Burma’s economy on its knees but not because of sanctions
Yangon (AsiaNews) – Sanctions against Burma’s military junta will fail if they do not include its lifeline, oil and gas, the International Trade Unions Confederation (ITUC) warned yesterday after the European Union upped its sanctions against it a few days ago. In the meantime British Prime Minister Gordon Brown threatened financial sanctions, whilst the local tourist industry is on its knees, food prices are sky high and many businesses have been forced to close.
Ineffective EU sanctions
ITUC General Secretary Guy Ryder welcomed the EU’s new measures, “but they don't go far enough. The oil and gas sectors are the single largest source of revenue for the military regime, and we are extremely disappointed that the EU has left this huge revenue stream untouched.”
EU sanctions taken on Monday in response to the ongoing repression of Burma’s pro-democracy movement include a visa ban on the generals as well as a freeze on their assets. They involve banning import and export of Burmese wood, gems, and metal as well as a embargo on new investments in Burma on these three items.
However, sanctions do not say anything about the oil and gas sectors. Companies like Total of France can still continue their operations in some of Burma's gas fields in Yadana and Yetagun.
Regional powers like China and India who are also vying for Burmese oil and gas as well as Thailand back the generals.
Myanmar’s economic crisis
Whilst the junta continues to use an iron fist against anti-government protesters, the country plunges further into poverty.
A Buddhist monk has been jailed for seven and a half years in Sittwe for taking part in mass protests in late September, a monastic source said on Wednesday. Eik Darea, 26, was the first monk known to have been sentenced for his part in protests. He was also defrocked and could end up in a labour camp
The tourist industry is on the rocks as well. The Kandawgyi Hotel and the Hotel Nikko, two of Rangoon's biggest hotels have closed their doors, The Irrawaddy reported.
The government's increase in fuel prices in August raised the cost of public transportation and increased food prices, sparking demonstrations. This explains why a UN survey found that the average Burmese citizen used 70 per cent of their income for food.
“Most people cannot eat meat because the price is skyrocketing,” a Yangon resident said. “Meat prices increase about 200 kyat every week. Poor people now buy only vegetables because they are cheaper.”
The poor cannot even buy rice and many workers are sometimes given rice by their employers.
Taxi drivers are out of work, teashops—which are traditional meeting places—have fewer and fewer customers and women who rely on prostitution to earn money can now be seen on Yangon streets even in broad daylight.
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