No doubt, given its status
as one of the last frontiers, Myanmar/Burma on many occasions the coming years will be front page news.
Currently under
discussion, the US decision to lift all of its remaining economic sanctions, has surprised many.
As the BBC explains, most
of the US sanctions were targeted - not aimed at the Burmese people but
deliberately focused on key individuals and companies who supported the old
military regime. Thus ending sanctions would effectively take 38 individuals
and 73 companies off the US blacklist. Among them, men who gave the orders to
fire on demonstrators and imprison activists and opposition leaders.There
are businesses that helped procure weapons and others that were dubiously
awarded juicy contracts to build, among many things, Myanmar's
empty capital, Naypyidaw.
While Suu
Kyi seems to have given up
some of her ideals, Myanmar’s ongoing democratic transition has
been a high point of Obama’s time in the White House, a relative success story
in a region where not all has gone according to plan since the administration’s
“pivot
to Asia” in 2012. And recent developments in Myanmar have implications for
U.S. politics beyond Obama’s legacy: Democratic presidential candidate Hillary
Clinton points to progress there as a key diplomatic outcome of her tenure at
the State Department.
The reason for this early
lifting of sanctions can, in my opinion, however also be understood in the
context of the ongoing US attempt to limit Chinese influence over neighboring
Myanmar/Burma as a base for a strategic rivalry between Beijing and Washington.
Whereby already noticed about Hillary Clinton Clinton's 2011 visit to Burma I
mentioned that the lever China could utilize is its ability to direct large
amounts of investment into Myanmar. The United States does not have such a tool
since, unlike Beijing, Washington does not have the authority, ability or
desire to direct U.S. companies to invest in other countries. Such an influx of Chinese funding and investment
could encourage Myanmar to temper its relationship with the United States.
Thus Wednesday’s
announcement marked a significant departure from the incremental easing of
executive sanctions since 2012.
The move to reinstate
Myanmar’s GSP status was made just months after the Obama administration downgraded
Myanmar to the lowest tier status on the annual Trafficking in Persons
report for failing to curb endemic forced labour
tantamount to human slavery. The demotion to tier 3 status opened the
possibility for further sanctions against the country, which Obama in a
contrary move now waived.
Not unlike the BBC various
leading newspapers expressed skepticism, like the
New York Times here, or the Financial Times, calling it “a
major setback” for efforts to weed out corruption in Myanmar, because the US
had given up any leverage it might have had over the process.
In a sign of how opinions
are divided also within Myanmar, itself a proposal by a member of parliament to
lobby for the removal
of US economic sanctions was defeated last month in the Lower House, with
219 votes against and 151 votes in favor. Whereby it is also well known that
the country’s present Constitution gives Myanmar’s military the upper hand by
reserving a quarter of the seats in Parliament for the military, empowering
the military to appoint the ministers of defense, home affairs and border
affairs, and to dissolve the government during a national emergency.
Some experts thus fear the
removal of sanction will hurt the United States’ ability to influence Myanmar’s
most troubled sectors.
Of course the devil is in
the details, the question is how sanctions are removed, and if they will be
removed in a way to leverage some change.
“If the
issue is leverage, the decision today makes almost no sense: Obama and Suu Kyi just took important tools
out of their collective toolkit for dealing with the Burmese military, and
threw them into the garbage,” said John Sifton,
the deputy Washington director of Human Rights Watch.
On top of sanctions
relief, the new trade benefits will allow Myanmar to export of some 5,000
products to the United States duty-free, the U.S. Trade Representative said in
a statement.
Some restrictions remain
in place. Obama’s decision does not normalize relations between the U.S.
military and Myanmar troops. This means no U.S. weapons, equipment, or support
will be sold or given to Myanmar’s military.
However, the White House
on Wednesday advised Congress that America would offer preferential trade
benefits to Myanmar that have been suspended since 1989, one year after the
violent crackdown by the military.
Not surprising the move
has delighted business groups but been sharply criticised
by human rights organizations.
Phil Roberston,
the deputy director of the Asian division of Human Rights Watch,
reacted negatively to Wednesday’s announcement, calling it a dark day for
Burma.
“In one fell swoop, Obama
has let senior military officers, military-connected companies, and crony capitalists off the hook,” said
Robertson.
“Not even Obama contends
the military has undergone reforms, so why is he lifting pressure against a
military that continues to abuse human rights and can remove the civilian
government at any time by declaring a state of emergency?”
For critics of the move,
the lifting of the sanctions means the loss of an important tool that could
have been used to support efforts to resolve rights issue such as the denial of
citizenship to the Rohingya
in Arakan State — a problem that is now being
addressed through a high-profile commission
led by former UN secretary-general Kofi Annan.
“Relaxing of sanctions
should have been benchmarked to improvements like reforming the Citizenship Act
of 1982 and bringing it into line with international standards,” said
Robertson, referring to a law hat has rendered most Rohingya stateless.
“The Obama administration had the option to
keep some sanctions in place, including maintaining the ban on engaging with
military-owned enterprises and keeping targeted restrictions on those
identified as rights abusers,” she said.
Most notably, the
sanctions rollback will derestrict the country’s
dirty jade industry. The jade trade is worth billions of dollars that flow
through tangled channels to shady interests, including illicit gangs and
corrupt military officials. Jade profits fuel ethnic conflict and sustain the
military’s influence, forces that threaten to thwart five years of rapid
progress.
Almost all the jade comes
from Kachin State, but the local population sees
practically no benefits. At the same time, Kachin is
the scene of the country’s most serious armed conflict, which has killed
thousands and displaced over 100,000 more. This is not a coincidence. While
there are certainly other factors driving the violence, research has shown that
jade provides both sides – the Tatmadaw and the Kachin Independence Organisation
(KIO) and Army (KIA) – with incentives and financing to carry on fighting.
For my reporting about the
recent Kachin State situation see here
and here.
As seen, many of the
biggest licensed jade mining companies are controlled by the families of
politically influential retired generals, not least former dictator Than Shwe. Working alongside them are army conglomerates such as
Myanmar
Economic Holdings Limited.
Taking one example, the
May 2016 escalation of fighting around Kachin State’s
Hpakant jade mines clearly showed the threat the
business, in its current form, poses to peace. The army’s offensive came just
days after the current new government asserted itself through a visit
to the mines by Minister of Natural Resources and Environmental Conservation U Ohn Win.
Something very similar
happened at the start of 2015 when jade company operations were getting into
high gear following a two-year mining suspension, and as the Thein Sein government was
weighing up an extension of Jade firms’ mining licences.
On that occasion, the KIA detention of a Kachin State
minister and police officers south of Hpakant became
the justification for a major Tatmadaw offensive
against its Battalion 6 base to the north. A series
of bomb blasts followed for which no one claimed responsibility.
As indicated in my 23 Dec.
2015 reporting, similar to what happens with Jade also can be seen in the Burmese-Tatmadaw army
leaders actively participating in the drug trade, whilst at the same
time claiming to be cracking down on it. As a result opium cultivation in
ethnic conflict zones has steadily increased during the recent years and addiction
among ethnic civilians has spiraled out of control.
At the time of writing
also elsewhere in the country government supported clashes force thousands
to flee fighting in Karen state.
At the same time, again
China, not the West or the Obama administration, is the
most important player in the country’s peace process, or talks between the
government, the military and the country’s abundance of ethnic armies. The
West’s participation has been mostly through hordes of private and official
peacemakers who have achieved little more than turning their involvement into a
lucrative industry.
Also the peace
talks that Suu Kyi organised last month were not a success. The United Wa
State Army sent a delegation but they walked
out when they learnt they had been classified as “observers”. It is unclear
if that was their own decision, or did so at China’s
behest.
The success of Aung San Suu Kyi’s
latest trip to Washington may mark a new chapter in Myanmar’s relations with
the United States, but the ongoing civil war in the country gives China control
over crucial levers of pressure on its neighbour that
the distant superpower can hardly match.
What is clear that, while many
more US business will now be able to invest there, the US-China rivalry
over influence in Myanmar/Burma has not ended yet.
There also is no doubt
that the rise of China is an event which threatens America's position in
international affairs. There is growing evidence that the centuries long domination
of global affairs by the West is coming to a close. The key reason is economic
and geopolitics.
Update 19 Sept. 2016: According to The Irrawaddy, the
reaction from China was immediate, with a message in the Chinese media stating
‘‘China
is willing to invest in basic infrastructure projects in Burma that the West is
not willing to invest in," and: Finding a solution to the Myitsone project is important for Daw
Aung San Suu Kyi who needs China’s cooperation in talks with ethnic
minority armed groups operating along the border with China.