Weekly Business Roundup (December 12, 2008)

By WILLIAM BOOT

‘Dirty List’ of Firms Dealing with Burma Grows

The number of foreign firms investing in Burma increased in 2008 despite economic sanctions by Western countries.

The London-based human rights group Burma Campaign UK says it has identified another 30 new companies doing business with the military junta.

The new companies joining the group’s “Dirty List” are mostly in the energy sector, investing in oil, gas and hydroelectric projects.

Johnny Chatterton, the campaigns officer at Burma Campaign UK, says the current sanctions imposed by the United States and the European Union fail to deter would-be investors.

“This list proves that the current sanctions are not working. More companies than ever are investing in Burma in the oil, gas and dams sectors,” Chatterton said.

“New targeted sanctions against the regime must now be implemented if the international community is serious about cutting the regime’s financial lifeline,” he said. “To those that claim investment aids the people of Burma, the evidence shows the opposite is true. As investment has increased, the human rights situation has deteriorated.”

Up to half the junta’s budget is spent on the military while a mere 1.4 percent of GDP goes on health and education, according to the NGO group.

The lure of access to Burma’s immense natural wealth is coveted by foreign investors and the current restrictions do not prevent companies that invest in Burma from using financial, insurance and legal services from inside the European Union—not least involving Lloyd’s of London, said Burma Campaign UK.

Middle East Gets Burmese Beans; Junta buys Indian Wheat

The Burmese government plans to sell bean crops to Middle East markets via Israel.

Until now, more than half of the 1.3 million tonnes of pulse crops exported by Burma have gone to India, but the Hindu News newspaper reports that Burma’s neighbor will now face competition from several Middle East countries.

It quotes the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) saying traders were making arrangements through the most unlikely link of Israel.

The Burmese regime has long had links with Israel, to whom its sells sea produce—amid persistent but unconfirmed reports that the Israelis are still involved in arms trade with the junta.

Meanwhile, New Delhi is reportedly resuming the sale of wheat to Burma.

The Hindu News said this week that a 2-year export ban will be lifted, and Burma will be sold 950 tonnes in the near future.

Rangoon Joblessness Rises

While Burma’s Prime Minister Gen Thein Sein claims the rice growing industry can easily absorb thousands of returning jobless migrant workers, reports grow of rising numbers of unemployed in Rangoon.

No figures are available, but reports speak of factories closing or laying off workers as orders dry up in the aftermath of the global economic slump.

Some clothing factories have stopped work altogether in Rangoon while others have been forced dramatically to reduce the number or workers. Burma is one of the region’s leading exporters of cheap rubber flip-flops, but even this industry has been affected with thousands of cancelled orders and widespread layoffs, the sources say.

Specialized industries such as carving and gemstones are also suffering.

Job and money shortages are also leading to rising levels of petty street robbery in Burma’s main city.