The intersection of wealth and political power in Myanmar (Burma) has long been a sensitive and complex issue. Wealthy individuals and businesses in Myanmar often have ties to the military (Tatmadaw) due to the country’s political and economic structure, which has historically been dominated by the military junta. Here’s an overview:
The Wealthy Elite in Myanmar
1. Historical Background
- Military Control of the Economy:
- For decades, Myanmar was ruled by military juntas (1962–2011), during which the economy was largely controlled by the military and its affiliates. The military established state-owned enterprises and conglomerates to dominate key sectors like energy, construction, telecommunications, and natural resources.
- Wealthy individuals often gained their fortunes through close relationships with the military or by securing lucrative government contracts.
- Crony Capitalism:
- The transition to semi-democratic rule in 2011 allowed some economic liberalization, but a small group of business tycoons (commonly referred to as “cronies”) continued to benefit from their ties to the military.
- These “cronies” were given monopolies, import/export licenses, and access to land and resources in exchange for their loyalty and financial support of the junta.
2. Prominent Sectors Controlled by the Wealthy Elite
- Natural Resources:
- Myanmar is rich in resources like jade, timber, oil, and gas. These industries are dominated by military-affiliated companies and wealthy tycoons.
- For example, the jade mining industry in Kachin State is controlled by military-linked companies and individuals, generating billions annually.
- Construction and Real Estate:
- Infrastructure development, including roads, ports, and real estate projects, is often awarded to companies with ties to the military.
- Telecommunications and Media:
- The telecommunications boom in the 2010s saw wealthy elites partnering with international companies while maintaining ties to the military.
Key Figures and Groups
1. Military-Linked Conglomerates
- Myanmar Economic Corporation (MEC) and Myanmar Economic Holdings Limited (MEHL):
- These military-owned conglomerates dominate key sectors like banking, mining, and tourism.
- Profits from these companies are used to fund military operations and enrich senior military officials.
2. Prominent Tycoons
- Tay Za:
- Founder of the Htoo Group of Companies, Tay Za is one of Myanmar’s most prominent business tycoons.
- He is known for his close ties to the military, having benefited from military contracts and monopolies in sectors like aviation, timber, and hotels.
- Tay Za has been sanctioned by multiple countries for his association with the junta.
- Zaw Zaw:
- Founder of Max Myanmar Group, Zaw Zaw has interests in construction, banking, and tourism.
- He is another high-profile figure with close ties to the military and has also faced international sanctions.
- Aung Ko Win:
- Chairman of Kanbawza Bank (KBZ), the largest private bank in Myanmar. While not as overtly linked to the military as others, he has been criticized for his business dealings under the junta’s rule.
- Khin Shwe:
- A construction magnate with ties to the Union Solidarity and Development Party (USDP), a political party closely linked to the military.
Association with the Junta
1. Economic Dependency
- The military relies on wealthy individuals and businesses to finance its operations, especially during times of international sanctions.
- In return, these individuals receive favorable treatment, such as monopolies, tax breaks, and access to state resources.
2. Post-2021 Coup Dynamics
- Following the military coup on February 1, 2021, the junta reasserted control over the economy, and military-linked businesses regained prominence.
- Wealthy elites who remain loyal to the military continue to thrive, while those who oppose or distance themselves from the junta risk losing their assets or being targeted.
3. International Sanctions
- Many wealthy individuals and military-affiliated companies have been sanctioned by the United States, European Union, and other countries.
- Sanctions target industries like jade, gems, and oil and gas, which are major revenue sources for the military.
- Despite sanctions, many tycoons and businesses continue to operate through opaque networks and partnerships with countries like China, Russia, and Thailand.
Impact on Society
- Economic Inequality:
- The wealth gap in Myanmar is stark, with the elite enjoying immense wealth while the majority of the population struggles with poverty.
- The junta’s economic policies have often favored the wealthy, exacerbating inequality.
- Exploitation of Natural Resources:
- Wealthy elites and the military exploit Myanmar’s natural resources, often at the expense of local communities and the environment.
- In regions like Kachin and Rakhine, resource extraction fuels conflict and displacement.
- Resistance from the Public:
- Since the 2021 coup, there has been widespread public anger against military-linked businesses.
- The Civil Disobedience Movement (CDM) has called for boycotts of products and services from military-affiliated companies.
International Scrutiny
- The international community continues to pressure Myanmar’s wealthy elites and the junta through sanctions and advocacy.
- Activists and watchdog groups have highlighted the role of tycoons and businesses in sustaining the junta’s power, urging multinational corporations to sever ties with military-linked entities.