Burma Information Network- Japan (www.burmainfo.org)

Chronology of the Recent Statements of the World Bank and the Asian Development Bank (ADB) with respect to Burma

Below is a chronology regarding the recent statements of the World Bank and the Asian Development Bank (ADB) with respect to Burma. In short, the concern is that these financial institutions view the humanitarian crisis in Burma as an opportunity for reengagement under the guise of "reconstruction" activities.

On the one hand, the immediate primary focus - by both the military regime and the potential donors -- should be on humanitarian relief needs, not longer-term economic development prospects. On the other hand, while the World Bank and the ADB have not been completely disengaged from Burma, neither has provided direct financial assistance to Burma for about 20 years. Thus, their current statements suggest that they may be using the humanitarian crisis created by the cyclone in an opportunistic fashion.

Unfortunately, the statements by the World Bank and the ADB dovetail the position of Burma 's military regime that it has dealt with the humanitarian crisis and now needs to move onto a "reconstruction" phase. Given that the regime claims without any support that the damage caused by the cyclone amounts to US$11 billion, it appears that the regime views the tragic effects of the cyclone opportunistically.[1]

May 15, 2008 -- Surin Pitsuwan, ASEAN Secretary General and Robert B. Zoellick, President of the World Bank Group, met to discuss efforts regarding cooperation between the two organizations regarding the situation in Burma caused by the cyclone. Zoellick committed to support the ASEAN and offered the Bank's expertise in assessing the cyclone's extreme damage and "planning for recovery." Surin and Zoellick also stated that they were working on " a joint work plan that includes a closer cooperation in the Greater Mekong sub-region to support the new members of ASEAN [ Burma, Cambodia, and Laos ], joint research on regional integration, [and] infrastructure development." (Emphasis added. See below regarding the Greater Mekong Subregion economic development program.)

May 15, 2008 -- General Thein Sein, Prime Minister of Burma's military regime, announced that the first phase of bringing relief to the victims of the cyclone had been completed and the second phase, reconstruction, was beginning.

May 19, 2008 -- The World Bank echoed Zoellick's May 15 statement that the Bank would offer "technical expertise" to ASEAN regarding the cyclone's effects in Burma, but stated further that "there is no suggestion that the World Bank will now provide financial support to the Government of Myanmar, which has been in arrears to the Bank since 1998."[2]

May 19, 2008 -- At an emergency meeting of ASEAN, Burma 's Foreign Minister Nyan Win reportedly stated that Burma needed at least US$11.7 billion in aid to recover from the cyclone.[3]

May 20, 2008 -- The World Bank reiterated that it was actively supporting humanitarian efforts by ASEAN and the United Nations in Burma. Despite the World Bank's May 19 statement, the Bank now noted that, although it had not received "any request for financial support" from Burma thus far, " [i]n the weeks and months ahead, the focus will shift from emergency relief to reconstruction. This is an area in which the World Bank has considerable experience. We expect to be engaged in that phase, as we were in the aftermath of the 2004 tsunami in Aceh and other parts of Asia." (Emphasis added.) The World Bank stated further that it was "poised to support the ASEAN-led effort to engage with the Government of Myanmar on accessing the country to assess the extent of the long-term damage and put together a program for reconstruction and recovery which is transparent, well-targeted and focused on unlocking Myanmar's potential for economic recovery and improving the lives of its people." (Emphasis added.)

May 21, 2008 -- The ADB[4] stated that it was "exploring the possibility of providing experts to conduct an on-the-ground assessment of post-disaster rehabilitation and reconstruction needs in Myanmar, under the auspices of [ASEAN], and in cooperation with the World Bank. Based on the findings of the assessment, other additional assistance measures may be considered." (Emphasis added.)

While the ADB did not expressly indicate what such "additional assistance measures" were, this phrase may refer to the Greater Mekong Subregion (GMS) program, which supports economic development in the Mekong region and is strongly supported and facilitated by the ADB. Burma is a member of the GMS program, and as such it participates in certain GMS projects funded by technical assistance grants from the ADB. Consequently, although the ADB has not provided loans or grants directly to Burma since 1986-7, the ADB has provided many technical assistance grants through the GMS regional program that have benefited Burma. The ADB may be considering using the GMS program to channel funds in connection with "post-disaster rehabilitation and reconstruction" efforts in Burma in conjunction with the World Bank.

May 25, 2008 -- Representatives of ASEAN, the UN, and prospective donors - reportedly including the World Bank -- are scheduled to meet in Rangoon with Burma 's military regime regarding the situation in Burma following the cyclone.

[1] Note that Burma 's military regime has an estimated US$4 billion in foreign reserves and receives an estimated $150 million in monthly gas exports revenues.

[2]Burma became a member of the IMF and World Bank in 1952. Burma has borrowed more than $700 million from the World Bank since 1956, but there have been no World Bank loans to Burma since July 1987. Since 1998, Burma has been in a "non-accrual status" with the World Bank, meaning that the overdue payments (arrears) must be cleared before there can be any new lending. As of 2006, Burma was about $142 million in arrears at the World Bank. The World Bank, however, has followed developments in Burma and is in contact with other development institutions, such as United Nations agencies, about Burma. For more information, see Yuki Akimoto, Opportunities and Pitfalls: Preparing for Burma's Economic Transition (2006).

[3] The Nation ( Thailand ), ASEAN Meeting Agrees to Coordinate Relief Aid to Burma, May 20, 2006.

[4]Burma became a member of the ADB in 1973. To date, the ADB has provided 32 loans to Burma totaling $530.9 million for 28 projects. No loans or technical assistance grants directly to Burma have been provided since 1986-7. As of 2006, Burma was estimated to be about $28 million in arrears at the ADB. For more information, see Yuki Akimoto, Opportunities and Pitfalls: Preparing for Burma's Economic Transition (2006).