Tuesday, 29 January 2013 12:50 Mizzima News
(Editorial) — The expressions "military crony” and “cronyism” have
long been associated with Burma, much in the same way as the word
“nepotism” might denote the extended family links of monarchies such as
in Saudi Arabia, or the way “oligarchy” conjures images of modern
Russia.
Cronies, by definition, are close friends or those given partiality
over others for reasons that do not relate to their qualifications or
skills. In Burma, we might politely refer to such gentlemen as “persons
of influence”.
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| Tay Za pictured in his office in Rangoon. Photo: Raimondo Bultrini |
During the era of the military junta under Ne Win, Khin Nyunt and
Than Shwe, the unofficial government policy of cronyism extended to
award positions of privilege—or business contracts—to those who were
close to the military hierarchy regardless of their qualifications,
education or experience.
Of course, such forms of favoritism are endemic around the world—even
the most democratic and developed nations share favors with those close
at hand. Major donations by firms to both or all political parties are
made to ensure favorable tax benefits or the award of government
contracts in the near future.
The difference in pre-Thein Sein Myanmar is that the award of
business contracts to cronies was the rule—it was as close to 100
percent as it could be.
That’s why, in this new arena of economic reform and renewed interest
in the Burmese business arena, almost everybody agrees that cronyism
should be abolished—everyone but the cronies themselves, of course.
But some challenging questions need to be considered: how to prevent
cronyism? Or, more to the point, how to reverse an ingrained economic
system? And, how should the former cronies be treated?
In this country which long suffered from grinding poverty, the few
rich businesspeople were cronies, friends of the military elite, often
married into the generals’ families for additional security. Their
motives were mostly selfish; natural resources were exploited
ruthlessly, and profits from these national treasures were stuffed
directly into the pockets of the cronies and their benefactors. They
deserve to be punished.
On the other hand, from the viewpoint of management and
administration, these existing businessmen may be essential in restoring
Burma’s economy. They are the ones with international connections, the
(only) ones with money to invest. Without their immediate involvement,
factories will close, unemployment will rise.
Recently, National League for Democracy (NLD) chairperson Aung San
Suu Kyi said, “If those people who are labeled ‘cronies’ decide to
support the NLD’s charity work or any other charity work, then let them.
It is good that their money is spent on issues that need financial
support rather than wasting money on other matters.”
Suu Kyi was speaking after it was reported that the NLD had received a
large donation from a company owned by tycoon Tay Za, perhaps the most
notorious (or successful) of Burma’s military cronies.
Years earlier, as a pro-democracy and human rights activist, Suu Kyi
was the very nemesis of the cronies. Today she is, at the very least,
pragmatic and has a vested interest in the country’s immediate progress.
How exactly she would deal with the problem of cronyism if she were
president we do not know. However, she has set herself up for much
criticism by her apparent about-face on the issue.
It is reasonable that many people in Burma have bitter feelings
against the “persons of influence” who took advantage of their
townships, who reaped the harvest from their natural resources, who
evicted them from their homes.
But for Suu Kyi and the Parliament at large, the only way to look is
forward. Rather than punish, they will reward—much in the same way as
the US and the West did with their bankers and financiers after the
recent financial collapse. That’s the ugly truth.
But is there an alternative?
To put an end to the time-tested policy of cronyism in Burma, the
current government needs to give up its centrally-controlled economic
system and create conditions that will encourage a market economy.
Moreover, the country needs to introduce a functioning and fair
taxation system. The rule of law must be emphasized and shown to
prevail, especially by penalizing those who evade taxes. And those
hardworking citizens with ingenuity and skills must be given a level
playing field to play on.
The elimination of cronyism should not and will not happen overnight. But it must be a long-term goal for the country.
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Related articles:
http://www.mizzima.com/edop/editorial/3493-nepotism-and-cronyism-reaching-new-heights.html
http://www.mizzima.com/edop/commentary/8018-investment-law-to-decide-if-burmas-growth-will-be-transformational.html
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