W Post
May 17, 2013
 
 
White House visit by Burma’s  Thein Sein a sign of changing times

 
 
By Joseph J. Schatz
 
RANGOON, BURMA — T-shirts bearing images of  President Obama and Aung San 
Suu Kyi, the Burmese pro-democracy leader, hang  side by side in the shops 
just off the busy Kabar Aye Pagoda Road in Rangoon.  It’s a reminder of the 
history made last November when Obama became the first  sitting U.S. president 
to set foot in Burma. 
A return trip to this former pariah state doesn’t appear to be on Obama’s  
immediate itinerary. But corporate America is on its way.
 
Google chairman Eric Schmidt visited in March, and Ford announced its entry 
 into the chaotic local auto scene at an April event with the U.S. 
ambassador.  Hilton is building a hotel across from the golden Sule Pagoda, and 
Colonel  Sanders isn’t far behind, as Yum Brands’ KFC posts job ads in local  
newspapers. 
It’s just one element of the surprisingly rapid expansion of economic,  
political and even military ties between the United States and Burma in recent  
months after more than two decades of estrangement.
 
The thaw will be on display again when Burma’s president, Thein Sein, 
visits  the White House on Monday — the kind of event that would have been 
unimaginable  even a year ago. The former general, who took power in a 
transition 
to civilian  government in 2011 and has ushered in a wave of political and 
economic reforms,  is also scheduled to be the featured guest at a U.S. 
Chamber of Commerce  event. 
Taking their cues from the administration, many U.S.-based companies are  
looking to make up for lost time in Southeast Asia’s last untapped market, 
where  regional and European rivals have already moved in.
 
Local businesses see the change. Aye Hnin Swe, co-founder of Mango 
Marketing,  a Rangoon-based advertising agency, noted that “American companies 
take 
a little  bit longer time than the other companies.” But “after _President 
Obama’s visit_ 
(http://www.washingtonpost.com/world/obama-to-praise-burmas-progress-during-historic-visit/2012/11/16/658849be-3005-11e2-ac4a-33b8b41fb531
_gallery.html) , things changed more quickly. We  got more inquiries.”  
Mango signed an affiliation with JWT just weeks ago, giving the American ad 
 company valuable knowledge about a still opaque economy. 
Yet the U.S.-Burma relationship remains fraught with awkward complications —
  including the fate of remaining political prisoners and U.S. concerns 
about the  Burmese government’s handling of recent anti-Muslim violence, which 
has  reemerged after being suppressed during decades of rule by the former 
military  regime. The Burmese government remains under fire from human rights 
groups for  its attitude toward the displaced Muslim Rohingya. 
In a May 6 speech, Thein Sein acknowledged that “we are still at a 
sensitive  stage in the reform process where there is little room for error.” 
Diplomatic moves  
Derek Mitchell, who last year became the first U.S. ambassador to Burma in 
22  years, said the ability to expand ties, “even as we frankly raise issues 
of  concern,” reflects a maturing of the relationship. The United States is 
 clear-eyed about the challenges but needs to keep backing reformers, he 
said. “I  don’t think anyone expected the speed of change we have seen in 
this country  over the past two years, and our engagement has sought to keep 
pace,” Mitchell  said by e-mail.
 
Obama recently extended targeted sanctions  against certain Burmese 
officials and _government-connected business leaders_ 
(http://www.washingtonpost.com/world/asia_pacific/in-burma-fear-gives-way-to-anger-toward-well-connected-b
usiness-elite/2013/03/26/b7985234-800b-11e2-a350-49866afab584_story.html)  
for another year,  calling it an effort to “ensure that the democratic 
transition becomes  irreversible.” 
Thein Sein’s visit to Washington, however, also follows a three-month 
period  in which the Treasury Department ended a ban on financial transactions 
with some  major Burmese banks and the State Department eliminated visa 
restrictions on  some top officials.
 
The United States — which still officially refers to the country as Burma  
instead of Myanmar, the name the former ruling junta gave it — is helping 
the  government prepare to chair the Association of Southeast Asian Nations 
next  year, a sign of the strategic importance the United States places on 
this  country of 60 million, wedged between India and China. 
The U.S. armed forces helped train many Burmese military officials before  
relations between the two countries soured in the late 1980s, and despite  
concerns from some human rights groups, members of the Burmese military, or  
Tatmadaw, participated as observers in a U.S.-led military exercise in 
Thailand  in February. A team from the U.S. Joint POW/MIA Accounting Command is 
currently  outside Mandalay searching for information about U.S. service 
members who went  missing in Burma during World War II — with assistance from 
Burma’s  military. 
The United States is also ramping up foreign aid and considering 
reinstating  tariff benefits that have been suspended since 1989.  
Indeed, Singaporean, Chinese, Japanese and Thai firms have long operated in 
 Burma, and European companies face a far easier road following the 
European  Union’s recent decision to end sanctions, other than an arms embargo. 
Some reservations, still  
“For the first time . . . you’re starting to see American  brands,” said 
Joshua Brown, the chief representative in Burma for Tractus Asia,  a 
management consulting company that helped arrange a visit by a U.S. Chamber of  
Commerce delegation in February. 
Still, for every Ford or Coca-Cola, people in the local business community  
say there are several more American companies still evaluating whether they 
have  the stomach to jump in, particularly ahead of an important 
presidential election  looming in 2015 — when _Suu Kyi_ 
(http://www.washingtonpost.com/world/asia_pacific/obama-to-praise-burmas-journey-toward-democracy/2012/11/1
8/4aa0176a-31f1-11e2-bfd5-e202b6d7b501_story.html)  might be allowed to run 
as a candidate. 
Burma poses unique risks, Brown said, and companies want to know if things  
could go backward, as they have before. “American companies are very wary 
of the  risks that are posed by the sanctions regime. It’s very difficult to 
understand  who’s who,” he said. They want to “understand if the undoing of 
the sanctions  regime has permanence.” 
Ford navigated this complicated landscape, eager to seize a share of a  
currently small market dominated by second-hand Japanese vehicles. 
“Everything we do, in a lot of respects, is the first time it’s been done 
in  the country,” said David Westerman, Ford’s regional manager for export 
and  growth operations in the Asia Pacific. “It’s a country of 60 million. 
We’re  looking at the same numbers everyone is looking at.” 
U.S. companies will be important advertisers in Burma’s growing media 
scene,  noted Thiha Saw, editor of the Open News Weekly Journal. An end to a 
five-decade  ban on publishing dailies has left downtown newsstands stacked 
high 
with  newspapers — the kind of reform that is winning applause in 
Washington. 
Still, the U.S. relationship with the newly opened Burma is in its infancy. 
 “It hasn’t reached a point of no return yet,” Thiha Saw said. “It still 
needs a  few more years.”

-- 
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Centroids: The Center of the Radical Centrist Community 
<[email protected]>
Google Group: http://groups.google.com/group/RadicalCentrism
Radical Centrism website and blog: http://RadicalCentrism.org

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