Stephan Gowans | Thursday, May 24, 2012, 15:28 Beijing
won’t be any need for the U.S. and the NATO alliance to carpet bomb
Myanmar to bring it into the Western fold. According to this Canadian
analyst, the Libyan experience must have proven persuasive enough for
the Rangoon leaders to dutifully step into line on their own. From a
government-controlled economy providing free health care and education
to all its citizens, as was the case in Libya under Gaddafi, Myanmar
today is eagerly genuflecting before an onslaught of foreign private
investors zeroing in to dispossess her.
Strike Myanmar from the regime change list. Only two years ago, the
resource-rich country located between India and China was practicing the
kind of economic nationalism that got Libyan leader Muammar Gadhafi
deep into trouble with the US State Department and oil company giants.
Now, Washington has suspended its sanctions on Myanmar and nominated its
first ambassador to the country in 22 years.
The Obama administration says it’s because of the profound political
changes Myanmar has brought about over the last year, including the
release from house arrest of Aung San Suu Kyi, who now sits in Myanmar’s
parliament. But the real reason has more to do with the country’s
military rulers turning away from economic nationalism and throwing
their economy’s doors open wide to ownership by outsiders.
Announcing the easing of US sanctions, US secretary of state Hilary
Clinton went directly to the heart of the matter, after making
obligatory remarks about Myanmar travelling the road to democracy.
“Today we say to Americans business: Invest in Burma (Myanmar)!”
When Myanmar’s military took power in a 1962 coup, it nationalized
most industries and brought the bulk of the economy under government
control, which is the way it stayed until two years ago.
Major utilities were state-owned and health-care and education were
publically provided. Private hospitals and private schools were unheard
Ownership of land and local companies was limited to the country’s
citizens. Companies were required to hire Myanmar workers. And the
central bank was answerable to the government.
But in the last year, Myanmar’s government began to sell off
government buildings, its port facilities, its national airline, mines,
farmland, the country’s fuel distribution network, and soft drink,
cigarette and bicycle factories.
The doors to the country’s publically-owned health care and education
systems were thrown open, and private investors were invited in.
A new law was drawn up to give more independence to the central bank,
making it answerable to its own inflation control targets, rather than
directly to the government.
To top it all off, a foreign-investment law was drafted to allow
foreigners to control local companies and land, permit the entry of
foreign telecom companies and foreign banks, allow 100 percent
repatriation of profits, and exempt foreign investors from paying taxes
for up to five years.
What’s more, foreign enterprises would be allowed to import skilled workers, and wouldn’t be required to hire locally.
With Myanmar signaling its willingness to turn over its economy to
outside investors, President Obama last December dispatched Hillary
Clinton to meet with Myanmar’s leaders, the first US secretary of state
to visit in more than 50 years.
William Hague soon followed, the first British foreign minister to visit since 1955.
Other foreign ministers beat their own paths to the door of the
country’s military junta, seeking to establish ties with the now foreign
investment-friendly government on behalf of their own corporations,
investors, and banks.
And business organizations sent their own delegations, including four
major Japanese business organizations, all looking to cash in on
Myanmar’s new opening.
A new frontier
The Wall Street Journal calls Myanmar “the last, large frontier
market in Asia” and describes its “potential” as “too great for
…investors to ignore.” The country is gas- and oil-rich, and teems with
timber and gems. It could become a major exporter of rice and seafood,
though with the country’s new foreign investment law, it will be the
superrich of New York, London, and Tokyo who reap the lion’s share of
benefits, not Myanmar’s citizens.
A country of poor people, Myanmar offers the attraction to overseas
investors of low manufacturing wages. And it’s situated between India
and China, giving manufacturers easy access to two emerging growth
International companies are circling the country, says the Wall
Street Journal, (like vultures?) ready to invest their capital in the
provision of heavy machinery, railways, airports, telecom networks,
consumer goods–and services, including private healthcare.
Their enthusiasm is no less than that expressed by US ambassador to
Libya Gene A. Cretz in connection with that country. Cretz said the
Libyans “were starting from A to Z in terms of building infrastructure
and other things. If we can get American companies here on a fairly big
scale, which we will try to do everything we can to do that, then this
will redound to improve the situation in the United States with respect
to our own jobs” to say nothing of redounding to Wall Street with
respect to its enrichment.
Two countries teeming with investment opportunities. The only
difference is that Libya had to be bombed in hopes that Gadhafi’s
successors would lay out the welcome mat for foreign investors and US
and western European corporations with greater alacrity than the
resource nationalism-practicing Gadhafi did.
Myanmar’s generals got the message, and laid out the welcome mat themselves, before they too faced Gadhafi’s fate.
-- Editor: on the other hand, the Democratic People's Republic of Korea has been vindicated: by not opening up and allowing the enemy even one inch so it can take a mile, it has managed to retain national sovereignty, and by refusing to give up its nuclear deterrent has managed to maintain national security.