US embassy cable - 03RANGOON1516

UNCLAS SECTION 01 OF 02 RANGOON 001516 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV, EB 
COMMERCE FOR ITA JEAN KELLY 
TREASURY FOR OASIA JEFF NEIL 
USPACOM FOR FPA 
 
E.O. 12958: N/A 
TAGS: ECON, KWMN, PGOV, BM, Economy 
SUBJECT: BURMA'S BUSINESSWOMEN KNOCKING ON TEAK CEILING 
 
 
1. (SBU) Summary: While striving to retain its political 
independence, the Myanmar Women's Entrepreneur Association 
(MWEA) has had some success helping established Burmese 
businesswomen climb the business ladder.  Though it has had 
less success building economic capacity at the lower rungs of 
the ladder, MWEA continues to run a small micro-credit 
program in several Rangoon markets.  All in all, we are 
encouraged that a large, but neglected, portion of the 
Burmese business community is being exposed to important 
international business principles.  End summary. 
 
Stanford in the Lead 
 
2. (SBU) The Myanmar Women's Entrepreneur Association (MWEA), 
founded by a Burmese graduate of Stanford University's MBA 
program, is focusing on a neglected element in Burma's 
atrophied economy -- women.  Women often do not have access 
to as much capital as men, and social norms frown on young 
women (under 40) being too ambitious or aggressive in 
business or elsewhere.  However, Burmese tradition does not 
prohibit women from entering the workplace or running a 
business.  In fact, women dominate certain, mostly retail or 
brokering, sectors of the economy.  Though girls still face 
educational discrimination at the lower levels, the country's 
relatively new MBA program has gone from 1/3rd women to about 
40-50 percent women in about five years. 
 
3. (U) MWEA, now with approximately 1,200 members, was 
founded in 1995 and has managed to steer a tenuous path 
between government approval, a necessity for survival, and 
co-option -- the death knell for creativity and independence. 
 Unlike other women's "NGOs" in Burma, MWEA does not have any 
grande dame (usually the wife of one of the State Peace and 
Development Committee's Big 3) at its helm -- instead it is 
chaired and co-chaired by senior Burmese businesswomen. 
Likewise it is not directly affiliated with any government 
ministries, nor does it receive any GOB funding.  After some 
debate, MWEA decided against affiliating itself with the 
government's mass member political organization the Union 
Solidarity and Development Association (USDA). 
 
Going Low... 
 
4. (SBU) To try and boost up women on the lowest rungs of the 
business ladder, MWEA is running an income generation program 
in several Rangoon marketplaces.  MWEA is reluctant to call 
its work "micro-credit," as such a program would fall afoul 
of Burma's archaic banking laws.  However, MWEA is providing 
very small loans (usually about US$5) and charging 3 percent 
monthly interest over 12 months.  Interest is plowed back 
into a revolving fund, allowing larger loans (up to US$10). 
Even in Burma, though, there is not much that can be done 
with such small sums.  The ultimate objective is to gradually 
expand the amounts available and then teach participants how 
to borrow from the official banking system. 
 
5. (SBU) Though micro-credit has had success in Burma, under 
the auspices of UNDP or large foreign corporations, MWEA has 
thus far been frustrated.  The founder commented that most 
small businesswomen in the markets are ignorant and 
suspicious of formal banking and are thus reluctant to do any 
paperwork or take on any formal responsibility -- even for a 
larger sum of money.  MWEA's micro-loans are now all done 
informally.  She also blames a lack of managerial resources 
and vision at her own organization for the program's poor 
results.  The larger internationally funded micro-credit 
projects in Burma, she argues, benefit from a large support 
infrastructure, including education for borrowers and regular 
assistance from project staff, that MWEA cannot muster. 
 
Going High... 
 
6. (SBU) The MWEA has had more success working with its 
membership, generally women already firmly on the ladder. 
MWEA's founder told us she is encouraged to see more and more 
young, technically savvy women joining the organization.  She 
credits regular seminars and workshops, many of which are 
funded by foreign governments and foundations, for inspiring 
some members with new ideas about sound business practices. 
She is pleased that younger women, both MWEA members and at 
the country's MBA program, seem to be absorbing concepts of 
accountability and corporate responsibility that are not part 
of Burma's traditional business culture.  Likewise, she said, 
the notion is sinking in that there is a linkage between 
national economic growth and a positive business climate -- a 
concept quite foreign to the current regime and its cronies. 
 
Comment: Building Capacity 
 
7. (SBU) Because women are not generally commanding 
large-scale manufacturing or construction companies, they are 
perhaps less susceptible to government pressure and the 
allures of corruption and cronyism.  We don't want to 
overstate the role of these entrepreneurs in the current 
economic system, or the ability of the MWEA to work miracles. 
 However, it is encouraging to see a business organization 
dedicated to spreading the gospel of corporate governance, 
accountability, and entrepreneurship among Burma's relatively 
independent businesswomen. 
Martinez