02 November 2012
Swiss embassy to open in Yangon
By Cherry Thein | Friday, 02 November 2012
Swiss Ambassador to Myanmar Mr Christoph Burgener. (Photograph Supplied / November 2, 2012)Swiss Ambassador to Myanmar Mr Christoph Burgener. (Photograph Supplied / November 2, 2012)
The first resident Swiss ambassador to Myanmar has pledged to expand humanitarian aid to the country.
Switzerland will formally open its embassy at 11 Kabaung Lane, Pyay Road, Hlaing township on November 3 in the presence of the Swiss Foreign Minister, Didier Burkhalter, during his state visit to Myanmar.
Ambassador Mr Christoph Burgener said at a press conference on October 29 that he was happy and proud to be his countrys first resident ambassador to Myanmar, and promised to expand long-term humanitarian activities.
We want to support the reforms in Myanmar, and to share our experience with the government, political parties and ethnic minority groups, and with the people of Myanmar, he said.
We too have had to work through our differences, developing a complicated system of checks and balances and a strong bottom-up approach to democracy.
We also want to further strengthen our presence in Asia.
He said the political changes in Myanmar had meant that in the past six months, Switzerland has had more visitors from Myanmar than in the past 50 years, including Daw Aung San Suu Kyi.
Mr Thomas Fisler, deputy director of cooperation, said Switzerlands aid program would retain its reputation for quality and community participation. The country has contributed humanitarian assistance to refugees on the Thai-Myanmar border, and helped restore schools after Cyclone Nargis.
Mr Peter Tschumi, deputy head of mission and director of cooperation, said Swiss development assistance would be used to improve health and social access in some of the countrys most vulnerable communities, and would focus on restoring and improving living conditions for the poor and those in conflict-affected areas.
There would also be assistance to promote better agricultural practices and food security, and to enhance livelihoods, he said.
Short- and long-term training would also aim at providing employment and vocational skills.
Ms Corinne Henchoz Pignani, head of economic and political affairs, said Switzerland would seek to expand its economic ties with Myanmar by assisting Swiss companies seeking to invest in Myanmar and Myanmar businesses wishing to operate in Switzerland. It would work closely with the Swiss Asian Chamber of Commerce and the Swiss-Myanmar business network.
She said particular focus would be placed on small- and medium-enterprises.
I do appreciate what President U Thein Sein said on the rights-based approach to economic and social development. Switzerland will favour the same approach, which is beneficial to political reform in Myanmar and sustainable in the long run, she said.
Switzerland is seeking to promote an ethical approach by proposing a regular economic dialogue between two governments, she added.
Ms Claudine Haenni Dale, an adviser to the embassy on peace building and human rights, underlined that the Swiss approach to peace building is long-term engagement with the various actors involved in negotiations.
We are not seeking to take the role of mediators. The various groups and the government are already talking directly with one another. There is no need for third-party direct involvement, she said. But we are ready to assist if asked.
The embassy will also focus on the ratification by Myanmar of major human rights treaties, as well as training on the implementation of human rights and international humanitarian law so that it could help change attitudes and behaviour to make a difference on the ground, she said. http://www.mmtimes.com/index.php/national-news/yangon/2835-swiss-embassy-to-open-in-yangon.html
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Peace talks undermined by Burmese armys offensive
Meeting between KIO and Burmese government on Oct 30, 2012 (Photo: Lachid Kachin)
KIO delegates have arrived back at Maija-yang city after 4-hours long meeting with Burmese governments union level delegates on Oct 30. No comprehensive ceasefire agreement was signed in this meeting. This was the fourth official meeting between Kachin Independence Organization and Burmese government. Three previous official meetings were held at the same venue in Ruili on Nov 2011, Jan 2012, and March 2012.
Sara Kaba Sumlut Gam, head of KIO delegation, repeated KIOs previous demands to honor fundamental principles of Panglong agreement, to solve political problems with political solutions instead of military engagements. He also reminded government delegation of KIOs attempts for political dialogues with successive Burmese government in 1963, 1980-81, and 1993-94.
KIO delegation includes Sara Kaba Sumlut Gam, Tara Kasa Lahpai La, Lt. Col. Ji Nawng, Colonel Hkun Nawng, Colonel Lahpai Zau Raw, Colonel Zau Tawng, Colonel Marip Naw Htoi and Maj. Sing Hkaw . Burmese governments side includes Minister U Aung Min, Minister U Win Tun, Minister U Ohn Myint, Brigadier General Tun Tun Naung, Brigadier General Aung Soe, General Zaw Win, Colonel Than Aung, Colonel Aung Thu, Colonel Kyaw Swa Win, Minister U Lajun Ngan Seng, Minister U Aung Myat, and U Tun Tun Oo.
U Aung Min, head of Burmese governments delegation, promised to begin political dialogue in the next meeting. He proposed the next meeting to be held at either Bhamo or Muse. Sara Kaba Sumlut Gam, however, says that the time and venue for the next meeting have not yet agreed upon.
In previous meetings, KIO delegation repeatedly asked to withdraw government troops from formal KIO-controlled areas and consistently demanded to begin a political dialogue based on Panglong agreement. Kachin leaders said Burmese army need to withdraw newly deployed battalions from lower Burma and Light Infantry Divisions that were established to fight against foreign invasions and now spreading across Kachin State.
There were only 18 Burmese Army battalions deployed in Kachin region when KIO signed a ceasefire agreement with SPDC in 1994, but the number has reached to over 100 battalions in 2012. Burmese Army has dramatically increased its offensive in recent weeks by firing several rounds of heavy artillery shells on KIA and Kachin civilians villages as both sides prepare to meet for peace talks in Ruili. http://kachinlandnews.com/?p=22483
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Wanted drug suspect will hold press conference
Friday, 02 November 2012 10:56 S.H.A.N.
Lt-Col Yishay, Lahu militia leader wanted in Thailand on drug charges has announced that he is planning to hold a press conference some time in the near future, according to a news source calling himself Tachilek 4 News.
The transcription of his interview in Burmese on 31 October was emailed to SHAN yesterday. The source told SHAN he was not allowed to take Yishays photo.
Yishay, 66, reward for whose capture has recently been increased from 1,000,000 baht ($ 32,258) to 2,000,000 baht ($ 64,516) denied he had anything to do with the drug business as accused by Thai officials. Anyone, at any time, can come and investigate, he offered.
He told Tachilek 4 News he owns shares in the company Thit Lwin Moe in Tachilek that is extracting manganese in Mong Koe, north of the city. Besides, I have a 300 acre rubber plantation, he said. I am also raising chicken, cows and buffaloes.
Yishay however didnt say when the press conference will be held. I will answer everything you want to know frankly at that time, he promised nevertheless.
Of three of the Burmese drug suspects on Thailands wanted list, one, Naw Kham was captured on 25 April and is waiting court verdict in China. The other, Nakhan Mwe aka Saw La Bwe, leader of the Kloh Htoo Baw, formerly 5th Brigade of the Democratic Karen Buddhist Army (DKBA), is a signatory to the ceasefire pact with Naypyitaw on 3 November 2011.
Nakhan Mwe had also held a press conference refuting the charges made by the Thai drug enforcement.
Yishay, who holds a Thai ID card under the name Chaiwat Pornsakulpaisarn, is a native of Kengtung. His military rank was attained while serving with the now defunct Mong Tai Army (MTA) led by the late Khun Sa. He had surrendered together with Khun Sa in 1997 and became the leader of the Burma Army run Peoples Militia Force (PMF) of Nampong aka Yebuzan, 50 miles northwest of Tachilek, opposite Maesai.
He has been wanted in Thailand since 2003 when his home in Chiangmais Sansai district was raided by Thai officials on 28 December in the same year.
Thailands reward announcement does not seem to affect his day-to-day activities much, according to a Lahu source. He is devoted to his mother who lives in Kengtung and visits her at least one a month, she said. His car is never searched at checkpoints on the way (Kengtung is 160 km north of Tachilek).
http://www.english.panglong.org/index.php?option=com_content&view=article&id=5045:wanted-drug-suspect-will-hold-press-conference&catid=89:drugs&Itemid=286
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Burma: No solution to end Kachin War under unfair charter
By Zin Linn Nov 02, 2012 12:44AM UTC
Subsequent to President Thein Sein took office, the quasi-civilian government looks as if ignoring its own promises good governance, national reconciliation, poverty alleviation etc. made during the presidential inaugural ceremony. The president needs to stop civil war against ethnic rebels to implement good governance, national reconciliation and poverty alleviation. His government also requires honoring ethnic peoples equal rights and self-determination so as to stop the war.
Burmese government armed forces continued offensive on KIA and Kachin civilians although there was a peace talk between the government and KIOs representatives in Sino-Burma border city Ruili on 30 October 2012.
According to Kachinland News, a severe battle took place between Kachin peoples militia under KIAs mobile battalion and Burma Armys 321st L.I.B at Mali-yang on Friday. The two armed units encountered once more at Ja Pu village and fought another battle on the same day, reported a front line source.
Moreover, another mꬩe occurred in northern Shan State between KIAs 34th Battalion under 4th Brigade and Burma Armys Meiktila-based 99th L.I.D at Mung Lung village located between Mo-gok and Kyawk-me on 30 October.
As said by KIAs 4th Brigade commander Colonel Zau Raw, Burma Army had fired 105 mm mortar shells targeting towards Kachin administrative capital Laiza for at least 14 times while KIO had been preparing for approaching Ruili talk. There were more than 90 battles between the two sides in October alone, referring Colonel Zau Raw Kachinland News reported.
On 30 October, government peace-mission led by Presidents Office Minister Aung Min met with KIO representatives headed by Kachin politician Sumlut Gam in Ruili of Sino-Burma border town.
The nine-member KIO peacemaking team was formed with Sara Kaba Sumlut Gam, Tara Kasa Lahpai La, Lt. Col. Ji Nawng, Colonel Hkun Nawng, Colonel Lahpai Zau Raw, Colonel Zau Tawng, Colonel Marip Naw Htoi and Maj. Sing Hkaw. And government peace-making body was made with 11 delegates, includes Minister U Aung Min, Minister U Win Tun, Minister U Ohn Myint, Brigadier General Tun Tun Naung, Brigadier General Aung Soe, General Zaw Win, Colonel Than Aung, Colonel Aung Thu, Colonel Kyaw Swa Win, Minister U Lajun Ngan Seng, Minister U Aung Myat, and U Tun Tun Oo, Kachinland News said.
President Thein Sein addressed members of government peacemaking team on 3 July 2012. (Photo: http://www.president-office.gov.mm)
According to KIO spokesman La Mai Gum Ja, government and theKIO have already agreed to begin political dialogue in November.
We have agreed to continue political negotiations, KIO spokesman told Mizzima News.
Assuming our central committee agrees to the proposal, we will meet in November at a venue inside Burma, he said. He said the two sides have agreed that the next meeting will be held in either Myitkyina or Bhamo in Kachin State or Muse in Shan State.
It is a puzzle for people of Burma because the peace-process between KIO and the government is easier said than done to reach its goal. The civil war has broken out together with the countrys independence since 1948. The cost of the civil war pulls Burma down into an abysmal canyon of poverty. Besides, the war caused the nation least developed country. Burmas admittance to Least Developed Country status by the UN-OHRLLS in 1987 brought to light its economic bankruptcy.
Under British administration, Burma was the second-wealthiest country in South-East Asia. It had been the worlds largest exporter of rice. Burma also had a wealth of natural and labour resources. It produced 75% of the worlds teak and had a highly literate population. The country was believed to be on the fast track to development, David Steinberg, a distinguished Professor of Asian Studies at Georgetown University, said in one of his research papers.
Under the military dictatorship for decades, Burma becomes known as a natural gas and teak seller and its socioeconomic conditions have gone downhill under the soldiers unprofessional management. The military monopolized economy makes most of the public in poverty, while military leaders and their cronies exploiting the countrys abundant natural resources.
In 2010-11, the state properties, especially real estate, were transferred to relatives of military authorities under the guise of a privatization policy. It became wider gap between the military-backed privileged first-class and the ordinary population.
Although the President expressed his compassion for war-victims in Kachin state during the 24-October press conference with the local press, he never said to address the Kachin issue through political means. The biggest gap is that the President dogmatically accepts only one army in Burma under the 2008 constitution. He also turns a deaf ear to KIOs proposal for political dialogue to end the armed conflicts.
President Thein Seins government used to say that it has been trying to build a peaceful and developed country; on the other hand the momentum of civil war is increasing. So the words of the government are not in harmony with the acts of its activities on the ground.
Even though government and the KIO said that they have agreed to continue the peace negotiations in the near future, it looks impracticable since the talks have been framed by the undemocratic constitution. http://asiancorrespondent.com/91471/burma-no-solution-to-end-kachin-war-under-unfair-charter/
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Abuses, land grabs ongoing in Burma, says NGO
Thursday, 01 November 2012 17:01 Mizzima News
While the political landscape in Burma has undergone noticeable shifts in recent months, human rights violations persist throughout the country, said a Chiang Mai-based rights group in a report on Thursday.
The Network for Human Rights Documentation Burma (ND- Burma) said in its half-yearly report that issues relating to the civil war in ethnic areas, most notably forced labor, the use of child soldiers, torture and ill-treatment remain grave concerns.
Over the period of April-September 2012, ND-Burma said it had documented 114 cases of human rights violations at the hands of the USDP-led government and its supporters, which it said included 27 cases of forced labor, 26 cases of land confiscation and 21 cases of torture.
The report also highlighted the issue of land confiscation and forced relocation by the Burmese government.
Recent events, including the arrests and beatings of farmers protesting the forced relocation of landowners from 66 villages for the Latpadaung copper mine, underline the ongoing human rights violations by the Burmese government, said ND- Burma.
Quoting the Asian Human Rights Commission, the group said that land grabbing is a direct result of the convergence of the military, government agents and business.
It said that the Asian Legal Resource Centre has also noted the trend when it stated: Almost daily, news media carry reports of people being forced out of their houses or losing agricultural land to state-backed projects, sometimes being offered paltry compensation, sometimes nothing.
The 2012 Farmland Law presented an opportunity to address land seizures, ND- Burma said, however, according to the ALRC: Far from reducing the prospects of land-grabbing, the Farmland Law opens the door to confiscation of agricultural land on any pretext associated with a state project or the national interest.
ND- Burma noted that the formation of a Land Investigation Committee by the Burmese government has done little to alleviate concerns.
Ko Phoe Phyu, a lawyer and leading advocate against land-grabbing in Burma, reportedly expressed doubt in an interview with ND-Burma. In the case of the Parliaments [Land Investigation] committee, it cant even decide whether or not the Union Governments actions are in conformity with the law. I think they are trying to find another solution that doesnt reflect the reality.
ND- Burma is an umbrella group of Burma-related NGOs, youth groups and womens groups based in Thailand. Its members include EarthRights International and the Assistance Association for Political Prisoners- Burma, as well as Kachin, Chin, Palaung and Arakan NGOs. http://www.mizzima.com/news/regional/8336-abuses-land-grabs-ongoing-in-burma-says-ngo.html
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Suu Kyi to lead Burmese literary festival
Friday, 02 November 2012 13:58 Mizzima News
Burmese pro-democracy icon Aung San Suu Kyi will be one of several famous authors participating in the first ever English-language literary festival in Burma early next year.
Suu Kyi is also patron of the Irrawaddy Literary Festival, which is scheduled to take place at Rangoons Inya Lake Hotel on February 1- 3, 2013.
I am delighted to lend my support and personal participation to this first Irrawaddy Literary Festival, the Nobel Peace Prize laureate said. Literature has always been a big part of my life and I hope this festival, which brings together some of the finest talent from Burma, the UK and elsewhere will encourage more people to explore the world of literature and further their understanding of the English language.
The festival will feature a book fair, authors readings, puppet shows, workshops and photo exhibitions.
Among the authors who will speak or appear at the event are: Fergal Keane, an award-winning BBC correspondent who chronicled the genocide in Rwanda in the 1990s; Jung Chang, the author of bestselling novel Wild Swans; Delhi-based Scots novelist William Dalrymple; and Belgian photo-journalist Thierry Falise.
http://www.mizzima.com/news/2-news-briefs/8340-suu-kyi-to-lead-burmese-literary-festival.html
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Danish, Norwegian premiers visit Burma
Friday, 02 November 2012 13:55 Mizzima News
The prime ministers of both Denmark and Norway will be in Rangoon this weekend to preside over the opening of a joint diplomatic mission in the former Burmese capital.
Norwegian Premier Jens Stoltenberg and Danish Prime Minister Helle Thorning-Schmidt will preside over a ribbon-cutting ceremony at the new mission on Pyay Road on Sunday at 1 pm. The Burmese government will be represented by ministers Aung Min and Soe Thane.
Ms Thorning-Schmidt is also scheduled to visit Naypyidaw where she will meet with Burmas opposition leader Aung San Suu Kyi.
The Danish prime ministers visit serves to mark that relations between Denmark and Myanmar are reaching new heights, said a statement from the Danish embassy. With democratic, social and economic reform taking root in Myanmar and the EU having suspended sanctions against the country, relations between Denmark and Myanmar now enter a new phase.
The statement said that Denmark in 2012 doubled its assistance to Burma to US $18 million, and plans to increase that amount to $23 million next year.
Norway, which is not a member of the European Union, lifted economic sanctions on Burma earlier this year. The Norwegian government is the architect of a controversial program called the Norwegian Peace Support Initiative which aims at rehabilitating thousands of displaced persons in eastern Burma in the near future. http://www.mizzima.com/news/inside-burma/8338-danish-norwegian-premiers-visit-burma.html
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Silk Road Plans Investments for Myanmar Fund: Southeast Asia
By Klaus Wille - Nov 1, 2012 11:00 PM GMT+0700
Silk Road Management, an investor in frontier markets, will take stakes in three Myanmar projects by year-end, the first private-equity deals in Southeast Asias poorest nation as it emerges from five decades of isolation.
The Myanmar Human Capital Fund closed in September after raising $25 million from family offices and wealthy individuals from Mongolia, Russia and oil-rich countries in the Caspian region, said Alisher Ali, managing partner at Silk Road. The fund will invest in so-called knowledge-driven industries such as the Internet, information technology, education and health care, he said, declining to identify the companies.
Myanmars gross domestic product may easily double within five years, Ali said in an interview by phone from Hong Kong on Oct. 31. And the industries we decided to focus on are going to triple in the same period.
Investors are focusing on Myanmars economic potential after a half-century of neglect left the nation, formerly known as Burma, outside the global financial system. The International Monetary Fund said in September direct foreign investment will rise 40 percent to a record $3.99 billion this year.
The companies Silk Road plans to invest in may need as much as $100 million within three years as they expand, which may require more fundraising, Ali said.
The Ulan Bator, Mongolia-based company also manages the $30 million Mongolia Human Capital Fund, which it said is the first private-equity fund in the country. Mongolias MSE Top 20 Index has risen more than tenfold in the past decade, making it the fifth-best performer among 93 global stock indexes tracked by Bloomberg.
First-Mover Advantage
Investing in Myanmar certainly has a first-mover advantage at this stage, said Vishnu Varathan, a Singapore- based economist at Mizuho Corporate Bank Ltd. There have been credible signs from the government that they want to increase transparency and create a sustainable framework for foreign investment. Having said that, we shouldnt forget that the political and economic situation isnt stable yet.
Myanmar officials are preparing to take control of a financial system largely run on informal cash transactions as companies such as Western Union Co. (WU) and Coca-Cola Co. (KO) announce plans to operate in the country. Foreign-exchange transactions have started to shift from informal markets to banks after a managed float of the currency in April and the easing of restrictions on importers and exporters last month, an official with the countrys central bank said in September.
Irreversible Process
I believe that the government has a strong will to go through its economic and political reforms, said Ali, who has more than 16 years of investment management and banking experience in emerging and frontier markets including Mongolia and Kazakhstan. The process is irreversible.
Myanmar may expand 6.2 percent this year, the IMF said in its October World Economic Outlook. That compares with 5.1 percent in Vietnam, 4.8 percent growth in the Philippines and 6 percent in Indonesia.
Some of the companies will exceed gains in their respective industries, which are already turbocharged, Ali said. The Internet market is expected to post annual growth rates of more than 60 percent in the next three years, based on Silk Roads estimates, while the media and information technology markets could expand 50 percent. Education and health care are expected to increase 30 percent a year, with telecommunications and the financial industries posting faster gains, he said.
Silk Road started Myanmars first property index in October to track real estate prices in Yangon, the nations commercial center. The company owns seven equity indexes in Asia, it said on its website.
Investment Banking
Silk Road Finance, the holding company of Silk Road, started Mandalay Capital, a Myanmar-focused investment banking company. The venture, started earlier this year, will connect investors with Myanmar business and help them with fundraising and advisory, it said. Silk Road Finance is run by Ali.
Still, frontier markets are set to underperform shares in developed nations for a second year. The MSCI Frontier Markets Index (MXFM) has risen 1.2 percent so far this year, lagging behind the 10 percent advance in the MSCI World Index (MXWO) tracking stocks in developed economies.
At present, investing in Myanmar is something to be done by firms with an appetite for risk and those willing to commit in the hope of future returns that might accrue according to any first mover advantage, Sean Turnell, an associate professor who researches Myanmars economy at Macquarie University in Sydney, said in response to an e-mailed query.
Myanmar said authorities seized weapons and made arrests in a bid to halt almost two weeks of clashes between ethnic Rakhine Buddhists and Muslim Rohingya near the Bangladesh border as the death toll increased to 89. At least 5,000 homes were destroyed in the fighting, leaving more than 32,000 people homeless, according to a statement released on President Thein Seins website earlier this week.
IPO Path
Companies Silk Road plans to invest in may go public in two to four years as the Myanmar stock exchange becomes fully functional by 2015, Ali said. Some of the companies could also have their initial public offerings in markets such as Singapore or London, which have exchanges set up for small-cap stocks.
For every single company we are looking at investing, we clearly would like to have an IPO strategy, an IPO path, he said.
Coming Election
Thein Sein has shifted Myanmar toward democracy since he took office last year to end about five decades of direct military rule. He is seeking to create jobs ahead of an election in 2015 that will include former political prisoner Aung San Suu Kyis National League for Democracy party.
Western governments are warming up to Thein Sein. The U.S. in July authorized the first investment in the country in 15 years, and Secretary of State Hillary Clinton, who met with the Myanmar president in New York in September, has announced that lifting the import ban signals the next step in normalizing their commercial ties.
Myamar was ranked 180 of 183 nations in Transparency Internationals 2011 corruption index. Ali also said hes optimistic the industries his fund is targeting arent tainted by corruption.
Those are areas where there is no scope for corruption, he said. Its all about human capital in terms of the expertise. http://www.bloomberg.com/news/2012-11-01/silk-road-plans-investments-for-myanmar-fund-southeast-asia.html
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Asean must take a stand on Myanmar ethnic violence
Editorial Desk
The Nation
Publication Date : 02-11-2012
More than 170 people have died since June as a result of fighting between Buddhists and Rohingya Muslims in Rakhine State in western Myanmar.
The clashes broke out following reports of the rape and murder of a Rakhine Buddhist woman by three Muslims in Kyauk-ni-maw, a village on the western coast. It was the scene of Tuesday's incident, in which police shot dead one protester and injured another as they attempted to chase Muslims from the village. The June clashes resulted in the deaths of about 90 people and displaced 75,000 more. Another 84 people were killed and 28,000 displaced in last week's communal strife, which also witnessed arson attacks on 4,400 houses.
Myanmar is predominantly Buddhist, while the Rohingya people are stateless Muslims who have been living along the Bangladesh border for generations, including in Rakhine State. The Rohingya are the descendants of workers brought into the country from Bangladesh during British colonial rule. About 800,000 Ronhingya live in three northern townships.
The communal violence has been a major embarrassment for the government of President Thein Sein, who came to power in March 2011 and is often billed as a reformer, at the forefront of the country's political and economic transformation. Thein Sein has appealed to the Buddhists for restraint, but so far his plea has fallen on deaf ears.
Satellite images provided by New York-based Human Rights Watch (HRW) show extensive destruction of homes and property in the predominantly Rohingya area of the coastal town of Kyauk Pyu.
Among the destroyed properties are 633 buildings and 178 houseboats and barges, all of which were razed.
The government will have to do more to provide security for the Rohingya. There is no easy way out of this situation. It must look at the root causes if it wants to end the violence.
Myanmar must also show true commitment to peace and humanitarian causes. The UN and other international agencies working in the Rohingya area were evicted by the central government in June. Some have been reinstated, but more work has to be done, and more access must be granted, including to international observers, now that the violence threatens to get out of hand.
The approximately 1 million Rohingya in Myanmar were effectively stripped of their right to citizenship with the passage of the 1982 Citizenship Law, even though most of them have been residents of Rakhine State for decades, according to HRW.
Deploying security forces to restore law and order is not enough. All stakeholders in Myanmar need to come together and work for a permanent solution to Rakhine's ethnic problem. The country's leaders should not rule out international assistance, and should allow this issue to be put on the Asean table.
The violence has driven the Rohingya from their homes, onto the sea and into neighbouring countries. This is not the first time the Rohingya have become a regional issue. Thailand made it an Asean issue a couple of years ago after it was revealed that Thai officials had pushed Rohingya boat people back out to the sea - this despite the fact that they were in need of medical assistance.
Nobody, it seems, wants anything to do with the Rohingya, whose plight is nothing less than horrific. If the members of the 10-country grouping that calls itself Asean can't find it in their hearts to do something about the Rohingya crisis, then all their statements about humanitarianism, empowerment, dignity and so on are not worth the paper they are written on.
No political leaders in Myanmar will gain much capital from supporting the Rohingya or the ongoing violence, according to various analysts. All of us want to see reform succeed in Myanmar, banishing forever its former dictatorial military rule. But this is not an excuse to turn a blind eye to the Rohingya.
HRW Asia director Brad Adams hit the nail on the head when he said: "If the atrocities in Rakhine had happened before the government's reform process started, the international reaction would have been swift and strong. But the international community appears to be blinded by a romantic narrative of sweeping change in Myanmar, signing new trade deals and lifting sanctions even while abuses continue." http://www.asianewsnet.net/home/news.php?id=38424&sec=3
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Published: Friday November 2, 2012 MYT 8:52:00 AM
World Bank earmarks US$245mil for Myanmar
WASHINGTON: The World Bank on Thursday earmarked US$245 million in credit and grant funding for Myanmar under an 18-month work plan, the first lending to the southeast Asian nation in 25 years and another sign the country is opening up after years of military rule.
The interim country strategy, endorsed by the World Bank board at a meeting in Washington, will guide the institution's work in Myanmar, also known as Burma. The bank also approved an $80 million grant for community-driven rural projects.
Pamela Cox, World Bank vice president for East Asia and the Pacific, said another $165 million will be made available to Myanmar once the country has cleared its overdue debt to Bank, whi ch totals roughly $400 million.
Talks on how the $165 million will be allocated will take place in coming months, she said.
"Based on the strategy we are stepping up our support for reforms we want to target to creating opportunities for all the people of Myanmar, especially the poor and vulnerable," Cox told reporters on a conference call.
Meanwhile, a spokesperson for the International Monetary Fund said it will send a mission to Myanmar in early November for talks with Myanmar on a possible staff-monitored program.
The program will not include funding but will help Myanmar's efforts to deal with its debts to the Paris Club of creditors.
After five decades of brutal junta rule, Myanmar has stunned the world with rapid economic and democratic reforms, which has led to an easing of sanctions imposed by the United States and European Union to encourage further reforms.
Myanmar's pariah image has been transformed by the release from house arrest of Aung San Suu Kyi, the 1991 Nobel Peace Prize winner, who in September visited the United States where she received the U.S. Congressional Gold Medal. She has urged the United States to ease sanctions to support Myanmar's reform process.
It is Asia's second-poorest country, but as it opens up its economy, at stake is influence in one of Asia's last frontier markets rich in natural and other resources.
"I am heartened by the reforms that have been taking place in Myanmar and encourage the government to continue to push forward with their efforts," World Bank President Jim Yong Kim said in a statement.
The World Bank's strategy will focus on helping Myanmar improve economic governance and create conditions the country needs for growth and job creation. It will hone in on three main areas: the budget and how public money is spent, regulatory reform to boost transparency, and private sector development.
In addition, the World Bank is involved in analytical studies that include a financial accountability assessment, a public expenditure review and an investment climate evaluation.
Cox said the World Bank's efforts would try to shore up international confidence in Myanmar's reform efforts.
The country is just opening up to the world after nearly 50 years of military rule, with international investors lining up to tap its vast resources. Asian firms, especially from China, Thailand and India, have dominated foreign investment in Myanmar's oil and gas sector, although Chevron and Total also operate there.
"Going forward one of the most important things to do is to establish that there is transparency," Cox said, noting that the government had taken steps to publish its budget earlier this year.
The government has also signed up for the Extractive Industries Transparency Initiative (EITI), an international scheme that helps developing countries better manage their natural resource wealth. - Reuters
http://biz.thestar.com.my/news/story.asp?file=/2012/11/2/business/20121102085245&sec=business
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2 November 2012 Last updated at 02:51 GMT, BBC
World Bank to lend to Burma for first time in 25 years
The World Bank has approved an $80m (50m) grant and pledged lending for Burma, the second poorest country in Asia, for the first time in 25 years.
The money will go to rural communities to build roads, bridges, schools and health clinics, the World Bank said.
It comes after the current government began implementing economic, political and other reforms.
Last month, the US lifted sanctions and restrictions on financial institutions lending to Burma.
"I am heartened by the reforms that have been taking place in Myanmar [Burma] and encourage the government to continue to push forward with their efforts," said World Bank President Jim Yong Kim in a statement.
Another $165m will be made available to Burma once the country has cleared its overdue debt to the bank, said Pamela Cox, World Bank vice-president for East Asia and the Pacific, in a conference call to reporters.
Discussion will continue in coming months on how to allocate those funds.
"We want to target to creating opportunities for all the people of Myanmar, especially the poor and vulnerable," she added.
Reforms have been taking place in Burma since elections in November 2010 saw military rule replaced with a military-backed nominally civilian government led by President Thein Sein.
Under his administration, many political prisoners have been freed and some censorship lifted. The party of freed pro-democracy leader Aung San Suu Kyi has rejoined the political process - after boycotting the 2010 polls - and now has a small presence in parliament.
http://www.bbc.co.uk/news/business-20176841
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World Bank approves new aid for Burma
By AP News Nov 02, 2012 11:23AM UTC
WASHINGTON (AP) Burma is moving at warp speed in opening up after years of authoritarian rule but needs to build institutions to improve transparency and economic governance, the World Bank said Thursday as it approved $80 million in development aid.
Pamela Cox, the banks vice president for East Asia and the Pacific, said the bank has a further $165 million in loan assistance committed for Burma after it clears its $900 million in arrears to the World Bank and Asian Development Bank. Japan is helping that process, expected to be completed by January.
The World Bank is re-engaging with the country also known as Burma after a gap of two decades as its government undertakes economic and political reforms, shifting from five decades of ruinous military rule that left it one of Asias poorest nations.
The bank opened an office in the main city Yangon in August, and its board of directors on Thursday approved a strategy for the next 18 months, providing technical assistance and advice to Burmas government on management of public finances, regulatory reform and private sector development.
This is a government moving at warp speed in terms of opening up, Cox told reporters. She said that in its strategy, the bank was focusing on helping build the public systems needed to foster transparency. She also stressed the need for Burmas people to quickly see the benefits of the reform process.
The current average annual income in Burma is estimated at between $600 and $800, with a quarter of the population living in poverty. Burma ranked third from bottom of 182 nations in the nongovernment group Transparency Internationals corruption perceptions index for 2011. The reformist government of president and former junta member Thein Sein has taken some steps toward openness on economic policy, including the publication of its budget this year, which in the past had been kept under wraps.
Activists remain concerned that as international economic sanctions on aid, trade and investment are eased, the military and its cronies will be first to benefit from the influx of foreign funds.
The bank approved Thursday an $80 million project to provide $25,000 grants to villages in 15 townships across the country, where community councils will identify the kind of help they want, such as roads, bridges, irrigation systems, schools, health clinics or rural markets.
Last month, President Barack Obama lifted the U.S. restriction on international financial institutions like the World Bank lending to Burma after Congress passed legislation enabling that step. It was the latest in a series of steps by Washington to reward the country for its democratic reforms. http://asiancorrespondent.com/91485/world-bank-approves-new-aid-for-burma/
Swiss embassy to open in Yangon
By Cherry Thein | Friday, 02 November 2012
Swiss Ambassador to Myanmar Mr Christoph Burgener. (Photograph Supplied / November 2, 2012)Swiss Ambassador to Myanmar Mr Christoph Burgener. (Photograph Supplied / November 2, 2012)
The first resident Swiss ambassador to Myanmar has pledged to expand humanitarian aid to the country.
Switzerland will formally open its embassy at 11 Kabaung Lane, Pyay Road, Hlaing township on November 3 in the presence of the Swiss Foreign Minister, Didier Burkhalter, during his state visit to Myanmar.
Ambassador Mr Christoph Burgener said at a press conference on October 29 that he was happy and proud to be his countrys first resident ambassador to Myanmar, and promised to expand long-term humanitarian activities.
We want to support the reforms in Myanmar, and to share our experience with the government, political parties and ethnic minority groups, and with the people of Myanmar, he said.
We too have had to work through our differences, developing a complicated system of checks and balances and a strong bottom-up approach to democracy.
We also want to further strengthen our presence in Asia.
He said the political changes in Myanmar had meant that in the past six months, Switzerland has had more visitors from Myanmar than in the past 50 years, including Daw Aung San Suu Kyi.
Mr Thomas Fisler, deputy director of cooperation, said Switzerlands aid program would retain its reputation for quality and community participation. The country has contributed humanitarian assistance to refugees on the Thai-Myanmar border, and helped restore schools after Cyclone Nargis.
Mr Peter Tschumi, deputy head of mission and director of cooperation, said Swiss development assistance would be used to improve health and social access in some of the countrys most vulnerable communities, and would focus on restoring and improving living conditions for the poor and those in conflict-affected areas.
There would also be assistance to promote better agricultural practices and food security, and to enhance livelihoods, he said.
Short- and long-term training would also aim at providing employment and vocational skills.
Ms Corinne Henchoz Pignani, head of economic and political affairs, said Switzerland would seek to expand its economic ties with Myanmar by assisting Swiss companies seeking to invest in Myanmar and Myanmar businesses wishing to operate in Switzerland. It would work closely with the Swiss Asian Chamber of Commerce and the Swiss-Myanmar business network.
She said particular focus would be placed on small- and medium-enterprises.
I do appreciate what President U Thein Sein said on the rights-based approach to economic and social development. Switzerland will favour the same approach, which is beneficial to political reform in Myanmar and sustainable in the long run, she said.
Switzerland is seeking to promote an ethical approach by proposing a regular economic dialogue between two governments, she added.
Ms Claudine Haenni Dale, an adviser to the embassy on peace building and human rights, underlined that the Swiss approach to peace building is long-term engagement with the various actors involved in negotiations.
We are not seeking to take the role of mediators. The various groups and the government are already talking directly with one another. There is no need for third-party direct involvement, she said. But we are ready to assist if asked.
The embassy will also focus on the ratification by Myanmar of major human rights treaties, as well as training on the implementation of human rights and international humanitarian law so that it could help change attitudes and behaviour to make a difference on the ground, she said. http://www.mmtimes.com/index.php/national-news/yangon/2835-swiss-embassy-to-open-in-yangon.html
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Peace talks undermined by Burmese armys offensive
Meeting between KIO and Burmese government on Oct 30, 2012 (Photo: Lachid Kachin)
KIO delegates have arrived back at Maija-yang city after 4-hours long meeting with Burmese governments union level delegates on Oct 30. No comprehensive ceasefire agreement was signed in this meeting. This was the fourth official meeting between Kachin Independence Organization and Burmese government. Three previous official meetings were held at the same venue in Ruili on Nov 2011, Jan 2012, and March 2012.
Sara Kaba Sumlut Gam, head of KIO delegation, repeated KIOs previous demands to honor fundamental principles of Panglong agreement, to solve political problems with political solutions instead of military engagements. He also reminded government delegation of KIOs attempts for political dialogues with successive Burmese government in 1963, 1980-81, and 1993-94.
KIO delegation includes Sara Kaba Sumlut Gam, Tara Kasa Lahpai La, Lt. Col. Ji Nawng, Colonel Hkun Nawng, Colonel Lahpai Zau Raw, Colonel Zau Tawng, Colonel Marip Naw Htoi and Maj. Sing Hkaw . Burmese governments side includes Minister U Aung Min, Minister U Win Tun, Minister U Ohn Myint, Brigadier General Tun Tun Naung, Brigadier General Aung Soe, General Zaw Win, Colonel Than Aung, Colonel Aung Thu, Colonel Kyaw Swa Win, Minister U Lajun Ngan Seng, Minister U Aung Myat, and U Tun Tun Oo.
U Aung Min, head of Burmese governments delegation, promised to begin political dialogue in the next meeting. He proposed the next meeting to be held at either Bhamo or Muse. Sara Kaba Sumlut Gam, however, says that the time and venue for the next meeting have not yet agreed upon.
In previous meetings, KIO delegation repeatedly asked to withdraw government troops from formal KIO-controlled areas and consistently demanded to begin a political dialogue based on Panglong agreement. Kachin leaders said Burmese army need to withdraw newly deployed battalions from lower Burma and Light Infantry Divisions that were established to fight against foreign invasions and now spreading across Kachin State.
There were only 18 Burmese Army battalions deployed in Kachin region when KIO signed a ceasefire agreement with SPDC in 1994, but the number has reached to over 100 battalions in 2012. Burmese Army has dramatically increased its offensive in recent weeks by firing several rounds of heavy artillery shells on KIA and Kachin civilians villages as both sides prepare to meet for peace talks in Ruili. http://kachinlandnews.com/?p=22483
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Wanted drug suspect will hold press conference
Friday, 02 November 2012 10:56 S.H.A.N.
Lt-Col Yishay, Lahu militia leader wanted in Thailand on drug charges has announced that he is planning to hold a press conference some time in the near future, according to a news source calling himself Tachilek 4 News.
The transcription of his interview in Burmese on 31 October was emailed to SHAN yesterday. The source told SHAN he was not allowed to take Yishays photo.
Yishay, 66, reward for whose capture has recently been increased from 1,000,000 baht ($ 32,258) to 2,000,000 baht ($ 64,516) denied he had anything to do with the drug business as accused by Thai officials. Anyone, at any time, can come and investigate, he offered.
He told Tachilek 4 News he owns shares in the company Thit Lwin Moe in Tachilek that is extracting manganese in Mong Koe, north of the city. Besides, I have a 300 acre rubber plantation, he said. I am also raising chicken, cows and buffaloes.
Yishay however didnt say when the press conference will be held. I will answer everything you want to know frankly at that time, he promised nevertheless.
Of three of the Burmese drug suspects on Thailands wanted list, one, Naw Kham was captured on 25 April and is waiting court verdict in China. The other, Nakhan Mwe aka Saw La Bwe, leader of the Kloh Htoo Baw, formerly 5th Brigade of the Democratic Karen Buddhist Army (DKBA), is a signatory to the ceasefire pact with Naypyitaw on 3 November 2011.
Nakhan Mwe had also held a press conference refuting the charges made by the Thai drug enforcement.
Yishay, who holds a Thai ID card under the name Chaiwat Pornsakulpaisarn, is a native of Kengtung. His military rank was attained while serving with the now defunct Mong Tai Army (MTA) led by the late Khun Sa. He had surrendered together with Khun Sa in 1997 and became the leader of the Burma Army run Peoples Militia Force (PMF) of Nampong aka Yebuzan, 50 miles northwest of Tachilek, opposite Maesai.
He has been wanted in Thailand since 2003 when his home in Chiangmais Sansai district was raided by Thai officials on 28 December in the same year.
Thailands reward announcement does not seem to affect his day-to-day activities much, according to a Lahu source. He is devoted to his mother who lives in Kengtung and visits her at least one a month, she said. His car is never searched at checkpoints on the way (Kengtung is 160 km north of Tachilek).
http://www.english.panglong.org/index.php?option=com_content&view=article&id=5045:wanted-drug-suspect-will-hold-press-conference&catid=89:drugs&Itemid=286
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Burma: No solution to end Kachin War under unfair charter
By Zin Linn Nov 02, 2012 12:44AM UTC
Subsequent to President Thein Sein took office, the quasi-civilian government looks as if ignoring its own promises good governance, national reconciliation, poverty alleviation etc. made during the presidential inaugural ceremony. The president needs to stop civil war against ethnic rebels to implement good governance, national reconciliation and poverty alleviation. His government also requires honoring ethnic peoples equal rights and self-determination so as to stop the war.
Burmese government armed forces continued offensive on KIA and Kachin civilians although there was a peace talk between the government and KIOs representatives in Sino-Burma border city Ruili on 30 October 2012.
According to Kachinland News, a severe battle took place between Kachin peoples militia under KIAs mobile battalion and Burma Armys 321st L.I.B at Mali-yang on Friday. The two armed units encountered once more at Ja Pu village and fought another battle on the same day, reported a front line source.
Moreover, another mꬩe occurred in northern Shan State between KIAs 34th Battalion under 4th Brigade and Burma Armys Meiktila-based 99th L.I.D at Mung Lung village located between Mo-gok and Kyawk-me on 30 October.
As said by KIAs 4th Brigade commander Colonel Zau Raw, Burma Army had fired 105 mm mortar shells targeting towards Kachin administrative capital Laiza for at least 14 times while KIO had been preparing for approaching Ruili talk. There were more than 90 battles between the two sides in October alone, referring Colonel Zau Raw Kachinland News reported.
On 30 October, government peace-mission led by Presidents Office Minister Aung Min met with KIO representatives headed by Kachin politician Sumlut Gam in Ruili of Sino-Burma border town.
The nine-member KIO peacemaking team was formed with Sara Kaba Sumlut Gam, Tara Kasa Lahpai La, Lt. Col. Ji Nawng, Colonel Hkun Nawng, Colonel Lahpai Zau Raw, Colonel Zau Tawng, Colonel Marip Naw Htoi and Maj. Sing Hkaw. And government peace-making body was made with 11 delegates, includes Minister U Aung Min, Minister U Win Tun, Minister U Ohn Myint, Brigadier General Tun Tun Naung, Brigadier General Aung Soe, General Zaw Win, Colonel Than Aung, Colonel Aung Thu, Colonel Kyaw Swa Win, Minister U Lajun Ngan Seng, Minister U Aung Myat, and U Tun Tun Oo, Kachinland News said.
President Thein Sein addressed members of government peacemaking team on 3 July 2012. (Photo: http://www.president-office.gov.mm)
According to KIO spokesman La Mai Gum Ja, government and theKIO have already agreed to begin political dialogue in November.
We have agreed to continue political negotiations, KIO spokesman told Mizzima News.
Assuming our central committee agrees to the proposal, we will meet in November at a venue inside Burma, he said. He said the two sides have agreed that the next meeting will be held in either Myitkyina or Bhamo in Kachin State or Muse in Shan State.
It is a puzzle for people of Burma because the peace-process between KIO and the government is easier said than done to reach its goal. The civil war has broken out together with the countrys independence since 1948. The cost of the civil war pulls Burma down into an abysmal canyon of poverty. Besides, the war caused the nation least developed country. Burmas admittance to Least Developed Country status by the UN-OHRLLS in 1987 brought to light its economic bankruptcy.
Under British administration, Burma was the second-wealthiest country in South-East Asia. It had been the worlds largest exporter of rice. Burma also had a wealth of natural and labour resources. It produced 75% of the worlds teak and had a highly literate population. The country was believed to be on the fast track to development, David Steinberg, a distinguished Professor of Asian Studies at Georgetown University, said in one of his research papers.
Under the military dictatorship for decades, Burma becomes known as a natural gas and teak seller and its socioeconomic conditions have gone downhill under the soldiers unprofessional management. The military monopolized economy makes most of the public in poverty, while military leaders and their cronies exploiting the countrys abundant natural resources.
In 2010-11, the state properties, especially real estate, were transferred to relatives of military authorities under the guise of a privatization policy. It became wider gap between the military-backed privileged first-class and the ordinary population.
Although the President expressed his compassion for war-victims in Kachin state during the 24-October press conference with the local press, he never said to address the Kachin issue through political means. The biggest gap is that the President dogmatically accepts only one army in Burma under the 2008 constitution. He also turns a deaf ear to KIOs proposal for political dialogue to end the armed conflicts.
President Thein Seins government used to say that it has been trying to build a peaceful and developed country; on the other hand the momentum of civil war is increasing. So the words of the government are not in harmony with the acts of its activities on the ground.
Even though government and the KIO said that they have agreed to continue the peace negotiations in the near future, it looks impracticable since the talks have been framed by the undemocratic constitution. http://asiancorrespondent.com/91471/burma-no-solution-to-end-kachin-war-under-unfair-charter/
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Abuses, land grabs ongoing in Burma, says NGO
Thursday, 01 November 2012 17:01 Mizzima News
While the political landscape in Burma has undergone noticeable shifts in recent months, human rights violations persist throughout the country, said a Chiang Mai-based rights group in a report on Thursday.
The Network for Human Rights Documentation Burma (ND- Burma) said in its half-yearly report that issues relating to the civil war in ethnic areas, most notably forced labor, the use of child soldiers, torture and ill-treatment remain grave concerns.
Over the period of April-September 2012, ND-Burma said it had documented 114 cases of human rights violations at the hands of the USDP-led government and its supporters, which it said included 27 cases of forced labor, 26 cases of land confiscation and 21 cases of torture.
The report also highlighted the issue of land confiscation and forced relocation by the Burmese government.
Recent events, including the arrests and beatings of farmers protesting the forced relocation of landowners from 66 villages for the Latpadaung copper mine, underline the ongoing human rights violations by the Burmese government, said ND- Burma.
Quoting the Asian Human Rights Commission, the group said that land grabbing is a direct result of the convergence of the military, government agents and business.
It said that the Asian Legal Resource Centre has also noted the trend when it stated: Almost daily, news media carry reports of people being forced out of their houses or losing agricultural land to state-backed projects, sometimes being offered paltry compensation, sometimes nothing.
The 2012 Farmland Law presented an opportunity to address land seizures, ND- Burma said, however, according to the ALRC: Far from reducing the prospects of land-grabbing, the Farmland Law opens the door to confiscation of agricultural land on any pretext associated with a state project or the national interest.
ND- Burma noted that the formation of a Land Investigation Committee by the Burmese government has done little to alleviate concerns.
Ko Phoe Phyu, a lawyer and leading advocate against land-grabbing in Burma, reportedly expressed doubt in an interview with ND-Burma. In the case of the Parliaments [Land Investigation] committee, it cant even decide whether or not the Union Governments actions are in conformity with the law. I think they are trying to find another solution that doesnt reflect the reality.
ND- Burma is an umbrella group of Burma-related NGOs, youth groups and womens groups based in Thailand. Its members include EarthRights International and the Assistance Association for Political Prisoners- Burma, as well as Kachin, Chin, Palaung and Arakan NGOs. http://www.mizzima.com/news/regional/8336-abuses-land-grabs-ongoing-in-burma-says-ngo.html
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Suu Kyi to lead Burmese literary festival
Friday, 02 November 2012 13:58 Mizzima News
Burmese pro-democracy icon Aung San Suu Kyi will be one of several famous authors participating in the first ever English-language literary festival in Burma early next year.
Suu Kyi is also patron of the Irrawaddy Literary Festival, which is scheduled to take place at Rangoons Inya Lake Hotel on February 1- 3, 2013.
I am delighted to lend my support and personal participation to this first Irrawaddy Literary Festival, the Nobel Peace Prize laureate said. Literature has always been a big part of my life and I hope this festival, which brings together some of the finest talent from Burma, the UK and elsewhere will encourage more people to explore the world of literature and further their understanding of the English language.
The festival will feature a book fair, authors readings, puppet shows, workshops and photo exhibitions.
Among the authors who will speak or appear at the event are: Fergal Keane, an award-winning BBC correspondent who chronicled the genocide in Rwanda in the 1990s; Jung Chang, the author of bestselling novel Wild Swans; Delhi-based Scots novelist William Dalrymple; and Belgian photo-journalist Thierry Falise.
http://www.mizzima.com/news/2-news-briefs/8340-suu-kyi-to-lead-burmese-literary-festival.html
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Danish, Norwegian premiers visit Burma
Friday, 02 November 2012 13:55 Mizzima News
The prime ministers of both Denmark and Norway will be in Rangoon this weekend to preside over the opening of a joint diplomatic mission in the former Burmese capital.
Norwegian Premier Jens Stoltenberg and Danish Prime Minister Helle Thorning-Schmidt will preside over a ribbon-cutting ceremony at the new mission on Pyay Road on Sunday at 1 pm. The Burmese government will be represented by ministers Aung Min and Soe Thane.
Ms Thorning-Schmidt is also scheduled to visit Naypyidaw where she will meet with Burmas opposition leader Aung San Suu Kyi.
The Danish prime ministers visit serves to mark that relations between Denmark and Myanmar are reaching new heights, said a statement from the Danish embassy. With democratic, social and economic reform taking root in Myanmar and the EU having suspended sanctions against the country, relations between Denmark and Myanmar now enter a new phase.
The statement said that Denmark in 2012 doubled its assistance to Burma to US $18 million, and plans to increase that amount to $23 million next year.
Norway, which is not a member of the European Union, lifted economic sanctions on Burma earlier this year. The Norwegian government is the architect of a controversial program called the Norwegian Peace Support Initiative which aims at rehabilitating thousands of displaced persons in eastern Burma in the near future. http://www.mizzima.com/news/inside-burma/8338-danish-norwegian-premiers-visit-burma.html
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Silk Road Plans Investments for Myanmar Fund: Southeast Asia
By Klaus Wille - Nov 1, 2012 11:00 PM GMT+0700
Silk Road Management, an investor in frontier markets, will take stakes in three Myanmar projects by year-end, the first private-equity deals in Southeast Asias poorest nation as it emerges from five decades of isolation.
The Myanmar Human Capital Fund closed in September after raising $25 million from family offices and wealthy individuals from Mongolia, Russia and oil-rich countries in the Caspian region, said Alisher Ali, managing partner at Silk Road. The fund will invest in so-called knowledge-driven industries such as the Internet, information technology, education and health care, he said, declining to identify the companies.
Myanmars gross domestic product may easily double within five years, Ali said in an interview by phone from Hong Kong on Oct. 31. And the industries we decided to focus on are going to triple in the same period.
Investors are focusing on Myanmars economic potential after a half-century of neglect left the nation, formerly known as Burma, outside the global financial system. The International Monetary Fund said in September direct foreign investment will rise 40 percent to a record $3.99 billion this year.
The companies Silk Road plans to invest in may need as much as $100 million within three years as they expand, which may require more fundraising, Ali said.
The Ulan Bator, Mongolia-based company also manages the $30 million Mongolia Human Capital Fund, which it said is the first private-equity fund in the country. Mongolias MSE Top 20 Index has risen more than tenfold in the past decade, making it the fifth-best performer among 93 global stock indexes tracked by Bloomberg.
First-Mover Advantage
Investing in Myanmar certainly has a first-mover advantage at this stage, said Vishnu Varathan, a Singapore- based economist at Mizuho Corporate Bank Ltd. There have been credible signs from the government that they want to increase transparency and create a sustainable framework for foreign investment. Having said that, we shouldnt forget that the political and economic situation isnt stable yet.
Myanmar officials are preparing to take control of a financial system largely run on informal cash transactions as companies such as Western Union Co. (WU) and Coca-Cola Co. (KO) announce plans to operate in the country. Foreign-exchange transactions have started to shift from informal markets to banks after a managed float of the currency in April and the easing of restrictions on importers and exporters last month, an official with the countrys central bank said in September.
Irreversible Process
I believe that the government has a strong will to go through its economic and political reforms, said Ali, who has more than 16 years of investment management and banking experience in emerging and frontier markets including Mongolia and Kazakhstan. The process is irreversible.
Myanmar may expand 6.2 percent this year, the IMF said in its October World Economic Outlook. That compares with 5.1 percent in Vietnam, 4.8 percent growth in the Philippines and 6 percent in Indonesia.
Some of the companies will exceed gains in their respective industries, which are already turbocharged, Ali said. The Internet market is expected to post annual growth rates of more than 60 percent in the next three years, based on Silk Roads estimates, while the media and information technology markets could expand 50 percent. Education and health care are expected to increase 30 percent a year, with telecommunications and the financial industries posting faster gains, he said.
Silk Road started Myanmars first property index in October to track real estate prices in Yangon, the nations commercial center. The company owns seven equity indexes in Asia, it said on its website.
Investment Banking
Silk Road Finance, the holding company of Silk Road, started Mandalay Capital, a Myanmar-focused investment banking company. The venture, started earlier this year, will connect investors with Myanmar business and help them with fundraising and advisory, it said. Silk Road Finance is run by Ali.
Still, frontier markets are set to underperform shares in developed nations for a second year. The MSCI Frontier Markets Index (MXFM) has risen 1.2 percent so far this year, lagging behind the 10 percent advance in the MSCI World Index (MXWO) tracking stocks in developed economies.
At present, investing in Myanmar is something to be done by firms with an appetite for risk and those willing to commit in the hope of future returns that might accrue according to any first mover advantage, Sean Turnell, an associate professor who researches Myanmars economy at Macquarie University in Sydney, said in response to an e-mailed query.
Myanmar said authorities seized weapons and made arrests in a bid to halt almost two weeks of clashes between ethnic Rakhine Buddhists and Muslim Rohingya near the Bangladesh border as the death toll increased to 89. At least 5,000 homes were destroyed in the fighting, leaving more than 32,000 people homeless, according to a statement released on President Thein Seins website earlier this week.
IPO Path
Companies Silk Road plans to invest in may go public in two to four years as the Myanmar stock exchange becomes fully functional by 2015, Ali said. Some of the companies could also have their initial public offerings in markets such as Singapore or London, which have exchanges set up for small-cap stocks.
For every single company we are looking at investing, we clearly would like to have an IPO strategy, an IPO path, he said.
Coming Election
Thein Sein has shifted Myanmar toward democracy since he took office last year to end about five decades of direct military rule. He is seeking to create jobs ahead of an election in 2015 that will include former political prisoner Aung San Suu Kyis National League for Democracy party.
Western governments are warming up to Thein Sein. The U.S. in July authorized the first investment in the country in 15 years, and Secretary of State Hillary Clinton, who met with the Myanmar president in New York in September, has announced that lifting the import ban signals the next step in normalizing their commercial ties.
Myamar was ranked 180 of 183 nations in Transparency Internationals 2011 corruption index. Ali also said hes optimistic the industries his fund is targeting arent tainted by corruption.
Those are areas where there is no scope for corruption, he said. Its all about human capital in terms of the expertise. http://www.bloomberg.com/news/2012-11-01/silk-road-plans-investments-for-myanmar-fund-southeast-asia.html
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Asean must take a stand on Myanmar ethnic violence
Editorial Desk
The Nation
Publication Date : 02-11-2012
More than 170 people have died since June as a result of fighting between Buddhists and Rohingya Muslims in Rakhine State in western Myanmar.
The clashes broke out following reports of the rape and murder of a Rakhine Buddhist woman by three Muslims in Kyauk-ni-maw, a village on the western coast. It was the scene of Tuesday's incident, in which police shot dead one protester and injured another as they attempted to chase Muslims from the village. The June clashes resulted in the deaths of about 90 people and displaced 75,000 more. Another 84 people were killed and 28,000 displaced in last week's communal strife, which also witnessed arson attacks on 4,400 houses.
Myanmar is predominantly Buddhist, while the Rohingya people are stateless Muslims who have been living along the Bangladesh border for generations, including in Rakhine State. The Rohingya are the descendants of workers brought into the country from Bangladesh during British colonial rule. About 800,000 Ronhingya live in three northern townships.
The communal violence has been a major embarrassment for the government of President Thein Sein, who came to power in March 2011 and is often billed as a reformer, at the forefront of the country's political and economic transformation. Thein Sein has appealed to the Buddhists for restraint, but so far his plea has fallen on deaf ears.
Satellite images provided by New York-based Human Rights Watch (HRW) show extensive destruction of homes and property in the predominantly Rohingya area of the coastal town of Kyauk Pyu.
Among the destroyed properties are 633 buildings and 178 houseboats and barges, all of which were razed.
The government will have to do more to provide security for the Rohingya. There is no easy way out of this situation. It must look at the root causes if it wants to end the violence.
Myanmar must also show true commitment to peace and humanitarian causes. The UN and other international agencies working in the Rohingya area were evicted by the central government in June. Some have been reinstated, but more work has to be done, and more access must be granted, including to international observers, now that the violence threatens to get out of hand.
The approximately 1 million Rohingya in Myanmar were effectively stripped of their right to citizenship with the passage of the 1982 Citizenship Law, even though most of them have been residents of Rakhine State for decades, according to HRW.
Deploying security forces to restore law and order is not enough. All stakeholders in Myanmar need to come together and work for a permanent solution to Rakhine's ethnic problem. The country's leaders should not rule out international assistance, and should allow this issue to be put on the Asean table.
The violence has driven the Rohingya from their homes, onto the sea and into neighbouring countries. This is not the first time the Rohingya have become a regional issue. Thailand made it an Asean issue a couple of years ago after it was revealed that Thai officials had pushed Rohingya boat people back out to the sea - this despite the fact that they were in need of medical assistance.
Nobody, it seems, wants anything to do with the Rohingya, whose plight is nothing less than horrific. If the members of the 10-country grouping that calls itself Asean can't find it in their hearts to do something about the Rohingya crisis, then all their statements about humanitarianism, empowerment, dignity and so on are not worth the paper they are written on.
No political leaders in Myanmar will gain much capital from supporting the Rohingya or the ongoing violence, according to various analysts. All of us want to see reform succeed in Myanmar, banishing forever its former dictatorial military rule. But this is not an excuse to turn a blind eye to the Rohingya.
HRW Asia director Brad Adams hit the nail on the head when he said: "If the atrocities in Rakhine had happened before the government's reform process started, the international reaction would have been swift and strong. But the international community appears to be blinded by a romantic narrative of sweeping change in Myanmar, signing new trade deals and lifting sanctions even while abuses continue." http://www.asianewsnet.net/home/news.php?id=38424&sec=3
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Published: Friday November 2, 2012 MYT 8:52:00 AM
World Bank earmarks US$245mil for Myanmar
WASHINGTON: The World Bank on Thursday earmarked US$245 million in credit and grant funding for Myanmar under an 18-month work plan, the first lending to the southeast Asian nation in 25 years and another sign the country is opening up after years of military rule.
The interim country strategy, endorsed by the World Bank board at a meeting in Washington, will guide the institution's work in Myanmar, also known as Burma. The bank also approved an $80 million grant for community-driven rural projects.
Pamela Cox, World Bank vice president for East Asia and the Pacific, said another $165 million will be made available to Myanmar once the country has cleared its overdue debt to Bank, whi ch totals roughly $400 million.
Talks on how the $165 million will be allocated will take place in coming months, she said.
"Based on the strategy we are stepping up our support for reforms we want to target to creating opportunities for all the people of Myanmar, especially the poor and vulnerable," Cox told reporters on a conference call.
Meanwhile, a spokesperson for the International Monetary Fund said it will send a mission to Myanmar in early November for talks with Myanmar on a possible staff-monitored program.
The program will not include funding but will help Myanmar's efforts to deal with its debts to the Paris Club of creditors.
After five decades of brutal junta rule, Myanmar has stunned the world with rapid economic and democratic reforms, which has led to an easing of sanctions imposed by the United States and European Union to encourage further reforms.
Myanmar's pariah image has been transformed by the release from house arrest of Aung San Suu Kyi, the 1991 Nobel Peace Prize winner, who in September visited the United States where she received the U.S. Congressional Gold Medal. She has urged the United States to ease sanctions to support Myanmar's reform process.
It is Asia's second-poorest country, but as it opens up its economy, at stake is influence in one of Asia's last frontier markets rich in natural and other resources.
"I am heartened by the reforms that have been taking place in Myanmar and encourage the government to continue to push forward with their efforts," World Bank President Jim Yong Kim said in a statement.
The World Bank's strategy will focus on helping Myanmar improve economic governance and create conditions the country needs for growth and job creation. It will hone in on three main areas: the budget and how public money is spent, regulatory reform to boost transparency, and private sector development.
In addition, the World Bank is involved in analytical studies that include a financial accountability assessment, a public expenditure review and an investment climate evaluation.
Cox said the World Bank's efforts would try to shore up international confidence in Myanmar's reform efforts.
The country is just opening up to the world after nearly 50 years of military rule, with international investors lining up to tap its vast resources. Asian firms, especially from China, Thailand and India, have dominated foreign investment in Myanmar's oil and gas sector, although Chevron and Total also operate there.
"Going forward one of the most important things to do is to establish that there is transparency," Cox said, noting that the government had taken steps to publish its budget earlier this year.
The government has also signed up for the Extractive Industries Transparency Initiative (EITI), an international scheme that helps developing countries better manage their natural resource wealth. - Reuters
http://biz.thestar.com.my/news/story.asp?file=/2012/11/2/business/20121102085245&sec=business
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2 November 2012 Last updated at 02:51 GMT, BBC
World Bank to lend to Burma for first time in 25 years
The World Bank has approved an $80m (50m) grant and pledged lending for Burma, the second poorest country in Asia, for the first time in 25 years.
The money will go to rural communities to build roads, bridges, schools and health clinics, the World Bank said.
It comes after the current government began implementing economic, political and other reforms.
Last month, the US lifted sanctions and restrictions on financial institutions lending to Burma.
"I am heartened by the reforms that have been taking place in Myanmar [Burma] and encourage the government to continue to push forward with their efforts," said World Bank President Jim Yong Kim in a statement.
Another $165m will be made available to Burma once the country has cleared its overdue debt to the bank, said Pamela Cox, World Bank vice-president for East Asia and the Pacific, in a conference call to reporters.
Discussion will continue in coming months on how to allocate those funds.
"We want to target to creating opportunities for all the people of Myanmar, especially the poor and vulnerable," she added.
Reforms have been taking place in Burma since elections in November 2010 saw military rule replaced with a military-backed nominally civilian government led by President Thein Sein.
Under his administration, many political prisoners have been freed and some censorship lifted. The party of freed pro-democracy leader Aung San Suu Kyi has rejoined the political process - after boycotting the 2010 polls - and now has a small presence in parliament.
http://www.bbc.co.uk/news/business-20176841
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World Bank approves new aid for Burma
By AP News Nov 02, 2012 11:23AM UTC
WASHINGTON (AP) Burma is moving at warp speed in opening up after years of authoritarian rule but needs to build institutions to improve transparency and economic governance, the World Bank said Thursday as it approved $80 million in development aid.
Pamela Cox, the banks vice president for East Asia and the Pacific, said the bank has a further $165 million in loan assistance committed for Burma after it clears its $900 million in arrears to the World Bank and Asian Development Bank. Japan is helping that process, expected to be completed by January.
The World Bank is re-engaging with the country also known as Burma after a gap of two decades as its government undertakes economic and political reforms, shifting from five decades of ruinous military rule that left it one of Asias poorest nations.
The bank opened an office in the main city Yangon in August, and its board of directors on Thursday approved a strategy for the next 18 months, providing technical assistance and advice to Burmas government on management of public finances, regulatory reform and private sector development.
This is a government moving at warp speed in terms of opening up, Cox told reporters. She said that in its strategy, the bank was focusing on helping build the public systems needed to foster transparency. She also stressed the need for Burmas people to quickly see the benefits of the reform process.
The current average annual income in Burma is estimated at between $600 and $800, with a quarter of the population living in poverty. Burma ranked third from bottom of 182 nations in the nongovernment group Transparency Internationals corruption perceptions index for 2011. The reformist government of president and former junta member Thein Sein has taken some steps toward openness on economic policy, including the publication of its budget this year, which in the past had been kept under wraps.
Activists remain concerned that as international economic sanctions on aid, trade and investment are eased, the military and its cronies will be first to benefit from the influx of foreign funds.
The bank approved Thursday an $80 million project to provide $25,000 grants to villages in 15 townships across the country, where community councils will identify the kind of help they want, such as roads, bridges, irrigation systems, schools, health clinics or rural markets.
Last month, President Barack Obama lifted the U.S. restriction on international financial institutions like the World Bank lending to Burma after Congress passed legislation enabling that step. It was the latest in a series of steps by Washington to reward the country for its democratic reforms. http://asiancorrespondent.com/91485/world-bank-approves-new-aid-for-burma/
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