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by Prema Nakra, Ph.D.
Located at the crossroads between Bangladesh, China, India, Laos and Thailand, Burma, officially the Union of Myanmar, appears to be coming out of the shadows. The country remained under the tight control of the military for five decades. In 2010, the environment changed when the former Prime Minister, Lieutenant General Thein Sein, assumed the presidency of Myanmar.
The civilian government led by Sein announced several economic reforms as well as the release of political prisoners, the right to form trade unions, and an easing in media censorship. The government undertook significant legislative reforms including the adoption of the Labor Organizations Law and the Peaceful Demonstration Law and the amendment to the Political Party Registration Law.
Myanmar sits at the crossroads of Asia's great civilizations of India and China, but the country was largely isolated because of four decades of communist rule. Myanmar's recent opening up means that for the first time in more than 50 years foreign government officials, businesses and tourists have an opportunity to visit and explore the country without censorship or restrictions. In this article, I will discuss the progress made by Myanmar to become a part of the global economy and the challenges that international businesses will face.
Sanctions Imposed and Lifted
For decades, Myanmar, under the military rule and media censorship, demonstrated an appalling human rights record. In 1990, global media reports of a crackdown on pro-democracy protests by the military led many countries to impose a wide range of restrictions and sanctions on Myanmar. These sanctions included bans on certain imports and exports, asset freezes, limits to aid assistance, and foreign travel bans for those connected to the military regime.
The European Union banned investment and trade in Burmese gems, timber and precious stones, while the United States tightened existing economic sanctions on the regime leaders, their families and supporters including freezing assets and implementing travel restrictions against designated individuals responsible for human rights abuses and public corruption. In the first part of 2012, encouraged by the fall of the regime and recent reforms, the United States and the European Union suspended economic sanctions, which provide many opportunities for investment and growth.
A government largely composed of retired generals took power in 2011 and began a radical political and economic reform program that they called a transition to disciplined democracy. They ended pro-democracy leader Aung San Suu Kyi's house arrest and began releasing hundreds of political prisoners. As a result, the West suspended or lifted most of their trade and economic sanctions. In the first part of 2012, encouraged by the fall of the regime and recent reforms, the United States, Australia, Canada and the European Union suspended many of the economic sanctions. With political sanctions easing, American and European companies are showing newfound enthusiasm to explore Myanmar.
Asian Community Eyes Myanmar
During its isolation, Myanmar had been the missing link that prevented ASEAN community from being physically and economically connected. The ASEAN community has been eying Myanmar since 2010 when the country's new government came into power. Road and port building projects are being planned and funded to reconnect Myanmar to this region. Japan, China, India and South Korea are all jockeying for a position in Myanmar. Large projects funded by investors from China, South Korea and Thailand have been approved in a number of sectors that will require imports of capital goods and construction material.
Japan remained engaged with Myanmar during its years of military rule. It is now revamping its involvement in recognition of the reforms taking place in the country. To help Myanmar succeed in its transition to a market economy, Japan's public and private sectors have pledged to support Myanmar's efforts to promote the nation's democratization, rule of law, economic reforms, and banking system reforms. It is also helping to improve the country's education system and science and engineering universities via grants and technical cooperation.
China has gained the most from the Western absence from Myanmar in the past 15 years. Chinese companies have poured about $27 billion into the country. China now dominates the oil, gas and mineral industries in the country. India and Myanmar have signed 12 agreements to strengthen trade and diplomatic ties. India expects to be the economic bridge between South and South-East Asia.
In the next article of this series, I will dive deeper into a discussion of opportunities that await companies looking to do business in Myanmar.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| LUCD16 bearing | 16 | 26 | 34.5 |
| LUCD12 bearing | 12 | 22 | 31 |