Road to and from Myanmar to India

New Delhi, RIS

4th February, 2013

Part I

Presentation at Brainstorming Session on India-Myanmar Strategic Partnership,

Organised by RIS, 4 February 2013

Emerging Conditions

Pre-British Burma – A Prosperous Land

British Burma – Nation at War

Independent Burma – Leaders in Agriculture & Gems

Birth of Myanmar – Thriving, Growing & Open

Road to and from Myanmar to India

India & Myanmar – Strong Ties & A Win-Win Situation

Creating knowledge Corridor – Mutual Growth & Prosperity

Across Economic-Ecology-Social – Creating a Virtuous Cycle

Contents

Pre-British BurmaFact Sheet

Ruler: Konbaung Dynasty were the last ruler before the British colonisation. Constantly in war with Siam (Thailand) and China during early 18th Century. Moved westward for expansion and captured Arakan, Assam and Manipur – triggering war with British.

Earliest Inhabitants: The Pyu from Yunnan(2nd century BCE), were the earliest recorded immigrants, known for adopting Buddhism as well as other cultural, architectural and political concepts through traders from India.

Ethnic Groups: Burman 68%, Shan 9%, Karen 7%, and 100 + other minor groups

Trade: Sandwiched between India and China, having second largest landmass in East Asia (677,000 sq km), Burma was part of an overland trade route from China to India since 4th century BCE.

Self Sufficient Economy: About 1500 BCE, people in the region were turning copper into bronze, growing rice, and domesticating chickens and pigs; they were among the first people in the world to do so.

It was also one of the first Southeast Asian countries to receive Buddhism.

ProsperousSelf sufficient economy, food

A wealthy land through constant

trade

Indian InfluenceDevout Buddhist

Indian cultural influence since as

early as 4th century BCE

In control of Assam, Manipur, Jaintia for

a decade (19th

century)

Early Foundation

British Burma

1824: Anglo-Burmese War I•Result (1826): British took control of Assam, Manipur, Cachar, Jaintia, Arakan, and Tenasserim.•Aftermath: The Treaty of Yandabo was signed to end the war, termed as peace treaty, and forced to pay an indemnity of one million pounds sterling, and sign a commercial treaty.

1852: Anglo-Burmese War II•Result (1853): Lost lower Burma to British (port of Martaban, Rangoon, Shwedagon Pagoda, Bassein, and Pegu).•Aftermath: The British troops looted the pagodas for their gold, silver and precious Buddha statues.

1885: Anglo-Burmese War III•Result (1885): Marked the end of the Konbaung dynasty in upper Burma.•Aftermath:

• Resistance continued in northern Burma until 1890, with the British finally resorting to a systematic destruction of villages and appointment of new officials to finally halt all guerrilla activity.

• Valuable possessions of the Burmese government were seized by the British. Items such as gold, jewelry, silk and ornamental objects were shipped back to Britain and presented as gifts to the royal family and notables of Britain.

War ILost control of NE

India

Beginning of British Rule

Severe financial burden and crippled

economy

War IILower Burma lost to

British

War IIIBurma under British

rule

Valuable possession seized and shipped

to Britain

War Zone

British Burma

Social DamageThe collapse of the

Burmese social system

Poverty and unemployment

raised crime and bad reputation

Introduction to WestEnglish language & literature introduced

to the nation

Industrialization through railways

and river transport

Rice exports to Europe

Social Influence

Fact Sheet

•Introduction to west: • Schools were founded for teaching in both

English and Burmese. Christian missionaries were encouraged to visit and found schools.

• Rice, high in demand in Europe, was the main crop grown in and exported.

• Railways system were built throughout the valley of the Irawaddy, and hundreds of steamboats travelling along it.

•Economy cracks:• Farmers were forced to borrow money, at

high interest rates, from Indian moneylenders.

• Transportation were owned by the British, and the Burmese had to pay higher rates to transport their goods.

• Thousands of Indian labourers migrated to Burma and worked for less money, quickly displaced the Burmese farmers.

• Though the country prospered, the Burmese people did not gain from the rapidly growing economy.

•Social collapse: The collapse of the Burmese social system led to a decay of the social conscience which, in the circumstances of poverty and unemployment caused a great increase in crime, giving themselves a bad reputation.

Opening of Victoria Memorial Park

Prince of Wales arrive by Train

Independent BurmaStruggle to freedom:•Aung San, whose family had been active in the Burman resistance became the leader of the movement for independence.•1942 – 1945: Japan invaded Burma•1948:

• Burma gains independence from British rule.• U Nu becomes the first Prime Minister

Democracy Denied:-1962: Ne Win staged a military coup. The constitution was replaced by a revolutionary council made up of military leaders.-1990: Aung San Suu Kyi, daughter of Aung San, won the election, however military refused to honor the results and Suu Kyi was placed under house arrest.-2007: Anger over the rising cost of food and fuel once again brought people to the streets.

Burma Gains in Economy:-Resource-rich country: Burma has vast timber, natural gas, mining, and fishery reserves, as well as the potential to be a major tourist destination.-Leaders:

- Burma produces 75% of the world's teak.- Burma produces precious stones such as rubies, sapphires, pearls,

and jade. 90% of the world's rubies come from the country.-Agriculture: 2008 rice production was at 50 million tons (60% of total cultivated land area).

Struggle ContinuesIndependent but

democracy denied

Natural Resource redeems

Leader in Teak exports

Heavy exporters of rubber, rice and other agriculture

products

Leader in export of rubies and special

stones

Gaining Foothold

Birth of MyanmarBirth of MyanmarBurma renamed Myanmar in 1989

Illegal trade started with India, China and

Myanmar

Thriving & OpenAung San Suu Kyi

elected to parliament in 2012

Making the reforms necessary to open-

up the country to the world

To host the 2013 SEA Games

Chair the 2014 ASEAN Summit

People & Politics

IrrawaddyThe lowlands of the Irrawaddy Delta with the largest city and former capital

Central MyanmarMandalay, historical and archaeological sites and cool hill towns

Western MyanmarRemote mountainous regions and some lovely beaches on the Bay of Bengal

Northern MyanmarA huge, fractious region including the southern reaches of the Himalayas and many ethnic tribes

Eastern MyanmarThe infamous Golden Triangle and a bewildering number of ethnic groups

Southeastern MyanmarThe southern coastal stretch bordering Thailand with a vast number of offshore islands

Rivers: The Chindwin (840 KM), The Irrawaddy (2,170 km), The Sittang (420 km), The Salween (2,815 km)

Birth of MyanmarPositive Policies

Policy reforms: anti-corruption, currency

exchange rate, foreign investment laws and taxation.

Positive EffectsForeign

investments increased by about 667% over past 2

years

The economy to expand at an avg

annual rate of 4.8% in 2012-13, before

growth accelerates in 2014-16

Potential

The best investment for Myanmar is one that combines business to promote the future of democracy.

Aung San Suu Kyi

Country Profile: Myanmar

• The ADB projected a 6-percent GDP growth for Myanmar in 2012

Source: Economic Intelligence Unit

GDP - composition by sector

2011 2012 2013 2014 2015 2016

Average = 5.6%

Real GDP growth rate forecast (%)

Data Published date : Aprill 3, 2012.

More than 700,000 students attend the 156 universities in Myanmar, which employ more than

10,000 teachers. About 13,000 students are also enrolled in one or two-year business-related courses, offered by the universities under the human resource

development program.

In the 20 years from 1988 to 2008 the total number of graduates from Myanmar universities is about 1.5

million

Literacy rate : Myanmar

Myanmar well positioned by way of human capital to lead nation’s economic growth

Myanmar Labor Force Myanmar Labor Force

Source: Indexmundi Source: CIA Factbook

• The labour force participation rate

for male (15 Yrs+) was 82% and

females (15 yrs+) was 75% in 2010.

• Over-all labour force participation rate

=78.40

Labour force participation rate

• In 2011, the unemployment rate

in Myanmar was estimated to be 5.5%

perhaps due to large agrarian economy

.

Unemployment rate

• The minimum wage rate prevailing in

Myanmar is MMK 15,000 per month for

public sector workers and MMK 500 per

day for day labourers.

• At International level = $401.00

Minimum wage

Workforce : Myanmar

India & Myanmar Knowledge Corridor

Skills

India MyanmarOpportunities

Infrastructure

Education

Healthcare

Tourism

Minerals & minesPower & energy

Technology

Carbon EconomyEcol

ogy

Econ

omy

Soci

al

Economy

Social

Ecology

• People-to-people contact• Cultural ties• Talent Development• Collaboration in higher edu.• Modern healthcare practices

• Bilateral Trade• Technology collaboration• Promote two way tourism• Enhanced access to SE Asia

• Low-carbon economy (LCE) • NE collaboration • Shared waters and

environmental concerns • Green economy

• Developing industry ecosystem• Infrastructure development• Technology collaboration• Create financial institutions• Industrialization• Create employment

• Cultural ties• Skill development for jobs• Quality higher education• Leapfrog technologies in

healthcare , social services

India & Myanmar –Activity at a GlanceChallengesProjects – Ongoing / Completed

Political Support Needed

•Laws, rules and regulations in Myanmar needs to support international trade.

Infrastructure Improvement

•Border infrastructure lack facilities and are insecure

•Illegal cross border trade

Banking Challenges

•The banking and financial sectors are poorly developed

•Volatile exchange rate of Myanmar currency

Transportation Projects•Tamu-Kalewa-Kalemyo Road•Rhi-Tiddim Road•Kaladan Multimodal Transport Project•Trilateral Highway (TH) connecting India, Myanmar and Thailand.•extending TH to connect Cambodia and Vietnam •India – Myanmar – Lao PDR – Cambodia - Vietnam Highway•Delhi – Ha Noi Railway Link

Industrial Projects•TCIL: ADSL for high speed data link•OVL, GAIL and ESSAR: Engaged in the energy sector•MoEP-1, NHPC: Tamanthi and Shwezaye Hydro-Electric Power project•TATA Motors: A heavy turbo-truck assembly plant•RITES: Rail transportation system

Capacity Development Projects•Industrial Training Centre•Centre for English Language Entrepreneurship Development Centre •Centre for Enhancement of IT Skills

Other Projects•Erection of disaster proof rice silos.•Upgradation of the Yangon Children’s Hospital and Sittwe General Hospital

Industry Ecosystem

Policy & Regulation

Financial System

ProducesSkilled Human

Resources

Education/Traininginstitutes

SME

SME

SME

SME

Technology EnablementTechnology Enablem

entTe

chno

logy

Ena

blem

ent

An example: Power Sector Human resource requirement

ITIPolytechnics

Other Skill institutes

High. Ed. Colleges / Univ.

Supervisors

ManagementEngg.

Senior Managers R&D Inst.

Engg.

ManagementTech Lead

Functional Lead

Top mgmt.

Project Manager

Industry Educational Institutions

Technicians (Boiler, Turbine, Generator, Piping, Utilities)

Electricians

Country Profile: Myanmar

During Prime Minister Manmohan Singh’s visit to Myanmar in May 2012, India signed 12 agreements. One of the MoUs was to set up a Myanmar Institute of Information Technology

While the physical infrastructure, including building, faculty and technical staff would be provided by the Government of Myanmar, India’s role includes the following:

Supply of the equipment Identify a suitable partner institute in India for exchange

programs and knowledge sharing (IIIT – Bangalore) Help in formulation of syllabi, course structure, and training

modules Conduct training programs for the faculty and technical staff

through train-the trainer programmes.

The Myanmar Institute of Information Technology

Indian support in the areas specified would extend for a period of 5 years to enable the Institute to become self-sustaining.

India’s Responsibility

• The MoU is currently being

studied by the Government

for the next course of action

Capacity Building : Myanmar Institute of Information Technology

Citizen Services

Social Development

Public Health

Public Infrastructure

Defence & Security

Disaster Management

Revenue & Taxation

Increased GovernanceReduced Government

Role of Technology in Governance

•Myanmar’s recent political reforms and 2012 election

have cast a spotlight on the information and

communication technology (ICT) potential of the

nation.

• With a population of over 60 million inhabitants,

Myanmar is virtually one of the last untapped ICT

markets in the Asia/Pacific region with fast rising

potential,

Myanmar IT Spending by Major IT CategoryMyanmar IT Spending by Major IT Category

•IT Spending: IDC expects a 17% year-on-year (YoY) growth in 2012, and the market is expected to reach US$233.56

million by 2016, representing a compound annual growth rate (CAGR) of 16% over the forecast period between 2011 and 2016.

•Myanmar is unquestionably a green field market for ICT investments

Source: IDC, July 2012

•Myanmar’s recent political reforms and 2012 election

IT Potential in Myanmar

Country Profile: Myanmar

Source: wearesocial, Wiki

ICT Landscape as of March, 2012

Impacting Lives through technology

Banking Solutions Telecom Social

Services

Disaster Management

Direct & Indirect Taxes

Citizen Services

Healthcare

Infrastructure

Corporate Registration

& Filing

citizens

Thank You