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SOUNDING BOARD
Wednesday, January 08, 2003
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China's aid to Burma: prospects for political and economic reforms

President Jiang Zemin of China says China will offer Burma US$200 million in preferential loans for economic development. He made the statement during a visit of the Burmese leader General Than Shwe to Beijing. Is this good or bad? Let's see.

China is Burma's closest ally since the military coup in 1988. This alliance has made China the biggest supplier of Burma's military hardware. China is also Burma's third largest trading partner, after Singapore and Thailand. This, however, does not take into account informal trade across their common border.

Burma relies heavily on China for its hardwre and trade because of its limited trade with other countries (especially western countries) owing to its poor human rights record, including the mass rape of women by military officials.

Is it merely coincidence that China also has poor human rights record? Nevertheless, as we see China rising on the economic horizon, it becomes more important to see this as a way to fast-track political and economic reform in Burma. A strong and globalized Chinese economy means less dependence on arms trade. No matter how bleak, there seems to be a diplomatic way out of this. It may be faster if only Burma has oil.


posted by Allan at 5:04 PM (GMT+8)
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