International MPs call for economic disengagement from Myanmar military

A global network of parliamentarians has called for a coordinated international regime of targeted financial sanctions and travel bans against senior officials of the Myanmar military, and all military-owned companies and their subsidiaries, to help support the courageous people of Myanmar in their struggle for democracy.

The lawmakers called for governments to form a united global response that ensures that smart and targeted sanctions are placed on the junta and its business interests, while having minimal impact on the Myanmar people. The calls came from members of the International Parliamentarians Alliance for Myanmar (IPAM), an international group of members of parliament (MPs) established in March 2021 working for the advancement of democracy and human rights in the country.

Myanmar’s military, known as the Tatmadaw, has substantial economic interests, most notably through its two major conglomerates, Myanmar Economic Holdings Limited (MEHL) and Myanmar Economic Corporation (MEC). In its report published in 2019, the UN Independent International Fact-Finding Mission on Myanmar (FFM) identified more than 130 businesses linked to the MEHL and MEC, in businesses ranging from construction, to gem extraction, manufacturing, tourism, and banking. The FFM said it was certain it hadn’t identified all of the military’s business interests.

Although the military receives some of its funds from the state budget, its operations are heavily supported by its business interests. A report by Amnesty International in 2020 revealed that between 1990 and 2011, MEHL paid an estimated US$16 billion in dividends to military units.

The revenue the military’s businesses generate strengthens the Tatmadaw’s autonomy from elected civilian oversight and supports its military operations. In a report in March 2021 to the Human Rights Council, the UN Special Rapporteur on Myanmar, Tom Andrews, said that the Myanmar security forces’ recent “coordinated campaign against the civilian population … is likely meeting the legal threshold for crimes against humanity.”

These sanctions also meet the demands of the Myanmar people, with members of the Civil Disobedience Movement initiating boycotts of military-owned businesses, and calling to stop cash flows to the junta. These courageous actions must be supported by efforts from the international community, IPAM said.

Some encouraging steps have been taken. Several international companies, have announced plans to terminate their joint-ventures with MEHL. Meanwhile, the United Kingdom and the United States have adopted sanctions against MEHL and MEC.

Yet more action must be taken by all in the international community to support the Myanmar people’s clear demand for democracy, IPAM said. Therefore, we urge the international community to:

• Establish a coordinated international regime of targeted financial sanctions against both senior junta leaders and their associates, as well as their sources of funding, including military-owned enterprises, their subsidiaries, and the Myanmar Oil and Gas Enterprise, which is now controlled by the military junta and represents the single largest source of revenue to the State;
• Call on businesses to suspend all revenues and royalties payment to the Myanmar military and its enterprises, and to review their business activities in and with Myanmar and ensure that they do not directly or indirectly collaborate with military run entities or interests; and
• Build a global coalition of countries imposing an arms and security equipment embargo on the Myanmar military, including dual-use technology.
• Increase support for civil society groups in Myanmar, especially those providing support to marginalized or vulnerable groups, human rights defenders, and independent journalists.