2011–2015 Myanmar political reforms

2011 Burma's democratic reforms are a series of political, economic and administrative reforms in Burma undertaken by the military backed Union Solidarity and Development Party (USDP). These reforms include the release of pro-democracy leader Aung San Suu Kyi from house arrest and subsequent dialogues with her, establishment of the National Human Rights Commission, general amnesties of more than 200 political prisoners, institution of new labor laws that allow labour unions and strikes, relaxation of press censorship and regulations of currency practices. The reforms come as a surprise to many in the international community, who considered the election of 2010, which led to the victory of USDP, fradulent.

As a consequence of the reforms, ASEAN has approved Burma's bid for the chairmanship in 2014. United States Secretary of State Hillary Clinton visited Burma on 1 December 2011, to encourage further progress; it was the first visit by a Secretary of State in more than fifty years. Aung San Suu Kyi's party, the National League for Democracy will participate in upcoming by-elections after the government abolished laws that led to the NLD's boycott of the 2010 general election. However, uncertainties exist as more than 1,600 political prisoners have not been released and clashes between Burmese troops and local insurgent groups continue.

Background

Main articles: State Peace and Development Council and Burmese general election, 2010

Burma was under military rule from 1962 to 2010. In 2008, the ruling Junta, State Peace and Development Council, announced the new constitution as a part of roadmap to democracy. The constitution, which reserves 25% of the Hluttaw legislature's seats for military, is seen by the opposition as a tool for continuing military control of the country. A constitution referendum was held in 2008 amid of the Cyclone Nargis. Observers criticized the referendum for voter intimidation, electoral fraud and advance voting. Nevertheless, on 15 May 2008, the junta announced that the constitution had been approved by 92.4% of voters, claiming a 99% turnout in the two-thirds of the region that had held the vote.

An election was held in 2010. The military backed Union Solidarity and Development Party declared victory. The United Nations and Western countries have condemned the elections as fraudulent.

Reforms

File:Myitsone dam under construction.png

The halt of Myitsone Dam construction due to public opposition is considered as a "rare reversal"

Aung San Suu Kyi appears on front pages after decades of censorship.

Nevertheless, the government has embarked reforms toward liberal democracy, mixed economy, and reconciliation although the motives of such reforms are still debated.

Corruption

In March 2012, the Pyidaungzu Hluttaw passed a law that will increase the wages of all public sector employees, including soldiers, an additional cost-of-living allowance of 30,000 kyat ($38 USD), along with a daily wage increase of 1,100 to 2,100 kyat ($1.40-$2.70) for full-time employees, purportedly to tackle corruption in the government. The law will be effective 1 April 2012, when the Burmese by-elections, 2012 take place.

On 12 March 2012, The Voice, a weekly news journal published an article that highlighted 6 ministries: the Ministry of Information, Ministry of Mines, Ministry of Agriculture and Irrigation, Ministry of Industry 1 and Ministry of Industry 2, as misusing funds and misstating finances, based on internal parliamentary audit reports. Two days later, the Ministry of Mines announced that it would file a lawsuit against the journal.

Political reforms

The pro-democracy leader, Aung San Suu Kyi was released from house arrest on 13 November 2010. After her release, she held a series of dialogues with President Thein Sein and Minister Aung Kyi. Although the discussions were not publicized, the state media reported that "the two sides have agreed to set aside the differences and work together in matters of common interests that will really benefit the country and the people" Aung San Suu Kyi's ability to travel freely throughout the country is seen as an improvement compared to her trips in 2003 which met with a government sponsored massacre.

Aung San Suu Kyi's party, National League for Democracy boycotted the 2010 election. The election law enacted by the SPDC did not allow ex-prisoners to become members of registered political parties. If NLD decided to register, it would have to expel its members who were imprisoned. But in November, the government erased the clause in a parliamentary section. After the amendments, NLD leaders have unanimously decided to register for the by-election.

Censorship

The government has relaxed press and internet censorship laws, for example allowing photographs of Aung San Suu Kyi to be published on the front page of local newspapers. Tin Shwe, the head of the censorship authority, said that censorship is incompatible with democratic practices and should be abolished. A presidential adviser has indicated that press censorship will be abolished in 2012 under new media legislation. In September 2011, several banned websites including Youtube, Democratic Voice of Burma and Voice of America have been unblocked.

Human rights

The government has convened an independent National Human Rights Commission (NHRC) consisting of 15 retired bureaucrats and academics. Analysts have questioned the panel's will and ability to challenge the government, but the commission has challenged the President's claims that there are no political prisoners in Burma, calling for all political prisoners' release.

Two general amnesties were held in 2011 releasing over ten thousands of prisoners, although only about 300 of them are considered political prisoners. After the second general amnesty, some prominent prisoners of conscience such as comedian Zarganar have been released, while others such as 8888 Uprising leader Min Ko Naing remained in prison. The government also approved the NHRC's suggestion to relocate political prisoners so that their family members can easily contact them. There are varying definitions of "political prisoner", but Amnesty International and the NLD consider Burma to have 600 political prisoners. On 13 January 2012, another amnesty was announced, freeing 88 Generation Student Group activists Min Ko Naing, Htay Kywe, Ko Ko Gyi, Nilar Thein, Mie Mie, and Mya Aye, as well as Shan leader Khun Htun Oo, Saffron Revolution leader U Gambira, former prime minister Khin Nyunt, blogger Nay Phone Latt, and a number of imprisoned Democratic Voice of Burma reporters.

The government has passed new International Labour Organization-approved legislation that allows for labour unions and strikes. The government has however, denied the presence of other human right issues such as alleged army abuses against ethnic minorities, claiming that in ethnic areas, only local insurgent groups violate human rights. The government has accused the Kachin Independence Army of planting bombs, destroying bridges and trading in illegal drugs. Insurgent groups have resumed fighting since a 2008 ceasefire in opposition to the new constitution of Burma that requires all armed forces be under the control of the national Defense Service. Peace talks were held in November to reach a compromise.

Economics

Since 2011, Burma has embarked on policy reforms of anti-corruption laws, currency exchange rates, foreign investment laws and taxation. Foreign investment increased from US$300 million in 2009-10 to a US$20 billion in 2010-11 by about 667 percent. The large inflow of capital resulted in a stronger valuation of the kyat (Burmese currency) by about 25 percent. In response, the government relaxed import restrictions and abolished export taxes. Despite current currency problems, the Burmese economy is expected to grow by about 8.8 percent in 2011.

Burma has a complex foreign exchange system with black markets, foreign exchange certificates, and multiple exchange rates. On request of the government to alleviate its souring currency conditions, an IMF team visited Burma in October. After the visit, the government allowed private banks to engage in the foreign exchange market.

The Central Bank of Myanmar is currently embarking on a plan to unify the country's multiple exchange rate system. From April 2012 to April 2013, the official exchange rate of 6.4 kyats to $1 USD (a rate that has not changed since 1977, when it was pegged to the International Monetary Fund's special drawing rights) will be floated up, to foster an interbank money market. From 2013 to 2014, the most widely used informal black market rate will be completely eliminated. The informal exchange rates are used for most daily transactions, while the overvalued official exchange rate is used to calculate government revenue and state-owned enterprises. There are other informal exchange rates, such an exchange rate used by UN agencies and international NGOs (450 kyat to $1 USD in 2010), a customs rate, and an official market rate. Such discrepancies have distorted national accounts (since firms are required to report all transactions in Burmese kyat at the official rate) and reduced transparency and accountability.

International reaction

US Secretary of State Hillary Clinton travels to Burma to promote democratic reforms

Although the government have been applauded for the reforms, many countries remain "cautiously optimistic". Japan has resumed sending aid which was suspended since the 2007 killing of a Japanese journalist. ASEAN has approved Burma's bid for chair in 2014.

The United States, Australia and the EU has called for further action, such as the unconditional release of all political prisoners, as a prerequisite for the lifting of international sanctions on the Burmese government. The United States has appointed a special envoy, Derek Mitchell, to chart a new policy from Burma away from isolation. Following the government reforms in 2011 and the visit of US Secretary of State Hillary Clinton, the US announced several initiatives, including the removal of some curbs on foreign aid and the possibility of full diplomatic relations, aimed at re-engagement with Burma.

On 13 January 2012, following the release of prominent political prisoners including Min Ko Naing, Clinton announced that the US and Burma would begin the process of exchanging ambassadors, though further ties would be dependent on additional reforms.

Analysis

Neither Western sanctions nor Asian constructive engagement should be credited for what we are witnessing today.

— Marie Lall

Experts caution that the reforms will be disproved by the hardliners and probably lead to counterrevolution. But, Minister U Kyaw Hsan said there is no intention to retract reforms.

The motives of such reforms are also debated. Marie Lall, a BBC South Asia analyst attributes Burma's bid for the Asean chair in 2014, the needs to reform the economy for ASEAN Free Trade Area and the government's desire to win the election in 2015 as the main motives of the reforms.

See also

• 8888 Uprising
• Saffron Revolution