POLITICS, ECONOMICS & SANCTIONSTHE SANCTIONS DEBATE319government doesn’t depend on it. As Ma Thanegi, a former aide to Aung
San Suu Kyi, puts it, ‘tourism is peanuts for the generals’, particularly
when contrasted with the billions being earned for exports of gas, teak
and – surprisingly – beans and pulses (estimated by Sean Turnell to ac-
count for $920.4 million in exports in 2009–10).
In neighbouring Thailand around 6% of GDP, or about $ 14 billion an-
nually, comes from tourism. Myanmar earns, at most, 0.7% of its GDP
through tourism (calculated using CIA statistics and proboycott activists’
estimates of the government receiving $100 million per year).
While fellow Asean countries see many more tourists, visitor arrivals
in Myanmar have been on the rise following the lows experienced after
the protests in September 2007 and Cyclone Nargis in May 2008. In 2010
close to 300,000 tourists passed through Yangon International Airport,
an increase of nearly 30% on 2009. According to the Bangkok-based Pa-
cifi c-Asia Travel Association (www.pata.org), Asians make up about two-
thirds of the arrivals, Europeans 22% and Americans 8%.
One the main deterrents to the growth of this sector of Myanmar’s
economy was the tourism boycott, launched during Visit Myanmar year
in 1996; the NLD called off that boycott in 2010, but still urge visitors
to avoid joining package groups and cruises when visiting the country.
The Sanctions Debate
Since 1988, economic sanctions, implemented mainly from the US, EU,
Canada and Australia, have been deployed against individuals and in-
dustries in an attempt to force political and social change in Myanmar.
Loopholes allowed some companies – such as UK’s Premier Oil, France’s
Total and USA’s Unocal – to continue to help develop off shore gas fi elds.
Stronger international sanctions were implemented in 1997 by the US,
when it banned new investment by American companies in Myanmar.
Strident lobbying and threats of consumer boycotts forced some major
companies (including PepsiCo, Heineken, Carlsberg and Levi Strauss) ei-
ther to pull out or decide against investing in the country.
THE GEM BUSINESSMyanmar generates considerable income from the mining of precious stones – includ-
ing rubies, jade and sapphire – and metals such as gold and silver. There is controversy
surrounding this mining, with reports of forced labour and dangerous working practices.
Mining areas are not open to foreigners, including Mogok (Sagaing Region), Pyinlon
(Shan State), Maingshu (Shan State), Myaduang (Kayah State) and parts of Kachin
State. Following the September 2007 protests, the EU added sanctions specifi cally
against the purchase of gems and precious stones, which is supposed to be a govern-
ment monopoly.
The fi ner imperial jade or pigeon-blood rubies can only be purchased at exclusive
dealer sessions during the government-sponsored Myanmar Gems, Jade & Pearl Empo-
rium, held three or four times a year in Nay Pyi Taw; the 13-day Emporium in November
2010, netted sellers $1.4 billion.
Still, many visitors manage to buy stones from unlicensed dealers, who far outnum-
ber those who are licensed. The government turns a blind eye to most domestic trade;
Mandalay’s jade market (p 209 ) is an example.
There are many tales of visitors buying cheap gems and selling them for huge profi ts
in the West. Beware of scams: we’ve heard of a foreigner spending $2000 on worthless
stones hawked as jade in Mandalay.
If any stones are found when your baggage is checked on departure, they may be
confi scated unless you can present a receipt showing they were purchased from a
government-licensed dealer.Around 70%
of Myanmar’s
population lives
in rural areas and
relies on farming
for its livelihood.
A third of the
population lives
below the poverty
line.The Stone of
Heaven by British
journalists Adrian
Levy and Cathy
Scott Clark is an
investigation into
jade, both its his-
tory as a precious
stone and the
current horrifying
circumstances
surrounding
its mining in
Myanmar.