28 Feb – 6 Mar: Burma’s Military Regime Entrenches Rule Through New Budget and Laws

March 7, 2011

Despite promises of change, the SPDC is delivering only more of the same. During Burma’s alleged transition to civilian rule, the SPDC has refused to cede power even to their military-dominated government. Instead, it has ensured the regime’s continued dominance of political and economic affairs through unilateral, non-inclusive decisions that stand to serve military interests at the expense of Burma’s communities.

This week, an official publication reported a national budget for the upcoming fiscal year that illustrates clearly the SPDC’s emphasis on military power over the wellbeing of Burma’s civilians and sustainable development.

The budget falls in line with years of disproportionate military spending and total neglect of clear need areas: nearly 24% for defense, 1.3% for health, and 4.13% for education. These numbers are totally at odds with longstanding health and education crises. In 2008, UNICEF reported that more than 25% of the population lacked access to safe drinking water . UNICEF recently ranked Burma as having the 44th worst under-five mortality rate in the world . Estimates have indicated that less than half of children complete primary school . Despite these evident problems, the SPDC has refused to make the investments in human capital required to promote development that would benefit the people.

Instead, the budget allocates the second largest share – 13% – to the energy sector. In recent years, the military regime has benefited from billions of dollars of foreign investments in energy . Through manipulation of exchange rates and accounts, high-ranking officials have earned billions of dollars from natural gas revenue and deposited the unreported income in offshore accounts . Meanwhile, abuses against communities affected by energy projects have included forced labor, land confiscation, forced relocation, rape, torture, and murder .

Authorities enacted the new budget before the inaugural session of parliament began on 31 January 2011. The SPDC refused to give budgetary control even to its nominally civilian parliament, in which military appointees and military aligned representatives hold over 80% of seats. This move – as well as the US$22 million earmarked for the SPDC for the upcoming year – adds to the heaps of evidence contradicting the SPDC’s stated intentions to facilitate the development of democratic institutions and hand over power to civilian authorities.

Meanwhile, the SPDC continues to funnel hundreds of millions of dollars into unnecessary military investments. This month, Burma’s military is set to receive the first of 20 Mig-29 aircraft from Russia ordered under a US$553 million deal, more than doubling the country’s Mig-29 fleet . These purchases reflect the disconnect between the SPDC’s unjustified defense priorities and the clear development needs on the ground.

A “Special Funds” law signed by SPDC Senior General Than Shwe prior to Parliament’s first session only adds to the problems of the new budget by perpetuating the unchecked spending power of top military leadership. The law gives the military’s commander-in-chief – which is presently still Than Shwe – absolute authority to spend unlimited funds, needing only to report to the President at the end of the fiscal year. The current President, Thein Sein, is himself a former general and SPDC member. This law undermines representatives in parliament, further hindering the development of civilian-led, transparent and accountable democratic institutions.

Decades of the SPDC’s fiscal irresponsibility and economic mismanagement are now codified to live on in the new pseudo-parliamentary system. The military-led government will continue to prioritize its interests over those of the people of Burma. The regime’s continued disproportionate military spending is just one example of how the new parliament has failed to bring any genuine change to Burma.