Analysis of how Tatmadaw had ruined the Myanmar economy
Aug 29th, 2007
Analysis of how
Tatmadaw had ruined
the Myanmar economy
Dr San Oo Aung
Facts on Myanmar Military leaders’ commitment to break Myanmar’s economy_
1. Lost of trust by local people and foreigners:
- in government, fear of nationalization ,
- in the economic laws, Investment Law etc
- in banking system, local currency.
2. Corruption, selfishness, greediness and lack of integrity at all levels of military governments.
3. No good Governance and no Rule of Law.
4. No Democratic system, no respect of Human Rights.
5. Lack of skills in administration by the Military and ex-military personnel, without any industrial, economic, managing skills nor even a basic decent education. And the brain drain of professionals due to emigration.
6. The Myanmar Military’s insistence on permanent dominance in all spheres of national life, politics, economy etc.
7. Thriving black market economy.
8. Double Foreign Currency exchange rates or existence of black market FE exchange rate.
9. Incompetent Central Command system.
11. Inadequate Fiscal control leading to spiraling inflation.
There was once a very popular joke in Burma (Myanmar). Singapore Senior Minister Lee Kuan Yu who was contemporary to General Ne Win told him, “I would be able to turn Burma into a ‘Singapore’ if you allow me to rule Burma just for only three years”. Ne Win retorted immediately,” I also could turn Singapore into ‘Burma’ just in only three months, if you give me a chance.” That satire spread like a wild fire among all Burmese citizens without the help of any media. Sure, Ne Win could! He would be able to ruin and rob Singapore, till it bankrupt in a very short period. Actually Burma before Ne Win was the second wealthiest country in Asia after Japan. He already had turned Burma into one of poorest country in the world. General Ne Win’s ‘Burmese Way to Socialism’ not only robbed and ruin the country’s wealth physically but also corrupted and destroyed the peoples’ moral values into a shambles, shabbiness and shame.
To gain wealth or prosperous for a person, company or a country we need to plan and manage our economy well. Burma is rich in natural resources and necessary labor, skilled and unskilled. But this only is not enough. We need to manufacture products and market them to gain wealth or profits. It would be better if we could value-added our products instead of selling raw materials. The free-enterprise system or capitalistic economic system is the market system, a system in which participants react freely to the opportunities and challenges of the market. In the market system, anyone can buy or sell anything of his or her own free will or produce products and/or services that are sold at a market price. The factors of production, key to a capitalistic system, are the result of historical changes that made labor a key to creating wealth, made real estate out of land that had been in families for generations, and made capital out of possessions.
Anyway we need the investors, internal from our citizens and external foreign investors, for each and every sector of the economy. The most important factor in the economy is the trust factor. In the business world, if a person, a company or a country is regarded as not trustworthy, there is no more future. General Ne Win’s BSPP, Saw Maung’s SLORC and Than Shwe’s SPDC ruined our country by earning this not trustworthy label.
Chinese/Indian-majority, cash engine of Burma’s economy, were kicked out of the Burma in 1962 by General Ne Win with the Nationalizations of all the business, factories etc. Actually good farsighted governments should encourage and help the private business with all the means. Let them easily establish, extend or continue their business. Should not kill the cash cow to sell the meat or kill the goose which lay golden eggs every day. It is enough for the country if there is a fair and strict tax collection system. I still remember the words of the first PM of Malaysia; Tunku Abdul Rahman, “Let the Chinese do the business freely. With the tax collected from the Chinese, we could give scholarships to our poor Malay children and could later give them the government servant jobs with that money.” Look like racial profiling but if we understand the Malaysian Government’s policy of giving business contracts to their own race only and those contracts and permits were usually sold to Chinese businessmen for quick profit, his words are farsighted.
We can summarize that the main faults of Ne Win’s Government was: Nationalizing all the banks, schools, factories, shops, all the business, cinemas, petrol companies up to petrol pump stations, newspapers, hospitals, import-export business and etc. Almost all the private business activities were took over without any compensation. And later, after dozens of years only, he announced for the application for partial compensation in installments. Some of the owners had already died or migrated. And were never paid in full nor with current values. And never consider the payment with interest nor payment for lost opportunities.
According to The Burmese Way to Socialism’s economic policy of state ownership, nationalization of all the foreign-owned companies were done. The failure of this policy, most evident in the progressive breakdown of the official economy, has had important political ramifications. Ne Win not only took the business with goods, machinery, vehicles and premises but confiscated all the bank accounts and capital investments. Those businesses were put under the management of Army officers without any business knowledge nor skills. Most of them were corrupt and dishonest. So no wonder the whole country’s economy collapsed. Actually they should just take over the business opportunity according to the Socialist System. But “Burmese way of Socialism” looted the people’s property, failed to continue to run the business for the benefit of the people. Sold off or ripped off the assets and closed shop because of inability to invest further.
In 1962 the official economy came under the domination of the 23 state corporations run by military appointees, and the black market continued to flourish. In response to economic stagnation from 1974 there was also some easing of economic controls, and civil servants’ salaries were raised to compensate for high inflation. In 1977, when it had become apparent that these measures had failed too, the government relented somewhat on its policy of self imposed isolation and sought Western aid.
International aid and borrowing restored economic growth temporarily, but then declining earnings from trade, low investment, endemic shortages and mounting budget deficits brought the economy close to collapse.
The worse thing was the announcement of demonetizations of big currency notes for three times. In the first two times, they allowed partial conversion to legal tenders. The owner had to prove that he had earned that money by legal means and must show the proof that they had declared to the Inland Revenue Department and had already paid the taxes. But at the third time they never allowed to change back to legal tender. Ironically the third time was not long after the reimbursement of the second time and many people were caught with the same bank notes the Military Rulers had reimbursed after thorough audit and investigations. That was not fair at all and likens to a day light robbery.
Worse of all is that the people lost their trust on the banks and never save or deposit or keep in the banks. Even at the normal times the bank will ask the reason for withdrawal and he had to apply and must get the prior approval for the “large withdrawals” equivalent to US Dollar 125 at current black market exchange rates. And during the monetary exercises the money deposited in the banks were frozen and the partial amount was only freed later.
At the same time the people lost trust not only in the banking system but the local currency printed out by the Military Régimes. After selling something they dare not keep the money but have to buy something immediately. They keep small amount of bank notes for daily and casual use but always used to buy some thing to keep as safe deposit, either gold, car or landed properties. They have to convert it back into gold or something when he needs to use it again. So the value of local currency deteriorates and Inflation sets in. And most of the local rich people dare not invest their money to do various business or setting up factories. And all of us believe that the third demonetizations had sparked the people’s anger and led to the revolution that topple the government in 1988.
The following case chases away all the would-be foreign investors. The joint venture in the Union of Myanmar (Burma) between a Singapore-based company, Yaung Chi Oo Trading, and the Ministry of Industry No. 1 of the State Peace and Development Council (SPDC) was established. The bankrupt Mandalay Brewery bubbled back to life. Mandalay Beer became a recognized brand name. A network of 40 pubs operated nationwide and it became the largest domestic taxpayer, generating revenue for the dilapidated state coffers. On November 11, 1998 the joint venture came to an abrupt halt when armed soldiers seized the brewery on the orders of the SPDC. The bank accounts of the partner were frozen and it was threatened with arrest for alleged misappropriation of funds soon after its final payment of $5.3 million. was a clear case of taking the law into one’s own hand. The SPDC subverted the legal process laid down by its own law. No subsequent filing of legal proceedings could legalize the previous illegality. Subsequently MI-1 commenced liquidation proceedings against Yaung Chi Oo in court under Section 162 of the Burma Companies Act. The basic reason is the murky Investment Law 10/88 of Myanmar, to which the investors have been lured. And of course the arbitrary legal system, which is supposed to safeguard the said law. The joint venture in which the foreign investors are trapped is a contract between the foreign partner and one of the Ministries, executed under the Union of Myanmar Foreign Investment Law. Although it guarantees under clause 22 that there shall be no nationalization during the tenure of the contract, clause 14 of the Law gives overriding power to the Myanmar Investment Commission to decide matters and terminate the contract before the expiry of the contract period. Under the Law, the Commission is composed of the 11 Ministers concerned with trade and economy and it decides disputes between trading partners in which the ministries have direct interests and where the trading partners are not at all represented. In the instant case, MI-1, the violator of law will sit as a judge as a member of the Commission. That true nature of the unjust clause has come out in the open in the Mandalay Brewery case. The suicidal policy of the SPDC, in politics as well as in trade, will meet with its nemesis. The highlight of the Yaung Chi Oo case is that, as in all fields of peoples’ lives, SPDC flouts the Rule of Law. Economic and commercial laws, which govern foreign trade, are no exception. The message is very clear for future investors.
So the citizens as well as foreign investors lost trust in Myanmar Government even after the Myanmar Military Junta changed their policy in 1993, opened up its doors to foreign investment.
The overvalued currency, combined with commodity shortages, lays the ground for the thriving black market economy. The black-market prices of most items of basic consumption are many times more than the official prices. Because all the business were nationalized unemployed increased in number. Because almost all the essential items of food, clothing, building material, spare parts, petroleum products and etc. were government controlled and later given with ration only it is not able to cover the needs of the people. Government could not import enough nor able to produce adequate amount for the local consumption. And only the APC, Army, Party and Council monopolized most of the precious rations and permits. So there was a generalized shortage of all these items. The salaries for APC, government servants and people’s income is not enough even for survival.
Wrong Labor policy
Military rulers failed to formulate the fair and just Labor Laws to protect both the workers and the employers. When there was a dispute between the private employers and employees, the employees and workers are always right. Authorities never rely on the rules and regulations. Whether the workers are right or wrong they stand with the workers. Even if the workers had committed the criminal offences, in their “socialist eyes” the workers were still right. Anyway the employers were forced to pay compensations at least on humanitarian grounds. But there was an unexpected backlash. Employers were scared and stopped using workers. No one dare to extend their works because of the fear of labor problem. The employers got the mindset that the earlier the workers were terminated the less compensation to pay.
The double standard, the Military government practiced, was exposed when the government sectors workers strike. The brutally crushed the workers strike with force. They were beaten, arrested, tortured and some were shoot to kill. The workers must sacrifice for the country. They have no right to strike or disobey or to form independent workers’ unions. Then only the workers knew that under the Military rule, they were most important class for the namesake only.
Unemployment, insufficient income, inflation and scarcity of goods lead to_
(a) Black-markets everywhere including smuggling across all the borders and transport to the whole country.
(b) Business of selling and buying of rations, permits and goods obtained by the privileged VIPs who have rights to buy at official prices. Even the VIPs from APC up to the Generals and Cabinet Ministers are practicing this. The army drivers sell their petrol, and wives of ministers use to sell sugars, condensed milk tins to soaps, cosmetics, electrical, building materials like cement, zinc coated corrugated iron sheets etc.
(c) Some VIPs from APC and their cronies applied to get nationalized apartments and sold off later. Some of them applied for the government land or the land government had acquired by various methods from the ordinary people. They applied the building materials, sold part of it which can not only cover the cost of building material but the labor expenses also. Later the finished buildings were sold off with exuberant prices. This circle goes on and increased if the APCs have to transfer. They built the buildings in their home town at the same time with the excuse of settling later after pension.
(d) Drug smugglers, prostitutes and gamblers are not accepted by the public in general but their easy money some times covered up for some of them until they are exposed.
(e) Emigration permanently or temporarily also became a new phenomenon.
(f) Working as sailors or legal and illegal migrant workers in foreign country is also one of the best solutions for the people and country. They bring back hard currency and essential as well as luxury goods.
Endemic corruption has so far widespread under SPDC as an epidemic because there are almost no attempts to remedy it except to kick out the fellow officials who betrayed politically. Corruption hobbles progress at all levels of Government servants; from the central government ministers to peons of the local authorities and rots the very underpinnings of the Myanmar state and economy. The mother of worse for the Burmese people is the fact that the Myanmar Military rulers have no shame at all but very corrupt and amass all the wealth of the country, even not like other countries’ pure Socialist or Communist leaders. Country’s political systems were just vehicles or excuses used as a cover up operation for the continued rule of the army only.
The investors have no confidence at all in the integrity and the sincerity of the present Military government. There is no good governance, no democracy but merely the monopoly of the Army. Nepotism is rampant and always favors the cronies of Army and ex- Army only. No transparency in all the government dealings and corruption have even damaged the whole population nation wide, starting from all the peons and officers of each and every government and local administrative and cooperative or semi government offices up to the cabinet Ministers. They all will neglect the people and refuse to even entertain if not bribed. Nothing can be done without greasing their palms. They all will neglect the people and refuse to even entertain if not bribed. Nothing can be done without greasing their palms. Even the peons will ignore you simple request for the basic information, the guards would not let you in, the application forms will not move from one table to another, or worst of all lost if there is no bribery.
If you want to see an officer or a Minister, first of all you have to pay the PA then to wife or children of the Ministers and Military leaders. You have to engage with the brokers specialized in the various fields and various ministries. And if there is a transfer of an officer or the Minister, you have to start a new bid. If there is any ceremony, birthday, wedding etc. interested parties have to give expensive presents, jewelry, cars, gold bars and few thousands to millions of bank notes. For the contracts and permits there are even generally agreed percentages to pay to various parties involved. Foreign investors need to pay up to millions of US dollars. If Ministers wives go for shopping in Singapore, Bangkok, Kuala Lumpur or etc. the related foreign investors have to follow them and need to settle the bills.
The Minister of Trade General Htun Kyi was removed from office for corruption but never tried in open court or punished because of fear of exposing the involvement of the colleagues in the cabinet. He was quoted while still as a Minister, “Money can buy any thing you want. If you offer the US ten Dollar note a hand will come out even from the graveyard to accept it. US hundred Dollar note may attract the whole body to come out to reach it.” If we use this concept or philosophy as input into a barometer to gauge the level of corruption in Myanmar Military Rulers the result will be frightening.
And there were rumors that when General Htun Kyi was investigated for corruption, he retorted whether the investigators had noticed the Diamond earrings of Daw Kyine Kyine (Mrs. Sr General Than Shwe). He bragged that he had given that 500 million Kyat worth big diamond earrings.
The corrupt authorities repeatedly used the “Sit, Taung Sar” method on private sector by frequently checking the authorized papers, just meant to intimidate and coerced the people to pay bribes or indirectly asking for the ransom money. Corruption became rampant. All three generations of Military governments’ machinery is plagued with corruption. There appears a special class of “Sit, Taung Sar” a homophone in Myanmar. Sounds like the Mayor or ruler of Sittang. But the real meaning Sitt is- inspection, investigation or audit. Taung means ask or demand for bribes. Sar is taking or accepting bribery. As all the people have to work or deal with black markets and smuggling bribery became ticket of survival. The Central command system is one in which decision making is centralized. The government controls the factors of production and makes all decisions about their use and about the consumption of output. The central planning unit takes the inputs of the economy and directs them into outputs in a socially desirable manner. This requires a careful balancing between output goals and available resources. Planned economies cannot effectively process as much relevant information as a market does, command economic systems cannot coordinate economic activity or satisfy consumer demand as well as market forces do.Military and ex-military personnel, without any industrial, economic, managing skills or even a basic decent education cause the overall decline in every field in Myanmar economy, industry and politics. Agriculture remained in the private sector but produce had to be sold to the government at very low prices. Investment was concentrated in the industrial sector. The less agricultural investment resulted in not enough agricultural products behind the population growth. Despite industry’s high share of investment, industrial output increased by only 2.8% per year in 1962-72 due to inefficiency and managerial problems because most of those posts were held by the military and ex-military personnel, without any industrial, economic managing skills nor even a basic decent education.
The military Juntas messed up the education system, with the repeated “new systems” and abandoned the English to clean cut the ‘colonial’ umbilical cord. The military Juntas dumped all the economic ideas related to Capitalism and filled up with the socialist ideologies and economic ideas. Critical thinking was jettisoned in favor of mindless memorization, learning-by-heart, tuition guided spoon-feeding system.
Political leaders and the government are like the control center and the brain of the country. Military is like the limbs of the body. They have the muscular power, skeletal hard ware and some rudimentary reflexes. The limbs could not take over the place of the brain just because they have the power. They could not justify their act by claiming that they are supporting and defending brain and the whole body. There will be chaos. Myanmar Military is just doing this by giving the same lame excuses. Like the limbs’ rudimentary reflexes, the Myanmar Military Generals also have a limited education. General Ne Win had not pass the Inter A. (GCE A) And General Saw Maung was rumored to have studied up to Primary School Education, i.e. fourth standard only.
The Myanmar Military’s insistence on permanent dominance in all spheres of national life causes endless tensions and unhappiness amongst the civilian people. While the ordinary people have to sacrifice endlessly for the sake of the country, the leaders would enjoy not only all the best in the country but by even importing all the luxuries from those ‘Imperialist, corrupted western Democracies’. The most important thing is that they fail to deliver their promises of
Paradise on Earth. The worse of all is the fact that those rulers amassed enormous amount of wealth and are enjoying their self-made
Paradise at the expense of the people.
The low growth in the public sector and the decline in the private sector led to shortages and rationing, resulting in the rapid development of a black market, which for many years provided a large proportion of the goods that urban and rural consumers purchased. The economy contracted as inept economic management created severe shortages and accelerating inflation.
In late 1987 Burma, once one of the most prosperous economies in Southeast Asia, was designated a least developed country (LCD) by the UN. Because of their failure politically and economically and because of the Burmese peoples’ unexpected revolt and desire for democracy and Capitalist market reforms the “new “ “coup” leaders about turn and changed to open market Capitalist system and announced the aim to change to democracy.
Since the State Law and Order Restoration Council (SLORC) took power in September 1988 Myanmar unsuccessfully tried an economic reform aimed to transform into a market-oriented economy from a centrally planned. The government’s new emphasis was on foreign direct investment and trade. But they repeatedly change the rules and regulations making the proper long term planning almost impossible for all the investors and traders.
The Foreign Investment Law permitting and providing protection and assurance for foreign direct investment was lacking. They failed to formulate the proper rules and regulations for Import and export. They failed to adjust the Foreign Currency exchange rate to abolish the black market rate. They failed to restructure or overhaul the banking system. They failed to formulate the properly the taxes, import export duties and income-taxes. The export and import procedures are difficult to follow as the authorities frequently change the rules and regulations. Relevant authorities purposely put in the unnecessary restrictions and most important of all is because of corrupt authorities purposely using those regulations to squeeze out the bribery money.
So the economy remains stagnant. Several key commodities remain scarce. Large-scale enterprises remain under state control. Mining and timber, are also still formally under government control but are leased out to private but the frequent change of rules caused many people into troubles and landed in jail.
Some kind of backlashes surfaced in the house rental problems. Tenants are regarded as poor favored class of Socialism. The landlords or house owners are regarded as rich un favored class. So the authorities always sided with the tenants, whether they are right or wrong. Then no one wants or dare to rent out the properties. No one wants to invest in developing the houses for rent. Nowadays present generation of Military rulers change their stand and abide by the rule of law on these matters.
The farmers were also one of the “most important” basic classes in the Ne Win’s Socialism, on paper only, nothing more. They were forced to grow the “planned” plantation. They have no choice but to obey the orders. The type of plant, the time and repetitions, all the orders came down according to the country’s need. Never care to consider from the side of the farmers and their interests. And the large percentage of the crops must sell to the government with the unreasonably low prices. No excuse accepted. If not enough, the farmers have to buy from the outside black market with the exuberant prices. Sometimes the farmers knew that the third repeating crops would be not successful and will even affect the next crop. The farmers decided not to plant as ordered by the authorities and instead buy from the outside black market to sell to the government with the lower fixed price. Military authorities never accept the excuses. They want water, not the hole in the water bottle. Results are important. Anyone lost or hurt they never care. Weather disturbances and insects’ infestations were not accepted as the legitimate excuses. Now only the farmers know that they were not the favored class of the Myanmar Military rulers.
Water supply is following the same pattern as electricity. Even in the biggest cities, people get water on alternate day or once in three or four days. Most of the rural area i.e. 85% of the country has no piped water supply at all.
All the transport system is almost rudimentary. Air and seaports are not enough nor up to the international standard. Railway lines are sub-standard, a lot of vibration, shaking and waves. Net work is not extensive; coaches and engines are not well maintained. And trains are always behind their scheduled arrival times.There are no international standard highways in Myanmar. A lot of carves, bends, waves and potholes. Overpass and traffic lights bridges across the rivers are rarity.Most economies around the world blend some elements of both market and command economies in answering the three fundamental economic questions: What and how much will be produced? How will it be produced? For whom will it be produced? Furthermore, within any economy, the degree of the mix will vary. So now it is sure that successive Military Juntas had failed our country’s economy, this is high time to invite all the citizens of Myanmar, world economic experts to discuss, cooperate, coordinate and plan for the new modern economic roadmap for Myanmar/Burma.The economy of the United States is generally considered to be a free market or capitalist economic system. However, even in the United States the government has determined a “minimum wage,” has set rules and regulations for environmental protection, has provided price supports for agricultural products, restricts the imports of items that might compete with local production, restricts the exports of sensitive output, provides for public goods such as a park system, and provides health and retirement services through Medicaid and Medicare. All of these detract from the essential nature of a capitalist economy. However, most decisions continue to be left to free markets, leaving the United States as a mixed economy that leans heavily toward the capitalist economic system.Many countries have scarce resources. The economic systems of countries must be designed to allocate those resources, through a production system, to provide output for their citizens. The fundamental questions that these systems answer are:
-
What and how much will be produced?
-
How will it be produced?
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For whom will it be produced?
In practice, all economies are actually mixed economies, incorporating some facets of both market and command economies. The relative importance of the particular economic system in the country is the determinant of the type of economic system that it is generally considered to be.Decades of self-imposed isolation, fabricated statistics and the absence of research and journalistic inquiry had created a false image of developments; even the top military authorities inside
Myanmar have no accurate or complete appreciation of the very serious conditions amongst the grassroots people. SPDC is like the “King with the new clothes”. SPDC needed an innocent child to point out that they are really naked. So we need a good Accounting, good Auditing system and a transparent, and corruption free government. We need Antitrust Legislation to prevent monopoly by anyone.
Myanmar Military, with their predilection for assassinations, military coups, and other unsavory methods is never seen to be effective in getting rid of its ineffective military leaders. Those who grab power are by nature ruthless and not likely to give it up willingly. Consequently, the end result is invariably much worse. Today’s problems are more obvious and the consequences could be even more catastrophic. The nation is being lulled into irreversible mediocrity, condemned to perpetual pariah status in the world. The general rule is for dictators to cling on to power until they die naturally, get killed, or are ousted.
Alexander the Great was retorted by the pirate that because he had a small boat only that he was called a thief and pirate, but as Alexander had a navy so was called an emperor. Yes! He who kills an ordinary person is the murderer and must be punished. But he who killed or dethroned a king become the ruler and ascends the throne. So coup leaders become government leaders of Myanmar. Sr Gen. Than Shwe, SPDC and Myanmar Military are much powerful than unarmed Burmese people. But the power and wealth they have is unlawfully taken by force from the people. There is no difference between all of them and the armed robbers or thieves. Myanmar Tatmadaw personals, Kyant Phuts, Swan Ah Shin, their relatives and friends robbed the country’s coffers by getting the chance to buy all the household commodities, luxuries, unfairly valued with the official FE exchange rate. So for them all the things are cheaper. During the SPDC Generals, wives, families and friends’ “official” foreign trips for shopping, sightseeing, medical examinations and treatments etc. they could buy the Foreign Currency with official exchange rate. During Ne Win’s rule, the commodities were scarce but now SPDC allow freer import and commodities are abundant. The only problem is they do not practice proper fiscal control, just print the bank notes or money and cause the uncontrollable inflation. So ordinary
Myanmar citizens could not afford to buy even the essential items.
Zulfikar Ali Bhutto told his daughter, Benarzir Bhutto,” Don’t be an idiot (to believe the Army Generals), armies do not take over power to relinquish it. Nor do the Generals commit high treason (Coup against the legitimate governments) to hold election and restore democratic constitutions. True! General Zia of Pakistan promised in July 1977 that elections would be held within three months. But he repeatedly gives excuses and postponed it for eleven years until he died.
Energy, Petroleum products, natural gas and electricity
Prime Minister U Nu started the Law Pi Ta electricity generation project before Ne Win took over. “To make Paradise on earth with the use of electricity” was his famous slogan. It had really generated and sparked a lot of progress after that dam started electricity distribution.
But with the population growth and natural degeneration of the turbines, now Myanmar is sliding into the hell. Because of lack of proper planning and lack of hard currency, even in Yangon people got electricity with few hour shifts. In second largest city, Mandalay, people got electricity once in every few days. Only Nay Pyi Daw got the regular 24 hour electricity supply. School children, offices, all industries and factories suffer. Fans, air conditioners, lifts, escalators, fridge and freezers are all useless unless they have their own back up supply. But the fuel to run those generators is also like a luxury. Petroleum and diesel are all restricted items sold with ration and permits. People have to buy from the roadside smugglers if they need. APC sold the Petroleum and permits. There are frequent problems because of adulteration and fire hazards from the illegal improper storage of those Petrol hawkers.The rights of these energy generation, production and distribution were jealously guarded by the Myanmar Military. If they could not manage after these forty long years, they should allow local and foreign players. Some of the world’s economic experts from the World Bank and IMF’s false advise and claimed that Myanmar Military must stop fuel subsidies are short-sighted. They are declaring as if SPDC is doing the right thing. Myanmar people’s very low earning power, even ridiculously lower if converted into foreign currency, at the black market exchange rate must be considered. It is clear that to force the whole population, including the poor low earners, to use the vitally needed commodities like petrol or gas according to the black-market exchange rate is totally wrong and is nonsense. In the first place, SPDC is wrong to allow the existence of the two kinds of exchange rates. SPDC Junta allowed it or keep the unreasonably official higher value for their benefits is morally and legally wrong and is the main cause of all the present problems. The successive Myanmar Generals keep on changing every thing, name of the country, name of the government, ruling party, ideology, economic system etc. except their seats.There are no Human Rights, no much hope in the near future, no enough jobs and no enough basic necessities nor adequate food for the majority. But Myanmar Military is enjoying all the luxuries from their special privileges and through corruption. SPDC relaxes the price controls, reduces the subsidies, increase the salaries of government servants lead to the vicious circle of inflation. But SPDC failed to increase the earning power or purchasing power of the people. It is time for the Myanmar Junta to get help from the NLD led opposition and the world community. They should release all the political prisoners immediately, call for the dialogue, start a National Reconciliation process, share power with the people of Myanmar especially the NLD led opposition to solve our country’s problems and to really start a true democratization process. And also it is the right time for the UN and the world to take actions and apply full pressure on illegal Military Government of Burma. Unfortunately, it is the nation that is bearing the terrible consequences. The longer Military Junta stays, the heavier will be the burden and the costlier the price. We are now close to the point where the damages wrecked by the Myanmar Tatmadaw would be irreversible. We cannot risk such a fate; the time for action is now!Note: APC means, Army, Party and Council during General Ne Win’s time but now must include Kyant Phuts, Swan Ah Shin and all the Myanmar Tatmadaw personals, ex-military, families and friends.
References
- LEGAL ISSUES ON BURMA JOURNAL No. 7, DECEMBER 2000
- BURMA LAWYERS’ COUNCILArticle by: DENISE WOODBURY, Business Encyclopedia.
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October 22nd, 2007 at 4:40 pm
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