Friday, February 5, 2010

Nepotism and cronyism reaching new heights

 
Friday, 05 February 2010 23:12 Mizzima News (Editorial)

Mizzima News - The Burmese junta is in the process of simultaneously conducting the privatization of many state-owned enterprises in various sectors such as industry, commerce, hotels and tourism, cooperative society, information, livestock and fishery, energy, transportation and telecommunications.

Though they have championed the slogan of “changing to a market economy system” for over 20 years, it is odd to see how energetically they are conducting such privatization efforts only now.

Though they contend the urgent and simultaneous privatization of many state-owned enterprises in necessary in anticipation of transferring administrative responsibilities to a newly elected government following the planned general election, this new administration will likely be filled by the same men minus the uniforms. Thus, reform as it is being conducted has little chance for success.

Instead, it is just the expansion of nepotism and cronyism through the selling of state-owned assets and natural resources exploited by a handful of inner circle beneficiaries. Rather than to the benefit of the majority of the people, the privatization drive aims merely at the creation of business opportunities for the generals, their cronies and protégés.

Bidding invitations are just for show, with cronies of the junta certain to win all lucrative contracts, the spoils divided up among a predetermined select group. The junta’s crony business associates have been preparing for just such a handover for many months, long before the recent announcements of privatization plans.

The likelihood of political reform through the general election is very thin. The number of political prisoners increased in 2009 along with additional incidents of long prison terms being handed down to journalists. Further, restrictions on the movements of political parties and organizations, including freedom of organization, continue to be enforced, uncovering the true nature and color of the junta.

It is ironic that Burma, under the generals’ directives, can be said to be adopting a democratic system without the release of prisoners of conscience.

Though it is necessary to expand the private sector in the economy through the selling of state-owned enterprises to make them more competitive, transparency and accountability are also crucial and essential.

Moreover, along with the privatization drive comes an increased possibility for job loss as well as diminishing labor rights.

If anybody expects better statewide development through the present privatization scheme, they surely misunderstand the motivation and aims of the ruling junta.