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BurmaNet News: October 24, 1995 #25
- Subject: BurmaNet News: October 24, 1995 #25
- From: strider@xxxxxxxxxxx
- Date: Tue, 24 Oct 1995 16:24:00
Subject: BurmaNet News: October 24, 1995 #259
------------------------ BurmaNet ------------------------
"Appropriate Information Technologies, Practical Strategies"
----------------------------------------------------------
The BurmaNet News: October 24, 1995
Issue #259
Noted in Passing:
According to a UNICEF report in 1994, SLORC's defense budget increased
from 22% of total expenditure in 1980, to 39% in 1993. In the same period,
the health sector budget increased from 2% to 3% while the budget allocated
for education fell from 2% to 1%. (quoted in NCGUB: NO RESUMPTION OF
WORLD BANK ASSISTANCE TO BURMA)
HEADLINES:
==========
NCGUB: NO RESUMPTION OF WORLD BANK ASSISTANCE TO BURMA
NATION: RISING PRICE OF RICE IN BURMA SEEN AS NEW THREAT.
NATION: PARTY URGED TO START DIALOGUE
BKK POST: BURMA IN 'TEAK DIPLOMACY'
NATION: AVIS RENT A CAR TO ENTER BURMA, VIETNAM
THE NATION:BURMESE STUDENTS RALLY
BKK POST:THE INEVITABLE FATE OF THE MON NATION
INDEPENDENT LETTER: BURMA ACTION DAY
----------------------------------------------------------
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NCGUB: NO RESUMPTION OF WORLD BANK ASSISTANCE TO BURMA;
THE REASONS WHY!
October 13, 1995
Throughout its seven years of iron-fisted rule, the military-run
State Law and Order Restoration Council (SLORC) has been
claiming economic successes and putting up a pretense that all
is well. Yet, today, the SLORC finance minister and his
delegation are touring the globe, knocking on the doors of
international financial institutions to seek loans and assistance.
When a financial crisis hit Burma in 1988 there was only around US$12
million in foreign currency reserves left in SLORC's coffers. The most
logical option left was for SLORC to work with the pro-democracy
forces to save the country. But at this critical juncture an inflow of
foreign investment seeking quick returns from Burma's natural
resources was obtained. SLORC was thus saved from financial
disaster. This enabled SLORC to resort to a violent suppression
of the people and avoid negotiating with the democratic forces.
A situation not unlike the one in 1988 has arisen again today. Even
though it has succeeded in attracting short-term, fast money-making
investors to Burma, SLORC has failed to lure long-term investments
in the manufacturing sector. The present pattern of foreign investments
in Burma are all aimed at making quick returns. Major investors lack
the confidence to start labor-intensive and long-term investment in the
manufacturing sector because infrastructures in the transport,
communications and energy industries are still very poor, the value of
kyat against foreign currencies remains unrealistic, business rules and
regulations are inconsistent, and corruption and nepotism
remain widespread within the military bureaucratic machinery.
SLORC needs massive loans from the World Bank and the other
institutions if it is to bring on infrastructural development and
devalue the Burmese currency without adverse consequences. The
World Bank suspended loans to Burma in 1988 due to the outcry
from the international community that had witnessed the brutal and
bloody suppression of the democracy movement by the Burmese Army.
SLORC faces an uphill task in trying to build a durable power base. It
expects to achieve that goal through tough political control and brutal
suppression of dissent and by consolidating a financial base through
foreign investment, international economic and development assistance,
and financial aid.
SLORC has frequently pointed to its "economic reforms" as an
indicator that it is moving toward a free market economy and that
the World Bank should take that as a cue to extend it loans. The
following facts, however, should be taken into serious consideration
if Burma is to become a recipient of World Bank assistance:
No structural changes have been made in the economy
permitting it to develop into a true market economy.
Budget disparity remains uncorrected, with the bulk of
the budget going to defense expenditures.
Political reforms essential for long-term sustainable
economic development have yet to be undertaken.
Labour practices under SLORC grossly violate
internationally recognized labor conventions.
Restrictions imposed on academic freedom and the
suppression of intellectuals have resulted in the decline
of human resources.
Resuming loans to SLORC under these conditions will be
premature as it will only strengthen the power base of the
Burmese military and will not contribute to long-term
sustainable development that benefits the people.
STRUCTURAL CHANGES TO DEVELOP A TRUE MARKET ECONOMY
SLORC claims that the country is being developed through a
market-oriented economic policy. The fact, however, is
that the country is only partially opened to foreign
investors to operate mostly in the form of joint ventures
with the State (military). Most state-owned enterprises and
co-operatives that existed under the previous Burma Socialist
Program government remain under the control of SLORC today.
SLORC's claim of privatization means the transferring of a few factories
to ex-military officers and their relatives. There has not been any real
attempt to privatize key enterprises, develop private entrepreneurs or to
undertake economic liberalization. The state sector today retains
direct control over the export of 23 important commodities, including
rice, still the country's major earner of foreign exchange. SLORC intends
to revive a military command economy behind the facade of an "open-door"
economic policy. One glaring example of this is the Myanmar Economic
Holdings Company Limited established by the Defense Ministry. This
enterprise is involved in all major business contracts and deals.
Another underlying problem associated with investment in Burma is the
repatriation of profit earned in Burmese kyat. Because of strict controls
by the SLORC's Foreign Exchange Bank, foreign investors are forced to
comply with a bartering system. They are made to buy local products and
export them as a means of channeling their profits out of Burma. Given
the situation, business deals in Burma have unnecessarily become
complicated and risky.
In addition, under the new Private Investment Law, only a
few selected private companies associated with the military
can function and are making profit. Entrepreneurs "without
connection" have to go through corrupt officials at different
levels and bureaucratic red tape before anything can get done.
BUDGET DISPARITY
SLORC has only concentrated on building up the military and
modernizing its weaponry. In seven years of SLORC rule, the
army has grown from 180,000 in 1988 to 350,000 today. US$1.4
billion worth of fighter jets, tanks, patrol boats, anti-aircraft missiles,
artillery pieces and other arms and ammunitions were purchased from
China. Naval bases and radar stations are being constructed on Coco
Island and Zadetgyi Island while M21 and M22 machine-gun factories are
being constructed in upper Burma with China's assistance. According to
a UNICEF report in 1994, SLORC's defense budget increased from 22%
of total expenditure in 1980, to 39% in 1993. In the same period, the health
sector budget increased from 2% to 3% while the budget allocated for
education fell from 2% to 1%.
Furthermore the regime has stated its intention to increase the size of the
armed forces to 500, 000 in the near future, with continued upgrading of
technical equipment. The cost of this expansion will be enormous relative to
the meager resources of the economy. This is the over-riding reason for
their desperate attempts to obtain World Bank assistance and
the foreign private investment that they will expect as a consequence.
Many social problems have arisen because of that situation. The malnutrition
rate has soared in the country, with many cases being detected even in the
capital, Rangoon. Yet no effort has been made until today to correct the
problem.
Hospitals only have medical staff and nothing else much.
Due to shortage of medical supplies, patients being
hospitalized are asked to bring in bandages, medicines and
whatever they might need during their treatment.
Children with preventable diseases are dying because of the
lack of effective primary health care programs. Child and
maternal mortality rates are increasing.
In the education sector, the drop-out rate at schools from
primary level up is on the rise. Young children and
students cannot finish their education because they are
compelled to go out and work to supplement the family income.
The educational standard has declined as experienced
teachers leave the academic life for jobs that would help
them cope with increasing expenses.
Other alarming problems that remain neglected by the SLORC are drug
addiction, AIDS, refugees, war victims and environmental destruction.
POLITICAL REFORMS
In his report, "An Agenda for Development," the UN Secretary
General stated that "Democracy and development are linked in
fundamental ways. They are linked because democracy provides
the only long-term basis for managing competing ethnic, religious,
and cultural interests in a way that minimizes the risk of violent
internal conflict. They are linked because democracy is inherently
attached to the question of governance, which has an impact on all
aspects of development efforts."
Democracy as good governance needs to be restored if long-
term economic development is to be sustained in Burma, and
the opportunity is available to SLORC if it has the interests
of the country at heart. Democratic forces led by Daw Aung
San Suu Kyi as well as ethnic leaders have offered to work
for national reconciliation and the early restoration of
democracy through political dialogue. International opinion
also supports political dialogue as reflected in
resolutions adopted by consensus at the UN General Assembly.
SLORC has so far not shown any willingness to comply with
international and internal public opinion. It is bent on
legitimizing the leadership role of the military in the
country's future political life through its sham national convention.
Without democratic reforms, economic progress will
ultimately achieve nothing more than disembodied growth, a
source of greater inequity and eventually, social unrest.
The widening gap between haves and have-nots under SLORC's
rule is leading to social chaos and total devastation of the country.
LABOR PRACTICES VIOLATE INTERNATIONAL LABOR CONVENTIONS
A creative and energetic labor force is another vital
requisite for economic development, and hence, conditions
conducive to the emergence of that labor force must be
created. Workers must be able enjoy trade union rights and
labor practices that conform to internationally recognized
labor conventions will have to be developed.
The labor situation in Burma has worsened as SLORC has
resorted to the use of forced labor in the implementation of
infrastructure development projects. The practice directly
violates ILO Convention 29 on forced labor.
At the ILO Conference in July, 1995, the ILO Committee of
Experts urged SLORC to urgently repeal the offensive legal
provisions under the Village Act and Township Act and to
bring them into line with the letter and spirit of Convention No. 29;
to terminate forced labor practices on the ground, to provide for and
exemplary penalties against those extracting forced labor.
It also called on SLORC to adopt measures to guarantee that
in law and in practice, workers and employers have the right
to join organizations of their own choice and without
previous authorization outside the existing structure, and
that such organizations have the right to join federations and
confederations and to affiliate without impediment. So far, SLORC
has not made any effort to reform labor laws and practices.
HUMAN RESOURCE DEVELOPMENT
The development of human resources is vital if a skilled
labor force is to emerge in Burma. SLORC cares little
about this and often acts against the development of human
resources to protect its political power.
Whenever a political movement led by students arises in
university campuses, the military responds with brute force,
killing, arresting and torturing members of the movement and
closing down universities for an unlimited period.
After the 1988 massacre, thousands of students and intellectuals
ended up in prisons or in exile. Thousands of students were
dismissed from their institutes of learning while thousands of
teaching staff were dismissed from their jobs for their involvement
in the democracy movement. The 1988 incidents alone had seen a
great loss of human resources that is bound to have an impact on the
development of Burma in the future.
When universities were reopened in 1991, teachers and professors
were made to wear military uniforms and to take refresher courses.
SLORC policies and security measures and surveillance methods to
control possible student activities were taught to the teachers. Universities
in Burma today resemble concentration camps with military informers
watching day to day activities.
Students' unions and educational workers' unions that re-
emerged on the eve of the Democracy Summer of 1988 have been
outlawed since the military coup of 1988.
Since 1988, there has been an exodus of qualified teachers,
and the educational standard in universities has declined
noticeably. The situation has been made worse by the
establishment of new regional colleges and the introduction
of a "long-distance learning system" for higher education
designed to avoid the concentration of students in major cities.
The departure for foreign countries of other professionals,
such as doctors, engineers and economists is also depleting
human resources. Restrictions on the freedom of academic
expression; freedom of association of professional
organizations; and the lack of research facilities and
seminars, exchange programs, further studies, and free
access to information on advanced technology have also
hindered the emergence of a new generation of intellectuals.
CONCLUSION
Without correcting the underlying socioeconomic and
political problems that hamper greater popular participation
in politics and development, any financial assistance that
goes to SLORC today will go to waste as in the popular Burmese
saying, "Thae dae yay thun" -- Pouring water in the sand.
The objective of the SLORC regime is emphatically not economic
development. They are not fools. They know that genuine economic
development leading to a vibrant private sector and a growing middle
class will undermine their monopoly of power which is based only on
force. It is quite unlike the situation in Singapore or even Indonesia where
civil servants and technocrats are able to freely use their expertise in the
service of the country. The Burmese military lacks the self-confidence to
share power with any other groups, such as civil servants or entrepreneurs.
The xenophobic and inward looking "Burmese Way to Socialism" represents
their true ideology. The talk of market-orientation and "open door " policies is
merely a tactical ploy necessitated by the disastrous failure of their original
program. It would be a tragedy if the international institutions and the
donor community fail to realize this. Their good intentions will only
further pave the road to hell for the Burmese people.
Oct 13, 1995.
NCGUB INFORMATION OFFICE
815 Fifteenth Street, NW, Suite 910, Washington, DC 20005
Tel: (202) 393 7342 (202) 393 4312, Fax: (202) 393 7343
**************************
NATION: RISING PRICE OF RICE IN BURMA SEEN AS NEW THREAT
TO JUNTA October 23, 1995 Agence France-Presse
RANGOON _ The upward spiral of rice prices is a potentially
alarming development for Burma's military rulers who took power
in 1988-89 when high prices were fanning political dissent.
More than one million tonnes were exported in the year up to
March, the highest level since British colonial days, when Burma
was the region's rice bowl. "But this has come at a huge cost in
the domestic price of rice," a resident of Rangoon commented.
In less than 18 months, the price of Pawsen quality rice has
soared from 55 kyats to 90 kyats for one pyi, the local measure,
residents say. One United States dollar (Bt25) equals six kyats
at the official rate, or about 110 kyats at the market rate.
Government officials contend there is enough rice for domestic
consumption and blame speculators for the price surge, but other
sources say shortages are driving the price higher.
Farmers are not reaping the benefits, as about one-eighth of all
rice harvested in Burma goes to the government by quota at officially
depressed prices, according to estimates by international organizations.
Opposition leader Aung San Suu Kyi says the issue is one frequently
raised with her by people from Rangoon and the countryside. "There
are many farmers who cannot afford to eat two meals of rice a day," she said.
Part of the shortfall can be explained through inflated
production figures presented by low-level officials who hope to
please their superiors, several sources said.
This was implicitly confirmed by Tin Oo, Secretary of the State
Law and Order Restoration Council (Slorc), who last month
stressed the need to compile "correct data" on agricultural output.
Lieutenant General Chit Swe, forestry minister and acting
agriculture minister, spoke recently of a bright future for
Burma's rice exports, which are the country's leading legal
source of foreign exchange.
In the fiscal year up to March, 1996 Burma expects to improve its
white rice exports by another 50 per cent, to 1.5 million tonnes,
Chit Swe said in a speech marking World Food Day.
"In the near future, we will be able to export three million
tonnes of white rice, the highest record in pre-war days," he said.
But foreign experts see a danger in the drive to boost production
and exports, mostly achieved through double-cropping which
depletes soil and also deprives many farmers of the opportunity
to grow cash crops in the dry season.
Government statistics show only a marginal increase in net land
area sown with rice, which was traditionally grown solely during
the monsoon season. Since 1992, many farmers have been obliged to
grow a second crop on the same land during the dry season.
"The second paddy crop is a great burden to them," Aung San Suu
Kyi said. With insufficient irrigation and fertilizers, the
second crop "means great losses for them".
The government strictly regulates the rice business, defining
paddy-growing zones and monopolizing the export business.
******
BurmaNet Editor's note: The BKK POST ran virtually the same article
from AFP on Oct. 23, but included the following paragraph:
Rice exports edged up slowly from 1990 to 1993 when the amounted
to 198,800 tonnes according to latest government statistics In
fiscal 1993-94 exports burgeoned to 261,200 tonnes, and in
1994-95 final figures were expected to soar to a total of 1,033,900 tonnes.
*****************************************************************
NATION: PARTY URGES SLORC TO START DIALOGUE
October 22, 1995 Agence France-Presse
RANGOON _ A leading ethnic-based political party here has urged
the ruling military junta to begin a dialogue to overcome the present
political impasse and to achieve genuine "national reconciliation".
The Shan Nationalities League for Democracy (SNLD) issued a
statement on Friday saying conditions were ripe for such a move
as all the nationalities, political parties and other organizations were
"placing their future hopes" on it.
"We believe that a dialogue is the only peaceful political means
to attain peace and harmony in the country," said the SNLD statement.
The SNLD statement was released following a three-day meeting
here of its 30-member central executive committee and party
members who won seats in the 1990 general elections.
The SNLD won 23 of the parliamentary seats, the second largest
after the National League for Democracy which took 392 seats.
"We firmly believe that it is also time to help find solutions to
the sufferings of the common people by giving priority to
peaceful means," the statement said.
The ruling military junta, officially known as the State Law and
Order Restoration Council, nullified the results of the general
elections, insisting in a new constitution before handing over power.
****************************
BKK POST: BURMA IN 'TEAK DIPLOMACY'
October 23, 1995 Rangoon, AFP
China and the United States had their "ping-pong diplomacy" in the 1970s
which signalled their desire to improve relations. Now Burma has turned to
"teak wood diplomacy" in an effort to bolster its shaky relationship with the
Western giant whose word is law when it comes to obtaining access to inter-
national development funds.
Senior officials of the Forestry Department said Burma had made a gift of 40
tonnes of valuable teak decking to a project to restore the battleship USS (word
missing here) in North Carolina, the home state of influential conservative
Senator Jesse Helms.
Another 137 tonnes of decking were sold "at friendship prices," they said,
"In the hope of creating good feelings" between Burma and the United States.
The former colonial power, Britain, has also been receiving Burmese teak.
Officials said Rangoon has also sold 20 tonnes of teak decking a year since
1991 for the renovation of the HMS Victory, the flagship of British admiral
Horatio Nelson when he beat the French in the Battle of Trafalgar in 1805. The
ship is in dry dock at Portsmouth, England.
About 60 per cent of the world's natural teak forests are in Burma,
according to international estimates. Official have set an annual maximum
extraction quota of 350,000 tonnes of teak, but the actual cut hovers
between 250,000 and 300,000 tonnes. (BP)
************************
NATION: AVIS RENT A CAR TO ENTER BURMA, VIETNAM
October 23, 1995 AFP
SINGAPORE _ Avis Rent A Car of the United States is to become the
first international car rental company to operate in the emerging
markets of Vietnam and Burma, the firm said in a statement
received here on Saturday.
George Proos, general manager of. Avis in the Asia/Pacific region, said in
a communique that the company would begin operations in Vietnam from
December 1 and in Burma from mid-January.
Avis has appointed Peregrine Capital Vietnam Ltd as its licensee
for Vietnam, and the firm will provide Avis cars in both Ho Chi
Minh City and Hanoi, Proos said.
Peregrine represents prestigious products such as Mercedes-Benz
and Honda cars, Chrysler jeeps and Dodge mini-vans in Vietnam.
In Burma, Avis will operate in a joint venture involving its
current franchisee in Thailand - Thai Int'l Rent a Car.
With the two new set-ups, Avis will bring to 27 the number of countries in
the Asia-Pacific region where it has car hire operations, the company said.
This "puts Avis in the driving seat to further grow in the region
with a priority for another three potentially major markets in
this region - Taiwan, China and India," Proos said.
He said Avis was holding discussions with a number of organisations to
ensure it has the right partner to work with in the three countries.
****************************
THE NATION:BURMESE STUDENTS RALLY
October 22, 1995
Exiled Burmese dissident students ended their annual conference yesterday
with a pledge to continue their political and military struggle to topple the
ruling military junta in Rangoon.
The 15-day meeting, which was attended by 69 student representatives from
several camps on the Thai-Burmese border, also elected a new 24-member central
committee.
Naing Aung was re-elected to head the All Burma Students Democratic Front,
which was established in late 1988 after thousands of urban students fled
into the jungle in the wake of a military crackdown.
In a statement released after the conference, the ABSDF said all the
students are determined to continue the struggle under the leadership of a
new central committee, until democracy is achieved in Burma.
To achieve its objectives, the group unanimously decided to balance
political and military strategies, while expanding international
solidarity and urging pressure on the ruling State Law and Order
Restoration Council, the statement said.
The ABSDF said the meeting participants also adopted the military code of
conduct of the August 1949 Geneva Convention in pursuing its aims, and
worked out plans for its future operation. (TN)
*******************
BKK POST:THE INEVITABLE FATE OF THE MON NATION
October 22, 1995 By Pisanh Paladsingha
After 40 years of conflict, the Mon and Burmese faced each other again on
June 29 of this year, but not with arms as usual. This time they came,
instead, with signs of hope_ hope for permanent peace. At the historic
meeting, they signed their names to complete a ceasefire deal. However,
there are no guarantees whether the lives of the Mon people will be the
same again.
Historically, the Mon are considered one of the oldest peoples in the
Asia, dating back over 2,000 years before the Buddhist Era. The Mon have
worshipped the god Narai since the time of Rama, from which they derived
the name of their nation, "Raman", "Mon " comes from "man" (word missing
here) the word "Raman".
Throughout history, the Mon nation and Burma (now Myanmar) have been
fierce adversaries. When the Mon lost, they were ruled by the Burmese.
When they won, they were liberated. The Mon love the arts and respect the
Buddhist teaching of Dharma. Many famous structures in Burma, including
the Shwedagon Pagoda in Rangoon and the Ten Thousand Pagoda in Pagan, were
influenced by Mon architecture.
The Mon state ended in 2300 B.E. when Alaungpaya, the cruel king of Burma,
led his army to mercilessly slaughter the Mon people. The losers had to
flee their home and escaped into what was then Siam for refuge. Until now,
the Mon survivors have been livin g in Thailand for approximately six
generations and have become almost pure Thais.
When the Mon entered Siam, they brought with them not only their families
but also their traditional and cultural heritage which the Thai nation
adopted. In terms of tradition, the Songran Festival, the Mon Sorn Pha
game, and the making of Khao Chae were taken from the Mon. Regarding
architecture, the Hanthawaddy-styled tip of pagodas belongs to Mon arts.
Concerning religion, the prayer in the Num Phraparit ceremony can be
performed properly only by Mon monks.
As for Thai classic music, all teachers learn at or come from Bang Charng
in Samut Songkram Province, which is considered the root of the Thai
classic music. The significance of Mon culture to Thai classical music is
expressed in the poem which is always heard during the Wai Khru ceremony
prior to performances.
The Thai traditional Dhammasat law is also translated and compiled from