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1. Political Context
For many decades, Burma/Myanmar continues to
face severe political challenges: on one hand deficiencies in
freedom and transition to an elected civilian government, and on
the other hand the exclusion of various ethnic peoples from the
political process. With a legacy of conflict, repression and
deprivation, society is fragmented, lacking trust between people
and groups at many levels. Intra-ethnic relations remain stuck
in historical antagonisms. The case of Burma/Myanmar is
therefore not simply an issue of a failed transition after the
1990 elections, but a combination of deep-rooted problems of low
social capital, a weak middle class and frail civilian
institutions under military rule.
Burma/Myanmar is an ethnically-diverse
country, made up of 60% ethnic Burmans with 40% of the
population spread across several ethnic groups and sub-groups.
Independent since 1948, it has been ruled by military regime
since 1962. After a public uprising, the current military
government, the State Peace and Development Council (SPDC)
seized power in 1988. Free and fair elections took place in
1990, and the National League for Democracy (NLD) party, under
the leadership of Mrs. Aung San Suu Kyi, won 82% of the seats.
However, the results of the elections were not honoured by the
regime, which maintained power.
From 1993 to 1996, a tightly controlled
National Convention worked on a constitution. Intense
confrontations between the government and NLD led to the
suspension of the Convention. In 2004, an officially announced
“Myanmar Seven point Roadmap for constitutional and political
reform”, reconvened the National Convention and promised the
transition to a semi-civilian regime. The main political party,
NLD, remains marginalized and its leader, Nobel Peace Prize
Laureate Mrs. Aung San Suu Kyi under house arrest.
The promised opening of the political system,
if it is to occur, would be a unique opportunity for national
reconciliation. However, prospects for an inclusive process of
national reconciliation remain unclear, given the SPDC’s
absolute control over the process and the failure to reach an
agreement between SPDC and both political parties (NLD and
others) and several ethnic groups.
Since the mid-1990s, SPDC has concluded cease-fire
arrangements with most ethnic groups, halting fighting after a
half century of continuous warfare. Peace with the ethnic group
of the Karen (KNU) is still elusive and causing massive
displacement of people. Similarly, armed resistance continues in
parts of Shan State. The architect of these arrangements with
the ethnic groups, then Prime Minister LtGen Khin Nyunt, was
deposed in 2004 and replaced by LtGen Soe Win.
At the end of 2005, the administrative
capital was moved from Yangon upcountry to a newly built town,
Naypyidaw (“Royal Residence”).
Violations of human rights and fundamental
freedoms are major international community concerns in Burma/Myanmar,
including forced relocations and forced labour on a massive
scale. To date, the various initiatives of the international
community, including the “good offices” efforts by the UN
Secretary General and UN agencies like the ILO, have not been
successful in improving the political situation. Harassment and
intimidation of “opposition groups” continue. Political
prisoners number over 1.100. The International Committee of the
Red Cross has no unaccompanied access to prisoners. Thousands of
citizens remain in exile in Thailand and Bangladesh, many of
them driven out by SPDC army attacks in ethnic minority areas.
The government continues to tightly control information.
International exchanges remain embryonic.
Externally, Myanmar is relatively open to the
region. China, India, Thailand, and other SE Asian countries
have established workable relationships and do no consider Burma/Myanmar
a threat to international or regional security and peace. About
two million Myanmar immigrants in Thailand are working in the
Thai industry and agriculture. Myanmar has relinquished its
chairmanship of ASEAN in 2006. Restrictions on foreign
travellers have been relaxed. Myanmar citizens can travel
overseas for business, tourism, and study.
2. Legal basis of EU relations
The prime goal of the EU is to see established
a legitimate civilian government, which respects human rights,
effectively pursues MDGs and restores normal relations with the
international community. The Common Position, adopted in 1996,
confirmed already existing restrictive measures – an arms
embargo imposed in 1990, the suspension of defence cooperation
since 1991 and conditions on assistance. GSP privileges were
withdrawn in 1997 because of forced labour issues. The visa ban
and asset freeze concern the senior military, and members of
government, and their families. EU registered companies are
prohibited from making finance available to named State-owned
enterprises. The essentially punitive approach has been nuanced
in 2004. The EU’s restrictive measures have been selected to
avoid hitting vulnerable sections of the population. Under the
current Common Position, and with an inevitably longer term
perspective to the democratisation process, attention is being
paid to the development of civil society, opening links to the
outside world as well as progress on Millennium Development
Goals. Political contacts with the government – in the framework
of the ASEM process and of EU-ASEAN meetings – are regularly
used to raise the Union’s concerns.
3. Trade/Economic Issues
Burma/Myanmar is a natural resource rich
country (gas, oil, timber, gems; exports are heavily dominated
by primary commodities), but with weak linkages to the global
economy and unsustainable public deficits. The rich yet poor
country has been impoverished from a post-independence phase of
state socialism, a still continuing lack of fundamental
macro-economic know-how and international isolation. Burma/Myanmar
has little access to foreign aid, including assistance from the
international financial institutions. The US trade ban has had a
large impact on the textiles sector. Deep structural problems
distort the economy, despite some progress in infrastructure
development. Erratic policy-making and ad-hoc interventions have
not addressed macroeconomic imbalances, while external sanctions
and the insufficient international assistance have worsened the
situation and impact on the social situation: chronic poverty,
structural un- and underemployment and the under-funded health
and education systems are worrying. Malnutrition among children
is widespread.
Economic data, including figures on foreign
debt and foreign investment, are scarce. Worrying issues are the
high percentage of public spending on military hardware, as
opposed to the few resources spent on public health and
education; widespread corruption and the uneven distribution of
opportunities in urban and rural areas.
EU exports to Burma/Myanmar totalled € 83
million in 2005, imports from Burma/Myanmar totalled € 287
million.
4. Community Aid
There is no bilaterally agreed co-operation
programme with Burma/Myanmar and no direct involvement of, or
transfer of funds through, the military regime. In accordance
with the EU Common Position, Commission assistance is limited to
humanitarian aid and to assistance to the poorest strata of
society,. In the period 2007-2013, the Commission’s assistance
is expanding, most notably with health and education programmes.
The health programme is being implemented through a “3-Diseases
Fund”, created in 2006, to combat HIV/Aids, Tuberculosis and
Malaria. The Commission funds a number of NGO and UN projects in
areas populated by ethnic groups, like the reintegration of
Rohingya people in Northern Rakhine State. Substantial
assistance is also provided for refugees in Thailand and
Bangladesh.
5. General Data
|
Official Name |
Union of Myanmar |
|
Population |
55.4 million |
| Area (1000 kmē) |
677.000 kmē |
|
Gross Domestic Product |
€ 4 billion in 2005 |
|
GDP per capita |
78 Euro in 2005 |
| Real GDP (% growth) |
5.0 in 2005 |
| Inflation rate (%) |
17.7 in 2005 |
| Current account balance (% of GDP) |
-4.8 |
|
Head of State |
Senior General Than Shwe since April 1992 |
|
Head of Government/Prime Minister |
Lt. Gen. Soe Win since Oct. 2004. |
Sources: EUROSTAT (COMEXT, CRONOS), IMF (DOTS),
WEFA (WMM); all data for 2003.
* Statistics on Burma/Myanmar should not be regarded as fully
reliable, because they are based on different exchange rates and
the large informal sector and extra-legal economy are not captured
in the figures.
Latest update: November 2006
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29/03/06