News & Articles on Burma-Tuesday, 08 February, 2011

News & Articles on Burma
Tuesday, 08 February, 2011
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Additional 10-year jail term imposed on blogger already serving two-year sentence
Sick Political Prisoner Denied Family Visits
Succession Rumors Swirl in Naypyidaw
Burma’s new president faces head-on with sanction issue
Human Rights Key to Lifting Sanctions: NLD
Aung San Suu Kyi’s Group Calls for Talks to Review Burma Sanctions
Suu Kyi's party calls for sanctions reappraisal
Burma opposition says sanctions on junta work
Suu Kyi says West's sanctions in Burma should remain in place
Stock Market Unlikely in Burma
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Additional 10-year jail term imposed on blogger already serving two-year sentence
Published on Tuesday 8 February 2011.
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Reporters Without Borders is outraged by last week’s imposition of an additional severe jail sentence on Kaung Myat Hlaing, a blogger already serving a two-year sentence in Insein prison.

Also known by the blogging name of Nat Soe, he was tried secretly inside the prison and was sentenced to a further 10 years in jail under the Electronic Acts for allegedly participating in a poster campaign calling for the release of opposition leader Aung San Suu Kyi and other political prisoners. The trial was held behind closed doors.

Reporters Without Borders points out the illogicality of convicting Kaung Myat Hlaing of activities in support Suu Kyi’s release when Suu Kyi has since been released by the Burmese authorities.

The blogger was removed from his cell prior to the trial and was held for 10 days in an interrogation room, where he was deprived of food and sleep until he confessed to having belonged to a dissident group called “The Best Fertiliser.”

He was arrested in April 2010 after bombs were set off at the Water Festival in Rangoon. Although it was established that he had nothing to do with the bombings, the authorities continued to hold him and gave him a two-year jail sentence at the end of an absurd trial.

Initially jailed on a trumped-up charge, Kaung Myat Hlaing has now been convicted again on the basis of a confession under torture. Everything about the methods used by the Burmese judicial system reveals a determination to ruthlessly crush free speech defenders and trample on fundamental rights.

Two other bloggers, Zarganar (see press release) and Nay Phone Latt (see press release), are still detained in the country.

Burma was ranked 174th out of 178 counties in the 2010 Reporters Without Borders press freedom index. It is also one of the countries on the Reporters Without Borders list of “Enemies of the Internet.” http://en.rsf.org/burma-additional-10-year-jail-term-08-02-2011,39498.html
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Sick Political Prisoner Denied Family Visits

The Assistance Association for Political Prisoners (AAPP) said it is deeply concerned about the denial of family visits for sick political prisoner Htet Htet Oo Wai. The National League for Democracy member is being held in solitary confinement in Putao Prison in northern Kachin State, where she is currently serving a five-year sentence.

According to AAPP, she has not been allowed to receive a family visit for the past three months, despite reports that she is in poor health. In Burma, prison authorities arbitrarily suspend family visits for political prisoners, and routinely intercept and censor letters. Political prisoners are also subjected to solitary confinement, harassment and beatings, especially if they speak out, according to the AAPP. Published Tuesday, Feb. 08, 2011
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Succession Rumors Swirl in Naypyidaw
By WAI MOE Tuesday, February 8, 2011

Burmese junta chief Snr-Gen Than Shwe has reportedly lined up two former commanders from the Sino-Burmese border, Lt-Gen Min Aung Hlaing and Maj-Gen Soe Win, to succeed him and Vice Snr-Gen Maung Aye in the top two military posts if they decide to step down, military sources said.

The information, which was leaked from the War Office on Monday ahead of Tuesday's session of Burma's new parliament, contradicts previous rumors that had Than Shwe and Maung Aye being replaced by the former adjutant general, Lt-Gen Myint Aung, and the former Bureau of Special Operations (BSO) 3 chief, Lt-Gen Ko Ko.

Both Min Aung Hlaing and Soe Win are reportedly close to Than Shwe and Maung Aye, and both were recently promoted to their current positions during a major military reshuffle in August.

Min Aung Hlaing was the chief of BSO-2 before being promoted to joint-chief of staff (Army, Navy, Air Force), replacing Gen Shwe Mann. Soe Win was the commander of the Northern Regional Military Command before being promoted to BSO-6 chief, replacing Lt-Gen Ohn Myint.

Min Aung Hlaing graduated from Intake 19 and served first as the tactical operation officer and then as the commander of the No. 44 Light Infantry Division (LID). He later commanded the Triangle Regional Military Command in eastern Shan State and the North-East Command in northern Shan State in the late 2000s.

Soe Win graduated from Intake 22 and was commander of the No. 66 LID in 2008 before being promoted to the post of commander of the Northern Regional Military Command.

Min Aung Hlaing reportedly displayed the character of an arrogant warrior in dealing with ethnic armed ceasefire groups with respect to the junta's Border Guard Force (BGF) plan in 2009-10, as did his commander, Maj-Gen Aung Than Htut, who is currently the BSO-2 chief.

He also was inolved in the Burmese army’s offensive against the Kokang armed ethnic group near the Sino-Burmese border, when as many as 37,000 Kokang- Chinese refugees fled to China and looting by government troops was reported after the refugees evacuated the area.

As the Northern regional commander, Soe Win had the responsibility for overseeing the junta's BGF discussions with the Kachin Independence Organization (KIO) and its military wing, the Kachin Independence Army (KIA).

KIO sources said that when the KIO asked about the possibility of becoming part of the BGF on terms that reflected the “Panglong sprit,” which would allow ethnic groups some degree of automomy over their own troops, rather than BGF terms proposed by the junta, which required ethnic armed groups to fall under the command of the Burmese military, Soe Win agreed in principal to the KIO proposal. However, he withdrew his agreement after returning from a commanders' meeting in Naypyidaw. “My senior officers rejected your proposal,” Soe Win said.

Meanwhile, Burma's state-run media reported on Tuesday that the Union Hluttaw (parliament) announced at its Tuesday session that there will be 34 ministries under President Thein Sein, rather than the 32 previously announced.

The two additional ministries will be the Myanmar Industrial Development Ministry and the Presidential Ministry. Another ministry, the Ministry of Border Affairs, was renamed from the Ministry of Progress of Border Area and National Races and Development Affairs.
http://www.irrawaddy.org/article.php?art_id=20701
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Burma’s new president faces head-on with sanction issue
By Zin Linn Feb 08, 2011 9:37PM UTC

Burma’s newly elected parliament named Thein Sein, current Prime Minister and junta’s loyalist, in the long -ruling military junta as president on 4 February, ensuring that the first civilian government in decades will be under control by the military that has brutally suppressed oppositions.

The 66-year-old career soldier retired from the army in April 2010 to head the army-backed USDP, which claimed landslide in the November elections. The former military general, Thein Sein is a close aide of Snr-Gen Than Shwe. Thein Sein succeeded Soe Win on 24 October 2007 after Soe Win’s death in October 2007.

Thein Sein gave up their military position last year in order to take part in the November election. Thein Sein became the choice of Senior General Than Shwe, who has been ruling the country since 1992. Thein Sein is the winner eventually as he always follows the guidelines of the military boss Than Shwe.

Today, Thein Sein as president of Burma has mapped out to shape his USDP Cabinet in Naypyitaw parliament. As said by some observers, Thein Sein has created thirty-four governmental ministries but there are only 30 ministers in the nomination.

The Myanmar Industrial Development Ministry name is a new set-up. Other two ministries have been changed their names. The Ministry of Progress of Border Areas and National Races & Development Affairs turns into the Ministry of Border Affairs and the Ministry for the Prime Ministerial Office is designated as the Ministry for Presidential Office.

The cabinet list shaping a new government is expected to be announced and approved in the Union Parliament, a joint session of the Upper and Lower houses, on Wednesday, according to sources. If a legislator wishes making complaint related to any of the ministries or the ministers proposed by the president, they have to submit their dissatisfaction with good reasons on paper to the Parliament. The new 34 ministries are likely to run formally their governmental functions in March, sources said.

Simultaneously, the National League for Democracy party led by Aung San Suu Kyi has urged keeping Western sanctions against Burma on Tuesday, suggesting they hurt the tyrannical regime not ordinary citizens and it’s not appropriate to lift them too early.

On Radio Free Asia’s questions and answers section, Aung San Suu Kyi replied a fellow citizen that some persons and groups apply the sanction issue as a political tactic while some others sincerely consider it hurts the ordinary people. So, the NLD has to survey the genuine situation with true facts in order to get an appropriate answer to the lifting of sanctions, she said.

According to the Associated Press, a four-page report issued by Suu Kyi’s party Tuesday was the first clarification of her position and could temper any momentum to lift sanctions.

“Recently, there have been calls for the removal of sanctions,” said the NLD’s report, which was based on the National League for Democracy’s own research and consultation with economists. “It can be asserted that these measures do not hurt the public at large.”

“Targeted sanctions serve as a warning that acts contrary to basic norms of justice and human rights cannot be committed with impunity even by authoritarian governments,” said the NLD’s report, which blamed the country’s hardships on “misguided government policies,” not sanctions.

The United States first imposed broad sanctions on Burma in 1988 after the junta’s crackdown on pro-democracy protests and subsequently tightened them, banning trade and American investment in Burma. Since then, the EU and other Western countries have added political and economic sanctions to punish the regime for its poor human rights record and failure to move toward democracy.

“The NLD calls for discussions with the United States, the European Union, Canada and Australia with a view to reaching agreement on when, how and under what circumstances sanctions might be modified in the interests of democracy, human rights and a healthy economic environment,” the report said.

Many foreign governments have exercised economic sanctions on Burma to change the regime’s indecent manners in the areas of human rights and democratization. , Sanctions have only one clear target, said some analysts, to make the military regime become aware of the political aspirations of the people and to force it to seek a peaceful solution through dialogue to resolve the political impasse in Burma.
http://asiancorrespondent.com/48013/burma%E2%80%99s-new-president-faces-head-on-with-sanction-issue/
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Human Rights Key to Lifting Sanctions: NLD
By SAW YAN NAING Tuesday, February 8, 2011

Burma's outlawed opposition party, the National League for Democracy (NLD), urged the country's military regime on Tuesday to improve its human rights record if it wants Western sanctions to be removed.

In a statement released today, the party said the junta, which is currently transforming itself into a military-dominated parliamentary government, should “take the necessary steps [to] speedily and assiduously” improve human rights conditions in Burma as a precondition for the lifting of sanctions.

The party also called for talks with Western countries that have imposed sanctions to determine under what conditions they would be willing to modify their sanctions policies.

Win Htein, a secretariat member of the NLD, told The Irrawaddy on Tuesday that the party released the statement to highlight the fact that the sanctions are a response to continuing human rights abuses in Burma, and can therefore be lifted only when the regime releases political prisoners and takes other concrete steps toward improving its rights record.

“Lifting sanction should be considered only when the human rights situation in Burma improves,” he said.

The statement, which acknowledges growing opposition to sanctions both within Burma and in some of the countries that have imposed them, suggests that claims that sanctions are responsible for the economic hardships of ordinary Burmese are “based on political motives.”

According to the NLD's own findings, sanctions have not contributed substantially to Burma's economic woes, which it blames on mismanagement by the ruling regime and a business culture of “blatant cronyism.”

The statement notes that only one major industry—garment manufacturing—has been severely hit by sanctions, with earnings falling by US $400 million in 2003 as a result of losing access to US markets, according to the NLD's research. But the industry has since recovered due to an influx of new business from China, the statement said.

With most of Burma's export earnings coming from oil and gas, mining and other extractive industries, and 63 percent of the population dependent on agriculture, sanctions have had little impact on the lives of ordinary Burmese, according to the NLD.

While the statement denies that sanctions are a major cause of Burma's economic problems, it keeps the door open to investment in the country—provided it follows principles aimed at benefiting its people and protecting its natural environment.

“The NLD considers that in the meantime the economic hardships of the people would be ameliorated if businesses that have already invested, or are thinking of investing, in Burma were to observe guidelines aimed at conserving the ecological environment, protecting the rights of workers and promoting civil society,” says the statement.

The US, the EU, Canada, Australia and New Zealand have all imposed sanctions on Burma to pressure the ruling regime to end human rights violations and move toward a genuine democratic transition.

However, despite general elections held late last year and the election of a civilian president by the country's newly formed Parliament last week, few believe that the changes represent a real departure from the military-ruled past.

http://www.irrawaddy.org/article.php?art_id=20700
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Aung San Suu Kyi’s Group Calls for Talks to Review Burma Sanctions

Heda Bayron | Bangkok February 08, 2011

Burma’s opposition National League for Democracy has called for talks with Western nations about possible changes to sanctions against the country. Sanctions have been in place since the 1990s to penalize Burma’s military government for its human rights record.

The opposition group led by Burma’s pro-democracy icon Aung San Suu Kyi on Tuesday called for discussions with the United States, the European Union and other governments to determine "when, how and in what circumstances sanctions may be modified".

The Association of Southeast Asian Nations backs the lifting of the sanctions, which range from an arms embargo to trade bans. Burma is a member of ASEAN.

Some regional analysts say the sanctions have choked economic growth and pushed Burma’s military closer to China. Beijing has ignored the sanctions to gain business concessions in the resource-rich but impoverished country.

But Maung Zarni, a research fellow at the London School of Economics, says the sanctions are not the cause of poverty in Burma.

"It’s not the economic sanctions that are hurting the Burmese people in terms of their livelihood. It is the Burmese junta that refuses to acknowledge that economic reforms and other reforms are desperately needed if the country is to move forward," he said.

Various sanctions have been imposed on Burma over several years as a way to pressure its military rulers to make human rights and political reforms. The U.S. arms embargo against Burma started in 1993, while that of the European Union in 1996. In 2003, the U.S. banned direct imports from Burma such as timber and gems, and restricted financial transactions with the country.

However, Burma continues to trade with and attract investments from China, India and its Southeast Asian neighbors.

Aung San Suu Kyi and the NLD have in the past endorsed the sanctions, but have indicated they could rethink that position. However, the party’s statement Tuesday said sanctions should not be lifted until the government frees more than 2,000 political prisoners.

Kurt Campbell, U.S. assistant secretary of state for East Asia, said last week it is premature for the U.S. to lift its sanctions. He said the U.S. wants to see more concrete reforms from the Burmese government.

Maung Zarni says the sanctions pose the "last obstacle" for the junta to gain international legitimacy. But he says the military is unlikely to undertake reforms to get rid of them.

"Whether or not they are accepted by the Burmese domestic public, they no longer care and they want to be accepted by the international community without needing to do the improvements in both the economic and human rights conditions," he said.

The NLD won elections in 1990 but was never allowed to take power. The NLD and Aung San Suu Kyi have no formal political roles in Burma after the group boycotted the November parliamentary elections, because of elections laws the party considered unfair. The NLD has been officially disbanded as a political party.

The military and its allies control the new parliament.
http://www.voanews.com/english/news/asia/Aung-San-Suu-Kyis-Group-Calls-for-Talks-to-Review-Burma-Sanctions-115550209.html
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Suu Kyi's party calls for sanctions reappraisal
Hla Hla Htay
February 9, 2011

RANGOON: The officially disbanded political party of the democracy champion Aung San Suu Kyi has appealed for talks with Western nations about possible changes to sanctions against Burma, but said progress on human rights was vital.

The Nobel peace prize winner's National League for Democracy said the release of all political prisoners was ''a critical requirement'' for an end to the punitive measures.

''As the major causes of sanctions are violation of human rights and lack of democratic practices, it is by dealing effectively with these issues that the removal of sanctions can best be effected,'' it said.
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The party called for discussion with the US, the European Union and other nations ''with a view to reaching agreement on when, how and under what circumstances sanctions might be modified in the interests of democracy, human rights and a healthy economic environment''.

Ms Suu Kyi's release from house arrest in November after Burma's first election in 20 years has reignited debate over the effectiveness of the measures, enforced notably by the US and the EU in response to the junta's human rights abuses.

Critics of the policy say sanctions, which have largely kept Western companies out of a resource-rich part of Asia, are hindering development in one of the world's poorest nations.

Two pro-democracy parties which took part in the November election have called for an end to sanctions because they do not benefit the wider population.

But Ms Suu Kyi's party said in the statement that available evidence ''indicates economic conditions within the country have not been affected by sanctions to any notable degree''.

It called for a study by experts on the effect of the measures.

The US bans trade with companies tied to the junta and also freezes such firms' assets and blocks international loans to Burma. The EU freezes assets and businesses of junta figures and blacklists their travel, but it has continued some trade and investment in the oil sector.

Australia has targeted sanctions against regime members, their associates and supporters.

But Asian companies, especially from China, India, Thailand and South Korea, have overlooked human rights abuses to invest.

Agence France-Presse http://www.brisbanetimes.com.au/world/suu-kyis-party-calls-for-sanctions-reappraisal-20110208-1alng.html
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Burma opposition says sanctions on junta work
The Associated Press

Date: Tuesday Feb. 8, 2011 6:18 AM ET

RANGOON, Burma — The pro-democracy party of Aung San Suu Kyi endorsed Western sanctions against Burma on Tuesday, saying they hurt the authoritarian regime not ordinary citizens and implied it's too early to lift them.

For weeks, there have been indications that the Nobel Peace Prize laureate was questioning her longtime support of sanctions. But a four-page report issued by her party Tuesday was the first clarification of her position and could temper any momentum to lift sanctions.

Suu Kyi had suggested after her recent release from years of house arrest that she might be open to an easing of the measures. Her comments raised interest in the West, which has long taken its cues from her and her party on the subject.

The report is bound to anger Burma's military rulers who have long sought to have the sanctions lifted on grounds that they hurt the people of Burma and have pushed the country deeper into poverty. They have trumpeted elections held in November as evidence of their commitment to democracy, but the polls were widely criticized as rigged to cement the junta's power.

The release coincided with the resumption of parliament in the remote capital of Naypyitaw following Friday's appointment of the country's new president, Thein Sein, who served as prime minister under the junta. His selection by parliament last week was seen as the latest example of the junta's tightening its grip on power.

"Recently, there have been calls for the removal of sanctions," said the report, which was based on the National League for Democracy's own research and consultation with economists. "It can be asserted that these measures do not hurt the public at large."

"Targeted sanctions serve as a warning that acts contrary to basic norms of justice and human rights cannot be committed with impunity even by authoritarian governments," said the report, which blamed the country's hardships on "misguided government policies," not sanctions.

The United States first imposed broad sanctions on Burma in 1988 after the junta's crackdown on pro-democracy protests and subsequently tightened them, banning trade and American investment in Burma. Since then, the EU and other Western countries have added political and economic sanctions to punish the regime for its poor human rights record and failure to move toward democracy.

"The NLD calls for discussions with the United States, the European Union, Canada and Australia with a view to reaching agreement on when, how and under what circumstances sanctions might be modified in the interests of democracy, human rights and a healthy economic environment," the report said.

Suu Kyi's party boycotted November's election, the first in 20 years, calling it unfair and rigged in favor of the military's allies. The party won the previous elections in 1990 but was blocked at the time from taking power by the military.

Suu Kyi was detained for 15 of the last 21 years and released shortly after the election.

"We would urge the countries that are helping Burma's democratic movement to maintain their targeted sanctions," the party's vice chairman Tin Oo told reporters. "There is no tangible progress toward Burma's democratic reforms." http://www.ctv.ca/CTVNews/World/20110208/burma-opposition-110208/
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Suu Kyi says West's sanctions in Burma should remain in place
By Andrew Buncombe, Asia Correspondent
Tuesday, 8 February 2011

The party of the Burmese democracy leader Aung San Suu Kyi believes Western sanctions should remain in place despite her release, because prohibitions hit the military regime rather than the ordinary population.

In an announcement that will disappoint Western corporations wishing to do business with Burma and exploit its rich natural resources, the National League for Democracy said its own research into the impact of sanctions revealed that it was the junta suffering and not the broader population. The NLD's complete findings will be released today.

Ms Suu Kyi and her party have for decades supported sanctions as an important tool in the struggle for democracy and to try to lever the regime into improving its record on human rights.

Some analysts and aid workers believe sanctions hurt ordinary people and further isolate the country from Western influence. Some also argue that Western companies are losing out on lucrative business while Asian nations such as China, India, South Korea and Thailand are strengthening their relationships with Burma and securing large energy and infrastructure deals.

Last year, when Ms Suu Kyi was released from seven years' house arrest, she requested briefings with Western diplomats on the impact of sanctions. Her party also set about examining their impact on the Burmese people. Last month, Ms Suu Kyi further indicated that she may call for a lifting of sanctions in a pre-recorded address to the economic summit at Davos in which she appeared to suggest they had failed to have any real effect on the junta.

She said that over the past 50 years political conflict had meant Burma had missed opportunities and its development had lagged behind that of its neighbours. "I would like to request those who have invested or who are thinking of investing in Burma to put a premium on respect for the law, on environmental and social factors, on the rights of workers, on job creation and on the promotion of technological skills," she said.

The EU first imposed restrictions against Burma in 1996 and has updated and renewed its policy every year. After the 2007 Saffron Uprising, when the junta responded brutally to widespread democracy demonstrations, Brussels enacted further sanctions, including a travel ban on Burma's top political officials, an arms embargo and a freezing of the assets in Europe of Burmese officials and their business partners.

The US first imposed broad sanctions in 1988 after the junta's crackdown on an earlier democracy movement, led largely by students, in which up to 6,000 people may have died. Washington has gradually tightened restrictions to try to force the military rulers to negotiate with the political opposition. The Obama administration sought a new diplomatic relationship with Burma, but little has come of it.

Tin Oo, the NLD vice-chairman, told the Reuters news agency that the party had been consulting economists and ordinary people. "We came to find that the sanctions affect only the leaders of the ruling regime and their close business associates, not the majority of the people," he said.

The party's senior officials also said that while they believed independent travellers should visit Burma, they did not support mass tourism projects such as cruise liners which provided "a lot of money for the regime".

Derek Tonkin, of the Myanmar Network, a UK-based organisation that publishes papers on Burma, said he believed Ms Suu Kyi did not want to lose the support of the West. He added: "I suspect this announcement is a political statement rather than something to do with economics." http://www.independent.co.uk/news/world/asia/suu-kyi-says-wests-sanctions-in-burma-should-remain-in-place-2207465.html
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Stock Market Unlikely in Burma
Tuesday, February 8, 2011

RANGOON—The establishment of a stock market in Burma is unlikely due to state control over the economy, the lack of a credible currency exchange rate and poor regulation of financial institutions and transactions, according to business sources.

A member of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) told The Irrawaddy that although Burma is now transitioning to a “civilian” form of government, he does not think there will be any significant changes in the country's economic policies and the government will continue to favor the cronies of state and military officials when granting business permits.

“The former prime minister has been given the position of president in the new government, so I don't think there will be a big change in the country's economy. Snr-Gen Than Shwe will remain behind the scenes and I don't think that members of the opposition in parliament will be able to accomplish much. Businessmen like Tay Za, Zaw Zaw, Aung Ko Win and Nay Aung will continue to obtain business opportunities,” said the UMFCCI member.

An official from the Myanmar Economic Bank, which is under the authority of the regime's Ministry of Finance and Revenue, said the provision of business permits to close associates of the regime is a big obstacle in the establishment of a stock market.

“The basic concept of a stock market is to sell shares to raise capital in order to found or expand a business. The price of shares in a company will rise when it becomes successful. But the businessmen here don't need to raise capital by selling shares. As long as they are getting along with top generals, they will have the opportunity to do business. Since they earn money from various sources in their business, the establishment of a stock market doesn't mean anything to them,” said the MEB official.

Some popular businessmen, including Win Myint, the chairman of UMFCCI, Khin Shwe, owner of Zay Kabar Company, and Tint San, owner of ACE Company, are members of the current parliament, representing the regime's proxy Union Solidarity and Development Party.

Burmese economists said the existence of a black market currency exchange and exchange rate, and the lack of specific banking laws, are also obstacles to the establishment of a stock market in Burma.

“The official exchange rate of one US dollar equivalent to six kyat has to be changed. Banking procedures and laws also have to be amended. For example, money transactions for foreign trade can only be made through accounts in the Myanmar Investment and Commerce Bank and Myanmar Foreign Trade Bank. Private banks don't seem much involved in this regard so banking and monetary laws have to be changed,” said an economist who regularly writes articles on economic policies in weekly journals inside Burma.

A senior economist in Rangoon said there is a need to promulgate laws and regulations for the establishment of a stock market. “People have limited knowledge of the techniques involved in stock trading. Where do we start the market? By selling shares in government-controlled companies or by founding privately-held common stock companies? We need to come up with specific plans. Mainly, there are many things to learn in terms of techniques and procedures,” said the senior economist.

He said the most importance factor in the establishment of a stock market lies in the willingness of the government to provide its citizens with genuine economic freedom. The new Burmese government, which will be led by former generals, will apparently continue its grip on the country's economy and thus will continue to hinder economic progress and the realization of a stock market, he said.

“When the regime transferred state-owned gas stations to private companies, people thought the black market in fuel would be ended. In fact, it wasn't the case because although the regime handed over the gas stations it continued to control the import of fuel. Other economic sectors are also still under the control of the regime although many state assets have been transferred to private businessmen,” said the MEB official.

Due to an agreement among members of the Association Southeast Asian Nations (Asean) that all member-states would establish their own stock market by 2015, most countries where a stock market does not currently exist are reportedly trying to establish one.

The Lao Securities Exchange was established in Oct 2010 and commenced trading operations on January 11. Banque pour le Commerce Exterieur Lao (BCEL), one of the largest commercial banks in the country, and EDLGeneration Pcl, a unit of state-owned Electricite du Laos, were the first two enterprises to be listed on the bourse.

In Cambodia, the country’s first stock exchange is due to open in 2011. Although the launch of the bourse, which is being built for US $6 million by a South Korean developer, has twice been delayed, the Finance Ministry says that trading will begin by July 2011 “at all costs.”

The Cambodian Finance Ministry has given listing priority to state companies, and has asked Telecom Cambodia, port operator Sihanoukville Autonomous Port and the Phnom Penh Water Supply Authority to list their shares, according to a Reuters report.

Despite the obstacles involved, according to reports from some Korea-based news agencies this month, Burmese authorities were engaged in discussions with a Korean company for the establishment of a stock market in Burma.

Observers said, however, that even if a stock market is successfully established in Burma, foreign investors will have difficulty trading shares in the many Burmese companies that are the target of sanctions by the US and other western countries.
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