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Burma Related News - August 20, 2001.



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BURMA RELATED NEWS - August 20, 2001.
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HEADLINES
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AFP - Myanmar's economy remains hopelessly mired in crisis
AFP - Indonesia's Megawati set to tour ASEAN states to cement ties
Reuters - Indonesia's Megawati begins Asian tour on Tuesday
The Daily Star - Japanese envoy meets Suu Kyi
Bkk Post - EDITORIAL - Wa, triads speed drugs to Europe
ABC online - Laotian leader starts goodwill visit to Burma
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Monday August 20, 8:16 PM
Myanmar's economy remains hopelessly mired in crisis
 
YANGON, Aug 20 (AFP) - Paralysed for years by the twin burdens of appalling management and international sanctions, Myanmar's economy remains hopelessly enmired in crisis even as the ruling junta embarks on landmark talks with the democratic opposition.

Property developments that have sprung up in the capital Yangon, as well as official claims of five percent annual economic growth, give a misleading impression of dynamism in the military-run nation.

But conversations with ordinary Myanmar citizens tell a very different tale of continual price rises, rationing and a daily struggle to gather the necessities of life.

"There is mass national depression because of the economy," said a Western diplomat who accused the regime of "incompetence and lack of understanding of a free market economy."

Despite being "ruled by generals who give commands," the economy would probably continue to stumble along, greased by the black market as well as the fortune in drug money funnelled in from ethnic warlords.

"There isn't enough economy to collapse," the diplomat quipped.

Apart from rice, which the government keeps in plentiful supply to avoid the prospect of hunger-fuelled dissent, the price of basic commodities has doubled or tripled this year alone, according to aid officials.

"The price of cooking oil has tripled, as well as other items vital to people's lives," said one, on condition of anonymity.

In the towns and cities, Myanmar citizens endure annual inflation rates as high as 50 percent, the alarming depreciation of the kyat currency and constantly changing rules on rationing of items like gasoline.

Tax-free markets set up a couple of years ago to ease the burden on low-wage earners, including the legion of government employees, offer fresh produce at discounted prices but in very limited amounts.

As a result, an industry has sprung up among "professional queuers" who can be seen lining up well before dawn to purchase their quotas and sell them at a healthy profit to oil merchants or harried housewives.

"In a single day I can get to queue up again at least four times and invest 350 kyats, from which I can get a profit of 500 kyats (one dollar) at the end of the day ... not bad for eight hours of queuing up," one jobless man said.

Ironically, the government's plan to help consumers by distributing rationed staples like cooking oil through the markets has served only to line the pockets of big-time oil merchants.

"I don't know if Than Shwe understands how bad it is, it is getting worse ... and people are becoming impoverished," a Western diplomat said of Myanmar's military leader.

The junta meanwhile insists that the creaking economy is functioning adequately, ignoring the mechanisms like the thriving black market that have emerged to fill the gaps in the official economy.

"Nobody is starving here, nobody is homeless," a senior spokesman for the government told AFP.

Foreign observers posted in Yangon remain pessimistic. "The ticking bomb now is energy ... They can't supply the electricity necessary to run the industries," said one expert.

"In the countryside, people will continue to live like they did in the feudal times."

Foreign investment remains extremely weak, and what funds do make their way to Myanmar are centred on speculative sectors like property or tourism, rather than industry or manufacturing.

Businesspeople lured by the prospect of rich natural resources lying untapped in Myanmar's energy fields, mines and forests, as well as cheap labour and a solid legal system inherited from the British colonial rulers, have become disenchanted after seeing the economy at close quarters.

"Investors don't come, because investors want to make money. People have pulled out, like the Singaporeans out of oil, others out of textiles," one analyst said.

International sanctions are also a major deterrent to foreign companies investing here, and the World Bank and International Monetary Fund will not consider giving assistance while the current regime is in charge.

But despite the sanctions, which have contributed to Myanmar remaining one of the world's poorest nations while its Southeast Asian neighbours prosper, the government insists it is not concerned.

"We have built infrastructure, thousands of new roads, reservoirs and dams, even without the help of the international institutions," said Tin Winn, Minister at the Prime Minister's Office.

Tourism may not be the saviour it was hoped to be, due to the 1997 regional financial crisis and calls from democracy activists for holiday-makers to stay away while Myanmar remains under military rule.

The stunning new five-star hotels built in Yangon, with their luxurious ballrooms, expansive swimming pools and plentiful staff, are nearly deserted with occupation rates running at a miserable eight percent.

"It is the worst July they have ever had, even Laos is getting better figures," one diplomat exclaimed.

In spite of the malaise, observers do not believe that the "desperation factor," which fuelled the bloody uprising of 1988 after three currency devaluations, exists today.

Hopes for the future rest on the landmark dialogue between the junta and democracy leader Aung San Suu Kyi which began last October.

"The only way to make any reform in this country -- whether in the economy, social or health sectors -- is to start with political reform," says one observer.

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Monday August 20, 11:57 AM
Indonesia's Megawati set to tour ASEAN states to cement ties

JAKARTA, Aug 20 (AFP) - President Megawati Sukarnoputri is set to make her first visit abroad this week with a whirlwind tour of the Association of Southeast Asian Nations (ASEAN) to stress Indonesia's commitment to the regional grouping, officials said.

Megawati, who was appointed as Indonesia's fifth president on July 23 to replaced the sacked Abdurrahman Wahid, will start her tour on Tuesday, August 21, with a visit to the Philippines.

She had originally been scheduled to leave on Wednesday but the head of the presidential press and media bureau, Geribaldi Sujatmiko, announced the change of plan early Monday.

The president will then travel on to Vietnam, Laos, Cambodia, Myanmar, Thailand, Brunei, Singapore and Malaysia before returning home on August 28.

Kusnanto Anggoro of the private Center for Strategic and International Studies think tank, said the brief visits should be seen as important, although they would be unlikely to yield much.

"It will be important to assure the other ASEAN countries of Indonesia's commitment that ASEAN remains a cornerstone of the country's foreign policies, especially since Indonesia has lost much of her credentials as a leading nation in ASEAN in the post-Suharto era," Anggoro said.

Wahid, he said, had managed to aggravate relations with ASEAN, both as a group and several individual members, through his controversial comments -- including his plan for establishing a "West Pacific Forum".

State Secretary Bambang Kesowo who announced Megawati's tour in July said it would be "a reflection of her consistency in viewing ASEAN as a priority in Indonesia's foreign affairs."

Indonesia is a founding member of the 10-member ASEAN established in Bangkok in 1967 by five nations -- Indonesia, Malaysia, the Philippines, Singapore and Thailand.

ASEAN's formal purpose was to promote economic and social cooperation but its main achievement has been in political co-operation.

"The visit can also be important if she can sort of coordinate policies with other member states in the context of cutting off weapon supplies to Aceh," Anggoro said.

The separatist movement in Aceh, the resource-rich province on the northernmost tip of Sumatra island where rebels have been fighting for a free Islamic state since the mid-1970s, obtains its arms from smuggling from several ASEAN countries, Anggoro said, citing Myanmar, Cambodia and Thailand.

"This would be an efficient way to cut off the supply and would be directly related to her efforts to safeguard the national territorial integrity," Anggoro said.

Megawati has said she intended to handle separatism in Aceh and Irian Jaya, at the two extremities of the sprawling archipelago, while leaving the settlement of other communal unrest in the rest of the country to her vice president.

In her first national day speech on Thursday, Megawati ruled out independence for Aceh and Irian Jaya and called for dialogue to resolve the the problems there.

But foreign ministry Spokesman Suleiman Abdulmanan said the visit was only part of ASEAN tradition.

"There's some kind of a tradition for a new leader to visit other ASEAN member countries to introduce his or herself to other leaders. There's nothing special about the visit," Abdulmanan said.

Her trip has drawn criticism at home however.

Mochtar Pabottinggi, a political analyst with the Indonesian Institute of Sciences, said Megawati should rather "prioritise the domestic agenda."

"Megawati should first show the world that she is capable of handling domestic affairs before she decides to travel overseas," Pabottinggi said.

He said Megawati should not repeat the mistake of Wahid, who often travelled overseas during his brief rule, neglecting more pressing issues at home.

Wahid's critics lampooned him as the "most travelled president," pointing to the 50 plus countries he visited during his 21 months in power while the nation sank deeper into economic and political turmoil.

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Monday August 20, 2:53 PM
Indonesia's Megawati begins Asian tour on Tuesday

JAKARTA (Reuters) - Indonesian President Megawati Sukarnoputri will leave for a whirlwind tour of Southeast Asia on Tuesday and is expected to reassure Jakarta's nervous neighbours that she can stabilise the unruly country.

Foreign Minister Hassan Wirajuda told reporters Megawati's first stop would be the Philippines during the August 21-28 trip that will take her to all fellow members of the Association of South East Asian Nations (ASEAN).

Megawati's trip will be her first foreign foray after a month in office that has exceeded all expectations and follows nearly two years of erratic leadership under her sacked predecessor, Abdurrahman Wahid.

She has appointed a widely praised cabinet, sought to improve ties with the international financial community and moved to address separatism in Aceh and Irian Jaya provinces.

Little has worried Indonesia's neighbours more in recent years than the instability across the world's largest archipelago, especially separatist and religious unrest.

Many Asian leaders will also likely welcome Megawati's formal and measured style of leadership -- which some analysts see as reminiscent of former autocrat Suharto -- compared with the erratic Wahid who had a penchant for making crude jokes.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Indonesia was generally regarded as one of the anchors of ASEAN until it plunged into crisis in 1997.

Wahid became one of the world's most travelled presidents during his nearly two years in office, leaving him open to frequent attacks from critics who accused him of ignoring the archipelago's woes.

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The Daily Star - August 20, 2001.

Japanese envoy meets Suu Kyi
AFP, Tokyo

Myanmar's democracy leader Aung San Suu Kyi has met the Japanese ambassador in Yangon, a report said yesterday.

The National League for Democracy (NLD) leader was visited by the ambassador, Shigeru Tsumori, and former Japanese ambassador to the United Nations Hisashi Owada on Friday, the Japanese news agency Jiji Press said.

It was their first meeting since she was put under house arrest last September.

Japan is the biggest creditor nation and aid donor to Myanmar. It suspended all but a small amount of humanitarian aid in the aftermath of the 1988 military takeover, but the flow of funds resumed in 1994.

The meeting was approved by Myanmar's junta authorities and lasted about 90 minutes at Aung San Suu Kyi's home in Yangon, Jiji quoted junta sources as saying.

Although the contents of the meeting were not disclosed, Aung San Suu Kyi appeared to have explained progress in initiating contact between herself and the junta with the aim of starting "political dialogue," Jiji said.

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Bangkok Post - August 20, 2001.
EDITORIAL - Wa, triads speed drugs to Europe

Switzerland made a major drug sweep last week. More Golden Triangle methamphetamines were seized than in any raid outside Thailand. The entry of the burma-based gangs into such a far-away market confirms the urgent need for increased efforts against transnational crime.

To his credit and despite his focus on local and populist policies, Prime Minister Thaksin Shinawatra understands that Thailand is deeply involved in a world that gets increasingly smaller. The prime minister has supported and led efforts to involve the country in regional efforts to combat regional problems. Last week's record seizure of speed tablets in Switzerland should cause the government to re-double efforts against transnational criminals who have globalised crime and corruption.

Authorities across Switzerland seized 450,000 methamphetamine tablets made in the Burmese pill factories of the United Wa State Army. They arrested 102 dealers across Switzerland, but apparently no major traffickers. Most of those arrested were Asian. Andrea Canonica of the Swiss customs service said brothels and individual prostitutes were the biggest group of dealers _ which raises suspicion of involvement by Thais. Evidence from the investigation that led to the drug sweep indicates a major and highly profitable ring of international traffickers remains at large in Switzerland.

In our region, the smuggling ring includes the Wa and their Burmese government enablers. The 14K Chinese criminal syndicate reportedly exports both speed pills and heroin for the Wa. A number of Thai-based smugglers pack and ship the drugs to Europe by air, hidden among legitimate exports of clothing, canned food and children's toys among other items.

The Swiss investigation covered five countries. Thai police co-operated, according to senior officials in Switzerland. So did the forces of Germany, Austria and Liechtenstein, where drugs were sent after being stockpiled by the Swiss-based gangs. Profits were astounding. Street dealers in Swiss cities charged users the equivalent of 400 to 530 baht per pill, according to authorities _ roughly eight to 10 times the hugely inflated street price in Bangkok.

The Swiss bust provided the first major confirmation that the drug trafficking of the United Wa State Army has grown to include methamphetamines. The Wa continue to expand their drug business. Since moving into the former territory of wanted drug warlord Khun Sa, the former ``Red Wa'' have renewed his old opium and heroin traffic. They have formed a trafficking alliance with the 14K triads. Now, they have hugely expanded their ya ba market into Europe.

Mr Thaksin last week authorised the Foreign Ministry to take policemen into foreign embassies to help fight transnational crime. The timing was a coincidence, but the Swiss drug bust proved the point. Some western countries began to include a police post in their embassy staff a decade ago. The officers can provide direct contact between and among police forces and work on international crime such as the drug trafficking to Switzerland and the rest of Europe.

Thailand and Mr Thaksin also have become the leaders of the effort to increase regional co-operation against drug trafficking. China has assumed a prime role in some ways, including financing. But it has become clear that the Thaksin government must come up with both the motivation and means to move the effort. Laos and Burma may be willing to help. But Rangoon, in particular, remains one of the biggest drags on advances against drug trafficking in the entire world.

Swiss authorities were honest, even as they took congratulations for last week's big bust of Wa-made methamphetamines. They removed some tentacles from the trafficking monster, but the head remained intact. It remains to be seen if the drug gangs consider their market test in Switzerland to be successful, or if they will look for different weak spots in their next trafficking venture. The exact, next step by the criminals is unknown but the lesson is clear.: Only cross-border co-operation stands a chance against cross-border crime.

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Australian Broadcasting Corporation
August 20, 2001.
Laotian leader starts goodwill visit to Burma
 
The Prime Minister of Laos, Boungnang Vorachith has arrived in the Burmese capital Rangoon at the start of a four-day goodwill visit, aimed at further strengthening ties.
 
The Prime Minister, who was accompanied by his wife and a 21-member Laotian delegation, was greeted by Burma's leader, Than Shwe.
 
Burma's official media marked the visit with a front-page profile of the Lao leader, saying the visit shows the good relations between the two nations.
 
The Laos prime minister's official program includes a visit to the ancient city of Mandalay, before leaving Burma on Wednesday.
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