Cut the income of Burmese generals to end the bloody repression.
After the February 1 coup, the United States, United Kingdom and European Union gradually reimposed sanctions against the military, including targeting two large military-controlled conglomerates, the Myanmar Economic Holdings Public Company. Limited (MEHL) and Myanmar Economic Corporation Limited (MEC).
In 2019, while the international community was alarmed at the atrocities committed by the army on the Rohingya and other ethnic minorities, an independent international mission of experts from the UN Human Rights Council issued a report. report detailing the military's grip on the country's economy. She revealed that between them, these conglomerates controlled about 120 companies in the country, ranging from the exploitation of jade and precious stones, to banks and tourism.
However, all these companies benefit from partnerships with foreign companies.
Since 2018, the NGO Burma Campaign UK has thus drawn up a "Dirty List" (a black list) of these Chinese, Indian, but also American or European companies which "collaborate" with the Tatmadaw, the Burmese army.
Contacted by France 24, Mike Farmaner, the president of this association, explains that these foreign sanctions will certainly have a limited effect, the military being able to count on other economic partners like China.
On the other hand, they have a major psychological effect on the activists who have been demonstrating for three months now.
France 24:
What is the economic situation in Burma now
?
Mike Farmaner:
Today, the Burmese economy is completely at a standstill.
But it must be understood that this was one of the objectives of the demonstrators: the military cannot govern a country whose economy is blocked.
The Burmese are also the first to have called on foreign companies to cease their activities in the country and to have called for a reaction from the international community.
As we saw in the weeks following the coup d'état, the country went into a general strike and most companies let it go.
The soldiers are now tightening the screw.
They are increasing threats to bosses and businesses are gradually reopening.
Some even threaten their employees with dismissal if they do not return to work.
Each foreign company which ceases its activity in the country is therefore greeted by the demonstrators because it contributes to disorganizing the economy.
The same goes for sanctions decided by States.
Have foreign companies already left Burma
?
Why does the Total case crystallize tensions
?
The first companies to withdraw from Burma are not Westerners, but Asian: they are Singaporean and Korean freight transport companies. Some European and American companies have nevertheless followed, such as the French company Voltalia. EDF has also withdrawn from a dam project. These two companies are no longer part of our "Dirty List".
Today, all eyes are on Total and Chevron.
For good reason, if we really want to strike a blow at the military, we must target strategic areas.
And nothing is more strategic than oil, gas and precious stones.
Total is the country's leading private investor and an invaluable source of income for the military.
This is not only a symbolic case, but its withdrawal would have a real influence on the situation.
Some argue, moreover, that if Total ceases its activity, another company, probably Chinese or Thai, would immediately replace it.
It is certainly true.
But symbolically, the gesture would remain strong and would be seen as a real setback for the military.
What about the boycott campaigns initiated in the country
?
The fight is also being waged on the economic front and this, the Burmese have understood.
Since the coup, sales of some products related to military conglomerates have collapsed.
Until then, it was impossible to go to Burma without drinking Myanmar Beer.
No one consumes it anymore.
The same goes for Ruby cigarettes.
We also see more and more people changing telephone operator and abandoning the MyTel network, managed by the army.
In stores, all advertising inserts touting military-related products have been removed.
It is something completely new.
For many, more than a way to cut the income of the military, it is a way of continuing to demonstrate despite the bloody repression.
It is easy to stop demonstrators in the streets, it is much more difficult to stop someone who favors one brand of cigarettes over another… These boycotts are a very remarkable form of resistance.
Can economic sanctions bend the military
?
Economic sanctions alone will not be enough.
Western countries have too limited an influence on the Burmese economy for this, especially in the face of other countries like China which remain key partners of the junta.
On the other hand, they represent a first step in the establishment of economic pressure on the military.
It should be understood that all companies linked to the army have benefited, if not from foreign investments, at least from foreign expertise at some point.
To cut this tap, at least partially, is to strike a first blow to the soldiers.
More than an economic impact, these sanctions have an emotional and psychological impact.
The military did not expect such resistance from the population.
They may stop opponents, close social networks, the mobilization continues.
Each decision taken against the military is thus seen as a victory for the demonstrators and as an argument to continue the movement.
This is all the more true as the international community has been slow to impose these sanctions.
It took several weeks for the US and UK and three months for the European Union.
For the international community to really play a role, it must now step up diplomatic pressure and decree a general arms embargo.
It must also refuse en bloc to recognize the junta as the official, and de facto legitimate, government of Burma.
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