. People tried to sell or trade everything they got—just like you see high-ranking officials of the current military government involved in the businesses of opium, jade and so on. In those days some smuggled in even small items such as flint. What I mean is people did business in whatever was accessible to them. As for British military officers, they had to send their weapons to Singapore because Burma was soon to be given independence. They also sold their machine guns, tommy guns and other weapons. So U Saw bought them.
Were Maj C.H.H Young, a British commander of No.1 BEME, and Maj Lance Dane the core suppliers of weapons and ammunition? Some said Lance Dane was not a core supplier and U Saw got weapons from Young.
The police might have heard this from my father, who was deputy police commissioner at the time. But the military intelligence men detected these facts in many ways, and they became known by U Nu, U Kyaw Nyein and Aung San. They informed the British governor, but he did nothing. Many weapons had been lost.
They informed the British governor after they received information that U Saw had obtained many weapons?
Yes, the governor was informed by my father’s department. They knew something would be happening due to the loss of weapons. At that time, U Nu and U Kyaw Nyein also received information that something was in the works.
It was reported that Aung San was not actually assassinated by the weapons that Young supplied. Reports said other weapons were used to assassinate him and his colleagues. Is this correct?
There were four assassins. Three of them used tommy guns. The youngest assassin, Yan Gyi Aung, used a Sten gun. After the assassination, the weapons were taken to India and thoroughly examined.
What was discovered?
They found that the weapons had come from the British army, and they found out who sold them. Young was arrested. But later, the suppliers were secretly freed.
How did British leaders regard Aung San and other Burmese leaders?
Churchill was the war-time prime minister. When U Saw asked for dominion status, Churchill told U Saw to ask him again after the war. But Churchill was defeated in the election and succeeded by Attlee, a socialist. If Churchill had kept power, Burma wouldn’t have gained its independence.
Churchill said something about Aung San after he was assassinated.
He said that Aung San, his 30 comrades and the Thakhins were rebels who fought against the British, so why should he contact and help them? Churchill meant they didn’t need to help Burma because it had fought against the British. Lord Mountbatten, however, favored Burma. After the war these issues needed to be debated, and there were debates in the British House of Commons about how to handle Burmese affairs. Nothing would have happened if Lord Mountbatten was not there. He helped Burma a lot. He told Aung San that he must give up his military position if he wanted to be a politician. Then Aung San resigned from the military.
What is your opinion of U Saw?
U Saw was very ambitious and selfish. Although he was an uneducated person, he achieved a high position due to his political ambition. Probably some British in the government liked him and used him.
U Saw went to London together with Aung San to make an agreement with Prime Minister Attlee. Was his refusal to sign the agreement due to envy of Aung San or policy disagreements?
As you know, an agreement must consist of many points, so one can easily find fault and withdraw. U Saw tried to find fault in the Nu-Attlee agreement and then the Aung San-Attlee agreement. Thakhin Ba Sein as well. Thakhin Tun Oak accused Aung San of killing a village headman and attempted to have him jailed.
What do you think would have happened in Burma if Aung San and his cabinet ministers had not been assassinated?
It would have been much better. He was not a god. He himself said that he was not a god. U Nu was the only person who listened to him when he said that U Kyaw Nyein, Thakhin Than Tun, U Ba Swe and Thakhin Soe needed to be controlled.
Was it possible for Aung San to get along with those men who needed to be controlled or those who opposed him?
The military respected him. There were people who admired him. Although our navy was small, we had many well-trained and well-disciplined men. As did the air force. The air force and navy supported him. Our men knew all about them. Communists started organizing the military personnel, but well-disciplined personnel could not be organized. Those personnel supported Aung San. Karen and Kachin army personnel also supported Aung San.
Do you see any significant differences between Aung San and his daughter, Daw Aung San Suu Kyi?
His daughter returned to Burma for her ill mother. When her mother died, she decided to lead the people in their struggle for democracy. She resembles her father. She has a good nature and is intelligent as well. People like what she has spoken and done. I say she is very smart and wise.
 

In Brief
Aung San Suu Kyi says UN probe would increase Rakhine tensions
Burmese military plane crashes killing all on board
Rakhine protesters demand UN protect Buddhist Chakma in Bangladesh
MIL raises US$6.3M for new investments in 2017

​Politics
Military Arrests Reporters - Three Myanmar reporters detained at an undisclosed location by the army will be charged under a colonial-era statute against “unlawful association” and risk up to three years in jail. The military arrested the journalists in Shan State after they covered a drug-burning event organized by the Ta’ang National Liberation Army (TNLA), an ethnic armed group designated as an “unlawful association” by the Yangon authorities. The reporters are from the Democratic Voice of Myanmar (DVB) and The Irrawaddy. The arrests have alarmed Myanmar’s media community, increasing fears that freedom of speech has become increasingly restricted since the government of Aung San Suu Kyi took power last year. “Everyone should be treated according to the law,” Aung San Suu Kyi’s spokesman Zaw Htay said. He added that the military told him it planned to charge the reporters under the Unlawful Association Act. A military source confirmed this. Despite pressure from human rights bodies and the West, Aung San Suu Kyi’s government has retained loosely worded security laws dating to British colonial rule, which ended in 1948, and decried by monitors as violating free speech. The Unlawful Association Act has long been used by the authorities to arbitrarily arrest and detain people in Myanmar, in particular people in ethnic and religious minority areas, according to human rights watchdog Amnesty International, which has called on the government to release the journalists. Western governments have also expressed their concern over the incident. The editors from the publications where the reporters work said that they had tried obtaining explanations from the military and the government, but to no avail.

Blacklisted - The government has blacklisted influential figure Harn Yawnghwe, allegedly for his involvement in the country’s peace process, denying him a visa extension. Harn Yawnghwe, who holds a Canadian passport, is the executive director of the Brussels-based Euro-Myanmar Office (EBO), an organization that provides funding to ethnic and civil society organizations. Harn Yawnghwe is an ethnic Shan from Myanmar who has played a major role supporting and advising ethnic armed organizations both in exile and inside the country for decades. Due to his influential role in ethnic affairs, critics claim his involvement is controversial. Some criticize him for dividing the unity of ethnic armed groups. The EBO has been one of the main donors to Myanmar’s democracy movement. In 2011, it was permitted to open a branch office in the country. Harn Yawnghwe is also the son of Myanmar’s first President Sao Shwe Thaike.
Put More Women In The Labour Force - Myanmar needs to realize the potential of women and enable their entry into the labour market in order to generate economic growth driven by a “gender dividend,” the United Nations Population Fund (UNFPA) said recently. The UN said the conclusion was based on the findings from a series of 14 papers from the 2014 Myanmar Population and Housing Census Thematic Report, which examines the total labour force participation rate of both men and women. The department of population completed the Thematic Report on the Labour Force—the seventh paper out of 14—in June. Although men and women make up almost an equal ratio of Myanmar’s population, according to the census data, just 50.5 percent of women are working, compared with 85.6 percent of men. In January the UNFPA released findings that one million new jobs were needed to ensure employment for Myanmar’s young population over the next four years. The UN agency said youth unemployment in Myanmar contributes to the low labour force, and the causes are linked to socioeconomic status and education. In Myanmar, from age 19, joblessness is the highest within the richest fifth of the country’s population. People with graduate diplomas have the highest unemployment rate, almost five times greater than those with no education. One in four people aged 15-24 are not engaged in education, employment or training, a figure which is more than double for young women than for young men. However, those in then skilled labour sector, numbering almost 12 million, are underqualified for the work they perform, according to official census report. Myanmar’s labour force is amongst the lowest in ASEAN, according to the UNFPA. Only 63.6 percent of the population is economically active, compared to 80.9 percent in Cambodia and 77.4 percent in Laos.

Business
Those US Sanctions - The US Department of the Treasury removed sanctions regulations against Myanmar from the code of federal regulations on June 16 in a final move by the Office of Foreign Assets Control (OFAC) to conclude actions taken by the Obama administration in October last year. However, US financial institutions must still undertake enhanced due diligence when processing financial transactions involving Myanmar because it remains a “jurisdiction of primary money laundering concern” pursuant to section 311 of the USA PATRIOT Act. Myanmar businesspersons were removed from the Specially Designated Nationals list last October but Americans doing business in Myanmar should continue to screen counterparties because they could be designated under other sanctions regimes such as North Korea and narcotics trafficking. Under America’s Jade Act, a non-disclosed list of Myanmar military officials and “any other Burmese persons who provide substantial economic and political support” to the military are still subject to a visa ban, and the US Department of State’s Directorate of Defense Controls continues to maintain a policy to deny exports of defense articles and services to Myanmar. Americans are still “encouraged to remain vigilant when conducting legal business with and in Myanmar due to remaining concerns about corruption, money laundering, and informal banking practices.” Nevertheless, the latest removal of regulations “represents another step in the improving US-Myanmar relations, recognizing Myanmar’s democratic advancement, and welcoming it back into the community of nations.”
Kargo - Yangon-based logistics startup Kargo won the Myanmar leg of a global competition for early startups recently. The competition was organized by Seedstars World, a Swiss operation that promotes start-ups in emerging markets. Kargo will head to Switzerland in April next year to compete with other startups from around 80 countries for a chance to receive up to $1 million in equity investment. The Yangon firm also received a six-digit investment a month ago from Singapore-based venture capital firm Vulpes Investment Management. Eight startups from Myanmar participated in the pitching session for Seedstars World in Yangon, including agri-mobile app Greenovator; healthcare service Doctor On Call; Agtrade, a market-matching platform for farmers, brokers and traders and Amyanpoh, a delivery solution for e-commerce. Kargo operates a fleet of independent truck drivers and companies for on-demand delivery around the country, with services offered in Yangon, Mandalay, Taunggyi, Pathein, Pyay and Lashio. Seedstars World works closely with Omidyar Network, AYA Bank, Ooredoo and others in Myanmar.

Closed Bank Accounts - Myanmar authorities are leading negotiations to reopen 336 accounts belonging to Myanmar nationals frozen by banks in Yunnan Province, China. Government representatives in Muse have sent documents proving the legitimacy of account holders to the banks in question and the local Chinese government. At a meeting of bank officials and representatives from China and Myanmar in the Chinese border town of Ruili, Myanmar authorities told bank officials that accounts belonged to Myanmar traders who were not involved in money laundering, gambling or trafficking. Chinese banks have so far reportedly closed 5,000 accounts supposedly linked to illegal activity in Yunnan Province, with more than 100 bank accounts owned by Myanmar nationals frozen by the Agricultural Bank of China. The Postal Savings Bank of China and the Industrial and Commercial Bank of China also reportedly froze accounts. The Chinese Embassy in Yangon said that Chinese banks had frozen accounts in Myanmar border areas, including those belonging to Myanmar border traders in an effort to crackdown on crime and illegal trade but promised to unfreeze legitimate merchant accounts and protect longtime stability with Myanmar.
Infrastructure
Infrastructure Chinese Style - Days before the first supertanker carrying 140,000 tons of Chinese-bound crude oil arrived in Myanmar’s Kyaukphyu port, local officials confiscated Nyein Aye’s fishing nets. The fisherman was among hundreds banned from fishing a stretch of water near the entry point for a pipeline that pumps oil 770 kilometers across Myanmar to southwest China which forms a crucial part of Beijing’s “Belt and Road” project to deepen its economic links with Asia and beyond.
“How can we make a living if we’re not allowed to catch fish?” said Nyein Aye, who bought a bigger boat just four months ago but now says his income has dropped by two-thirds due to a decreased catch resulting from restrictions on when and where he can fish. Last month he joined more than 100 people in a protest demanding compensation from pipeline operator Petrochina. The pipeline is part of the US$10 billion Kyaukphyu Special Economic Zone, a scheme at the heart of Myanmar-China relations and whose success is crucial for Aung San Suu Kyi.
Embattled Aung San Suu Kyi needs a big economic win to stem criticism that her first year in office has seen little progress on reform. China’s support is also key to stabilizing their shared border, where a spike in fighting with ethnic armed groups threatens the peace process which she says is her top priority.
China’s state-run CITIC Group, the main developer of the Kyaukphyu Special Economic Zone, says it will create 100,000 jobs in the northwestern state of Arakan, one of Myanmar’s poorest regions but many local people say the project is being rushed through without consultation or regard for their way of life. Suspicion of China runs deep in Myanmar, and public hostility due to environmental and other concerns has delayed or derailed Chinese mega-projects in the country in the past. China says the Kyaukphyu development is based on “win-win” co-operation between the two countries.
‘Avoiding Panic’
Since Beijing signaled it may abandon the huge Myitsone Dam hydroelectric project in Myanmar earlier this year, it has pushed for concessions on other strategic undertakings, including the Bay of Bengal port at Kyaukphyu which gives it an alternative route for energy imports from the Middle East.
The Kyaukphyu Special Economic Zone will cover more than 17 sq kilometers. It includes the $7.3 billion deep sea port and a $2.3 billion industrial park, with plans to attract industries such as textiles and oil refining. Census data suggests 20,000 villagers, most of whom now depend on agriculture and fishing, are at risk of being relocated to make way for the project.
“There will be a huge project in the zone and many buildings will be built, so people who live in the area will be relocated,” said Than Htut Oo, administrator of Kyaukphyu, who also sits on the management committee of the economic zone. He said the government has not publicly announced the plan, because it didn’t want to “create panic” while it was still negotiating with the Chinese developer.
Tight Deadline
In April, Myanmar’s President Htin Kyaw signed two agreements on the pipeline and the Kyaukphyu port with his Chinese counterpart Xi Jinping, as Beijing pushed to revive a project that had stalled since its inception in 2009. The agreements call for environmental and social assessments to be carried out as soon as possible.
While the studies are expected to take up to 15 months and have not yet started, CITIC has asked Myanmar to finalize contract terms by the end of this year so that the construction can start in 2018. Such a schedule has alarmed experts who fear the project is being rushed. “The environmental and social preparations for a project of these dimensions take years to complete and not months,” said Vicky Bowman, head of the Myanmar Centre for Responsible Business and a former British ambassador to the country. CITIC says it will engage “a world-renowned consulting firm” to carry out assessments.
Although large-scale land demarcation for the project has not yet started, 26 families have been displaced from farmland due to acquisitions that took place in 2014 for the construction of two dams, according to land documents and the land owners. Experts say this violates Myanmar’s environmental laws. “Carrying out land acquisition before completing environmental impact assessments and resettlement plans is incompatible with national law,” said Sean Bain, Myanmar-based legal consultant for human rights watchdog International Commission of Jurists.
Job Opportunities?
CITIC says it will build a vocational school to provide training for skills needed by companies in the economic zone. It has given $1.5 million to local villages to develop businesses. Chinese investors say they also plan to spend $1 million during the first five years of the development, and $500,000 per year thereafter to improve local living standards. But villagers in Kyaukphyu say they fear the project would not contribute to the development of the area because the operating companies employ mostly Chinese workers.
From more than 3,000 people living on the Maday island, the entry point for the oil pipeline, only 47 have landed a job with the Petrochina, while the number of Chinese workers stood at more than double that number, data from labour authorities has shown. Petrochina says that Myanmar citizens make up 72 percent of its workforce in the country overall and it would continue to hire locally.
“I don’t think there’s hope for me to get a job at the zone,” says Nyein Aye. He has been turned down 12 times for job applications with the pipeline operator. “Chinese companies said they would develop our village and improve our livelihoods, but it turned out we are suffering every day.”

Culture and Tourism
Goldleaf Problem - Kyaiktiyo Pagoda, a sacred Buddhist pilgrimage site and a major tourist destination also known as Golden Rock, will remain a protected zone and won’t be designated a cultural heritage zone in the near future due to culture ministry regulations. The Ministry of Culture has designated areas as cultural heritage zones to conserve national heritage by introducing regulations such as restricting construction in the area. It would be difficult for the pagoda board of trustees, locals, and business people to follow those regulations, said Mon State social affairs minister Dr. Htein Lin. “If the pagoda is designated as a cultural heritage zone, then gold foils are not allowed to be affixed to the pagoda, and repairs can’t be made without the approval of the culture ministry,” said Dr. Htein Lin. The pagoda board of trustees carries out general maintenance works including complete gilding of the pagoda every three years. But, according to cultural heritage zone regulations, repairs of ancient pagodas need culture ministry approval. “There are penalties for violations of those regulations. So, it is better to apply when we are in a position to abide to those regulations, otherwise we will be frequently penalized,” he said. “It is easy to be designated as a cultural heritage zone, but it is difficult to follow the regulations,” he added, saying that the pagoda is currently designated as a protected zone. Sein Myint, a trustee of the pagoda, said it is more appropriate to conserve the pagoda as a protected zone as Kyaiktiyo Pagoda is the only ancient monument left on Mt. Kyaiktiyo. “My personal view is that so many restrictions are not acceptable. Currently there is only one ancient monument left here, Kyaiktiyo Pagoda. The others have all been ruined. The old ordination hall was ruined, there is nothing ancient now,” said the trustee. He suggested focusing on protecting Kyaiktiyo forest reserve rather than designating the rock as a cultural heritage zone. Known as Golden Rock by the international community, Kyaiktiyo Pagoda lies in Kyaiktiyo forest reserve, which covers 38,606 acres of land managed by Ministry of Natural Resources and Environmental Conservation.

More UNESCO Sites Planned - The minister of religious affairs and culture, Aung Ko, said his ministry plans to nominate Mrauk U and Shwedagon Pagoda for UNESCO’s list of culturally significant sites after Bagan. Since 2016, countries have been limited to one UNESCO nomination per year so the ministry chose Bagan first, said the minister. The draft report and draft management plan needed for Bagan’s nomination will be submitted in September and UNESCO officials will visit the site in 2018. Bagan’s nomination will then be brought up for deliberation at UNESCO’s 2019 World Heritage Site convention, according to the minister. “We have invited international experts. We plan to nominate Rakhine State’s Mrauk U in 2018 and Shwedagon Pagoda in 2019. We’ll later nominate Khakaborazi, Inle Lake, Indawgyi Lake, Inwa , Mandalay and Sagaing,” the minister said. The ministry will no longer allow climbing on all of Bagan’s pagodas and is currently building platforms from which visitors will be able to watch sunrise and sunset. Myanmar’s initial application for UNESCO recognition of Bagan came in 1996, but it was rejected due to poor management plans and legal frameworks. After UNESCO inscribed the ancient Pyu cities as the first Burmese World Heritage Site in June 2014, the culture ministry decided to continue campaigning for the addition of Bagan. UNESCO has accepted Bagan as a mixed cultural heritage zone following negotiations with the culture ministry and Mandalay divisional government which means that there is no need to relocate villages, hotels or guesthouses, said the minister.
 

In Brief
Police fired warning shots as Buddhist Nationalists storm Muslim areas in Yangon
Myanmar and the Vatican have established diplomatic ties
259 prisoners released under Presidential amnesty
Myanmar Mahar Htun is partnering with Siemens to provide technology support to ports in Myanmar
 
Politics
Progress At Peace Talks - The principal players’ negotiations at the Union Peace Conference mark a significant step toward future democratic federalism, said Aung San Suu Kyi at the closing ceremony of the second 21st Century Panglong in Naypyidaw. Despite encountering disagreement over the basic federal principles of equality and self-determination - among government, other political parties, the Tatmadaw and the ethnic armed organizations -  the members of the Union Peace Dialogue Joint Committee are optimistic that the conference achieved its aims to some extent. Suu Kyi, who is also the chairperson of the UPDJC, participated in negotiating the key terms of the federal principles, such as those concerning secession from the Union and equality between the Tatmadaw and the ethnic armed organizations. “The agreements that we have been able to sign today mark a significant step on our path toward peace, national reconciliation, and the emergence of a democratic federal Union,” she said. “Reaching these agreements has not been easy; we have encountered moments of disappointment as well as inspiration along the way. Yet I am greatly encouraged that despite our many different views and perspectives, we have been able, through frank discussion and negotiation, to reach common positions,” she added, stating that the foundations for democracy and federalism for future generations have been laid through dialogue. After the negotiations, stakeholder representatives from the government, Parliament, the Myanmar Army, political parties, and ethnic armed groups who were signatories to the nationwide ceasefire agreement agreed to 37 of 41 basic federal principles and signed Part 1 of the Union Accord . However, key principles regarding equality, self-determination and federalism have not yet been included in the accord, and delegates said further discussion would continue in this regard. The debate about the term “non-cessation from the Union” was not settled and the Tatmadaw wants a commitment from the ethnic armed organizations that they pledge not to separate from the state. Aung San Suu Kyi concluded “we can find similarities despite our differences and we can identify common ground through peaceful negotiation.” She urged the public “to continue actively along the path of peace and to remain focused on the future,” to end the decades-long conflict in the country.
But Fighting Persists - Fighting escalated between the Tatmadaw and the Northern Alliance in northern Shan State just weeks before the second session of the 21st Century Panglong conference. Northern Alliance member the Myanmar National Democratic Alliance Army (MNDAA) stated that fighting occurred almost daily in the Kokang region since April 27. Fellow member Ta’ang National Liberation Army (TNLA) reported 20 separate clashes with the Tatmadaw within the last two weeks. The TNLA stated its brigades 1 and 3 clashed four times with Burmese military troops yesterday in Mong Ton Township, where the Tatmadaw’s Infantry Division 88 launched an offensive after the Thingyan water festival, and the fighting continued this morning. “It is carrying out heavy operations against the TNLA/PSLF [Palaung State Liberation Front], and the MNDAA,” Brig-Gen Tar Phone Kyaw, General Secretary of the TNLA and Northern Alliance spokesperson, said. “We will keep fighting back. We have no choice. We will just defend ourselves using guerrilla warfare. “The Tatmadaw plans to diminish Aung San Suu Kyi’s leadership of the second Panglong conference and its politics. They create war against peace to show that the power is in their hands,” he added. The Northern Alliance, which also comprises the Kachin Independence Army (KIA) and the Arakan Army (AA), stated that it had been fighting the Tatmadaw on a daily basis in Kokang. Burmese military troops, it added, were using artillery to shell an MNDAA base. The military-run Ministry of Defense stated on May 7 that a grenade shot by the TNLA wounded three civilians in Namkham Township. The Tatmadaw has refused to hold peace talks with the MNDAA, the TNLA, and the AA, stating that the three groups formed after the quasi-civilian government took office in 2011.

​Sino-Myanmar Cooperation Agreements Signed - China and Myanmar signed five agreements recently regarding cooperation in economic development, health, and the preservation of historic monuments in Bagan, following a meeting between Aung San Suu Kyi and Chinese President Xi Jinping. An agreement on Economic and Technical Cooperation, and a memorandum of understanding on Cooperation within the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative were signed between the two countries. An MoU was signed by both commerce ministries to establish a China-Myanmar Border Economic Cooperation Zone. Another MoU was signed on health cooperation by Myanmar’s Ministry of Health and Sports and the National Health and Family Planning Commission of China. The Ministry of the Religious Affairs and Culture signed a MoU to cooperate on post-quake restoration and protection of historic monuments in Bagan with China’s State Administration of Cultural Heritage. Suu Kyi and the Chinese Premier attended the signing ceremony for the five agreements. Maung Maung Soe, a political analyst, said among the five, two stand out: the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative, and the establishment of the China-Myanmar Border Economic Cooperation Zone, adding that the level of country agreement on future MoU proposals remains to be seen. It seems that China wants to open another economic zone on the China-Myanmar border near Chin Shwe Haw of Kokang, near the Muse Special Economic Zone, he said. He also added that the One Belt, One Road MoU could be related to a deep-sea port project in Kyaukphyu which is still being negotiated by stakeholders from the two countries. “We need to welcome economic investments but it is important to carefully considered who will control [infrastructure and development] projects,” he said.

Business
Economic Growth Forecast - Myanmar’s economy is predicted to grow by at least seven percent in the 2017-18 and 2018-19 fiscal years after growth of six percent last fiscal year according to observer group AMRO. Moderate growth of 6.3 per cent in Myanmar last fiscal year compared to 7.3 percent the year before was accounted to slowing agriculture and construction and declining gas prices, said AMRO’s report. It predicted an uptick in GDP growth this fiscal year due to greater manufacturing and a recovery in agriculture after 2015’s severe floods. Increased investment is also likely to fuel GDP growth following the implication of Myanmar’s new Investment Law, although a lack of detailed regulations continues to deter investors. The opening of Special Economic Zones (SEZs), including Thilawa, is also predicted to spur growth. Government efforts to enhance monetary policy through deposit auctions, a new reserve requirement and improved forecasting allowed the Central Bank to manage inflation with more success in the 2016-17 fiscal year; inflation averaged 6.8 percent in 2016-17 compared to 10 percent the year before. Myanmar’s financial and economic stability remain at risk from high credit growth and low central bank foreign reserves, AMRO warns. Myanmar’s 2016 Financial Institutions Law is an important step in mitigating financial risk, but the government should introduce closer inspections of commercial banks and publish reports on their financial soundness, the report recommends.
River Taxis? - Tint Tint Myanmar Company, a company set to provide water taxi services on Yangon’s rivers next month, has reassured people that the service will be safe and efficient amid criticisms that the project lacks transparency. Tint Tint Lwin, chairwoman of the company, says that she is confident the initiative to ferry passengers along the city’s waterways will succeed. However, lawmakers fear the implementation of the water taxis may replicate the launch of the city’s revamped bus service, introduced in January, which was criticized for having aggressive staff, a shortage of buses, and being generally unreliable. Regional parliamentarians have also complained that their questions about the company’s plan have been left unanswered, as the company, which won the tender in February, prepares to launch its fleet in the second week of June. “At first, people will be concerned, but after taking a ride and seeing the advantages of the water buses, such as less pollution, and more convenience, like reading newspapers and drinking coffee while taking a ride, plus no traffic congestion on the rivers, I am sure the demand will be high,” Tint Tint Lwin said, adding that the project was “100 percent our investment” and not a joint venture with the government or another company. The company loaned USD$34 million from KBZ Bank for the project, she added. Known for running river cruises on the Irrawaddy and Chindwin rivers, the firm has bought four used boats—three from Australia and one from Thailand—for the taxi service. The boats can carry 180-200 passengers each and are expected to arrive in Myanmar imminently. At least 16 boats will connect Hlaing Tharyar and Botahtaung with eight stops under the first phase of the project. Two routes along Nga Moe Yeik Creek and Thanlyin will follow within three to six months after the jetties have been constructed. 56 to 67 boats are expected to service the full operation. Tint Tint Lwin said her firm has prepared GPS and monitoring systems, and life jackets for every passenger. Each ticket will include travel insurance and emergency rescue teams will be on standby, she added. The water taxis will run every 20 minutes from 6 a.m. to about 6.30 p.m., with tickets from 300-500 kyats, according to the chairwoman. Phase one of the project will target about 20,000 commuters.

EAC and Unilever Join Forces - Myanmar’s consumer products manufacturer Europe and Asia Commercial Co. Ltd (EAC) has signed a joint venture deal with Unilever, combining their home and personal care businesses. The joint entity, with annual sales of more than US$109 million, will provide both companies with a complementary portfolio, better rural reach and economies of scale, said Unilever, which entered the Myanmar market in 2010. The venture has a goal of tripling sales to around $330 million by 2020, Pier Luigi Sigismondi, Unilever’s president for Southeast Asia and Australasia, said. EAC, whose products include well-known brands of detergent and dishwashing liquid, will also help add to Unilever’s manufacturing capabilities. “We felt that maintaining organic growth alone will take us far, but not as far as joining forces with EAC,” Sigismondi said. “We have a factory that produces shampoos, haircare products, and we believe that with this joint venture, we will be able to produce the rest of our personal care range in the country,” he added.

Digital Cinemas - Paradiso Cinemas Co Ltd has spent about $2 million of a proposed $20 million investment for building cinemas, with two cinemas opened in Hmawbi and Monywa. Paradiso is a joint venture between Maze and Myanmar Investment Group with 60 per cent and 40 per cent stake respectively. It aims to finish the construction of 100 cinemas in two years, with an overall investment of $20 million. A number of other cinemas are under construction, in Pyarpon, Shwebo, Madaya, Kalay, Kyaukpadaung, Yamaethin and Aungban.

Infrastructure
Kyaukphyu - China is looking to take a stake of up to 85 percent in the strategically important deep sea port of Kyaukphyu on the Bay of Bengal, as part of its ambitious “One Belt, One Road” infrastructure investment plan to deepen its links with economies throughout Asia and beyond. A consortium led by China’s CITIC Group has proposed taking a 70-85 percent stake in the $7.3 billion port, according to negotiating documents seen by people familiar with the talks between the Chinese state-owned conglomerate and Myanmar’s civilian government. The size of the proposed Chinese stake is substantially larger than the 50/50 joint venture proposed by Myanmar late last year, an offer rejected by CITIC. Well-placed sources say that China has signaled it was willing to abandon the controversial $3.6 billion Myitsone dam project in Myanmar, but would be looking in return for concessions on other strategic opportunities in the Southeast Asian nation—including the Bay of Bengal port. Kyaukphyu is important for China because the port is the entry point for a Chinese oil and gas pipeline which gives it an alternative route for energy imports from the Middle East that avoids the Malacca Straits, a shipping chokepoint. The port is part of two projects, which also include an industrial park, to develop a special economic zone in Myanmar’s western Arakan State. CITIC was awarded the lead role in both initiatives in 2015.
Negotiations between Myanmar and CITIC come amid a Chinese diplomatic push to forge better ties with its resource-rich neighbour. Myanmar’s leaders have traditionally been wary of domination by China. But the country last month signed an agreement that will see oil pumped through the pipeline from Kyaukphyu across Myanmar to southwestern China, while leader Aung San Suu Kyi recently visited Beijing for a summit on “One Belt, One Road”, President Xi Jinping’s signature policy. One of the sources, who declined to be named, said CITIC was in the “driving seat” on the port project, and that Myanmar was unlikely to ask for a stake of more than 30 percent due to opposition from the Chinese firm. “Some people worry that China would have the power to do anything they want and control the project if it owns 85 percent,” said the person, who is familiar with the thinking of policymakers in Myanmar. “But Myanmar doesn’t have other options,” the person added, citing the Myanmar government’s financial constraints.
The nearly $10 billion Kyaukphyu Special Economic Zone, which Myanmar’s government has said would create an economic hub akin to Singapore covering 4,289 acres, is part of Myanmar’s plan to boost the economy in one of its poorest regions. A second consortium led by CITIC has also proposed taking a 51 percent stake in the $2.3 billion industrial park, an offer Myanmar has agreed to according to the same sources. The economic zone faces opposition from activists and residents who criticized the tender process and said the development would have a negative impact on local people. Around 20,000 people are at risk of losing their homes and livelihoods due to land acquisition for the zone, according to the International Commission of Jurists, a human rights watchdog. CITIC’s consortiums include China Harbor Engineering Company Ltd, China Merchants Holdings, TEDA Investment Holding and Yunnan Construction Engineering Group. The only non-Chinese state-owned company involved is Thailand’s Charoen Pokphand Group.

Culture and Tourism
Bagan UNESCO Application - The initial application to have the Bagan Archaeological Zone listed as a UNESCO World Heritage Site will be submitted by September this year, according to the religion and culture ministry. “The draft report and draft management plan are now 60 percent complete and we will submit the dossier in September,” said Thein Lwin, the deputy director of the Department of Archeology. If the draft is submitted to UNESCO on time, World Heritage Site Committee representatives could visit Bagan in 2018 and the site would be brought up for deliberation at UNESCO’s 2019 World Heritage Site convention, according to the director. The department said buffer zones around the Bagan site were already expanded since July last year, to Tant Kyi Taung Pagoda, west of Bagan across the Irrawaddy River, and to Yone Lut Kyung area, located east of Bagan. The Bagan archaeological site was enlarged from 42 square miles to 62 square miles with these new buffer zones, according to the department. Myanmar’s first UNESCO World Heritage Site application was submitted in 1996 but rejected because of poor management plans and legal framework. Economic development and a growing tourism infrastructure in Bagan’s vicinity have been the biggest challenges facing the site in its bid to become a World Heritage Site, threatening preservation of the cultural areas. Bagan houses stupas, temples and other Buddhist religious buildings constructed from the 9th to 11th centuries—a period in which some 50 Buddhist kings ruled the Bagan Dynasty. There are more than 3,000 stupas and temples in the area. Of these, 120 temples have stucco paintings and 460 have mural paintings that are found to be in need of preservation.

Declining Forest Cover - Satellite imagery indicates that intact forest cover in Myanmar has declined rapidly over the last decade. A countrywide analysis of Landsat data for the period 1990–2000 showed that Myanmar had retained much of its original forest cover during that time, stretching across 65 percent of the country’s land. More than a decade later in 2014, more than 63 percent of Myanmar remained forested, but intact forest had declined by 11 percent, or by more than 2 million hectares, with an annual loss of 0.94 percent. The total intact forest, which is vital for biodiversity and conservation, was just 38 percent in 2014, according to the study. The reduction of armed conflict in some areas and the expansion of commercial agriculture, including plantations, were identified as key contributing factors to forest loss. The report identifies nine township “hotspots” of deforestation. The areas around Homalin Township in Sagaing Division, Bokpyin Township in Tenasserim Division and Hpakant Township in Kachin State lost the most intact forest between 2002 and 2014. Other areas most affected included land around Myitkyina and Tanai townships in Kachin State and mangrove forests in the Irrawaddy Delta. The authors found a large area of some 6.3 million hectares of intact forest in northern Myanmar. The Southern Forest Complex in Tenasserim still jointly covers around 1.7 million hectares of intact forest, the study found. Myanmar is “at a crossroads,” according to the authors. “Protection of remaining intact forests, and restoration of degraded forest are critical to ensuring the long-term future of the country’s forests,” they said.

Snippets
Myanmar Investments International (MIL) is eyeing two new investments in tourism and pharmaceuticals
The Ruby Financial Company, part of the Loi Hein Group, in joint venture with Vietnam-based Dragon Capital to provide microfinance services.

​One Year On - As its first year of tenure comes to a close, many question whether the government has managed to accomplish its aims. One certain thing is that the government led by Aung San Suu Kyi is still struggling to bring about peace, national reconciliation, as well as increase economic growth and development in the country, left in disarray after more than 50 years of military dictatorship. The most valuable thing that Burmese people can still appreciate in this government, in comparison to former administrations, is that its ministers still appear “corruption-free” one year on. Under the previous regime led by ex-general Thein Sein, a persistent fear was whether the reform process, led by former military men, could potentially reverse at any given time. That nightmare vanished along with his administration after the NLD government took office on March 30, 2016. Since then, the NLD’s successes and failures have been explored concerning its capacity, policies, leadership style, inevitable legacies, and the continued existence of dark elements in the country.
The Unwanted Past
Myanmar is still suffering from many of the problems inherited from the past. A 70-year civil war continues. The military, the country’s most powerful institution, still calls the shots on conflict with ethnic armed groups. In a recent interview with the BBC, Suu Kyi said “They [the military] are free to go in and fight. And of course that is in the Constitution. Military matters are to be left to the army. That’s why we are trying to change the Constitution. Amending the Constitution is one of our aims.” One of the biggest challenges for the NLD government is still the 2008 charter drafted by the previous military regime, which guarantees the political power of the military in the government with three key ministerial positions; defense, home and border affairs and 25 percent of all legislative seats reserved for military appointees. That’s why one of the NLD’s main aims is to adopt a Constitution which “ensures that all the people of our country can live together in tranquility and security,” according to its 2015 election manifesto. The NLD faces resistance on multiple fronts to their vision of change. The military, known as the Tatmadaw, is always in a position to fight the NLD’s attempts to amend the current Constitution or adopt a new one. After all, the military’s main stated duty is to safeguard the Constitution, according to Chapter 1, the Basic Principles of the Union. Regarding the peace process, a priority of the NLD government, the military’s offensives were disruptive, as the State Counselor told the BBC. But the current Constitution prevents the NLD from reining in the army at all. The NLD government has still not managed to convince the military leadership to collaborate with the government regarding armed conflict that has intensified since their administration came to power. There is also a certain persistence of unofficial or unlawful resistance to the NLD, which could be classified as “dark elements” likely comprised of radical groups or members of old establishments. Among them are those who assassinated NLD legal adviser Ko Ni in broad daylight outside Yangon International Airport in January. Ko Ni was strongly advocating for the amendment of the Constitution or the adoption of a new one. Most of those suspected of involvement in his murder are ex-military officials. Some critics think that the killing is a setback to the NLD government; others see it as an act of sabotage by those who have disdain for the NLD’s political vision. Suu Kyi’s policy to prioritize national reconciliation with the military and the old establishment has arguably incapacitated her government. When the NLD formed its government, it allowed high-ranking officials from the previous regime, like directors and permanent secretaries of the ministries, to retain their positions. Most of them are ex-military officials, and there have been reports that some have blocked mechanisms that the new government hopes to implement. Another particularly tragic legacy is the crisis surrounding the Rohingya in Arakan State. The problem dates back decades, and consecutive governments, including the administration headed by Thein Sein, turned a blind eye to reports of abuse, rather than identifying solutions and responses. Suu Kyi has faced international criticism for failing to take action against government security forces for human rights abuses against the Rohingya. If Myanmar’s security personnel committed the atrocities which rights groups have accused them of, her government must punish them according to the law. These are some of the most difficult obstacles that need to be overcome in order to bring radical change to the country.
Political Errors
Yet these challenges do not stand in the way of the NLD government improving the education, economic and legal sectors, if the political will is there. There are many areas where the government, as well as the NLD-dominated parliaments, can potentially make positive changes. Here’s one political misstep which could serve as an important lesson for the NLD. The result of the by-election held on April 1 indicated how the ruling party’s popularity had declined in ethnic constituencies. This differed from results of previous elections in 1990, 2012 and 2015 in which the NLD contested. In those elections, the NLD won by a landslide nationwide, including in most ethnic constituencies. Out of 18 constituencies where the NLD contested in this year’s by-elections, it won only nine seats, two of which were in ethnic constituencies in Shan and Chin states. In the remaining nine seats in ethnic constituencies, the NLD was defeated. In Shan State, the Shan Nationalities League for Democracy, an NLD ally in the 1990 election, won six seats. The victory of Arakanese politician Aye Maung in Arakan State’s Ann Township was not surprising, as the NLD won a minority of seats in the state in the 2015 election. The USDP, which was formed by the military and defeated by the NLD in the 2015 general elections, won two seats, one each in Mon and Shan states. The victory of the USDP in Chaungzon Township in Mon State was likely a result of the NLD’s missteps in ignoring local people’s desires. The NLD took advantage of its position in the Union Parliament to name a bridge in the township after the late Burmese independence icon Gen Aung San, while many of local Mon people wanted it to be called the Salween Bridge (Chaungzon), referring to the river that it spans and the area in which it is located. The NLD was later defeated in this constituency, where it had won in the 2015 general elections. The NLD leadership believed that resistance against the government’s move to name the bridge after Aung San was organized by its opponents and radical Buddhist monks. But even though it was true that the resistance was politically motivated, the leadership should have understood that many locals viewed the NLD’s tactics in naming the bridge as coercive. They argued that the NLD did not honor the autonomy of ethnic people even on the matter of naming a bridge. The defeat of the NLD in Chaungzon is therefore a great lesson for the NLD nationally, even though it is not a national issue.
Friend or Foe?
Many of Suu Kyi’s long-term supporters, including veteran activists from the 1988 pro-democracy uprising, feel that she, her party and her government have politically alienated them. Some have described being marginalized, rather than treated with the camaraderie they had expected from an NLD-led administration. That’s one of the failures of the NLD and its government’s stance regarding some of its key allies: one year on, she should have much greater support nationwide. Better relations with ethnic leaders, for example, would help in efforts toward achieving peace. On March 30, on the day marking the first anniversary of the NLD government’s time in office, Suu Kyi said in her State of the Union speech that she had changed her party’s slogan from “Time for Change” to “Together with the People.” But the incident surrounding Chaungzon Bridge obviously contrasts with this message as does the alienation she employs as part of her leadership style. She admitted in her speech that some of her ministers have been inactive and some are not in the right positions. Regarding these cases, the government will make necessary changes, she added. One year is not a long period of time for a government to do its work. But it is time for the NLD administration to fix their political missteps, unpopular policies and controversial leadership style. It is time for a reshuffle of the cabinet. The State Counselor must axe incapable ministers and high-ranking officials and replace them with those who can make her government more competent. The NLD’s term from 2016 to 2021 is a time in which to build a foundation from which those in power can confront the unwanted legacies of military rule, and establish laws and regulations to forge a solid path for a new country.

Politics
USDP Fund Use Illegal - The chief justice of Magwe Division said the former ruling USDP’s spending of a public fund was illegal and could lead to the party’s cessation. “According to the Political Party Registration Law, you can’t use any public property. It openly states that any mishandling of it must put an end to a party,” the division’s chief justice San Lin said recently. He referred to the Union government’s recent instruction to the previous divisional government led by Phone Maw Shwe to return more than 3 billion kyats, including more than 1.7 billion kyats allegedly spent on the USDP when they were in power from 2011 to March 2015. Chief Minister Dr. Aung Moe Nyo of Magwe Division said that legal action against his predecessor would follow if missing regional development funds collected in taxes from small-scale oil producers under the previous government were not returned. “We will request anyone involved in the case to return the funds. If they fail to follow the instructions, action will be taken according to the existing laws,” he said. The Bureau of Special Investigations under the Ministry of Home Affairs launched an investigation and found that the missing funds amounted to 7.5 billion kyats. The investigation’s findings were submitted to the President’s Office earlier this month. The office then instructed the USDP to return more than 3 billion Kyats. The chief minister said his regional government would order the return of the remaining 4 billion kyats and “ask the Union government for help if needed.”

Business
Sean Turnell Speaks Out - Government economic adviser Sean Turnell has hit back against a barrage of recent criticism over the performance of the NLD-led administration during its first year of office. The government’s achievements on the economy were “considerable” and “too often overlooked” he said. Aung San Suu Kyi’s government has been bruised over the past week by a chorus of mainly negative judgments at home and abroad for its one-year performance, on everything from peace to human rights to the perceived slow pace of economic reform. He suggested that much of the negativity on the economy was misplaced. The full extent of fiscal and other problems inherited by the current government was not widely understood, he said at a presentation in Yangon. There was also widespread underestimation of the “bad economic legacy” that had been bequeathed by the previous government, he said. During its final year of office, the government under former Thein Sein had increased the budget deficit by more than three times the level of the year before, according to Turnell. The former government had also overseen a “dramatic deterioration” in Myanmar’s trade deficit. In addition, according to the adviser, the administration had inherited several “very questionable loans, mostly from China,” taken on by the Thein Sein government. “The loans added significantly to Myanmar’s debt burdens, on projects of very questionable value,” he said, without elaborating on the details.
The economist provided a list of what he identified as significant achievements of the NLD government on the economy. Firstly, the government had been fiscally responsible. “If we look around the world we observe a miasma of fiscal crises, sovereign defaults, currency demonetizations, drastic austerities, monetary gambles, and so on. The NLD inherited a budget deficit that, as a percentage of GDP, increased threefold across the last year of the Thein Sein government. Since then, and in the face of a slowing global economy, all the global headwinds noted, as well as the pent up demand of 60 years of spending misallocations, the deficit has barely moved.” This showed that the “fiscal extravagances” of Myanmar’s previous governments were not the practice of its newest one,. The government had facilitated the easing of international sanctions, and the dividends for this were only now starting to come in. Other achievements were that the administration had successfully initiated a bond tender as a critical foundation for fiscal reform, he said. This would be the basis for future budgetary increases in health, education, infrastructure and other useful social expenditures. Mobile financial services were promoted and the opening up of payment systems to international credit-card providers was making life easier for businesses and consumers and giving a boost to the tourism sector, he said. The liberalization of rules in the microfinance sector “would greatly expand access to capital to smallholder farmers and other rural enterprise in the years ahead”, adding that the upcoming foreign investment law would provide greater certainty to international investors and stimulate more investment. Myanmar’s economy has been dominated for decades by the state and state-linked business interests. Mr. Turnell’s presentation suggested that the government had made headway in efforts to reduce the part played by legacy interest groups. An ambitious program of privatization of state-owned enterprises had been initiated, he said. “Half of all state-owned factories are now public/private partnerships and we are currently inviting proposals for private partners for 17 more factories.” Referring to the jade mining sector as “currently the source of expropriations, human rights abuses and despair,” the economist said that licenses had been suspended until the sector “can be the location of shared revenues.” Other achievements on the part of the government included its work on restructuring state banks and “turning them into the institutions the country needs to aggregate and allocate capital.” The NLD-led government had supported entrepreneurs and small and medium enterprises as the engines for economic growth, Turnell said. Loans had been provided by the state to more than 450 entrepreneurs. The administration was working with the Japanese government to provide additional loans to almost 200 other businesses. A credit guarantee insurance system had been established to facilitate loans for entrepreneurs who could not provide collateral, he added. He went on to emphasize the importance of enhancing the potential of Myanmar’s long-neglected “human capital.”
Calling the country’s population and its people’s potential “the true and lasting capital for the 21st century,” he pointed to government achievements on health and education. The NLD-led administration was improving health care through the introduction of the Myanmar National Health Plan and the rebuilding of Yangon General Hospital. Taken together, the government’s actions so far “constitute a secure down-payment on the transformational measures that will follow in the years ahead,” he maintained.

Infrastructure
The Ministry of Electricity and Energy will appeal to the public to support hydropower and coal-fired power plants. One year into the new administration, the ministry finds it difficult to generate sufficient power because of people’s strong opposition to hydropower and coal-fired power plants, according to the minister. “People oppose hydropower and coal power generation, saying that there are negative environmental impacts. But we have limited natural gas resources and it is difficult for us to generate more power,” he told the media at the ministry’s annual press conference. The ministry will establish hydropower and coal-fired power plants but will ensure minimal environmental impact, Htein Lwin said, adding that the plans will be publicized in order to try to convince the public. Currently, the ministry, with the financial assistance of the French government, is implementing the Laymyo hydropower plant—with a capacity of 690 megawatts—in Arakan State, as well as the Shweli hydropower plant—with a capacity of 1,050 megawatts—in northern Shan State. The secretary said power generation from hydropower, natural gas and coal costs less than renewable energy from solar or wind power. “We can’t just sit by because people object. We will generate power from these sources and supply the people,” said the secretary. However, it is up to Union-level commissions to decide whether to implement mega projects like the China-backed Myitsone Dam, which has faced strong opposition from the public. China, Thailand, and Australia have proposed plans to generate electricity in Myanmar, according to the ministry. At present, only 34 percent of the country has access to the electricity grid. The remaining 66 percent, mostly rural areas, still does not have access. Ministry officials restated a goal to provide universal access to electricity by 2030 at the press conference.

Kyaukphyu SEZ - During a trip to Arakan State’s Kyaukphyu Township recently, Chinese official Wang Yajun emphasized that his country aims for the Kyaukphyu Special Economic Zone (SEZ) to be up and running as soon as possible. Kyaukphyu Township administrator Nyi Nyi Lwin said that along with Wang Yajun, assistant minister of the international department of the Communist Party of China’s (CPC) central committee,a regional official from the Chinese CITIC investment conglomerate and several diplomats were present on the visit, holding talks with local authorities and businesspeople. Nyi Nyi Lwin said that CPC delegates expressed an eagerness to begin the SEZ project without delay, as the state-owned conglomerate CITIC was already awarded the tender to develop a deep sea port and an industrial zone by the previous government. The visitors also explained how they would promote relationships between locals and Chinese businesspeople. Local businessman Tin Aung Soe, who operates a seaside hotel asked Wang Yajun whether the Chinese government would develop a railroad in near future, linking Yunnan Province’s Kunming with Kyaukphyu, but was told a that memorandum of understanding on the project had not yet been reached. Another attendee, Hla Myo Kyaw, said that the Chinese delegates asked for opinions on the ground regarding the SEZ development. He told them that locals still have not yet recovered from land confiscation suffered during the pursuit of offshore gas terminals and pipelines by the China National Petroleum Corporation. “Negative images of previous projects could hit the forthcoming SEZ project,” he said. Chinese delegates said they assumed that a lack of interaction between locals and the Chinese officials had contributed to misunderstandings, and promised to arrange more meetings in the future.

Culture and Tourism
Thingyan 2017 - Tu Po melodies float in the air. There is no need to look at the calendar. Traditional Thingyan rhythms and a festive atmosphere mean that people are preparing for Thingyan and the New Year. Young people are ready to celebrate, and parents are anxious about the revelry getting out of hand. In recent years, Thingyan has shifted away from the traditional washing away of sins and doing good deeds toward a party atmosphere. Drugs and alcohol have caused an increased number of injuries and fatalities during Thingyan around the country. Mon State is said to be one of the liveliest areas of Myanmar during Thingyan, with people throwing water and celebrating. But drunk driving and traffic violations caused four car accidents and four motorbike accidents in Mon State during Thingyan last year. Thirteen people were killed and 26 were injured in these accidents. Mi Non Tal Pon, a first year university student living in Yay Township said she will celebrate at Yay and Zee Phyu beach as well as at a pagoda festival near Moulmein. She has put a lot of thought into what colour to dye her hair and what to wear for the festivities. But her mother said she worries about road accidents and has warned her to take extra care during this time. During Mon State’s Thingyan Festival it is common to see young people rocking punk, rock, or emo hair and make-up styles.  Many ride their motorbikes in groups, showing off stylized group stickers, graffiti and flags. Some show up to the pavilions in cars, speakers blaring, and water barrels ready to go.  “We usually hang out in a group—five or six, all about the same age,” said Ko Badin from Moulmein. And while young people enjoy the different styles, some of the older generation think the fashions disrespect tradition. There is a tug-of-war between individual freedoms and cultural norms during Thingyan—the younger and older generations brandishing their conflicting views. “I want to see girls dress elegantly. But today, they wear low-cut and tight-fitting dresses, which tarnishes cultural norms. Parents need to talk their children into preserving our traditions and customs during Thingyan,” said a teacher. This year, the Mon State government has banned drunk driving, loud motorcycle exhaust, racing, more than two people riding a motorcycle at a time, and motorcycle flags. They also reminded drivers to ride with helmets and display plate numbers. In recent years, alcohol consumption has led to fighting and sexual assault during the holiday. “Adults know their limit and can control themselves, but teenagers booze and run wild,” said a university student. “People paint their faces and act aggressively. They sometimes carry sticks and swords,” said another. In the past, people used to playfully rub soot on each other’s faces during Thingyan. This custom has faded away, either being replaced by Thanaka and talcum powder, but being seen altogether less often and replaced by more raucous partying. Accounts of sexual assault against women have been reported, and authorities cite a lack of sufficient security for the number of people and the scope of the festival. It is hard provide security at this time of year. “Police have to provide security at various places, and so there are only one or two policemen at a place. If revelers are drunk and cause trouble, it is hard to control them. Maybe they are not only drunk, but also on drugs,” 

Snippets
Both KBZ and Max Group say looking for suitable foreign partners
Thingyan is cut short to just 5 days this year, from April 13 to 17
ThaiEXIM to open office in Yangon
H&M Factory seriously damaged in dispute with workers
Grab enters Myanmar market

​Politics
State of the Union - Peace and national reconciliation were the key points in Aung San Suu Kyi’s State of the Union address, broadcast recently. One the day, which marked the first anniversary of the NLD government taking office, she pledged to try harder to serve the people and to earn “the public’s support, respect and trust.” “The peace process is not easy, but we have a lot of hope,” she said. “Especially these days, hopes are growing for our second session of the 21st Century Panglong conference.” “On the road to peace, sometimes we move forward, or stop for a while or we may even step back a little. But we clearly know our goal and we will move forward to achieve it.” she said her government would stand “together with the people” (the NLD’s new slogan) “for more development, peace and reconciliation in our country based on our diversity.” The government tries its best to be transparent and accountable, while also acknowledging that she is aware of the public’s frustration with them for not reaching their expectations in all areas. “I have said since the beginning that I would try my best,” she said, adding that, “if people think my best effort is not enough for them and if there are any other persons or organizations who can do better than us, we are ready to step back.” Her comments came at the time when people are expressing discontent regarding what they perceive as a lack of progress, while the country’s peace process with ethnic armed groups remains elusive and reports of state security abuses against the Rohingya in the western part of the country has attracted international criticism. She acknowledged support from the international community but asked those outside the county to allow Myanmar to address its own problems. “We value the support, help and sympathy of our friends around the world, in our efforts toward peace and national reconciliation. But we must work ourselves for our country’s responsibilities, because we are the ones who best understand what our country needs.” The government did not accept the United Nations Human Rights Council’s recent decision to undertake a fact-finding mission focused on alleged military abuses in Arakan State. “It does not mean we disrespect the UN,” she said. “It’s just that it does not correspond with our country’s situation.” She highlighted developments to the education and health sectors, to infrastructure, and in maximizing the budget, but did not go into the details of the successes in each ministry, since this information had been outlined by state-run newspapers in recent weeks. Specifically, she pointed to international recognition from the Global Fund regarding Myanmar’s efforts in the fight against tuberculosis, malaria and HIV/AIDS as a major accomplishment. From now on, she said, “we will focus on job creation, infrastructure development in road transport, and access to electricity.”

China – Myanmar Relations - Relations between Myanmar and China have improved during the first year of the NLD government, aided in part by Chinese support for the government’s peace process. China has devoted considerable effort to improving bilateral ties with Myanmar while promoting its official policy of non-interference and support for “persuading for peace and facilitating dialogue,” in the peace process. For its part, the NLD government has opted to try to enlist Beijing’s support for its national priorities, including ethnic reconciliation, rather than continue to “cater to anti-China sentiment” in Myanmar. China’s official policy on the peace process, however, is tempered by a variety of factors, including differences between policy makers in Beijing and provincial interests. Historic, cultural, and economic links between different Chinese interest groups in Yunnan and ethnic armed organizations in Myanmar continue to significantly complicate the bilateral relationship. Thus, the immediate outlook for the evolving ties between the two countries remains a work in progress.
As Myanmar’s largest neighbor, China has been and will remain a critical player in the peace process. China’s positive attitude towards Myanmar’s peace process is based on “its observation that the NLD is inclined to improving relations with China and on the hope that it might induce NLD cooperation and goodwill.” Beijing’s overriding geo-strategic concerns relate to its ability to achieve its goals to build connectivity in the region with initiatives such as its One Belt One Road strategy and Indian Ocean strategy. Though some influential analysts in China favour a “buffer” policy of developing ties with ethnic armed groups in order “to temper the Myanmar government’s treatment of China and Chinese business interests,” this is not the view of China “the nation.”
Beijing’s official approach is, however, complicated by the complexities of historic and current localised relations with armed ethnic organizations along the border in Kachin and Shan states—in particular, the Kachin Independence Army (KIA), the United Wa State Army (UWSA), and the Myanmar National Democratic Alliance Army (MNDAA) also known as the Kokang Army. The policies of the provincial government of Yunnan and the activities of Yunnan business interests in areas controlled by armed groups, including in activities such as logging and mining, are often cited as a “key independent variables” undermining the effectiveness of Beijing’s policy toward Myanmar.
Unofficial and independent Chinese financial support, mainly involving private businesses, for ethnic armed organizations is difficult to assess, though rumors remain rampant. The former Chinese business giant the Yucheng Group, currently under criminal investigation in China for massive internet-based financial fraud, possibly provided support to six ethnic armed groups in northern Myanmar after 2015 when conflict broke out between the MNDAA and the Myanmar Army. Chinese links with the KIA, the UWSA, and the MNDAA are very different and complex, but in all cases, are significant, a fact often overlooked.
The sum of the complex picture is that China does not see an immediate solution to Myanmar’s conflicts. Among the barriers to achieving peace from the Chinese perspective are included a belief that “Burmese chauvinism” is a main barrier to a successful negotiations process. The NLD’s delicate relationship with the Myanmar Army “which perceives the separatist ethnic rebels as a threat to the nation and the battle against them as an inherent mission of the military,” is also seen as a block on progress. Some Chinese doubt whether all ethnic armed groups are genuinely seeking peace, and Chinese attitudes are also coloured by the potential for an increased US presence in the peace process and Myanmar’s border regions. For the foreseeable future China will seek to prepare for different uncertainties and “maximize its flexibility in the process”.

Mission to Investigate Rohingya Abuse - The European Union called on the United Nations to send an international fact-finding mission urgently to Myanmar to investigate allegations of torture, rape and executions by the military against the Rohingya Muslim minority. A UN report last month, based on interviews with survivors in Bangladesh, said the Myanmar Army and police had committed mass killings and gang rapes of Rohingya in a campaign that may amount to crimes against humanity and ethnic cleansing. The EU draft resolution, submitted to the UN Human Rights Council, strengthens language in an earlier draft that stopped short of demanding an international probe into alleged atrocities. The 47-member forum, currently holding a four-week session, is to vote on resolutions from March 23-24. If adopted, the Council would “dispatch urgently an independent international fact-finding mission” to Myanmar to investigate violations “with a view to ensure full accountability for perpetrators and justice for victims.” Some 75,000 people have fled Arakan State to Bangladesh since Myanmar’s military began a security operation last October in response to what it says was an attack by Rohingya insurgents on border posts in which nine police officers were killed. The UN Security Council will be briefed behind closed doors on the situation in Arakan State, at the request of Britain, diplomats said in New York. The EU resolution calls on the government of Aung San Suu Kyi to “fully cooperate with the fact-finding mission, including by making available the findings of the domestic investigations.” Activists say that national efforts have not been credible and have called for an international inquiry. Myanmar has denied almost all allegations of human rights abuses in northern Arakan and says a lawful counterinsurgency campaign is under way. A panel led by former UN chief Kofi Annan said that Myanmar should immediately start allowing Rohingya to return home and ultimately close rundown camps for the displaced.

Business
Old MoUs Under Review - The NLD government is reviewing 60 out of 101 MoUs signed between the previous USDP government and international investors. Of 60 MoUs, four were signed with the Ministry of Transport and Communications, and 56 with the Ministry of Electricity and Energy, said deputy minister for Planning and Finance Maung Maung Win during a recent Lower House session in response to a question from a lawmaker on the issue. Khin Moh Moh Aung asked if the Union government would make public the list of investors and their business models agreed upon between 2011 and 2016, as well as the businesses whose investment exceeds US$500 million. She criticized the government for failing to make public the consultations for dozens of projects, including the Myitsone Dam and the Kyaukphyu Special Economic Zone. She said that land had been confiscated from locals, who did not experience any benefits from the projects, and which lacked accountability. “The previous government did not consult with local people in signing MoUs for megaprojects. And locals have complained about those projects for various reasons” she added. Deputy Minister Maung Maung Win replied that the respective ministries are reviewing 60 MoUs, but did not disclose further details. Projects typically should be implemented within one year of an MoU being signed, said Dr. Win Myo Thu. If a project cannot be implemented within this period, and if it is deemed not to serve the interests of local people, then that project should be canceled, he said. “Frankly speaking, it would be more beneficial to stop such projects. It is easy to terminate projects for which an MOA has not been signed,” he said. Of foreign investments approved by the Myanmar Investment between 2011 and 2016, five foreign companies invested more than US$500 million each. Among them are China’s Upstream Ayeyarwaddy Confluence Basin Hydropower Co. Ltd. (Chipwi); Malaysia’s Tan Chong Motor (Myanmar) Co. Ltd., which operates a Nissan automobile manufacturing plant in Yangon; Singapore’s Mobile and Fixed Line Telecommunications Services, which operates Ooredoo Myanmar Ltd.; Singapore’s Telecommunications Services and Related Activities which operates KDDI Summit Global Myanmar Co. Ltd.; and China Longwin Global Petrochemical Co. Ltd. which would operate an oil refinery that could produce 5 million metric tons of petrol per year and a port to be used for exporting petroleum products. The deputy minister said that details about foreign companies, their businesses and monthly inbound investments are made public on the official website of Directorate of Investment and Companies Administration. From 2011 to 2016 under the previous government, 15 MoUs were signed with the Ministry of Agriculture, Livestock and Irrigation, ten with the Ministry of Transport and Communications, five with the Ministry of Industry, ten with the Ministry of Construction, and 61 with the Ministry of Electricity and Energy, totaling 101.

Foreign Partner? - KBZ Bank says it is willing to sell a stake in its operations to a foreign investor if the law permits. Existing laws do not permit foreign investors to hold stakes in local banks in Myanmar, but changes are being considered this year to the Companies Act that could allow foreigners to take stakes of up to 35 percent in Burmese firms. “In any emerging market, capital is important,” said Nang Kham Noung, an executive director of Myanmar’s largest privately owned bank. “For us, we are open to foreign partnership. However that’s subject to the Central Bank and the regulations,” she said. KBZ Bank has embarked on rapid expansion in Myanmar and is aiming to double the number of its branches in the country to 1,000 by 2020 and grow mobile financial services in rural areas. The bank has also opened representative offices and services abroad, including Singapore and Thailand. It may also consider listing. The bank’s assets stand at US$8 billion after growing at a compound annual rate of 44 percent between 2012 and 2016, according to the report. It has almost 18,000 employees and is seeking to hire more staff, including Burmese who have lived abroad and foreigners, amid rapid changes in the country’s finance sector. Myanmar’s banking system is one of the most underdeveloped in the world, however, starting from a very low
base, the banking sector was one of the fastest growing in the Southeast Asia region, the firm said.

Myanmar’s State-Owned Banks - The government is working with the World Bank on the first audit of state-owned banks in decades, as part of a drive to modernize Myanmar’s financial system and tackle risks to economic growth. Myanmar’s four state banks have assets equivalent to about a fifth of the country’s US$63 billion gross domestic product. “These banks are under-capitalized,”  the World Bank said. “So we need to come up with a realistic plan for restructuring, which may include recapitalization that doesn’t put too much strain on the fiscal side of the government.” Without reforms, the government lenders could spiral into a “dire” state as rapidly growing private-sector banks snare a bigger share of deposits and lending, the World Bank said in a recent report. The largest government-run lender in Myanmar is the Myanma Agriculture and Development Bank, which provides credit to more than 2 million farmers. The other three are the Myanma Economic Bank, the Myanma Foreign Trade Bank and the Myanma Investment and Commercial Bank. Assets at private-sector banks climbed 27 percent to 23.3 trillion kyats ($17.2 billion) at the end of June 2016 from the same month a year earlier, according to the World Bank. Assets of state-owned lenders slid 14 percent to 16.5 trillion kyats in the same period. One challenge for analyzing the nation’s banking sector is the quality of government figures. Other challenges at state-owned banks include poor information-technology infrastructure, outdated accounting practices, and a lack of clarity in classification of assets and provisioning for bad loans. Non-existent risk-management systems and weak boards were additional difficulties.

Evading Electricity Bills - The state electricity company operates at a loss, and national institutions that do not pay their bills are not helping. “We are having many problems with government offices, army offices and other facilities that do not feel the need to pay their electricity bills,” Ei Phyusin Htay told the Oxford Business Group. “Another problem is that many users are adjusting the meters in their houses and factories in order to not pay their bills correctly. This is something that law enforcement must deal with and the state utility should take greater steps to eradicate,” she said. In order to ensure a healthy revenue stream to the Myanmar Electric Power Enterprise, the government needs to conduct an analysis of how much revenue is being lost through these two channels and how much revenue is needed, she added. It should then create benchmark costs for electricity and gradually introduce a subsidy and tariff structure that would accommodate different kinds of consumers, she suggested. Addressing Myanmar’s wider national energy needs, Ei Phyusin Htay said the government should conduct an analysis of how much energy can realistically be created from new natural gas sources and other sources by 2020. If there was a shortfall compared to the need, a case could then be made for the otherwise unpopular option of coal-fired energy production.

FibreLink - FibreLink Myanmar is in talks to raise $25 million equity as part of an $860-million investment plan. The company, which received approval in 2015 from the Myanmar Investment Commission to set up telecom infrastructure, intends to raise capital in stages, according to its CEO Garry Stephen. It is looking for interest from financial investors, including funds and high net worth individuals, and strategic investors that operate in the telecoms industry. The company is a wholly-owned subsidiary of Singapore-based FibreLink Myanmar Holdings Pte Ltd, which is owned by Hong Kong-based ECCL Advisory Limited. It received its license to operate a network facilities service (Individual) license in December 2015. As of January 2017, nearly 41 companies have been granted a network facilities service license from the Myanmar Ministry of Transport and Communications.

Infrastructure
Summer Electricity for Yangon - The deputy minister for electricity and energy has explained the Union government’s approval of a proposal to spend 30 billion kyat (US$22 million) from the presidential reserve funds to fulfill Yangon’s electricity demand this summer. The Union government has approved the Yangon divisional government’s proposal to buy a 25-megawatt generator that can be operated with diesel or natural gas and moved with a trailer, according to deputy minister Dr. Tun Naing. He added that Yangon consumed more than 40 percent of the country’s total daily production of electricity, about 1,200 megawatts, and the purchase was necessary to meet the growing demand. However, lawmakers will have the final say on the proposal when it is debated in Parliament. USDP lawmaker Thein Tun said 30 billion kyat was a large sum to take from the presidential reserve funds, adding that many rural areas still have to generate their own electricity. “The presidential reserve funds should be used for natural disasters. None of the other states and divisions ask for this huge amount of money, only Yangon,” he added. About 10 villages in his constituency can generate their own electricity, he says, but except for granting permission to do so, the government has not helped bring electricity to these rural areas. NLD lawmaker Myo Zaw Oo has defended the plan, saying the NLD government was also taking appropriate measures to provide electricity in ethnic regions. “Yangon is a commercial hub and has industrial zones. I see no reason to object to the proposal because the electricity demand is so high there,” he said. Two electricity suppliers, including a 300-meter power barge from Turkey, were set to provide Yangon this summer with 300 megawatts each totaling 600 megawatts daily for the city. Earlier this month, however, the ministry said it had no budget for the suppliers.
Culture and Tourism

Thumbs Down for More Dams - On the International Day of Action for Rivers, campaigners in Myanmar rejected plans for large dams in Myanmar’s ethnic minority areas and said local people have the right to decide how to use their resources. More than 16 ethnic civil society organizations from the Burma Rivers Network (BRN) and the Save the Salween Network (SSN) released a joint statement saying that 50 planned dams on the country’s rivers will increase hydropower production from 3,000 to 46,000 megawatts by 2030 and that two-thirds of that power will be exported to neighboring countries. The dams will have a devastating, irreversible impact on Myanmar’s rivers—including the Irrawaddy and the Salween rivers—which are vital arteries for millions of people, nourishing people’s livelihoods, and home to fragile ecosystems, it stated. “Foreign investors should not be building dams in Myanmar’s conflict zones,” Mi Ah Chai, the coordinator of Myanmar Rivers Network, said. “The dams are fueling conflict, human rights abuses and displacement, and destroying local environmental resources,” she added. The groups’ statement will be sent to NLD lawmakers as well as ethnic representatives, she said. Prominent Burmese environmentalist U Win Myo Thu stressed the need for awareness of human-inflicted damage to river ecosystems in a video message posted on Facebook to mark the day. He said many hydropower projects attempted to use the country’s rivers for the sake of a handful of people. “We request that our rivers are used for the sake of the people and in accordance with their desires,” he concluded.

More River Cruises - US-based Rainforest Cruises has announced plans to operate new cruise holidays on the Irrawaddy and Chindwin rivers, a sign of Myanmar’s growing tourism. The cruises spanning from six to 11 days include visits to a royal palace, silk, gold and lacquer workshops, archeological sites, and pagodas and monasteries, according to a statement. The new tours take place on one of four vessels built specifically to navigate Myanmar’s rivers, The Irrawaddy Explorer Cruise boat. The boat features 28 cabins, hardwood floors, sun deck, spa and a “writer’s lounge.” Rainforest Cruises is a leading expedition cruise specialist in the Amazon and Galapagos.

Monsoon Season Tourism - Mild weather and lush green landscapes are among the benefits of visiting Myanmar during the rainy season, tourism promoters are informing potential international visitors. “The main tourist attractions in Myanmar such as Bagan, Mandalay, Northern Shan State, Kalaw and Inle Lake only get a 25 percent chance of rainfall during the rainy season, and even if it rains on these days, it’s usually short,” said the vice chairman of the Myanmar Tourism Federation. In the latest campaign to promote year-round tourism, Myanmar is pushing 10 top reasons to visit the country in monsoon season. The number one reason is the chance to see “fifty shades of green, from paddy fields to forests.” Other lures are that it’s “not too hot in the dry zone, not too cold in the mountains,” and that the rainy season is the top time to experience Myanmar’s impressive fruits and vegetables. A number of leading local travel agents, hotels and airlines are offering packages for low season visitors, including “stay for 3 nights, pay for two,” and free and unlimited luggage allowances on affordable domestic flights. Foreign journalists and tour operators will also be invited to Myanmar to experience the “green season.”