Burma Country Brief - May 2009
Introduction/overview
Australia has diplomatic relations with Burma/Myanmar. The Australian Government maintains an embassy in the former capital and commercial centre of Rangoon (the capital is Nay Pyi Taw). Burma maintains an embassy in Canberra.
Australia's relations with Burma have been overshadowed and constrained by the actions of Burma's military regime. Australia has grave concerns about the Burmese regime's suppression of the democratic aspirations of the Burmese people and its disrespect for their human rights. Australia's Ambassador to Burma raises these issues regularly with Burmese ministers and officials, as does the Australian Government with the Burmese Embassy in Canberra.
Nomenclature (Burma/Myanmar)
In 1989, the Burmese regime changed the official name of the country in English from Burma to Myanmar (in full, The Union of Myanmar). A number of Burmese opposition political parties and groups do not recognise the change and continue to refer to the country in English as Burma.
Myanmar is used by international organisations of which it is a member, such as the United Nations (UN), the Association of South-East Asian Nations (ASEAN) and the World Trade Organization (WTO). Practice by countries varies.
The Australian Government refers to the country as Burma. The Australian Government uses Myanmar when communicating directly with Burmese officials and in multilateral contexts, as appropriate.
Sanctions
Following the regime's crackdown on peaceful protests in September 2007, on 24 October 2007 Australia implemented bilateral financial sanctions under the Banking (Foreign Exchange) Regulations 1959 targeted against members of the Burmese regime and their associates and supporters. Under these sanctions, transactions involving the transfer of funds or payments to, by the order of, or on behalf of specified Burmese regime figures and supporters are prohibited without the specific approval of the Reserve Bank of Australia. To keep these sanctions current and focused for maximum effect, the Government revised the list of sanctioned individuals on 22 October 2008.
A full list of individuals subject to Australia's financial sanctions is available at the Reserve Bank of Australia's website.
Australia also maintains targeted travel restrictions against senior regime figures, their associates and supporters.
Australia has a longstanding ban on defence exports to Burma.
Australia does not impose sanctions against trade or investment with Burma.
Australia's response to the political situation in Burma and human rights abuses
Australians viewed with grave concern the Burmese regime's violent crackdown on democracy protestors in late September 2007 and subsequent repressive actions, including large scale detentions and other acts of intimidation. Australia has urged the Burmese regime to respect the legitimate right of Burmese citizens to peaceful protest and repeatedly called for the regime to respect the human rights of its people and to start a process of genuine political reform and national reconciliation.
At the UN Human Rights Council in Geneva, Australia has consistently supported firm resolutions on human rights in Burma, most recently co-sponsoring a resolution at the Council's March 2009 session. In November 2008, Australia co-sponsored a resolution on human rights in Burma in the Third Committee of the United Nations General Assembly.
Australia supports the efforts of the Human Rights Council's Special Rapporteur on the Human Rights Situation in Burma, Tomas Ojea Quintana. Mr Quintana has visited Burma twice since his appointment in 2008, and reported to the UN General Assembly and the Human Rights Council on his findings.
Forced labour practices in Burma have been a longstanding and serious concern. The International Labour Organization (ILO) has called on Burma to eliminate the practice of forced labour for over 40 years. A mechanism to investigate complaints of forced labour in Burma was finally agreed between the ILO and the regime in February 2007 and has been extended until February 2010. In March 2009, Australia and New Zealand delivered a joint statement at the 304th session of the ILO Governing Body expressing our concern at ongoing forced labour practices and urging the Burmese regime to improve its cooperation with the ILO in support of the mechanism to investigate complaints of forced labour in Burma.
The Australian Government has frequently made bilateral representations to Burma on Australia's concerns about human rights practices. Australia's Minister for Foreign Affairs, Mr Stephen Smith, expressed Australia's concerns to the Burmese Minister for Foreign Affairs, U Nyan Win, in July 2008. The Australian Embassy makes frequent representations to Burmese authorities.
Humanitarian Assistance
The Australian Government provides humanitarian assistance to the Burmese people. This assistance targets women and children, ethnic minorities, and displaced persons and refugees on the Thailand-Burma and Bangladesh-Burma borders. The focus of this long-standing aid, delivered through UN agencies and local, international and Australian non-government organisations (NGOs), is at the community level - in basic health, giving people livelihoods, and protecting the most vulnerable. Australia's regular program of humanitarian assistance in 2008-09 is estimated at $16 million. For more information see the AusAID website on Burma.
In 2009 Australia increased its assistance to Burma's Rohingya minority in Rakhine State. Australia has also increased its assistance through the UN High Commissioner for Refugees for displaced Rohingya in Bangladesh and South-East Asia. Australia's total contribution to the Rohingya people in 2008-09 is estimated at $8 million.
The Australian Centre for International Agricultural Research (ACIAR) conducts a small program in Burma focused on increasing food security and farmer livelihoods through enhanced legume cultivation.
Cyclone Nargis struck Burma on 2-3 May 2008 causing massive destruction. The Irrawaddy Delta south-west of Rangoon was worst hit and Rangoon was also affected. The United Nations estimated the death toll at over 140,000, with a further 2.4 million people severely affected by the cyclone (by losing their homes, or livelihoods, or access to clean water, food, medicine and other basic services).
Initially the Burmese regime limited access to the country, and especially to the Irrawaddy Delta, for international relief agencies. The Australian Government made repeated representations to the Burmese regime to improve this access. On 25 May 2008, Burma, the Association of South-East Asian Nations (ASEAN) and the UN co-hosted an International Pledging Conference in Rangoon. Australia was represented by the Parliamentary Secretary for International Development Assistance, Mr Bob McMullan. Access for international relief agencies began to improve from this point. ASEAN, the UN and Burma formed the Tripartite Core Group to coordinate international disaster assistance. Australia welcomed ASEAN's and Burma's decision in February 2009 to extend the mandate of the Tripartite Core Group to June 2010.
The Australian Government is providing $55 million in humanitarian assistance to the people of Burma following Cyclone Nargis. Most of this contribution is being delivered through UN relief agencies, as part of the UN Humanitarian Appeal. Australian assistance is also being delivered through international non-government organisations (NGOs). The Government is doing everything possible to ensure that this aid reaches those most in need by delivering assistance through credible relief agencies working on the ground in Burma.
Regional assistance and law enforcement cooperation
Australia has a regional program of assistance to the Association of South-East Asian Nations (ASEAN), of which Burma is a member. Australia's regional program has provided assistance to address significant trans-boundary development issues such as HIV/AIDS, people trafficking, illicit drugs and transnational crime.
To protect Australia's interests against transnational crime, the Australian Federal Police has a limited program of cooperation with the Burmese police focused on counter-narcotics, as well as countering child-sex tourism and trafficking in persons. Burma is the second biggest source of heroin globally and is a significant producer of amphetamine-type stimulants.
Trade
The Australian Government's policy is neither to encourage nor to discourage trade and investment with Burma.
Australia's trade with Burma is relatively low. In 2008, Australian merchandise imports from Burma totalled $21.1 million. For the same period, Australian merchandise exports to Burma amounted to $32.1 million. The majority of two-way trade was in wheat and seafood products.
Summary of political developments
Burma gained its independence from Great Britain in 1948. Burma has been ruled by the military since a 1962 coup d'etat led by General Ne Win.
In August 1988, a series of student-led protests grew into mass demonstrations against the military government. Security forces opened fire on demonstrators, and by October 1988 around 3,000 protesters had been killed. In September 1988 a faction within the military conducted another coup d'etat against the existing military regime, bringing the State Law and Order Restoration Council (SLORC) to power.
The SLORC agreed to hold an election in May 1990. The National League for Democracy (NLD) won almost 60 per cent of valid votes and 80 per cent of the seats, despite the arrest and detention of the NLD's General Secretary, Aung San Suu Kyi, in 1989 while campaigning. After the election the SLORC imposed martial law and refused to validate the election result. The regime detained members of the NLD and other perceived political opponents. It prevented the National Assembly from convening.
In 1992, Senior General Than Shwe became Chairman of the SLORC. In 1997, the SLORC was dissolved and replaced by the State Peace and Development Council (SPDC), though the senior leadership remained largely unchanged.
In 1992, the regime began the National Convention process to draft a new constitution. Some representatives elected in 1990 and representatives of minority ethnic groups participated, as well as delegates picked by the regime. In July 1995 Aung San Suu Kyi was released and some political activity by the NLD was permitted. But in 1996 the NLD withdrew from the National Convention, claiming its views were being ignored and proceedings were undemocratic. The convention process stalled. Aung San Suu Kyi and other NLD members were again variously detained, held under house arrest, or imprisoned. Aung San Suu Kyi, released from house arrest in 2002, was detained again in 2003 after a convoy she was travelling in was violently attacked by regime-aligned groups near Depayin in northern Burma.
In 2003, Prime Minister Khin Nyunt outlined a ‘Roadmap to Democracy' involving seven stages. These were: the convening of the National Convention; taking the necessary steps to establish a democracy after the National Convention is concluded; the drafting of a constitution based on the principles laid down by the National Convention; a national referendum to approve the redrafted constitution; holding free and fair elections for a Parliament; convening of Parliament; and the building of a modern, developed and democratic nation by leaders elected by the Parliament.
The National Convention was reconvened in 2004 with delegates hand-picked by the regime. A number of political parties, including the NLD and parties representing some ethnic minorities, boycotted the convention. Later in 2004, Khin Nyunt was sacked as Prime Minister and chief of military intelligence and convicted on bribery and corruption charges. From 2004 to 2007 five sessions of the Convention were held and the regime closed the Convention on 4 September 2007. The regime announced that detailed principles were in place for a new charter and appointed a committee to work on drafting a new constitution.
In 2005 the regime moved the capital from Rangoon to an area near Pyinmana since renamed Nay Pyi Taw.
Protests in September 2007
On 21 August 2007 the regime arrested organisers of a peaceful public protest against a sudden hike in fuel prices. Buddhist monks led further protests against the fuel price hikes and deteriorating standards of living throughout the country. By September these had evolved into mass protests in Rangoon and some other cities, and the concerns raised by protesters broadened into a wider criticism of the regime.
On 27 September, the military regime violently suppressed the protests. At least 30 people were killed on that day, and at least a further 70 died in detention in the days following. Over several weeks the regime followed up with beatings and raids on monasteries. Thousands were arrested, and while most were soon released, some have joined an estimated 2,000 long-term political prisoners. In November 2008, the regime handed down harsh prison sentences to over 200 individuals for political crimes. In February 2009, 29 political prisoners were released as part of a wider prisoner amnesty.
The Roadmap to Democracy and the constitutional referendum
In February 2008 the regime announced that it would hold a constitutional referendum in May 2008 and elections in 2010. The text of the proposed constitution, based on the National Convention process, was released in April 2008.
The referendum was held on 10 May 2008 (postponed in Rangoon and the Irrawaddy Delta until 24 May because of the impact of Cyclone Nargis). Criticism of the referendum or the text of the constitution was illegal in the lead-up to the vote. Regime-affiliated groups conducted a campaign of violence and intimidation against those advocating a ‘no' vote. There was no independent scrutiny of the counting process. In late May the regime announced that 92 per cent of eligible voters had approved the constitution.
The Burmese regime has yet to announce a date for the 2010 elections.
International processes on Burma's political situation
Under a mandate from the United Nations General Assembly, the Secretary-General is charged with using his good offices to pursue discussions on human rights and the restoration of democracy with the government and the people of Burma. The Secretary-General has appointed a Special Envoy, Mr Ibrahim Gambari, to carry out this role. The Australian Government supports the Secretary-General's good offices role on Burma. Australia participates, along with 13 other countries, in the UN Secretary-General's Group of Friends on Burma, which meets in New York.
Mr Gambari has visited Burma on seven occasions since his appointment in 2006. His most recent visit was in February 2009.
The Secretary-General, Ban Ki-moon, visited Burma in May 2008 and met regime leader Senior General Than Shwe. Their discussion at that meeting was limited to relief efforts following Cyclone Nargis.
Economic overview
Burma is one of the poorest countries in Asia. The outlook for the Burmese economy remains bleak, despite the country's rich endowment of agricultural, mining and forestry resources. Seventy per cent of the population are subsistence level farmers, while conditions for most of Burma's city dwellers remain dire. The strong popular reaction to the increase in fuel prices announced by the regime in August 2007 which led to subsequent mass protests reflected the hardship being experienced by many Burmese.
Although its financial system is not well developed or integrated with international systems, the global financial crisis is likely to affect Burma through reduced demand for exports (particularly oil and gas - see below) and a decline in remittances from migrant workers. The Burmese regime has not announced any response to the global financial crisis.
Burma's economic policy continues to focus on central planning and import substitution. Government spending priorities are skewed towards the military and large-scale infrastructure to the detriment of provision of basic services such as health and education. The size of the black economy in Burma limits the ability of the government to raise tax revenues, and tax evasion is widespread. Exchange rate management is poor, with the official exchange rate of the kyat grossly overvalued. Burma's official statistics are unreliable.
Lack of progress towards political reform, poor economic performance, unclear economic policies and international sanctions and consumer boycotts have limited foreign investment in Burma. The country is regarded as a high risk destination. Corruption is a major concern. The World Bank and the Asian Development Bank do not have lending programs in Burma, in part because of its arrears on previous loans.
Natural gas has been one of Burma's largest sources of export revenue, accounting for about 30 per cent of total exports. Otherwise the economy has been weak. Severe power shortages and a fall in the importation of necessary production inputs also restrict domestic economic activity.
Published estimates of Burma's foreign trade are unreliable due to the size of the black market and border trade.
Updated 05 May 2009