Bloomberg News

Obama Says Myanmar’s Democratic Progress Fuels Economic Growth

May 20, 2013

President Barack Obama told Myanmar President Thein Sein that building democracy and ending human rights abuses will bring greater prosperity to the Southeast Asian nation.

Thein Sein’s White House visit yesterday was the first by a leader from the country formerly known as Burma in 47 years and comes amid warming relations and U.S. support for its budding democratic institutions after decades of military rule.

The U.S. wants to assist in spurring broad-based economic development “and that includes the prospect of increasing trade and investment in Myanmar, which can produce jobs and higher standards of living,” Obama said at the conclusion of an Oval Office meeting with Thein Sein. “As President Sein is the first to admit, this is a long journey.”

Obama said he also expressed “deep concern” about violence against ethnic and religious minorities and that abuse of human rights “needs to stop.”

The meeting took place as Thein Sein, who took office two years ago, is clearing the way for overseas investment in Myanmar, which is sandwiched between China and India. U.S. and European companies including Ford Motor Co. (F:US), Coca-Cola Co. (KO:US) and Unilever NV (UNA) are scouting for opportunities in Myanmar. As western sanctions are lifted, Sein’s government is seeking to modernize the country’s financial system and infrastructure before elections in 2015.

U.S. Rebalancing

“The U.S. has decided to rebalance its foreign policy toward Asia, and the idea behind that rebalancing is that the U.S. can benefit from Asia continuing to be a growth engine for the global economy,” said Vikram Nehru, a senior associate at the Carnegie Endowment for Peace in Washington who focuses on East Asia.

While human-rights organizations criticized Obama’s invitation as premature, the White House said in a statement that Obama was hosting the former military leader to signal support for “those governments that make the important decision to embrace reform.”

Obama referred to the nation as Myanmar in his remarks, even though the U.S. officially uses the name Burma. White House press secretary Jay Carney said the U.S. “has begun to allow limited use of the name Myanmar as a diplomatic courtesy” to show respect for the progress made there.

In yesterday’s talks, the two leaders discussed the rule of law, proper use of courts and property rights of farmers, among other items, Thein Sein said.

‘Daunting Task’

“It is a daunting task ahead of us,” Thein Sein said of the changes toward greater democracy, while thanking the U.S. government and Obama for hastening changes.

The Myanmar leader said on May 2 that the growth of democracy in his homeland must go hand in hand with economic development and that improved relations on a global scale will create jobs and provide the country with advanced technology.

During its decades of isolation, the Myanmar’s economy was dependent on China but the shift toward democracy offers “a little more a little more counterbalance,” said Murray Hiebert, senior fellow and deputy director of the Sumitro Chair for Southeast Asia Studies at the Center for Strategic and International Studies in Washington.

“This gives them a little more leverage, they can look at other places for foreign investment, they can look at other places for aid and advice,” Hiebert said in a telephone interview.

Obama Visit

Obama hailed Myanmar’s progress in democracy and human rights during a November visit that was the first by a U.S. president. His stop in Myanmar marked the end of U.S. diplomatic isolation.

The U.S. relaxed sanctions on Myanmar, which the U.S. still officially calls Burma, in 2012 after Sein engaged with political opponents, released dissidents and relaxed censorship following his party’s victory in a 2010 election that ended five decades of repression and direct military rule. The European Union lifted sanctions last month.

The former British colony is one of the world’s least developed nations. Citizens average just four years of education. Myanmar is also one of Asia’s last untapped frontier markets. Even so, the nation’s economy will expand 6.2 percent this year, the International Monetary Fund said in October 2012.

U.S. Companies

Ford said April 30 it opened its first dealership in Myanmar after the U.S. eased sanctions last year. Companies such as Cisco Systems Inc. (CSCO:US) and Microsoft Corp. (MSFT:US) are already working with the U.S. and Burmese governments to help train local teachers and computer programmers.

Sein released at least 19 political prisoners, the Associated Press reported, before his White House visit.

Human rights advocates accused Sein of dragging his feet on promises for change and said many pledges haven’t been met, including a panel to review political prisoner cases.

“The last year has seen devastating violence against minorities and a stalled reform process,” John Sifton, Asia advocacy director at Human Rights Watch, said in an e-mailed statement. Obama must “make it clear that there are consequences if the Burmese government fails to implement its previous human rights pledges.”

Sifton said both governments should set goals for progress to ensure “free and fair parliamentary elections in 2015” including a constitutional amendment removing Myanmar’s military authority over its civilian government.

To contact the reporter on this story: Roger Runningen in Washington at rrunningen@bloomberg.net

To contact the editor responsible for this story: Steven Komarow at skomarow1@bloomberg.net


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