Monday, January 18, 2010

Myanmar video journalist jailed for 20 years: report
Wed Jan 6, 2:05 am ET


BANGKOK (AFP) – A Myanmar court has handed down a 20-year jail term to a video journalist who worked with exiled media, rights groups said Wednesday, as the ruling junta continues its crackdown on dissent.

Freelance reporter Hla Hla Win, 25, was arrested in September after visiting a Buddhist monastery in the the town of Pakokku, Paris-based Reporters Without Borders and the Burma Media Association said in a joint statement.

Hla Hla Win was sentenced by a court in Pakokku on December 31 for an alleged violation of the country's Electronics Act, the groups said. A woman accompanying her was sentenced to 26 years in jail, they added.

There was no immediate confirmation of the sentence from authorities in Myanmar, formerly known as Burma, which remains under tight US and EU sanctions because of its record on human rights.

"We are outraged that this young woman has been given a 20-year jail term," the two organisations said in the statement.

The jailed reporter had worked with the Myanmar exile broadcaster "Democratic Voice of Burma" based in Norway, which described the sentence as "unjust", the statement said.

"People had been expecting signs of an opening and goodwill gestures from the military junta in this election year, but this extremely severe sentence on a 25-year-old video maker and the junta chief?s recent threatening comments leave little hope that the elections will be free," they said.

Reclusive junta leader Than Shwe said at an independence day ceremony on Monday that plans were underway for elections promised by the regime some time this year, but warned citizens to make "correct choices" at the polls.

Myanmar has handed heavy jail terms to scores of activists, monks, student leaders and journalists for their alleged roles in anti-junta protests in 2007 last year and for helping victims of Cyclone Nargis in May.

Pro-democracy icon Aung San Suu Kyi has been detained for most of the last two decades and had her house arrest extended in August last year, effectively ruling her out of the coming elections.

The United States expressed doubt Monday that the polls would be credible.
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Integrated Regional Information Networks
MYANMAR: The kindest cut

YANGON, 6 January 2010 (IRIN) - Yu Yu, 19, valued her thick, wavy hair for its beauty but today it is a source of much-needed income for her destitute family.

"At first, I just felt so sad about losing my hair. But later, I was really happy that I was able to save my father's life and solve my family's extreme financial problems," said Yu Yu, now a garment factory worker.

Two years ago, her father fell seriously ill, while her four-member family, whose combined monthly income was US$45, was debt-ridden. With no other way to help them, the high-school drop-out sold her waist-length locks for $30.

Later this year, she will sell her shoulder-length hair to pay for her younger brother’s school fees.

Long hair is highly valued in Burmese society, celebrated in literature and songs. But now women are being forced to part with it as a last resort.

In Myanmar, where one-third of the population of 57.6 million lives below the poverty line according to the UN, hair traders say selling hair has become a way of making ends meet.

Households face rising living costs and are vulnerable to food insecurity; 69 percent of all household expenditure is spent on food, according to a 2007 UN Development Programme (UNDP) household living conditions survey.

Booming business

Hair traders say business has boomed in the past five years, thanks to growing demand from China and South Korea for wigs.

“The price of hair has been quite attractive in recent years. This encourages more and more women to sell their hair,” said Ya Min, 29, a trader for the past nine years.

Hair is weighed by the kyat tha (16.33g) and priced according to length and weight. The average weight of hair per woman is about 20 kyat tha.

Traders say one kyat tha of hair was worth about $0.80 five years ago. While exchange rates fluctuate, traders say prices have nevertheless been rising in recent years.

These days, hair typically sells for $1 per kyat tha, but if it is over 30cm in length, it can fetch more than $1.50. A woman selling 20 kyat tha of hair that is as long as 40cm could earn $35.

Because of this lucrative trade, buyers and sellers alike say those with long hair have to beware of hair thieves while commuting in crowded buses.

Desperate measures

Mindful of the difference even tiny sums of money can make, hair buyers say they sometimes find it difficult to turn hopeful sellers away.

“There are many poor old women like her who come and sell their damaged, excess hair for a small amount of money,” said a hair-buyer, Ma Mya Mya, after buying a small bag of grey hair from a barefoot, elderly woman.

Ma Mya Mya initially offered the woman about $0.30 but she insisted on more, saying she needed to buy some rice for dinner. The elderly woman finally walked away satisfied with $0.50 – enough to buy about 1kg of rice.

“Actually, we don’t want to buy hair like this. But sometimes we can’t refuse, because they are so poor,” she said.

Paying for school fees

Traders say their business is better from June, the start of the school year.

“Around June, many mothers come and sell their hair so they can get school fees for their children,” said Ya Min.

June also marks the start of the rainy season, bringing floods and cutting off roads, forcing families to look for alternative sources of income, traders say.

Lured by the potential income, more people, especially women, are joining the hair-trading business. Despite poor transportation, petty traders make the journey from urban centres to remote, hard-to-access areas to buy hair, which is then resold to larger traders in cities such as Yangon and Mandalay.

Some hair traders also say they are getting an increasing supply of hair from the Ayeyarwady Delta in the country’s south in the wake of Cyclone Nargis in May 2008 as people seek to restore their livelihoods.
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Dhaka, Yangon to talk sea limits
Wed, Jan 6th, 2010 8:55 pm BdST


Dhaka, Jan 06 (bdnews24com)—Bangladesh and Myanmar officials will sit on Friday for two-day talks on maritime boundary demarcation.

This is first such meeting since Bangladesh in October last year turned to the UN tribunal for resolving the dispute over water territory in the Bay of Bengal with Myanmar and India.

Myanmar deputy foreign minister (foreign secretary) Maung Myint will lead his country's delegation while additional foreign secretary Md Khurshed Alam will head Bangladesh side at the talks in Chittagong.

"The bilateral negotiation with our neighbours will continue though we have gone to the UN tribunal for settling the maritime disputes," a senior foreign ministry official told bdnews24.com.

He said Myanmar now shows "very positive" attitude to resolve the maritime disputes with Bangladesh.

Foreign ministry officials say Bangladesh, India and Myanmar cannot exploit the full benefits of their oil and gas reserves in the Bay due to claim and counter-claim of the offshore blocks.

Out of Bangladesh's total 27, Myanmar and India have made overlapping claims over at least 18 offshore blocks in the complicated maritime geography.

Indian and Myanmar claim, what foreign minister termed as "aggressive", that those would make block Bangladesh's sea zone.

Bangladesh and Myanmar resumed talks on maritime boundary demarcation in 2008 after a pause of 22 years. The two countries had at least three rounds of talks on the issue since then and the talks yielded no tangible result.

The two countries could not even agree on determining the starting point of the boundary demarcation.

On Oct 8 last year, Bangladesh appealed to the UN tribunal for arbitration to end the maritime boundary disputes with Myanmar and India.

Foreign minister Dipu Moni on Oct 8 said the government approached to the UN tribunal to end the disputes as soon as possible.

She said the disputes would be resolved at the tribunal in maximum four years if Bangladesh could not bury the disputes through bilateral talks.
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IDSA - Institute for Defence Studies and Analyses COMMENT
Dynamics of Indo-Myanmar Economic Ties
Saurabh
January 6, 2010


India and Myanmar are bound by a 1600-kilometer land frontier, a long maritime boundary and also by religious, cultural and ethnic ties, which go back two millennia. India's four states Mizoram, Manipur, Nagaland and Arunachal Pradesh share India’s international border with Myanmar. This geographical proximity between the two countries translated into long-standing trade relations across land borders and the sea route.

India's Vice President Mr. Hamid Ansari Visited Myanmar last year and observed that the economic engagement between India and Myanmar promises immense potential. He also emphasized the importance of enhancing interaction between India’s North Eastern states and Myanmar which occupy a central place in India's Look East Policy. Myanmar is India's gateway to ASEAN as it is the only ASEAN country which has land and maritime borders with India. India and the ASEAN signed a Free Trade Agreement in August 2009 which will cover 11 countries, including Myanmar, with a combined Gross Domestic Product (GDP) of over $2 trillion. ASEAN Regional Forum, India-ASEAN Summits, East Asia Summit, BIMSTEC and Mekong-Ganga Cooperation provide further avenues for mutual cooperation between the two countries.

The economic engagement between India and Myanmar has expanded into the public and private sectors. The first India-Myanmar Bilateral Border Trade Agreement was signed in New Delhi in January 1994 and was implemented in April 1995 with the opening of a cross border point between Moreh, India and Tamu, Myanmar. The agreement provides facilities by which trade is being carried out through the designated border expansion of the list of exchangeable items. The opening of border posts has also helped in checking illegal trade of goods and monitors the activities of insurgent groups between India and Myanmar.

The year 2003 witnessed events which not only cemented existing bilateral ties, but also provided a foundation on which commercial and economic could expand in the future. A joint Trade Committee was set up to work towards increasing bilateral trade, a Memorandum of Understanding was signed on cooperation in information and communication technology, a new Line of Credit for 25 million US dollars was signed to boost exports, and in November 2003 the offer of a 57 million US dollars million credit line was announced by India in order to upgrade Myanmar's railway network.

India is one of Myanmar's major trading partners and one of the largest markets for its goods. The most startling fact is that bilateral trade between India and Myanmar has grown more than eighty times in the last twenty eight years. From US$12.4 million in 1980-81, India-Myanmar trade grew steadily, to reach a level of 995 million US dollars in 2007-08. The actual trade turnover may probably be more if trade via third countries, particularly Singapore, is taken into account.

India's exports to Myanmar, though small, range from primary commodities to manufactured products. Primary and semi-finished steel along with steel bars and rods constitute over one third of India's exports. Indian drugs and pharmaceuticals have also established a significant market presence. India's exports to Myanmar's in 1990-00 and 2007-08 were 72.16 million dollars and 162.98 million respectively.

India's imports from Myanmar between 1990-00 and 2007-08 stood at 215.35 million dollars and 809.94 million dollars respectively. The balance of trade is heavily in favour of Myanmar. Myanmar contributes to nearly one fifth of India's imports of timber, second only to Malaysia, as timber and wood products accounted for nearly 30% of Myanmar's exports to India. Myanmar is the second largest supplier of beans and pulses to India, next only to Australia.

Developmental projects have become essential elements of India's approach towards building good neighbourly relations and fostering mutually beneficial cooperation.

Kaladan multi-modal project in Myanmar promises to be the cornerstone in India's efforts to develop infrastructure projects for cross-border benefits in the region. India is assisting the India-Myanmar-Thailand Trilateral Highway project and has also extended project specific credit lines for upgrading the Yangon-Mandalay Trunk line and for the optical fibre link between Moreh and Mandalay.

Several positive developments have taken place recently in the areas of trade, investment, power, oil and natural gas, manufacturing and the vocational training sectors. In 2008, India and Myanmar signed four economic cooperation agreements which include the Bilateral Investment Promotion Agreement, two credit line agreements between the EXIM Bank of India and the Myanmar Foreign Trade Bank for 20 million dollars for financing the establishment of wire manufacturing plant, 64 million dollars for financing three 230kv transmission lines in Myanmar and the last agreement provides a banking link between Myanmar Economic Bank and United Bank of India. New vistas of cooperation in IT, automobiles, textiles, river and land-based transportation system were also explored.

India-Myanmar trade has immense potential for cooperation in the field of natural gas as Myanmar has reportedly one of the world’s biggest gas reserves estimated to be more than 90 trillion cubic feet. ONGC Videsh Limited and Gas Authority of India Limited hold a 30% stake in the exploration and production of gas in Myanmar's off shore blocks located in the Sittwe Area of Arakan State. India has evinced keen interest to procure gas from Myanmar. India however, still faces the problem of transporting gas from Myanmar. A technical consultant company was engaged by the Gas Authority of India to prepare a detailed feasibility report for the pipeline route to Myanmar. The company has come up with the route that would link Myanmar's Sitwe Sea with Jagdishpur-Haldia pipeline at Gaya in Bihar. Once the negotiations are over and the deal is finalized, the Eastern and North-Eastern states of India are expected to witness a massive spurt in economic activity, and the India-Myanmar bilateral relationship will definitely get stronger.

Clearly, there is immense scope for cooperation between India and Myanmar to deal in agro-based products, floriculture, engineering, timber and tobacco and expand business cooperation. Although there has been a significant increase in bilateral trade in recent years, full potential has yet to be realised.
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ABC Radio Australia News - Australian Greens calls for stop in radio equipment exports to Burma
Last Updated: Wed, 6 Jan 2010 12:08:00 +1100


The Australian Green Party has accused a Western Australian company of selling high-frequency radio sets to the Burmese junta, which the Greens says assist the regime to oppress ethnic minorities.

Senator Scott Ludlam says radios sold by Barrett Communications are capable of frequency-hopping and encryption which makes radio traffic impossible to intercept.

He says this assists the Burmese military in its operations against ethnic minorities.

"People on the border are extremely concerned that the regime is switching to these encrypted radio traffic to be able to plan their offensive in the tribal areas...more effectively and more secretly."

Senator Ludlam says the exports must be stopped.

"We don't believe there should be two way trade between Australia and Burma at all...but there certainly shouldn't be two way trade in sensitive military equipment such as this."

"The Burmese regime is a criminal regime, it's entirely illegitimate and it is very inappropriate for Australian companies to be doing business with that regime," he said.

But Barrett Communications Managing Director Phil Bradshaw told Radio Australia the radios he exports to Burma are not capable of encryption.
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Jan 7, 2010
Asia Times Online - China-ASEAN pact offers more than win-win

By Brantly Womack

The formal inauguration of the ASEAN-China Free Trade Area (ACFTA) on January 1 marks the culmination of arguably the most successful big-power diplomacy of the post-Cold War era.

Since 1991, China's relations with Southeast Asia have moved from an alliance of convenience with the Association of Southeast Asian Nations (ASEAN) against Vietnam, Cambodia and Laos to close and multi-dimensional interaction with an expanded 10-member ASEAN and with each of the association's member states (in addition to the above-mentioned trio, the group now includes Myanmar alongside founding members Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand).

A similar pattern of China's successful engagement with neighbors can be seen in the Shanghai Cooperation Organization with Russia and Central Asia and, less successfully, in the six-party talks in northeast Asia over North Korea's nuclear program. With the exception of China's trans-Himalayan border, promotion of regional multilateral institutions has progressed hand-in-hand with strengthening bilateral relationships.

The formula for China's successful good neighbor policy has many labels, but the simplest is "win-win". Every country in Southeast Asia has benefited from broader and deeper relations with China, and ASEAN as a regional organization has been strengthened by China's involvement.

Trade, investment and tourism have blossomed. China's willingness to sign the Framework Agreement on Comprehensive Economic Cooperation in 2002 and the Treaty of Amity and Cooperation in 2003 encouraged other nations to follow suit. Despite global economic uncertainty displacing US-centered globalization, China and ASEAN are off on the right foot in a new era. But the path ahead is not simply a yellow brick road of win-win policies.

Why not? What could possibly be wrong with win-win? A cynical power theorist would say that if one side wins more than the other, the one who wins less may end up being dominated by the one who wins more. But this hardly applies to Southeast Asia. No individual state in Southeast Asia has ever considered itself the equal of China. Moreover, China's military budget surpassed the aggregate military budgets of Southeast Asia in the 1990s. And ASEAN is no North Atlantic Treaty Organization. Rather than being a security umbrella for coordinating action in crisis situations, ASEAN is more of a consensual parasol that works best in sunny weather. If losing parity with China were the tipping point for subjugation, Southeast Asia lost long ago.

Win-win is too simple a formula precisely because of the disparities between China and Southeast Asia. Individually and collectively, Southeast Asian nations are more exposed in their relationship with China than vice versa. According to estimates of the Central Intelligence Agency in the United States, all of ASEAN together in 2008 had only one-third of China's gross domestic product (GDP) in terms of purchasing power parity (PPP). The economy of Shanghai is one-and-a-half times that of Singapore. Guangdong's GDP exceeds that of Indonesia, while the combined economies of Guangxi and Yunnan, middling provinces by Chinese standards, exceed those of their neighbors Vietnam, Laos and Myanmar.

Therefore, Southeast Asia is necessarily more alert to the risks as well as the opportunities of its relationship to China. Proportionally, it has more at stake, and the sense of risk as well as opportunity is all the more vivid to individual states in Southeast Asia.

Southeast Asia's dilemmas in dealing with China can be illustrated by the recent controversy in Vietnam over Chinese investments in bauxite mining and processing. It is certainly a win-win situation. The Chinese company involved, Chinalco, is a major global investor in bauxite mining and alumina processing. Bauxite occurs in limestone areas with poor agricultural prospects. Vietnam has the world's third-largest bauxite reserves, and hopes to attract US$15 billion in investment in this area by 2025. It needs the investment in the current global economic climate, and it also needs to offset its severe balance of payments deficit with China.

But the Vietnamese people have been very concerned about Chinese bauxite development. They are concerned about the ecological effects of mining; about the major stake that a powerful Chinese company would have in central Vietnam; and about losing jobs to imported Chinese workers. They do not want to have the future of a major national resource in the hands of an outside power. Win-win is not enough. Vietnam wants reassurance about its long-term interests because it is dealing with a much larger neighbor.
Similarly, the proposal of two corridors, rail and highway, from Nanning, the capital of the coastal Guangxi autonomous region, bordering Vietnam, to Singapore would undoubtedly benefit Vietnam. The corridors would run most of the length of Vietnam, thereby improving domestic transportation as well as connections to China and to the rest of mainland Southeast Asia. However, given current patterns of trade, far more goods will be coming down the corridors from China than going up from Vietnam, and much of Vietnam's exports would continue to be raw materials and resources.

This is still win-win for China's producers and Vietnam's consumers, but consumers also need to produce, and Vietnam's economy must continue to modernize and become more sophisticated. It is therefore hardly a surprise that on such win-win projects China pushes forward while Vietnam hesitates. A change at the periphery of China's economy could affect the heartland of Vietnam's.

Vietnam is the most sensitive country in Southeast Asia to China, but the entire region is aware that its interests and China's interests are not identical, even if many are compatible. The problem of asymmetric relationships cannot be solved, it can only be managed.

Take for example China's single most successful gesture in its regional relations. In 1997, China held the value of the yuan steady against the dollar while the Southeast Asian currencies were falling. Its neighbors were impressed that China could succeed where they failed, and they were grateful that China prevented a race to the bottom in currency devaluations.

Since August 2008, China has pursued exactly the same policy, but its effects on Southeast Asia are the opposite of a decade earlier. Now the yuan's peg to a declining US dollar is forcing neighbors to compress their currency values in order to maintain market share. China's neighbors wonder how long currency compression will last and what will happen when the yuan finally does revalue. There is little reassurance from China, and no claim that it is helping the neighborhood.

The tension between China and Southeast Asian states over conflicting claims in the South China Sea has become the symbol of the region's collective uneasiness concerning China's commitment to cooperation. The "Declaration on the Conduct of Parties in the South China Sea" signed in 2002 was a watershed event in regional confidence-building, but there has been little further progress.

Moreover, China's expansion of naval facilities on Hainan raises concerns throughout the region regarding China's military transparency and intentions. In fact, however, multilateral cooperation is the only feasible way for any country, China included, to profit from the disputed area. It would be difficult to extract oil at gunpoint, and the costs to China's regional and even global relations would outweigh any possible gains. The only winning path in the South China is one of more serious cooperation and reassurance.

While win-win is the slogan of the day, deeper principles have lain behind China's successes of the past two decades. China's willingness to work with multilateral regional institutions has been a big part of the winning formula. Participation in ASEAN's general relationship with China buffers the exposure of each individual state. This benefits China as well as ASEAN.

Vulnerability causes smaller states to hesitate in asymmetric relationships, while collective agreements reduce individual vulnerability. Within each bilateral relationship, sensitivity to the dilemmas faced by the smaller side even in a win-win situation is essential for continued development.

For example, not only does Vietnam have reason to expand its merchandise market in China, but China has an interest in Vietnam's marketing success. Currently, Vietnam's weak sales to China are a major trade bottleneck; a more balanced relationship would enable trade volume to expand on a solid basis.

Finally and most importantly, China's traditional respect for the sovereignty and autonomy of all states becomes ever more important with the growth of China's relative power. As Sophie Richardson's recent book on China-Cambodia relations demonstrates, the "Five Principles of Peaceful Coexistence" have been an especially important foundation of China's relations with smaller states. [1] The time has come to multilateralize the five principles into a general respect for regional consensus and international agreements and institutions.

In the new era of global economic uncertainty, the risks that smaller countries face are more vivid than their opportunities. The special task faced by regional powers, whether China, or South Africa, or Brazil, or India, or Russia, is to earn regional leadership by reassuring neighbors that their interests and voices will be respected.

Moreover, they need to take the lead in regional projects that address common problems. But to do so effectively they must act in a spirit of multilateral respect. For the past two decades, China has led the cohort of regional powers in developing cooperative relationships with neighbors, and one of the fruits of success is the successful beginning of ACFTA. But it is only a successful beginning, it is not the end of the road.
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Bangkok Post - Opinion: Put scarce funds to good use in rail sector, new towns
Published: 6/01/2010 at 12:00 AM
Newspaper section: News

Burma recently announced that it will purchase 20 MiG-29 aircraft from Russia to add to the dozen its air force already has. Vietnam followed with the announcement that it will be buying a few submarines from the same source, presumably to counter the Chinese threat.

Normally, such announcements would trigger some sort of response from the Thai armed forces. This time, however, there has been no report of any immediate reaction from the Thai air force. The Thai navy, on the other hand, has said it would recommend that the government purchase 3-4 submarines at a cost of some 20 billion baht each, with one billion baht to be spent immediately on an old submarine for training purposes.

The different stances taken by the two branches of the Thai armed forces probably reflect the differences between their chiefs, with one being more deliberate and dovish than the other. Or perhaps, the air force chief knows better that the government is in no position to waste large sums of money on arms purchases while the economy remains in dire straits and the country is already in need of borrowing large sums from abroad.

Whatever the real reasons may be, there is no need for the government to go along with any recommendation for weapons purchases at this time.

Fundamentally, an arms purchase made in response to a similar action undertaken by a neighbouring country is tantamount to participating in an arms race, real or perceived. Such a race is not only futile but also contrary to making Asean a stronger regional bloc.

More importantly, there are much better uses for the scarce funds.

Besides being economically non-productive, such a purchase would be made abroad, which will not be helpful in stimulating the local economy which likely will be in need of further stimulation for a while longer. Furthermore, Thailand needs to make large investments urgently in basic infrastructure, particularly in rail transport and in new towns to relieve the congestion in Bangkok.

Thailand's transport infrastructure compares reasonably well with those of countries in a similar stage of economic development, except in the railway sub-sector. Government after government continues to be under the thumb of various interest groups and as a result has failed to make rail transport an effective component of the transportation sector. It is high time the government made a genuine commitment to address the issue and back it up with necessary funding.

Regarding building new towns, the idea has been discussed for many decades. So far only the Thaksin administration made a serious attempt to do something about it. It was regrettable that with an eye towards enriching the prime minister's relatives and cronies, that government's approach was seriously flawed. As a result, the momentum towards building such new towns has stalled.

Instead of trying to find a better approach, the present government has abandoned the idea altogether and has focused on sinking more funds into building a system of rapid transits, elevated highways and overpasses in and around Bangkok. This approach will be more and more wasteful, for it will not be able to keep up with the growth of the city, which continues to attract more people from other parts of the country, partly by the very investments aimed at alleviating congestion.

With the sea continuing to rise as a result of global warming, more parts of Bangkok will be flooded during storm surges and more expenditure will be needed to alleviate the problem of flooding.

There has been talk of trying to protect the city with a huge storm surge barrier similar to the Maeslantkering in the Netherlands. Construction of such a costly barrier will likely add more waste as its value remains doubtful during a particularly serious surge. All it may do would be to further line the pockets of influential politicians and their cronies.

Building new towns is a more viable alternative - and as it will take quite a while to accomplish, the time to start is now.

Sawai Boonma has worked for more than two decades as a development economist.
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Burmese government staff unhappy despite pay hike
Wednesday, 06 January 2010 21:45
Salai Han Thar San, Kyaw Thein Kha

Mizzima News – Essential and other commodity prices in Burma are rising after the military junta announced an increase in pay of government employees and daily wage earners.

A Ministry of Finance and Revenue staff member said that the monthly salary of all government staff will be increased by a flat Kyat 20,000 (estimated USD 20) each, according to the Ministry’s Notification No. 184/2009 dated 31 December 2009.

The notification says, ‘the salary of government employees is increased for the betterment of the livelihood of the staffs’.

A week after the pay hike announcement, 24 carat pure gold price rose by Kyat 10,000. Yesterday’s price was Kyat 615,000 per tical (approx. 16 gm).

A grocery store owner in Bogale told Mizzima, “Commodity prices rose especially after Independence Day on 4 January. Peanut edible oil price rose to Kyat 3,500 from Kyat 3,200 per viss (approx. 3.6 lbs or 1.64 Kg). Onion price rose to Kyat 750 from Kyat 650 per viss. Other provisions also increased by Kyat 100 to 200”.

Some government staff members are unhappy despite a pay rise as they are worried about rising prices of commodities.

An Insein hospital staff said, “I get just over Kyat 30,000 per month as salary. I cannot cope with the expenses for my family that too without kids at the current prices. I have to find extra sources of income to make both ends meet. I would be content with the current salary if commodity prices came down”.

Daily wage for those working at ministries and government organizations were also increased to Kyat 1,000 per day from Kyat 500 for an 8-hour workday. The new pay structure is only for basic pay and daily wages. The increments of respective pay scales are unchanged.

For military personnel, the procedure and regulation for prescribed pay scale, fringe benefits, pension and gratuity have to be presented to the Defence Council under the Ministry of Defence for final approval.

Government staff members working in foreign missions and on foreign soil have to draw their salary in foreign exchange on old pay scales. They will get the new pay scale only when they are back in Burma.

Ko Moe Zaw, a rice seller in Bogale township in Irrawaddy delta that was hard hit by cyclone Nargis in 2008, said “The price of rice rose this week. The earlier price was Kyat 16,500 per bag (approx. 50 Kgs) of Paw San Hmwe rice and the inferior quality rice was about Kyat 14,000 to 14,500 per bag. The current price of Paw San (good quality rice) is Kyat 18,000 per bag and the inferior quality rice is Kyat 15,000 to 16,500 per bag”.

The salary of government staff members were increased five times since the current military regime assumed power in 1988. Pay increases were made in 1989, 1993, 2000, 2006 and 2010. This is the fifth increase under this military regime.
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Gold Price Rise Blamed on Regime Members' Inflation Fears
By THE IRRAWADDY - Wednesday, January 6, 2010


An apparent rush by members of the Burmese junta and their families to buy gold is being named as the cause of a sudden rise in the price of the precious metal in Burma.

The gold price increase comes as reports circulate that civil servants are to be awarded a salary increase of 20,000 kyat (US$20) a month, and it's felt in some quarters that many junta members are investing in gold as a hedge against inflation.

Trade in gold was slack until Dec. 29, in line with trends on the international market. But at the end of the year and in the early days of 2010 gold shops reported a boom in business.

In that time, the gold price increased from 594,000 kyat ($594) a tical (16.4 grams) to 598,500 kyat ($598.5), peaking on Jan. 5 at 602,100 kyat ($602.1). On Wednesday, the price stood at 599,800 kyat ($599.8).

A Mandalay dealer said buyers were predominantly families of military and police personnel and civil servants.

A Rangoon dealer said one family had bought 3 vis (nearly 5 kilograms) of gold at his shop on Dec. 31.

Dealers close to the deputy chairman of the Myanmar [Burma] Gold Traders Association, Kyaw Myint, said the families of high rank officials knew early on that salaries were to be increased. “They are worried about inflation, so they buy gold in order to invest in the precious metal.”

Traditionally, the Burmese military regime has blamed dealers whenever the gold price increases. Dealers are often ordered to stop trading in order to keep the price stable.
A Mandalay dealer said: “The regime always blame us whenever the price goes high, while the the real cause lies with themselves.”

Sources say that the Myanmar (Burma) Gold Traders Association might call a meeting with gold dealers in Mandalay if the gold price continues to rise.
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Farmers sell livestock to repay loans

Jan 6, 2010 (DVB)–Farmers in central Burma forced to repay loans months in advance of their deadline have reportedly been selling off livestock, following threats of arrest.

The debts stem from fertilizer bought on credit from local authorities in Magwe division. Authorities had reportedly given an eight-month deadline on repayment, but have demanded the money after four months.

The situation has been compounded by last year’s poor crop harvest, with farmers failing to make any significant profit.

Furthermore, the fertilizer was forced on the farmers at an elevated price, one farmer from Myo Thit town in Magwe division said.

“The farmers didn’t want to buy fertilizer [from the authorities] as they were selling it at 20,000 kyat ($US20) per barrel when the market price is 13,000 kyat ($US13),” he said.

He added that the local township chairman had ordered the arrest of seven farmers in Theebin village if they could not pay the money back by 7 January, and that famers were now being forced to sell their cows to repay their debt.

Meanwhile, farmers in Magwe’s Yaynanchaung township said that local authorities were also forcing them to buy fertilizer at inflated prices, despite crops having already been planted.

“[Authorities here] are forcing farmers to buy out-of-date fertilizer after crop planting season,” one farmer said. “They said our lands will no longer be ours if we don’t buy.”

Reporting by Naw Say Phaw
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US senator Webb gives election backing

Jan 6, 2010 (DVB)–US senator Jim Webb, the only senior-level US official to have met Burmese junta chief Than Shwe, has said that he supports the junta’s controversial planned elections, to be held this year.

In a statement released on Monday, Webb, who chairs the US senate’s East Asia and Pacific Affairs subcommittee, said that he “was pleased to learn that the Burmese government is carrying forward its intention to hold national elections in 2010”.

“I will support all appropriate efforts to ensure that the election process is credible and transparent… [and] stand ready to help in all appropriate ways as we work toward the day when the Burmese people can fully rejoin the world community.” he added.

Echoing UN secretary general Ban Ki-moon’s praise for the “support” from the junta of UN goals for the country, Webb said that the UN and other international organizations “could provide valuable election assistance, and thus enhance the integrity of the process”.

The Burmese government is yet to announce a date for elections, which have been mired in controversy. The international community is undecided on whether to support what appears to be a superficial ploy to cement military rule in the country, with the 2008 constitution guaranteeing 25 percent of parliamentary seats to the military even prior to voting.

Despite Webb’s comments, the US state department said on Monday that it had seen no evidence of a willingness by the generals to move towards democratic transition, with the number of political prisoners continuing to rise.

Webb however holds considerable clout on US policy to Burma, and his visit to the pariah state in May triggered a shift towards an emphasis on US engagement with the reclusive generals, following years of sanctions and isolation.

He also met with detained opposition leader Aung San Suu Kyi, although the constitution, coupled with her ongoing house arrest, prohibits her from participating in the elections.

Consequently, her National League for Democracy (NLD) party has not yet announced whether it will compete or not, and has demanded a revision of the constitution prior to polling.

His comments also symbolized a wider shift in rhetoric from both Washington and the UN, which in the past had been accusatory.

Reporting by Francis Wade
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Burma will struggle for attention in 2010
Francis Wade

Jan 6, 2010 (DVB)–The extent of Burma’s “boutique” attraction for the international community will be tested this year as the opposition vies for attention amidst a horde of other, equally controversial, elections.

Joining Burma in polling this year will be a smorgasbord of countries that have hogged the world’s spotlight for the past decade, and which have proved perhaps more thorny for both the UN and the self-professed leading exporter of democracy, the United States. The effect could be that elections in Burma, long the cause célèbre for film stars and First Ladies, but denied any real emphatic action from world leaders, will be submerged by more pressing priorities.

Sudan is due to cast ballots in February this year, while Iraq will follow in March. Both countries present serious concerns for the international community: Khartoum’s electoral timetable is overshadowed by the International Criminal Court (ICC) arrest warrant for President Omar al-Bashir, the first sitting head of state to be indicted by the ICC, while Iraq will require full US attention as calls for Washington to clean up and get out gather in momentum. President Obama, who rode into office on the promise of conjuring stability from the Baghdad rubble, cannot afford a repeat of the US-backed Afghanistan elections last year, which continue to be mired in accusations of corruption.

In three weeks, Sri Lanka will hold its first presidential elections since 2005, with the fallout of the government’s final offensive against the rebel Tamil Tigers in March 2009 still scarring the landscape there. The incumbent, Mahinda Rajapaksa, will contest the elections against former army commander, General Sarath Fonseka, both of whom the UN has said may have violated international criminal law during the Tamil offensive.

The Venezuelan legislative elections in September will be closely monitored by the US for any opportunity to pounce on and weaken the grip of President Chavez, while Ukraine will vote later this month for the first time since 2004, and the subsequent, and now infamous, Orange Revolution that exploded following controversy over the results.

Elsewhere a tide of change may be sweeping across Africa, particularly in the conflict-ravaged Great Lakes, where Rwanda, Burundi and Tanzania will also head to the ballot box. The May elections in Ethiopia will serve as an acid test for Prime Minister Meles Zenawi, whose previous inauguration into office in 2005 was followed by protests in which nearly 200 people were killed.

Thus Burma’s position this year on the priority list is perhaps more tenuous than one might think. It would appear that the ruling junta has picked its election year wisely, comforted by the prospect that the attention that really matters could be focused elsewhere. Moreover, details of the elections have been sufficiently vague so as to render preparation, both by international diplomats and media, not to mention the opposition inside Burma, an exhausting and frustrating task.

It is sobering to contrast the importance of Burma for the two major diplomatic powers, the US and UN, against the multitude of other major political events this year. While the US needs a government in Burma that will block the encroachment of China, this danger is less immediate that the potential fallout of yet another disaster in Iraq, particularly given the fragile platform Obama now stands on. Burma has been labeled a “boutique issue” for the US when weighed against the global ramifications of a nuclear North Korea or Iran, a sweeping anti-US ‘pink’ tide across Latin America, or further fissuring of the Middle East.

Similarly, the UN will forever be haunted by its impotence during the Darfur conflict in Sudan, not to mention the Rwandan genocide, and will need to concentrate its efforts on removing the prospect of continuing bloodshed there. Pressure on the UN to channel energy towards Burma this year will be comparatively weak given the adeptness of the junta, unlike al-Bashir, at hiding much of the continuing atrocities from the world’s eyes.

Ironically, the ongoing international outrage at opposition leader Aung San Suu Kyi’s sentencing last year could be the one beacon of hope for the secretive, pariah state, such is the continued draw and idolatry of the 64-year-old. Any infringement on her catapults Burma onto the world stage, but the words of kindness from world leaders hide a limp reluctance to really intervene, and do little to advance her cause. The inability of the West to really engage and invest in the Burma crisis may speak volumes for any hope of change in the coming elections.

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