Caretaking Democratization

A review by T. F. Rhoden of Renaud Egreteau’s Caretaking Democratization: The Military and Political Change in Myanmar

Why have the Burmese armed forces withdrawn from direct control of the state? Why have they allowed a “hybrid” regime, with a representatively elected government, to form? What moniker does one use for this new, neither fully authoritarian, nor fully democratic, Myanmar? Indeed, what spurred the recent deepening of political liberalization and widening of democratization across the nation. And why now and not decades earlier?

These are some of the questions which imbue Renaud Egreteau’s excellent Caretaking Democratization: The Military and Political Change in Myanmar (Oxford University Press, 2016) with a saliency and urgency for those wishing to apprehend Myanmar today.

In what this reviewer considers to be the most important publication of the decade on the subject of Myanmar’s democratization, Egreteau argues that the “transition has been driven from above, by ruling Burmese elites—especially military ones—in a clear position of strength since the early 2000s.” By initiating a “well-thought-out”, “caretaking”, and “pacted” transition since 2011, “the Tatmadaw leadership merely chose to move down a notch on the scale of political intervention.” This analysis reminds us that there is more here than some naïve romanticizing of “Burma’s Spring.”

The decades of military authoritarianism are over. The sordid “military junta” as a regime type has disbanded. The current government, particularly after the 2015 general election, is the most democratically representative since independence. But, the Burmese armed forces’ praetorian commitment to political intervention—some of these guaranteed by the 2008 Constitution—demonstrates that the military will continue to have a sizable effect on future developments. Egreteau is keen to remind us that the science of comparative politics is uncertain about the endpoint to this “transition.”

The introduction and initial chapter lay out the focus of the study, one that centers the years from 2010 to 2015 as instrumental. This positions the book as an indispensable resource for comparativists and international affairs scholars in understanding early-stage democratization. Despite the particularity, and peculiarity, of this “sui generis case”, Egreteau frequently utilizes other postcolonial examples to draw out similarities and differences where relevant. Core to the argument of the “planned withdrawal” of the Burmese military from the highest reigns of governmental power were those machinations of “inter-elite negotiations” which centered upon a “pact” between three specific segments of Myanmar’s polity. This “top-down” approach included soldier-turned-civilian leaders from the ancien régime, well-known and well-liked leaders from the pro-democracy opposition—foremost amongst them, Aung Sang Suu Kyi and elites of the National League for Democracy (NLD) political party—and leaders of politicized or armed ethnic groups, particularly those who appeared open to cease-fire negotiations.

Egreteau points out that incorporating… [click here to continue to read full text]

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*Originally published in Tea Circle Oxford by T. F. Rhoden; image credit for the top of this re-post goes to awesome Randall Collis. Unless otherwise stated, all posts on this website are under Creative Commons licence. 

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Migrant Labor Activists Plan for the 2020 Election in Myanmar

Over two million Burmese migrants in Thailand were left out of Myanmar’s 2015 election. Will it happen again in 2020 ?

The Union Election Commission of Myanmar reported turnout at 69 percent for the historic 2015 elections within the country. Outside of the country, the story was very different. Fewer than 20,000 external voters engaged their political right at the ballot box abroad. This amounted to less than one-tenth of 1 percent of the over four million people who compose the Burmese diaspora.

“We labor migrants and refugees were simply considered not important enough by the previous Burmese government to be involved in the elections last year,” says a Bangkok-based migrant and labor rights activist from Myanmar, who wishes to stay anonymous due to her illegal status in Thailand.

Burmese migrant activists have begun meeting to plan for the next election four years away. They want a much higher rate of turnout for absentee voters for the next election.

A recent example of this foresight was an open letter from a network of migrant associations operating in Bangkok to Aung San Suu Kyi, state counselor of Myanmar. The open letter was meant to coincide with her official June 2016 visit to Thailand. Though the majority of recommendations were about more immediate concerns of migrant labor rights for Burmese citizens who make the trek to Thailand for work, the letter also included important recommendations for an extension of absentee suffrage. Migrant associations specifically requested guarantees for inclusion in future national elections.

Suu Kyi did not publicly address the absentee suffrage challenge during her visit like she did other migrant labor problems. Yet the fact that politically active Burmese in Thailand included this in their letter already demonstrates their concern with “not losing this opportunity again” for potential external votes to be counted in the next general election.

Lowering Costs for Migrants

In terms of Myanmar’s… [click here to continue to read full text]

*Originally published in The Diplomat by T. F. Rhoden; image-photo credit for this post via Channel NewsAsia. Unless otherwise stated, all posts on this website are under Creative Commons licence. 

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Who Would Voters with No Votes Vote For?

An exercise in extending absentee suffrage for Myanmar’s citizens abroad.

The 2015 election in Myanmar marked a major milestone in the country’s political transition and return to democracy. But some people were left out of the historic vote.

The reasons to not allow an individual to vote are as much a part of the history of all our great liberal democracies as they are a continual reminder to remain vigilant for those of us who may have lost that right somehow. In the past, some of us did not own property, were not the right kind of ‘white’ (Northern European), were not men, a tad too tanned or rather much too noir, or simply too young to vote — yet not too young to make the ultimate sacrifice in “foreign war.”

If the above reflects too much of the Western experience, then one could also include reasons like class, religion or lack of, language or dialect, caste, cult, ideology, marriage status, education level, sexual preference, and on and on.

Think of some ridiculous social cleavage, some cultural hang-up of yesteryear, and the astute comparative political scientist will ultimately be able to pluck another tawdry example from an even more exotic, backward republic. Give the polity an election and it will collectively vomit out some new excuse for democratic exclusion come election day.

But how does one analyse the individual who once had a political right and has now lost it? How about the individual who lost the right to vote for no reason other than not being at the right place at the right time on election day? A loss on grounds of a technicality—of logistics?

In Myanmar’s 2015 election, they had a constitutional mechanism ready to thwart such a possibility. In the 2010 House of Representatives Election Law, a provision exists in Chapter IX, section 45 to 47, which allows for an “advance ballot.” This is meant to assist those citizens who are bedridden, who may be out of the township on business, or who may be even so far away as to be beyond the territorial sovereignty of the state. Though what is legislated through Parliament and what is effected via on-the-ground operations, alas, proved to be very different.

Of those who were registered… [click here to continue to read full text]

*Originally published in New Mandala by T. F. Rhoden; image-photo credit for this post via ITV. Unless otherwise stated, all posts on this website are under Creative Commons licence. 

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Yangon’s Stock Exchange in Comparative Analysis

Abstract

In the political sphere, the citizens of Myanmar have witnessed and taken part in an expanding and deepening process of democratization and political liberalization in the past few years. In the economic sphere, changes are also underway that indicate a growth of economic liberalism. One part of that process is a slowly increasing financialization as indicated by the new Yangon Stock Exchange (YSX) set to begin trading operations in late 2015.

This paper will analyze what this new stock exchange means for the citizens of Myanmar by placing it within a regional comparative analysis of stock markets across Southeast Asia, including the Ho Chi Minh City Stock Exchange (HoSE), the Hanoi Stock Exchange (HNX), the Lao Securities Exchange (LSX), and the Cambodia Securities Exchange (CSX). The main argument is that despite calculable risks in terms of business transparency and national politics, the potentialities for a successful YSX are in place. The main socioeconomic conditions that warrant investment, both from the domestic as well as international perspective are 1) the depth and diversity of Myanmar’s adult population size, 2) Myanmar’s rallying industrial sector, 3) Burmese businesses’ current lack of bank financing, and 4) Burmese citizens’ little-to-no holdings in financial assets as compared to other non-financial wealth holdings.

The YSX will not be an overnight success for either domestic Burmese investors or for domestic Burmese enterprises seeking new avenues to finance growth and project investment. However, the systemic socioeconomic conditions are in place for the Yangon Stock Exchange to parallel more closely the experience of the Vietnamese HoSE and HNX than that of the other Indochinese exchanges of LSX and CSX.

Keywords: Yangon Stock Exchange, YSX, Myanmar, political economy, finance, wealth

Introduction

For the first time in its nation’s history, Myanmar will soon possess a full-fledged, independent, and computerized national bourse: the Yangon Stock Exchange (YSX). Though a late start has already been announced, a visit to the neoclassical Palladian building on the southeast corner of Sule Pagoda Road and Merchant Street in Yangon, where the old Reserve Bank of India used to issue banknotes during the 1940s, allows one to see the hustle and bustle of construction and renovation—all evidence that a stock market is indeed going up. Entering from the front stairs and into the center of the building, one sees a large square pit in the center of which will be placed a massive LED screen to display trading activities. To the left, a glass-paneled conference room for future investors is being built, whilst to the right, small rooms to be rented for representatives of underwriters, brokers, and advisors are being partitioned. The press corps will also have their own spot in the balcony. And to the very far right, one sees the shell of a future coff ee shop meant as something of a historical tribute and “for good luck since the world’s oldest stock exchange was in a coffee shop.”

But then again, this is just a building. Though it is a good sign that there is active construction, there is nothing here that suggests at first glance that the Yangon Stock Exchange will be a success. Two other grand-looking buildings in Southeast Asia also house exchanges—these are the Lao Securities Exchange (LSX) off Kampheng Meuang Road in Vientiane, Laos; and the Cambodia Securities Exchange (CSX) along Preah Mohaksat Treiyani Kossamak in downtown Phnom Penh, Cambodia. However, neither of these bourses are, by any standard definition, successful stock exchanges. What might indicate that the upcoming YSX will be different?

To varying degrees, other more successful stock exchanges can be cited in Southeast Asia. Examples include, from newest to oldest: the Hanoi Stock Exchange (HNX); the Ho Chi Minh Stock Exchange (HoSE); the Indonesian Stock Exchange (IDX); the Stock Exchange of Thailand (SET); the Singapore Exchange (SGX); Bursa Malaysia (MYX); and the Philippine Stock Exchange (PSE). The two exchanges in Vietnam, unlike the neighboring LSX and CSX, are the best example of stock exchanges begun in the twenty-first century that are performing at, and in some ways exceeding, what a successful stock market exchange means for a developing country in Southeast Asia. The HNX and HoSE have become invaluable to both companies and investors of the capital market in Vietnam. What might indicate that the exchange in Yangon will follow the example in Vietnam as opposed to the one in Cambodia or Laos?

This article contends that despite the many challenges facing the introduction of a new stock exchange in Myanmar, the Yangon Stock Exchange will likely have more in common with… [click here to continue to read full text]

*Originally published in Journal of Burma Studies by T. F. Rhoden; image-photo credit for this post via Frontier Myanmar. Unless otherwise stated, all posts on this website are under Creative Commons licence. 

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Myanmar’s Stock Exchange: Open For Business And Soon To Foreign Investors

…Still, Myanmar had no market infrastructure to speak with, so Daiwa brought in the Japan Exchange Group as a partner, while the Japanese Ministry of Finance helped the Myanmar government draft up a new law to set up the creation of the bourse. According to Masutomo, JPX’s interest in Myanmar was due partly to the fact the Korean Stock Exchange, which had helped set up the Lao and Cambodian exchanges, was so ahead of them in the region.

Today, however, the Lao and Cambodian bourses are seen as a cautionary tale of what the Burmese exchange could become. Skeptics argue that YSX will likely mimic the fate of its neighbors, which both failed to take off after debuting to much acclaim. Each now holds less than 5 stocks.

For T. F. Rhoden, an independent researcher and doctoral candidate at Northern Illinois University, the comparison is misguided, as Myanmar’s population of 54 million people gives it a potential depth of domestic investors that’s much more comparable to Vietnam than Laos or Cambodia. In addition, Myanmar’s $64 billion economy is over three times the size of its smaller neighbors.

The more important lesson from the Lao and Cambodian exchanges is that their failure to enforce strong disclosure procedures and regulation destroyed their credibility. For emerging markets — whether in Asia or elsewhere — the need for international standards of accounting and disclosure is more than ever crucial.

The Yangon Stock Exchange has tried to push for higher standards by asking applicants to appoint compliance officers and set up systems to prevent insider trading, but without stringent regulation of the capital market, it likely won’t be enough.

“The two companies that have listed so far are… [click here to continue to read full text]

*Originally published in Forbes by Fanny Potkin; photo image credit via WTOP. Unless otherwise stated, all posts on this website are under Creative Commons licence.

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L’histoire des Migrations Birmanes en Thaïlande Contredit l’Analyse Actuelle

Le discours prépondérant sur la migration des quelque trois millions de personnes originaires du Myanmar vivant actuellement en Thaïlande est essentiellement binaire. On considère généralement qu’ils sont soit des manœuvres, soit des réfugiés. En termes de causalité, la première catégorie serait incitée à se déplacer « de son plein gré » pour des raisons économiques tandis que la seconde serait « contrainte » pour des motifs politiques.

Une vision simpliste

Cela peut sembler être une rapide simplification des recherches des autres mais plus on se penche attentivement sur les écrits, plus cette vision binaire réfugié vs manœuvre constitue le cadre théorique dans au moins trois disciplines : les politiques migratoires contemporaines, la législation internationale sur les réfugiés et travail, ainsi que les études des organisations non gouvernementale. Je crains que cela ne soit plus une figure rhétorique qu’un élément étayé par des preuves en provenance du terrain.

L’année dernière, Adam Saltsman a expliqué dans The Diplomat que trop de différenciation entre les réfugiés et les manœuvres pourrait en fait nuire à ceux auxquels les analystes et chercheurs souhaitent venir en aide, alors que tant de ceux qui furent autrefois des « réfugiés » sont déjà entrés dans le réservoir de main-d’œuvre en Thaïlande. Il fait valoir que « le plaidoyer pour les réfugiés doit être relié à la défense des intérêts des migrants et du droit du travail » afin d’aboutir à des « solutions durables »… [click here to continue to read full text]

*Originally published in Alter Asia by T. F. Rhoden; translated by Édith Disdet; all other written and photo credits appear on Alter Asia. Unless otherwise stated, all posts on this website are under Creative Commons licence. 

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Millennia-Long Histories and Burmese Migrations into Thailand

For the approximately three million people from Myanmar in Thailand now, the main narrative on migration is essentially binary. The argument generally goes that one is either a labourer or one is a refugee. In terms of causation, the former is enticed to move for “voluntary” reasons of economic want, while the latter is propelled for “forced” reasons of political exigency.

This is, perhaps, something of a simplification of the research of others, but the deeper one delves into the literature of at least three specific areas or disciplines of study—contemporary migration policy analysis, international refugee and labour law, and any humanitarian or NGO-type study—the more one realises that this refugee-vs-labourer binary is the essential theoretical framework for analysis. I worry that this is more of a trope than something backed by on-the-ground evidence.

Last year Adam Saltsman made an argument in The Diplomat that too much of a differentiation between refugees and labourers may actually do harm to those who analysts and scholars may wish to help, now that so many of the once “refugees” have already entered the labour pool in Thailand. He argues that “advocacy for refugees must be linked with advocacy for migrants and for labour rights” in order to come to any “durable solutions.”

My own forays into the study of the Burmese in Thailand have also generated qualitative as well as quantitative evidence to argue against this simple binary. This needs to be analysed more fully…[click here to continue to read full text]

*Originally published in New Mandala by T. F. Rhoden; all other written and photo credits appear on New Mandala. Unless otherwise stated, all posts on this website are under Creative Commons licence. 

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