Mr. Deedes, thanks for the comment, but it was not clear to me that liberal-minded officers in the army was the key point of the post. You may be correct, but this point is not mentioned until paragraph 17 and no names or evidence is provided so a reader could judge whether or not this might actually be true.
Classic diversionary tactic away from the key point of the article viz: The third would see the people collaborate with the army. Chupong believes there certainly are some liberal-minded officers in the army despite being subjected to brain washing over many years. Obviously communication and collaboration between these soldiers and activists would have to be done secretly.
While I appreciate New Mandala providing a place for dissident views, I think the website managers should exercise some discretion on the quality of what is posted. Past posts have included articles that include unsubstantiated claims, including some so poorly written it is not easy to say exactly what they mean. This post by “Somchai Rattanakosin” is a good example. It quotes Chupong about “three favorite sons” of the king but never says when the comments were made and never provides direct quotes. No effort is made to provide evidence for this claim or to say how Chupong would know this information. It is not even clear whether Somchai or Chupong mean actual sons or people acting like sons. Such wild claims tend to be made by aggrieved and emotional foes (such as Chatwadee “Rose” Amornpat of the Thai monarchy, perhaps in over-reaction to the practices of hyper royalism, censorship and lese majeste in Thailand. Such excitable critics of the king have the right to their opinion, but not necessarily an automatic right to New Mandala’s service in distributing it. Well-written, well-researched and believable articles on the Thai monarchy are legitimate fare for New Mandala, but this kind of article only brings down the esteem in which New Mandala otherwise be held.
Other commentators mentioned this above, but it’s worth reiterating again that Serge Pun is not an apt example at all.
The man has gone head-to-head with former junta in the past before the current phase of liberalization began. I’m remembering the problems he had with Yoma Bank and such in the 90s. He is no saint–for what businessman really is?–but he is one of the better examples of transparency within domestic business in Myanmar.
But from an academic sense, an argument against continued crony capitalism and/or oligarchy–which are serious issues in Myanmar–is not furthered by a reference to KFC.
If overpriced, cardboard-tasting, fried mutant-poultry is the worst example of expanding liberalization and democratization in Myanmar, then might we be fooled into thinking that the Burmese citizenry have very few challenges ahead indeed.
KFC is probably less of a symbol than a straw-man of “irresistible neoliberal economic order”.
Fancy suggesting that elections in the current environment are NOT a first step toward anything resembling democracy.
The “monarchy haters” will just love this one because of where it lays the blame.
But the “anti-coup” crowd will hate the suggestion that it will require cooperation with the RTA to establish democracy; after all, isn’t that what the coupists always say more or less?
After more than 20 years in Thailand, this article comes as something like a revelation.
The Army has always behaved as if it is above the law, and this would explain why.It also explains why many generals have staged coups and never been prosecuted.
The Thai Justice System is among the dirtiest in the world,and needs URGENT attention. Lawyers who have lost their licences are allowed to continue in business as usual, and cheat even more people. There is a Criminal case in Hua Hin Court right now, abusing 4 innocent people. The Plaintif is a struck off lawyer from Samut Prakan, who continues to run a busy law office. His crooked friend gives free legal advice on Thai Visa, touting to find new victims to cheat. I, personally have been cheated 4 times in Thai Courts by these scum.
I filed a complaint with the Lawyers Council which proved futile. It is merely a corrupt “old boys” club. Crooked lawyers would be better dealt with by Military Courts, but it would be a mammoth task.
Refreshing input there pearshaped, it is an Interesting point, this is another area of research I have been passively undertaking.
However, due to my vegetarian eating habits, I’ve mainly limited myself to scratching my head at the herb and spice combination; wondering why I still have absolutely no interest in cracking their secret blend.
Regarding your claim that political coverage of Myanmar often suffers from “a lack of common sense.”
The common sense paradigm lost its credibility a few miles ago, after it was confirmed that it would surely blow minds, it has been suggested.
On a more topical note however:
Eleven Media (which is of course run by a rival tycoon) has reported that the ‘affordable’ KFC ‘meals’ which Pun argues would be affordable to members of all classes in Myanmar, are selling at rates comparatively far higher than its Southeast Asian neighbours.
To explain this exorbitant pricing, and to counter your point, one statement, in particular, stands out as providing the most (in)credible answer (especially now that Myanmar is a part of the wider global community).
Could it be that they’re sourcing the finest deep fried chicken directly from where they fry chicken the most fantastically Finger lickin’?
‘Coverage of Myanmar suffers from conflation/simplification of issues’
And often a lack of common sense.
They won’t get much from the scrawny local birds which means they’ll be sourcing chooks fed steroids and antibiotics. Just forget the political jargon for a while and go investigate where the breastmeat and big drumsticks are coming from. If they’re sourcing birds from Thailand, there’s a birdflu vector. And, unless you’re ok with manboobs, stay away from KFC anywhere in SE Asia.
Doubt it if one necessarily follows the other like you said. Might apply to ethnic Chinese, originality already overseas or mainland.
My country right or wrong as far as some are concerned, like the Jewish diaspora vis-├а-vis Israel, or some of the Burmese for that matter believing its their ‘patriotic duty’ no matter what.
Why shouldn’t one be critical about where one lives originally or later or both? There are both good and bad points about most countries.
I was slightly unaware as to what your comment referred to, or what the question was when I gave my response, hence the long and vague reply I gave.
The first two links were not necessarily about crony capitalism. The third contained a critical economic perspective with plenty of examples of rapacious capitalism; inter-elite rivalry; as well as providing future possible trajectories that Myanmar may be following; and where the limits to political and market reforms lie.
On to this ‘crony’/’crony capitalism’ issue:
The first thing worth mentioning is that ‘crony capitalism’ is a broad term, and you will notice from the article that the word ‘crony’ isn’t actually used on it’s own.
In fact, I first mention them as the “so-called ‘crony capitalists,’” as I too am unhappy with the phrase, and find it misleading. It conjures up images of slimy ‘yes men’ and crooks, when it could mean neither.
This is also not necessarily aimed at criticising any suspected cronyism on behalf of Serge Pun.
Amidst the varying degrees and definitions of crony capitalism, I believe that the best definition, especially in the Southeast Asian region, does not necessarily involve the sliding of suspiciously full brown envelopes over teak desks to officials in NayPyiTaw. Maybe such a scenario is more likely to arise with the likes of tycoons such as Tay Za.
The term crony capitalism, in the sense that I interpret it, concerns the blurring of the boundaries between private economic/business interests and politics/government to such a degree that policy eventually becomes dictated by corporate interests, rather than by democratic, or even military, will. In due course the state starts to resemble a plutocracy. In such a crony capitalist system, it is the wealthy tycoons who use their politically, or economically, advantageous positions over their contenders in order to accrue greater wealth.
It is this interpretation of crony capitalism that is referred to in my article. Myanmar’s development boom has created a political and economic climate that heavily favours these tycoons to carry on expanding their wealth, and subsequently, their power.
The new colonels in town appear to be the private business interests of an extremely wealthy few who have, in effect, become a strong political unit themselves; a particularly intense blurring of boundaries.
My issue isn’t with your assertion of the existence of “crony capitalism;” its with your assertion that Pun is a “crony” in the local sense of the word. Generally, “crony” here is used in a specific manner and implies one of a rather small subset of business people who have cooperated with the government in nefarious ways over the past 20+ years – I have never heard of Serge Pun counted among those “cronies,” and in fact, he is usually expressly set aside from that group.
You can make an argument (although I would disagree) that Pun’s success could be tied to a very loose conception of “crony capitalism,” but I think calling him a “crony” confuses the matter given the word’s local context. Moreover, I’m not sure its fair to tie to him to “crony capitalism,” when his advantage in the system has been gained through his refusal to cooperate with the government in ways that the US and its allies would find problematic.
My main concern here is highlighting what I understand to be the local context of the word “crony.” Coverage of Myanmar suffers from conflation/simplification of issues (i.e. Rohingya vs. Muslim/Buddhist relations generally vs. ethnic minority/Bamar relations, or conflation of Tatmadaw with state security with police). Discussing “crony capitalism” in Myanmar can be confusing given that “crony” has a specific meaning here (whereas “crony capitalism” as a concept is more general.) So you can say there is “crony capitalism” and you could even argue that Serge Pun is engaged in it (again, I would disagree, from my knowledge of the situation), but even still, that wouldn’t make Serge Pun a “crony” in the local sense of the word.
Again, I apologize if I’m missing something re: SP, but nothing in the links provided or in my experience here has ever suggested that he is counted among the “cronies” in Myanmar.
I do agree, SP does have a good reputation, and has done much provide aid and rebuild the state. He is certainly one of the few of those considered as being in Burma’s business elite, who can provide vital infrastructure projects, and, tellingly after Cyclone Nargis hit Myanmar eight years ago when humanitarian aid charities were having a tough time providing relief due to sanctions. With the Government also essentially unable to provide vital assistance. It was Pun’s Yoma Bank that was used by many major charities (for funnelling aid donations outside around the sanctions regime), as well providing boats and warehouses used in the relief effort (as can be seen here: http://www.csmonitor.com/World/Asia-Pacific/2008/0610/p01s05-woap.html).
These individuals, Pun included, do build all sorts of projects, such as roads, schools, hospitals, etc., for the benefit of many. Largely because they have the resources and a sense of a state-building imperative.
By taking part in these ambitious exercises of addressing public concerns and needs, he also finds him in a favoured position concerning the junta.
Pun was one of the few who wasn’t targeted by sanctions which is what allowed him to carry out these humanitarian efforts. This also makes him a very handy asset for the embittered regime; particularly at that time. At the same time, however, there were others who has also attempted to funnel Western aid donations to the cyclone-hit region, who most likely had less resources or connections, and who found themselves imprisoned by the junta.
However, I feel that the term ‘crony capitalism’ has been correctly applied in my article, and bears a close synonymity with ‘oligarchic/elite democracy’. Regarding the political culture/history of how many other post-colonial states have fared in the region, it is at this point in state-building that Myanmar is most vulnerable to hijacking from an oligarchic elite.
Ideally neither capitalist system is ideal in any way for developing nations, but…
To answer your question: One key difference between crony capitalism and just plain old capitalism, is that crony capitalism has a particularly unique detrimental effect on the quality of electoral democracy.
In brief, the top-down organisation of a crony capitalist political-economic system (which can lead to very lucrative contracts for some), and the allocation of rent-extraction entitlements to asset holders, is often to the detriment of those lower down, who are the greatest losers in this economic system.
As the average citizen is the one ‘cheated’ the most out of top-level collusion, it is typically customary for those involved to keep these practices behind closed doors. For this reason, the avoidance of transparent democratic features becomes the modus operandi in these systems, and consequently, fully-fledged liberal democracy remains elusive; on the grounds of maintaining social and political stability.
To turn back to the Burmese case here, there is a feeling, as highlighted by exiled dissidents, cited in an Economist article written shortly after Nargis (http://www.economist.com/node/11579356), that the role of facilitators such as Serge Pun, who has demonstrated his resolve to aid and develop the state in times of need – times of need both the regime, and those ravaged by natural disasters – is in a prime position to exploit these credentials. His privileged access to the political elite and his vast fortune are two key ingredients for furthering any rent-seeking goals.
As mentioned in the Economist article (there are other examples available, but due to time constraints in replying to your comment, it should be adequatedly sufficient), there is evidence of these conglomerates exploiting this role as aid-coordinators as the process moves into a reconstruction phase email me for. A lucrative phase for some.
There are countless examples of competitive squabbling for the spoils in Myanmar’s liberalisation process, amongst what appears to be an ‘oligarchic elite in-the-making’, which provides quite strong indications that we may be seeing a new set of crony capitalists.
This 2014 article by Lee Jones explains many of these: http://www.tandfonline.com/doi/abs/10.1080/00472336.2013.764143
Anyway this is almost longer than the piece I wrote, so I’ll leave it there.
Well, according to the Forbes article, the reporter Simon Montlake (who seems to admire Serge Poon for some reason) interviewed this “burmese” tycoon in a hotel in Peking. Go figure!
I’m talking about the hypocrisy of Burmese dissidents and refugees who apply for political asylum in Western countries but at the same time denounce Western values and kow-tow to the despotic Chinese regime and the greedy Chinese State-Owned-Businesses wreaking havoc to the ecology and the cultural traditions of many poorer countries in Asia and Africa.
By the way, a lot of Chinese are “migrating” nowadays to Western countries (and Universities).
As Dr. Michael Aung-Thwin once said, it’s natural that Myanmar capital goes back to their heartlands. And despite criticisms, it’s fast becoming a “natural” capital. Some of my friends at University of Medicine are increasingly choosing Naypyitaw for their house surgeon year, to gain contacts in Civil Service. Soon, it will be a land of opportunities for those choosing a career in Civil Service.
So what should be next for Naypyitaw? It will be great to see all MPs, including the military, settling down in Naypyitaw with their families at least for their terms. We will need great schools, recreational parks, cultural connections and job opportunities for their family members. This will pay off definitely. If the children of opposite parties’ MPs are in the same school, playing on the same football team, if they meet each other at pagodas and parks every weekend, and strike up a honest conversation between them, and if they can learn those on the “other side” are humans too, who are, just like them, want to work for the country, many of Myanmar’s problems will disappear, or at least, be easier to solve.
There was no connection between them when Daw Aung San Suu Kyi was leading pro-democracy protests on the streets, while General Saw Maung and Khin Nyunt were knocking at Ne Win’s doors to get advice on how to restore orders, amid reports from their spies about beheading, arson and looting. There was no connection between them when NLD MPs threatened Nuremberg trials, walked out of National Convention and asked for sanctions, while SPDC declared NLD illegal organization and began arresting their members and political dissents. Without human connections, distortion, simplification, and polarization take roots. Our MPs should work to understand the “other side” (with possible exception of crony-backed or crony MPs who want to keep their wealth) has good faith too.
In my experience working in Yangon, SP’s reputation is still as the clean operator. If there is any evidence to the contrary, please share it, as I would genuinely be interested.
I think the author’s main point, regarding corporate entities moving into a space once dominated by the state, is accurate. But the Myanmar-specific implications aren’t discussed here. There are pros and cons to these changes – addressing them will require addressing the role of international corporations in development generally (i.e. does it matter if its crony capitalism or just plain old capitalism?)
KFC’s arrival is a milestone of sorts, but not particularly emblematic of rising crony capitalism. Myanmar is way too complex to cut corners in description.
“What is truly exciting about the new city is its people”. Here’s a new Facebook page which documents people in Myanmar’s new capital: “Humans of Naypyidaw”.
[…] Can Myanmar benefit from China plan? – New Mandala China’s leaders are looking to convince us that their dreams of “one belt, one road” can lead to a new wave of global prosperity. These initiatives are designed to enmesh partners from near and far in a Chinese-led network of investment and economic growth. The Chinese government inevitably has firm ideas about how Myanmar fits into its bold plans for 21st-century economic development. It sees the country as a key site for large-scale Chinese projects, including the dams, bridges, roads and ports that will be the concrete-and-steel manifestation of the “one belt, one road” idea.//The answer is Yes. Would Myanmar benefit by being left out of the Belt and Road project? No. But the devil is in the details – who gets the projects, what are environmental implications, and how can the projects be implemented with efficiency and on a predictable schedule with ethnic conflict looming and raging in Myanmar? […]
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Thailand will never have democracy unless…
Mr. Deedes, thanks for the comment, but it was not clear to me that liberal-minded officers in the army was the key point of the post. You may be correct, but this point is not mentioned until paragraph 17 and no names or evidence is provided so a reader could judge whether or not this might actually be true.
Thailand will never have democracy unless…
there is no democracy without republic. thai needs to become a republic ot thaialnd first. no kings and mid-evil monarchy. democracy will come
Thailand will never have democracy unless…
Seems like a lot of yellow bellied trolls commenting so far.
Thailand will never have democracy unless…
Classic diversionary tactic away from the key point of the article viz: The third would see the people collaborate with the army. Chupong believes there certainly are some liberal-minded officers in the army despite being subjected to brain washing over many years. Obviously communication and collaboration between these soldiers and activists would have to be done secretly.
Thailand will never have democracy unless…
While I appreciate New Mandala providing a place for dissident views, I think the website managers should exercise some discretion on the quality of what is posted. Past posts have included articles that include unsubstantiated claims, including some so poorly written it is not easy to say exactly what they mean. This post by “Somchai Rattanakosin” is a good example. It quotes Chupong about “three favorite sons” of the king but never says when the comments were made and never provides direct quotes. No effort is made to provide evidence for this claim or to say how Chupong would know this information. It is not even clear whether Somchai or Chupong mean actual sons or people acting like sons. Such wild claims tend to be made by aggrieved and emotional foes (such as Chatwadee “Rose” Amornpat of the Thai monarchy, perhaps in over-reaction to the practices of hyper royalism, censorship and lese majeste in Thailand. Such excitable critics of the king have the right to their opinion, but not necessarily an automatic right to New Mandala’s service in distributing it. Well-written, well-researched and believable articles on the Thai monarchy are legitimate fare for New Mandala, but this kind of article only brings down the esteem in which New Mandala otherwise be held.
The irresistible rise of Colonel Sanders
Other commentators mentioned this above, but it’s worth reiterating again that Serge Pun is not an apt example at all.
The man has gone head-to-head with former junta in the past before the current phase of liberalization began. I’m remembering the problems he had with Yoma Bank and such in the 90s. He is no saint–for what businessman really is?–but he is one of the better examples of transparency within domestic business in Myanmar.
There are many reasons to do a bit of satire with KFC. Thinking of which, here is a child with a YouTube video doing just that: https://www.youtube.com/watch?v=vizoCa_wk2s
But from an academic sense, an argument against continued crony capitalism and/or oligarchy–which are serious issues in Myanmar–is not furthered by a reference to KFC.
If overpriced, cardboard-tasting, fried mutant-poultry is the worst example of expanding liberalization and democratization in Myanmar, then might we be fooled into thinking that the Burmese citizenry have very few challenges ahead indeed.
KFC is probably less of a symbol than a straw-man of “irresistible neoliberal economic order”.
-Thomas
Thailand will never have democracy unless…
Uh-oh.
This one should be interesting.
Fancy suggesting that elections in the current environment are NOT a first step toward anything resembling democracy.
The “monarchy haters” will just love this one because of where it lays the blame.
But the “anti-coup” crowd will hate the suggestion that it will require cooperation with the RTA to establish democracy; after all, isn’t that what the coupists always say more or less?
Oh… oh… what’s a poor boy to do?
Thailand will never have democracy unless…
After more than 20 years in Thailand, this article comes as something like a revelation.
The Army has always behaved as if it is above the law, and this would explain why.It also explains why many generals have staged coups and never been prosecuted.
The Thai Justice System is among the dirtiest in the world,and needs URGENT attention. Lawyers who have lost their licences are allowed to continue in business as usual, and cheat even more people. There is a Criminal case in Hua Hin Court right now, abusing 4 innocent people. The Plaintif is a struck off lawyer from Samut Prakan, who continues to run a busy law office. His crooked friend gives free legal advice on Thai Visa, touting to find new victims to cheat. I, personally have been cheated 4 times in Thai Courts by these scum.
I filed a complaint with the Lawyers Council which proved futile. It is merely a corrupt “old boys” club. Crooked lawyers would be better dealt with by Military Courts, but it would be a mammoth task.
The irresistible rise of Colonel Sanders
Refreshing input there pearshaped, it is an Interesting point, this is another area of research I have been passively undertaking.
However, due to my vegetarian eating habits, I’ve mainly limited myself to scratching my head at the herb and spice combination; wondering why I still have absolutely no interest in cracking their secret blend.
Regarding your claim that political coverage of Myanmar often suffers from “a lack of common sense.”
The common sense paradigm lost its credibility a few miles ago, after it was confirmed that it would surely blow minds, it has been suggested.
On a more topical note however:
Eleven Media (which is of course run by a rival tycoon) has reported that the ‘affordable’ KFC ‘meals’ which Pun argues would be affordable to members of all classes in Myanmar, are selling at rates comparatively far higher than its Southeast Asian neighbours.
A KFC meal is also higher than the average daily wage one expects to receive in Myanmar, compared to costing just over a 5th of an average daily wage over in neighbouring Thailand.
(Cited from this article: http://www.elevenmyanmar.com/local/amidst-criticism-against-kfc-menu-prices-myanmar-being-higher-those-other-regional-countries)
To explain this exorbitant pricing, and to counter your point, one statement, in particular, stands out as providing the most (in)credible answer (especially now that Myanmar is a part of the wider global community).
Could it be that they’re sourcing the finest deep fried chicken directly from where they fry chicken the most fantastically Finger lickin’?
Regards,
Tim
The irresistible rise of Colonel Sanders
‘Coverage of Myanmar suffers from conflation/simplification of issues’
And often a lack of common sense.
They won’t get much from the scrawny local birds which means they’ll be sourcing chooks fed steroids and antibiotics. Just forget the political jargon for a while and go investigate where the breastmeat and big drumsticks are coming from. If they’re sourcing birds from Thailand, there’s a birdflu vector. And, unless you’re ok with manboobs, stay away from KFC anywhere in SE Asia.
Can Myanmar benefit from China plan?
Doubt it if one necessarily follows the other like you said. Might apply to ethnic Chinese, originality already overseas or mainland.
My country right or wrong as far as some are concerned, like the Jewish diaspora vis-├а-vis Israel, or some of the Burmese for that matter believing its their ‘patriotic duty’ no matter what.
Why shouldn’t one be critical about where one lives originally or later or both? There are both good and bad points about most countries.
The irresistible rise of Colonel Sanders
Hi John,
I was slightly unaware as to what your comment referred to, or what the question was when I gave my response, hence the long and vague reply I gave.
The first two links were not necessarily about crony capitalism. The third contained a critical economic perspective with plenty of examples of rapacious capitalism; inter-elite rivalry; as well as providing future possible trajectories that Myanmar may be following; and where the limits to political and market reforms lie.
On to this ‘crony’/’crony capitalism’ issue:
The first thing worth mentioning is that ‘crony capitalism’ is a broad term, and you will notice from the article that the word ‘crony’ isn’t actually used on it’s own.
In fact, I first mention them as the “so-called ‘crony capitalists,’” as I too am unhappy with the phrase, and find it misleading. It conjures up images of slimy ‘yes men’ and crooks, when it could mean neither.
This is also not necessarily aimed at criticising any suspected cronyism on behalf of Serge Pun.
Amidst the varying degrees and definitions of crony capitalism, I believe that the best definition, especially in the Southeast Asian region, does not necessarily involve the sliding of suspiciously full brown envelopes over teak desks to officials in NayPyiTaw. Maybe such a scenario is more likely to arise with the likes of tycoons such as Tay Za.
The term crony capitalism, in the sense that I interpret it, concerns the blurring of the boundaries between private economic/business interests and politics/government to such a degree that policy eventually becomes dictated by corporate interests, rather than by democratic, or even military, will. In due course the state starts to resemble a plutocracy. In such a crony capitalist system, it is the wealthy tycoons who use their politically, or economically, advantageous positions over their contenders in order to accrue greater wealth.
It is this interpretation of crony capitalism that is referred to in my article. Myanmar’s development boom has created a political and economic climate that heavily favours these tycoons to carry on expanding their wealth, and subsequently, their power.
The new colonels in town appear to be the private business interests of an extremely wealthy few who have, in effect, become a strong political unit themselves; a particularly intense blurring of boundaries.
The irresistible rise of Colonel Sanders
Hi Tim,
My issue isn’t with your assertion of the existence of “crony capitalism;” its with your assertion that Pun is a “crony” in the local sense of the word. Generally, “crony” here is used in a specific manner and implies one of a rather small subset of business people who have cooperated with the government in nefarious ways over the past 20+ years – I have never heard of Serge Pun counted among those “cronies,” and in fact, he is usually expressly set aside from that group.
You can make an argument (although I would disagree) that Pun’s success could be tied to a very loose conception of “crony capitalism,” but I think calling him a “crony” confuses the matter given the word’s local context. Moreover, I’m not sure its fair to tie to him to “crony capitalism,” when his advantage in the system has been gained through his refusal to cooperate with the government in ways that the US and its allies would find problematic.
My main concern here is highlighting what I understand to be the local context of the word “crony.” Coverage of Myanmar suffers from conflation/simplification of issues (i.e. Rohingya vs. Muslim/Buddhist relations generally vs. ethnic minority/Bamar relations, or conflation of Tatmadaw with state security with police). Discussing “crony capitalism” in Myanmar can be confusing given that “crony” has a specific meaning here (whereas “crony capitalism” as a concept is more general.) So you can say there is “crony capitalism” and you could even argue that Serge Pun is engaged in it (again, I would disagree, from my knowledge of the situation), but even still, that wouldn’t make Serge Pun a “crony” in the local sense of the word.
Again, I apologize if I’m missing something re: SP, but nothing in the links provided or in my experience here has ever suggested that he is counted among the “cronies” in Myanmar.
The irresistible rise of Colonel Sanders
I do agree, SP does have a good reputation, and has done much provide aid and rebuild the state. He is certainly one of the few of those considered as being in Burma’s business elite, who can provide vital infrastructure projects, and, tellingly after Cyclone Nargis hit Myanmar eight years ago when humanitarian aid charities were having a tough time providing relief due to sanctions. With the Government also essentially unable to provide vital assistance. It was Pun’s Yoma Bank that was used by many major charities (for funnelling aid donations outside around the sanctions regime), as well providing boats and warehouses used in the relief effort (as can be seen here: http://www.csmonitor.com/World/Asia-Pacific/2008/0610/p01s05-woap.html).
These individuals, Pun included, do build all sorts of projects, such as roads, schools, hospitals, etc., for the benefit of many. Largely because they have the resources and a sense of a state-building imperative.
By taking part in these ambitious exercises of addressing public concerns and needs, he also finds him in a favoured position concerning the junta.
Pun was one of the few who wasn’t targeted by sanctions which is what allowed him to carry out these humanitarian efforts. This also makes him a very handy asset for the embittered regime; particularly at that time. At the same time, however, there were others who has also attempted to funnel Western aid donations to the cyclone-hit region, who most likely had less resources or connections, and who found themselves imprisoned by the junta.
However, I feel that the term ‘crony capitalism’ has been correctly applied in my article, and bears a close synonymity with ‘oligarchic/elite democracy’. Regarding the political culture/history of how many other post-colonial states have fared in the region, it is at this point in state-building that Myanmar is most vulnerable to hijacking from an oligarchic elite.
Ideally neither capitalist system is ideal in any way for developing nations, but…
To answer your question: One key difference between crony capitalism and just plain old capitalism, is that crony capitalism has a particularly unique detrimental effect on the quality of electoral democracy.
In brief, the top-down organisation of a crony capitalist political-economic system (which can lead to very lucrative contracts for some), and the allocation of rent-extraction entitlements to asset holders, is often to the detriment of those lower down, who are the greatest losers in this economic system.
As the average citizen is the one ‘cheated’ the most out of top-level collusion, it is typically customary for those involved to keep these practices behind closed doors. For this reason, the avoidance of transparent democratic features becomes the modus operandi in these systems, and consequently, fully-fledged liberal democracy remains elusive; on the grounds of maintaining social and political stability.
To turn back to the Burmese case here, there is a feeling, as highlighted by exiled dissidents, cited in an Economist article written shortly after Nargis (http://www.economist.com/node/11579356), that the role of facilitators such as Serge Pun, who has demonstrated his resolve to aid and develop the state in times of need – times of need both the regime, and those ravaged by natural disasters – is in a prime position to exploit these credentials. His privileged access to the political elite and his vast fortune are two key ingredients for furthering any rent-seeking goals.
As mentioned in the Economist article (there are other examples available, but due to time constraints in replying to your comment, it should be adequatedly sufficient), there is evidence of these conglomerates exploiting this role as aid-coordinators as the process moves into a reconstruction phase email me for. A lucrative phase for some.
There are countless examples of competitive squabbling for the spoils in Myanmar’s liberalisation process, amongst what appears to be an ‘oligarchic elite in-the-making’, which provides quite strong indications that we may be seeing a new set of crony capitalists.
This 2014 article by Lee Jones explains many of these: http://www.tandfonline.com/doi/abs/10.1080/00472336.2013.764143
Anyway this is almost longer than the piece I wrote, so I’ll leave it there.
The irresistible rise of Colonel Sanders
Well, according to the Forbes article, the reporter Simon Montlake (who seems to admire Serge Poon for some reason) interviewed this “burmese” tycoon in a hotel in Peking. Go figure!
Can Myanmar benefit from China plan?
I’m talking about the hypocrisy of Burmese dissidents and refugees who apply for political asylum in Western countries but at the same time denounce Western values and kow-tow to the despotic Chinese regime and the greedy Chinese State-Owned-Businesses wreaking havoc to the ecology and the cultural traditions of many poorer countries in Asia and Africa.
By the way, a lot of Chinese are “migrating” nowadays to Western countries (and Universities).
Is Naypyitaw growing up?
As Dr. Michael Aung-Thwin once said, it’s natural that Myanmar capital goes back to their heartlands. And despite criticisms, it’s fast becoming a “natural” capital. Some of my friends at University of Medicine are increasingly choosing Naypyitaw for their house surgeon year, to gain contacts in Civil Service. Soon, it will be a land of opportunities for those choosing a career in Civil Service.
So what should be next for Naypyitaw? It will be great to see all MPs, including the military, settling down in Naypyitaw with their families at least for their terms. We will need great schools, recreational parks, cultural connections and job opportunities for their family members. This will pay off definitely. If the children of opposite parties’ MPs are in the same school, playing on the same football team, if they meet each other at pagodas and parks every weekend, and strike up a honest conversation between them, and if they can learn those on the “other side” are humans too, who are, just like them, want to work for the country, many of Myanmar’s problems will disappear, or at least, be easier to solve.
There was no connection between them when Daw Aung San Suu Kyi was leading pro-democracy protests on the streets, while General Saw Maung and Khin Nyunt were knocking at Ne Win’s doors to get advice on how to restore orders, amid reports from their spies about beheading, arson and looting. There was no connection between them when NLD MPs threatened Nuremberg trials, walked out of National Convention and asked for sanctions, while SPDC declared NLD illegal organization and began arresting their members and political dissents. Without human connections, distortion, simplification, and polarization take roots. Our MPs should work to understand the “other side” (with possible exception of crony-backed or crony MPs who want to keep their wealth) has good faith too.
The irresistible rise of Colonel Sanders
The term “crony” is being wrongly applied here.
For more information, check out this Forbes article:
http://www.forbes.com/sites/simonmontlake/2013/08/28/golden-return-serge-pun-constructs-a-real-estate-empire-in-myanmar/
In my experience working in Yangon, SP’s reputation is still as the clean operator. If there is any evidence to the contrary, please share it, as I would genuinely be interested.
I think the author’s main point, regarding corporate entities moving into a space once dominated by the state, is accurate. But the Myanmar-specific implications aren’t discussed here. There are pros and cons to these changes – addressing them will require addressing the role of international corporations in development generally (i.e. does it matter if its crony capitalism or just plain old capitalism?)
KFC’s arrival is a milestone of sorts, but not particularly emblematic of rising crony capitalism. Myanmar is way too complex to cut corners in description.
Is Naypyitaw growing up?
“What is truly exciting about the new city is its people”. Here’s a new Facebook page which documents people in Myanmar’s new capital: “Humans of Naypyidaw”.
https://www.facebook.com/humansofnaypyidaw/timeline
Can Myanmar benefit from China plan?
[…] Can Myanmar benefit from China plan? – New Mandala China’s leaders are looking to convince us that their dreams of “one belt, one road” can lead to a new wave of global prosperity. These initiatives are designed to enmesh partners from near and far in a Chinese-led network of investment and economic growth. The Chinese government inevitably has firm ideas about how Myanmar fits into its bold plans for 21st-century economic development. It sees the country as a key site for large-scale Chinese projects, including the dams, bridges, roads and ports that will be the concrete-and-steel manifestation of the “one belt, one road” idea.//The answer is Yes. Would Myanmar benefit by being left out of the Belt and Road project? No. But the devil is in the details – who gets the projects, what are environmental implications, and how can the projects be implemented with efficiency and on a predictable schedule with ethnic conflict looming and raging in Myanmar? […]