Coup d'état in Burma: time for economic sanctions?
The Burmese military holds powerful interests in much of the country's economy.
AP - Aung Shine Oo
Text by: RFI Follow
3 min
Japanese carmaker Suzuki has suspended production at its two factories in Burma indefinitely after the military coup in the country on Monday.
Should we expect other economic consequences against Naypyidaw?
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“
The international community must unite with one voice to push the Burmese army to immediately relinquish the power it has seized, to release the activists and leaders it has arrested.
The statement is from a Joe Biden expected at the turn by part of the international community, after the military coup in Naypyidaw and the arrest of
Aung San Suu Kyi
, the
de facto
Burmese Prime Minister
.
Will the new US president reinstate economic sanctions against the putschist junta?
"
The United States has lifted its sanctions against Burma over the past decade on the basis of progress towards democracy,"
the new tenant of the White House continued in his statement.
Reversing this progress will require an immediate review of our sanctions laws and jurisdiction, followed by an appropriate initiative.
"
Subsequently, a US official speaking on condition of anonymity told Reuters that the Biden administration had quickly entered into high-level internal discussions to prepare a "
whole-of-government
"
response
to the coup, and that it planned to to consult Congress in Washington.
No more details for the moment.
Behind Burma, Asia
On the other hand, the music is very different on the Beijing side.
China, which has many economic interests in Burma, calls on the international community
not to "
complicate the situation further
.
"
Another difficulty that could limit the sanctions to a symbolic scope: behind Burma, there is Asia, underlines
Myriam Berber,
of the Economics department of RFI.
Singapore is the top foreign investor in the country, followed by Hong Kong.
The other foreign investors are South Korea, Thailand, India and Malaysia.
►
To listen: Coup d'état in Burma: "The international community will not unite"
Opacity which allows to escape any surveillance
We must therefore hit the army in the wallet.
Its power is not only military, it is also economic.
According to a
UN report released in 2019
, the Burmese military has interests in all sectors of the country.
The Burmese military also owns two conglomerates with numerous companies, in commodity trading, real estate and tourism, as well as the country's largest banks.
However, none of these companies publishes financial results.
An opacity which makes it possible to escape any surveillance, and which makes any sanction difficult.
►
To listen: Burma: the consequences of this coup
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