Myanmar Military Junta selling all state assets in former capital Yangon


Myanmar's military government has quietly begun the largest sell-off of state assets in the country's history, including more than 100 government buildings, port facilities and a large stake in the national airline, diplomats and businessmen here say.


The sell-off, analysts say, appears to be part of a political transition as the government introduces elections for the first time in 20 years and a new constitution under which the military seems likely to perpetuate its rule, though more from behind the scenes.




Diplomats and businessmen say that the sales may allow ruling generals to build up cash for election campaigns to the new parliament, where they will hold 25 percent of seats, or to pay for salary increases for civil servants and other populist measures. Many of the assets are being sold to businessmen allied with the military, reinforcing the strength of a class of oligarchs and military cronies.




But the privatisations could also have the effect of injecting some competition into what is an almost Soviet-style economic system, and some analysts here say they may herald a shift in direction. Reformers in the government, they say, may be hoping to follow a path similar to that of China or Vietnam, where the economies have been liberalised but the ruling party has remained firmly in charge and has tolerated little dissent.




Myanmar's military junta nationalised most industries when it took power in a 1962 coup and has controlled the lion's share of the economy since. For years, Myanmar shunned the path of its thriving neighbors. Most major industries, like the telecommunications business, power plants, fuel distribution and health care, remained in the hands of the state.




But today the sell-off of assets is so sweeping that some analysts compare it to the massive privatisations in Russia after the Communist era. 'There's something of a grab going on,' said one diplomat who declined to be identified because he wanted to avoid publicly criticising the junta. 'There's a sense that it may not be done for the right reasons, but it could have a beneficial effect.'





The assets being sold include the country's fuel import and distribution network, gem and tin mines, farmland and factories, according to businessmen who have seen announcements of the sales.


AP