Friday, June 19, 2015

Burma's rush for economic growth leaves its villagers homeless & jobless

Isn't it ironic that as more & more wealth is being created around the world, more & more people are suffering?

Be it Myanmar, Cuba or Iran (& one day, most likely, North Korea), there is such a hurry to open up these countries for foreign investments. As soon as these countries open up, national leaders (political & business elites) benefit greatly with the huge pouring of money from foreign lands, but poor of the country suffer the most. So what's the point of this development when the most vulnerable of the country suffer?

The most common reason is given then is providing jobs. That's a funny answer, since the jobs are the one thing, which are not created. Foreign companies are businesses, after all. They will still look for the cost & benefit. They are still responsible for one thing & one thing only; increasing their net incomes. They will still look for paying a minimum wage (as low as possible ... perhaps, nothing) to manufacture products for the worldwide markets & all the profits go into the pockets of the business elites.

As I have said in another post, money is the new "religion". It requires no ethics or morals. It requires no sense of any humanity. It requires ruthlessness & treating another human with such disdain that even pet animals are treated far better than another human.

And then, people wonder, rather foolishly or perhaps, naively, why is there so much pain & suffering in the world?

No God / Allah / Yahweh / Waheguru / Brahman created this pain & suffering. We, humans, ourselves, created this pain & suffering.
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Less than an hour south of Rangoon, Burma’s bustling commercial capital, Aye Khin Win sits cross-legged in the middle his small, makeshift house on the edge of a vast construction site. Sipping a cup of traditional tea, the 29-year-old farmer is asking how he & hundreds of neighbours have ended up impoverished & without hope in the midst of his country’s historic economic transformation.
 
Mr Win grew up just a few kilometres from where he is sitting. But last year he was evicted in the name of development, resettled after his family’s plot became prime real estate & part of a flagship project part-financed by the Japan International Cooperation Agency (JICA) that coordinates developmental projects for the Japanese government. The Thilawa Special Economic Zone, which has taken over the land Mr Win & his neighbours used to farm, has been billed as a key pillar of the country “big bang” economic transformation & a project that could create tens of thousands of jobs. Dozens of foreign corporations have already signed up to open factories here.
 
But for Mr Win it has been nothing short of a disaster. “All we have ever done is farming. And now we have no land,” he says. We have no hope, only despair.”

The Burmese government has offered the farmers compensation for the loss of their land, but many are still unclear how much, & whether it will be enough.

I can’t even sleep at night, because of the stress,” adds his neighbour, Daw Win. The 56-year-old said she used to grow fruits & raise livestock, but now lives “day to day, worrying about meals. I have a lot of stress.”

The villagers’ plight is not unique in Burma, where a clamour to reintegrate the country into the global economy has created what some call a “two-speed” transformation. While there has been a historic rush by foreign investors to set up shop in the country, increasingly in cooperation with aid agencies & NGOs, there is growing concern that Burma’s economic metamorphosis has far outpaced its transition to democracy. Local activists say it is difficult to oppose the economic programme in any respect, as many remain fearful of the government.
 
The attraction of Burma for big business is not hard to understand. The country, one of south-east Asia’s poorest, is the ultimate “frontier market”. It sits between India & China, the world’s two most populous countries, & is rich in natural resources such as oil & gas, as well as precious stones such as jade.

Everyone wants to have an influence & get in, in terms of business. Whether it’s China or the UK or the US, I think everybody is looking at opportunities,” says Keith Win, founder of the Myanmar-British Business Association, set up to help British firms move into the country. Foreign investment in Burma reportedly rose to a record high in 2014-2015, reaching $8bn (£5.47bn).
 
The Burmese government, for its part, is rushing through dozens of new laws & programmes to make the country more “attractive” to foreign capital. Aid money & agencies have also flooded in, announcing enormous spending plans. But in a report last month, Global Witness warned that new investment flows, in the context of a repressive political system, risk “fuelling human rights abuses”.

One local aid worker, who is supporting the farmers displaced by the new Thilawa economic zone but did not want to be named, said there is a sense of fear.

The villagers feel they cannot go against the government,” he said.
 
Some are concerned, too, about the ideology guiding the “transformation”. In addition to supporting the Burmese government’s market-based reforms, the World Bank’s private-sector arm has invested millions in luxury real-estate & hotel projects.
 
One investment is in the Shangri-La, a five-star hotel in downtown Yangon, where the buffet costs $40, more than the average Burmese citizen will earn in a week.
 
Like the farmers at Thilawa, the Shangri-La’s expansion is also displacing people who work in the area. One woman, a street hawker who also did not want to be named, said she had sold coffee in this spot for 7 years. “I can make a living here & support my family. But I will have to move when the construction is over,” she said. “I don’t have any idea of where to go.”

When questioned, the World Bank says such investment is vital for Burma. “It’s not about poverty eradication, it’s about creating jobs, it’s about shared prosperity,” said Vikram Kumar, the bank’s top investment official in the country.
 
Back at Thilawa, U Mya Hlaing believes his home will soon be bulldozed. The 69-year-old insists he is not against the Thilawa project, but says that too many locals are suffering as a result of it.

It’s true that it is good for the development of the country,” he said, “but the people are suffering.”

Matt Kennard & Claire Provost are fellows at the Centre for Investigative Journalism. Travel funding for this article was provided by the Pulitzer Center on Crisis Reporting. Kennard’s new book The Racket is out this week.

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