Burma/Myanmar: The Role of The Military in the Economy

Description: 

"...It seems evident that the military will attempt to keep its autonomy under any future ?civilianized? or civilian government. It is likely to do so through constitutional means, such as ensuring a percentage of active-duty officers in a parliament (there in any case will be many retired military in politics–the National League for Democracy?s top leadership around Aung San Suu Kyi are also former military), or creating a national security council it could control. It will also attempt to ensure its own budgets, but in any case will supplement those budgets through economic activities that are outside of the ken of a new administration. These include the continuation of a military procurement system that is far wider in scope than the needs for defense, but include lucrative industries, the profits from which feed into military coffers. It will also retain its Myanmar Economic Holdings Corporation (MEHC– see Appendix II), incorporated under the companies act and thus outside of the public sector (the State Economic Enterprises). It also controls the Myanmar Economic Corporation (MEC–see Appendix III). All these enterprises enable the military to supplement its budgets, provide employment for military and their families, and provide additional retirement funds for institutional and individual members. The scope of these activities is so great, employing some hundreds of thousands of workers in fields such as mining, that they could have a profound affect on the market in certain areas in which they predominate or have monopolies. Thus, military ventures into the economy in the future should not be considered as isolated lucrative efforts, but rather that they have the potential, through both institutional and personal means, of broadly influencing the markets and sectors of the economy.

Creator/author: 

David I. Steinberg

Source/publisher: 

Burma Economic Watch

Date of Publication: 

2005-09-00

Date of entry: 

2010-11-20

Grouping: 

  • Individual Documents

Language: 

English

Local URL: 

Format: 

pdf

Size: 

113.13 KB