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How India Can Help Myanmar

Myanmar has been in the news for all the wrong reasons. The military junta has been in power for so long (even after people voted for democracy) that it wants to perpetuate its rule by forcing a farcical referendum. The crackdown on peaceful protesters last year failed to stir the conscience of the world. The cyclone that hit the country recently and which has reportedly killed over 100,000 has been handled so badly that humanitarian aid is not reaching the distressed people. The last straw has been the Myanmar government’s decision to export rice with the avowed objective of adhering to contractual obligations, when hundreds of thousands are starving and homeless and corpses are rotting.

Myanmar is a country of great strategic significance to both India and China, thanks to its long borders with the south Asian giants. Myanmar is a significant example of how a nation’s interests often override basic human behavior. In the formative years, India made the mistake of pushing hard for democracy. Shunned thus by India, Myanmar fell into a Chinese embrace. Cooperation with the military regime of Myanmar can provide China access to both the Bay of Bengal and the Indian Ocean, not to mention South East Asia. Hence, in recent years, India’s call for democracy in Myanmar has been muted, to say the least.

It can be argued that the way to bring about change is not through isolationism but active engagement. Trade relations between Myanmar and India have been steadily growing and have reached the $1 billion mark. India is Myanmar’s fourth largest trading partner after Thailand, China and Singapore. India is Myanmar’s second largest export market after Thailand, accounting for 25% of its total exports.

Much of the transactions between the two countries have been at the governmental level in areas like agriculture, telecommunications, aviation and gas exploration. The Myanmar government is trying to entice Indian firms to invest in sectors like pharmaceuticals, cement, fertilizer, steel, IT and food processing. Indian firms are reluctant to invest, given the bitter experience they have had in Uganda and Fiji.

Whatever one’s reservations about the regime, the people of Myanmar deserve help. When we discuss other major problems confronting the world, we often find extreme poverty to be the root cause. What can be done?

· Improve multi-lateral trade; India can take the initiative by enhancing trade and bringing in its ambit products like bicycles and spare parts, life saving drugs, fertilizers, textiles, gold plated jewelry, fruits, pulses, tea, and gems. A significant requirement of pulses already comes from Myanmar whose 60% of total global supply is to India. Myanmar produces close to 100 million tons of tea annually. India can provide the technology to improve productivity. Myanmar is home to nine types of gems. Indian expertise in gem cutting and polishing can be harnessed to provide a boost to this industry.

· An agreement between the two designated banks – the United Bank of India and Myanmar Economic Bank, both having branches near the border would ensure smooth operations and lower payment and currency risks.

· There is a case for transport subsidies for both exporters and importers – these could be phased out over a period of time.

· Travel Documents need to be hassle-free and enable movement of people for bona-fide purposes.

· A road transport facility between the towns of Moreh and Mandalay can create opportunities for tourists from both countries.

Finally, we would do well to remember that people-to-people contact is a vital catalyst in bringing about any lasting change in the region. When suspicion looms large, very little can be accomplished. In fact, the mutual suspicion is a fertile breeding ground for illegal trade and insurgency. The world, through the United Nations, must engage the Myanmar regime in constructive dialogue without specifying pre-conditions. That probably is the best bet for a better quality of life for the people of Myanmar.

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Comments

Dr.B.V.Krishnamurthy has traced the current crisis of Myanmar in a neutral but analytical way.Myanmar suffers both from political and natural turmoil. The most unfortunate aspect is that the humanitarian aid has not reached the much distressed people. Exporting of rice from a highly starved country is the worst blow to the suffering people.

The learned author has analysed the stragetic significance of Myanmar to both India and China.He is perfectly right in his statement that India's call for democracy in Myanmar has been muted.

He has suggested that change can be brought about by active engagement of economic and technical trasactions.
Promotion of multilateral trade can reduce the current crisis.Gems of Mynmar and technology of India can boost the industry and benefit both the economies.
The transport subsidies,cooperation of banks, easy travel and above all the elimination of suspicion are the practical suggestions given by the author.

A reading of this article is a rewarding academic experience and an exercise of economic strategy.
S.Prabakaran

- Posted by S.Prabakaran
May 16, 2008 2:58 AM

Our hearts go out to the harried people of Myanmar. How can any regime be so cruel to its own citizens? And what are the super powers doing to halt this barbaric activity? It is time that the world said "enough is enough" and pushed for humane changes in Myanmar. The author's observations are equally relevant to other recalcitrant nations - North Korea as an example.

- Posted by S Babu
May 16, 2008 4:55 AM

A major challenge facing the world today is the behavior and attitude of some countries - be it Zimbabwe, North Korea or Myanmar. It appears as if we have created some kind of monsters and do not know how to deal with them. The world as one should have taken steps to nip such regimes in the bud. Now it looks as though it is too late. It is a sad commentary that a democratically elected leader who is also a Nobel Peace prize winner has to languish in "house arrest" for so many years. Doesn't humanity have a conscience? Are we helpless that we cannot do anything?

All this apart, I fully agree that the people of the battered country deserve all the help they can get.

- Posted by Bhasker B
May 16, 2008 8:16 AM

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About this Author

BV KrishnamurthyB V Krishnamurthy is the Director and Executive Vice-President of Alliance Business Academy in Bangalore, India, where he is also the ASI Distinguished Professor of Strategy and International Business. An engineer with post-graduate degrees in industrial management, systems engineering and business administration, and a doctoral degree in strategy, he has worked in corporations in Europe and Asia for 23 years (his last stint as CEO of a consortium) before entering academia in 1998. BVK also teaches in business schools in the USA, France, Switzerland, The Netherlands and Russia.