Climate change and the Myanmar economy

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Description: "The Myanmar Air Force has ordered several FTC-2000G midrange fighter jets from China, a major arms supplier to the Southeast Asian nation. The Irrawaddy has learned that a group of approximately eight Air Force pilots, eight technicians and at least two armaments officers traveled to China via Kunming in June. China has strict COVID-19 regulations and the Myanmar personnel had to go through quarantine in Kunming. The pilots are known to fly the F-7 interceptor, A-5 bomber and K-8 W trainer and light attack jet for the Myanmar Air Force. The new jet fighters will replace the Myanmar Air Force’s aging F-7s and A-5s. Once they are delivered they are expected to be based at Namsang airbase in Shan State, according to sources familiar with the purchase. It is not yet known when the agreement was reached between Beijing and Naypyitaw. The purchase of Chinese jet fighters may have begun in 2020, but delivery and pilot training were delayed due to the COVID-19 pandemic and China’s strict policy on containing the disease. The FTC-2000G is an advanced light multi-role trainer/combat aircraft designed and manufactured by Guizhou Aviation Industry Corporation (GAIC) under the supervision of Chinese state-owned aerospace and defense firm Aviation Industry Corporation of China (AVIC). It is the export variant of the Guizhou JL-9 trainer/combat aircraft, which is in service with the People’s Liberation Army Air Force (PLAAF) and the People’s Liberation Army Navy (PLAN). The two-seat jet fighter has training capabilities with attack and fighting capabilities in combat. It can be used to perform pilot flight training, aerial surveillance, patrol missions, reconnaissance, electronic warfare, close-in air support and air escort missions. In April 2020, news emerged in Cambodia and in China’s Global Times that China planned to sell the aircraft to an undisclosed Southeast Asian country. It did not say how many units were to be sold, stating only that the deal was signed in January 2020 and that deliveries would start in early 2021 and be completed after two years. The cost of the jet fighter is around US$8.5 million. The reports identified Cambodia and Myanmar as potential buyers, as both countries are closely aligned with China, both militarily and politically. Well-known middleman The sources stated that Gateways Hong Kong Ltd. was involved in brokering the deal. A key arms broker, Gateways Hong Kong Ltd is also involved in buying spare parts for F-7 and A-5 aircraft. Dr. Naing Htut Aung, a major arms supplier to Myanmar’s military, was also a key weapons dealer for the previous regime led by dictator Senior General Than Shwe. Registered as a director of the Yangon-based International Gateways Group of Companies Ltd., Dr. Naing Htut Aung has had strong ties with successive military leaders, including current Senior General Min Aung Hlaing, sources told The Irrawaddy. He is a key procurer of weapons, spare parts and upgrades for the Navy and Air Force and is an agent for major state-owned Chinese arms producers, said Justice for Myanmar (JFM), an activist group that monitors the military’s businesses, citing a private-sector source with military connections. He was a middleman in the Air Force’s procurement of 16 JF-17 Thunder fighter jets from Pakistan in 2015, and was also a key figure in a joint venture between the Directorate of Myanmar Defense Industries and China National Aero-Technology Import and Export Corporation to produce the K-8 jet trainer and light attack aircraft in Myanmar. His businesses, Gateways International Holding Company and International Gateways Group of Companies, were registered at the same address as Myanmar Consultancy until late 2020..."
Source/publisher: "The Irrawaddy" (Thailand)
2022-10-18
Date of entry/update: 2022-10-18
Grouping: Individual Documents
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Description: "Finnish technology giant Wärtsilä Corporation has won bids for two tenders from the illegitimate military-controlled Electric Power Generation Enterprise (EPGE), for the construction and operation of two hybrid gas and solar power plants in Myingyan and Magway. The tender was announced by EPGE in December 2021, with a February 2022 deadline. EPGE is based in Naypyidaw, under the Ministry of Electricity and Energy. Wärtsilä won both tenders as part of a consortium with the Chinese corporation Dongfang Electric International Corporation and Myanmar Chemical and Machinery (MCM). MCM is a major arms dealer that is also involved in the production of weapons in Myanmar, in partnership with the Directorate of Defence Industries. On March 25, 2022, MCM was sanctioned by Canada, the UK and US. In its sanctions announcement, the UK government described MCM as “a key source of weapons and commercial support for the junta” and MCM Managing Director, Aung Hlaing Oo, as “an associate of Commander-in-Chief and coup leader, Min Aung Hlaing” Within the tender, MCM is represented by its Singapore subsidiary MCM Pacific Pte. Ltd. and a Myanmar subsidiary, MCM Energy Ptd. Ltd. Days after the sanctions announcement, MCM Energy changed its name to Malikha Energy, which may be an attempt to circumvent sanctions. Aung Hlaing Oo left the company in December 2021, after JFM published an investigation on his involvement in the arms trade. Malikha Energy continues to use the MCM Group email as its registered contact. Aung Hlaing Oo remains director and controlling shareholder of the Singapore company. Following the imposition of sanctions on MCM, a spokesperson from Wärtsilä Corporation told Justice For Myanmar, “we have ceased with immediate effect all business activity or partnership involving MCM and its affiliates. In line with the rest of the international community, Wärtsilä remains committed to the reliable and affordable development of electrification of Myanmar. In this respect, we will maintain our engagement with EPGE provided that EPGE remains free from sanctions as it is today.” Wärtsilä refused to explain how they were able to remove MCM from the consortium for the Myingyan and Magway power projects. The corporation also refused to respond to questions regarding human rights due diligence in Myanmar, and whether they had sought advice from the Finnish government regarding their participation in junta tenders. Since its illegal attempted coup, the junta has targeted Myingyan and Magway with indiscriminate airstrikes and shelling, and troops have committed mass killings and rape. Wärtsilä Corporation is listed on the Finnish stock exchange, Nasdaq Helsinki. Its biggest shareholder is Sweden’s Wallenberg family. Justice For Myanmar spokesperson Yadanar Maung says: “Wärtsilä is seeking profits from the junta that carries out atrocity crimes with total impunity. The Myanmar junta is a terrorist organisation that is using the electricity supply as a strategic tool in its attempt to take full control over the country. Power cuts have been imposed as a collective punishment and masses of people continue their defiance against the military by refusing to pay their electricity bills. While Wärtsilä has responded to the sanctioning of their partner MCM by ending their business relationship, we remain concerned that they are not disclosing how they have cut out their sanctioned business partner, immediately after winning two tenders with them. The fact that Wärtsilä entered into a business partnership with a major Myanmar military arms dealer in the first place raises serious concerns about their human rights due diligence. We call on Wärtsilä to be transparent, fulfil their human rights responsibilities, follow the guidance of the National Unity Government and withdraw from the Myingyan and Magwe power projects, without providing a windfall to MCM or the junta.”..."
Source/publisher: Justice For Myanmar
2022-04-20
Date of entry/update: 2022-04-20
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Sub-title: When Hurricane Irma hit Puerto Rico in September 2017, Carlos Melendez couldn’t contact the staffers or customers of his San Juan-based technology firm, Wovenware.
Description: "Melendez learned a lesson that would help his business during the next storm, that disaster preparedness includes being able to communicate with people when the emergency is over. He quickly signed up with an online messaging service – and got to use it two weeks later when Hurricane Maria devastated Puerto Rico. “The amount of damage was a situation we had never had before here on the island,” Melendez says. But because he was now able to communicate with employees, he could determine how they were, arrange to meet with those able to get to the office and let customers know Wovenware was working despite the widespread devastation and lack of power and resources. Small businesses in the United States have already contended this summer with earthquakes in Southern California and Hurricane Barry in the Gulf Coast and Midwest, and the most intense portions of the Atlantic hurricane and Western wildfire seasons are still ahead. But many owners don’t prepare for potentially devastating natural disasters, leaving them to learn during a crisis what they should have done differently. And even companies that do plan can be unprepared for the unique circumstances of a particular disaster – no owner in New Orleans could have predicted they’d be unable to operate for months, even years, after Hurricane Katrina turned the city and some of its suburbs into a ghost town in 2005..."
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Source/publisher: "Myanmar Times"
2019-08-26
Date of entry/update: 2019-08-26
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Description: "Myanmar’s natural assets – including its forests, soils and coastal waters and the biodiversity they embody – makes up its natural capital, providing critical benefits to the Myanmar people, helping to protect them against natural hazards and ensuring reliable sources of clean water for drinking and irrigation as well as opportunities for ecotourism. Myanmar’s natural capital is also the source of other tangible and intangible benefits that support human well-being and underpin economic development. To secure those benefits, we need to understand which areas and ecosystems best serve the people and infrastructure dependent upon them, as well as how these benefits can be protected or enhanced in the face of climate change. The assessment presented in this report shows where and how Myanmar’s natural capital contributes to clean and reliable drinking water sources, reduced risks from floods inland and storms along the coasts, and to maintaining the functioning of reservoirs and dams by preventing erosion. The results highlight areas that provide high levels of ecosystem services, where natural capital provides the greatest benefits to people and infrastructure. This initial assessment has focused on identifying important ecosystem service provisioning areas that benefit the greatest number of people at a national scale, emphasizing benefits to cities and other large population centres. Benefits to rural populations and to vulnerable subgroups are critical as well, and they should be considered in greater detail as a next step. In addition, many of these areas important for ecosystem services provision coincide with areas important for biodiversity conservation. The effective management of these areas of synergy can help guarantee benefits to Myanmar’s people, infrastructure and wildlife not just now, but for decades to come. Securing natural capital is especially important in the face of climate change. As rainfall becomes increasingly variable and extreme events like heavy storms and droughts more frequent and intense, the role of forests in protecting rivers and streams from sediment will become more central in maintaining the quality of drinking water and improving the functioning of reservoirs and dams. The value of other ecosystem services will also become more apparent. Importantly, although climate change might make these services more valuable, the locations of hotspots areas important for ecosystem service provision are not expected to change over the next several decades for the services assessed here, so that protecting these areas would provide long-term benefits. While conservation of existing natural capital alone cannot eliminate the impacts of climate change, protecting and enhancing natural capital benefits is a critical component of climate change adaptation. Incorporating natural capital information into planning and development processes can ensure that its benefits are put to work in the service of the people and for the prosperity of the economy. Natural capital assessments can support planning and development across and within key sectors, including energy, transport, agriculture, and health, while strengthening climate resilience and promoting adaptation planning. The natural capital assessment provided here can support development and management decisions that launch Myanmar on a more sustainable and inclusive path toward economic development..."
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Source/publisher: World Wide Fund for Nature (WWF)
2016-06-03
Date of entry/update: 2019-07-23
Grouping: Individual Documents
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Size: 3.56 MB
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Description: "This policy brief looks into climate risks to three selected industries (agribusinesses, garment industries, building businesses) in order to illustrate potential impacts on and key vulnerabilities of businesses in Myanmar, dominated by small and medium enterprises. Businesses and industries in Myanmar are already facing enormous losses and damages associated with climate change. In future, climate change will likely cause huge production losses and physical damages to farmers, agro-processing firms, retailers and other agribusinesses. The garment industry will face unreliable electricity supply, disruptions in all transport modes, physical damages to assets, and declining health and well-being of migrant workers. Building industries and businesses will be challenged by more frequent disruption of operations, as well as losses associated with long-term consequences of climate change on supply of materials, health of workers, quality of construction works and market demand. • To enhance the resilience of businesses and industries, Myanmar should: enforce environmental laws, regulations and safety standards legislation; mainstream climate change considerations into sectoral policies, labour health and safety standards, and social protection programmes; and develop tailored information services, stimulate research, raise awareness, support capacity-building of businesses, and improve early warning systems. Public institutions should work with the private sector to safeguard a resilient future of the nation and communities, including by engaging private sector actors in adaptation planning and implementation, and promoting public-private partnerships..."
Source/publisher: Myanmar Climate Change Alliance
2017-12-00
Date of entry/update: 2018-01-17
Grouping: Individual Documents
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Format : pdf
Size: 515.97 KB
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