US embassy cable - 04RANGOON559

UNCLAS RANGOON 000559 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV, EB 
BANGKOK FOR FCS 
COMMERCE FOR ITA JEAN KELLY 
TREASURY FOR OASIA JEFF NEIL 
 
E.O. 12958: N/A 
TAGS: ECON, KPAO, PGOV, SCUL, KWMN, BM, Economy 
SUBJECT: ENERGIZING BURMA'S SMALL AND MEDIUM ENTREPRENEURS 
 
REF: RANGOON 465 
 
1. (SBU) Summary: The executive director of the American 
Chamber of Commerce in Thailand visited Rangoon explaining 
the benefits of a more active civil society role for the 
business community and delivering the message that combined 
voices were more effective in pushing reform.  Progressive 
businesspeople embraced these ideas.  They were keen to take 
steps to counterbalance the dirigisme, cronyism, and 
corruption that currently dominate Burma's business 
environment and indicated they wanted to be prepared for a 
future, more democratic Burma.  End summary. 
 
Words to the Wise 
 
2. (SBU) During an April 26-27 visit to Rangoon, the American 
Chamber of Commerce in Thailand's executive director spoke to 
several groups of progressive small and medium entrepreneurs: 
including the Myanmar Women's Entrepreneur's Association, a 
group of female executive MBA students, and a panel of 
increasingly politically active businesspeople.  The message 
to each was clear: businesspeople have a responsibility to 
point out the shortcomings of their government's economic and 
trade policies and try to encourage reform.  This point of 
view resonated with the audiences who, unlike the SPDC 
cronies and corrupt businesspeople who dominate Burma's 
economy, have a more global outlook and chafe under the 
regressive economic and political policies of the ruling SPDC. 
 
3. (SBU) Another important theme of the visit was that a 
collective voice was better than one, or none.  The message, 
promoting the role of trade associations in civil society, 
was that a government will lend more weight to an opinion 
delivered unanimously on behalf of a large constituency.  In 
the Burmese context, the anonymity granted by this type of 
approach also has tremendous appeal.  Assuming the SPDC wants 
the economy to develop (not at all assured), it might be 
willing to listen to a block representing the entrepreneurs 
the regime relies on to fulfill its "national objectives" 
more than the advice of academics, international 
organizations, or foreign governments. 
 
4. (SBU) Many of the businesspeople opined that the regime's 
often bizarre economic policymaking may be based in part on 
ignorance rather than obstinacy.  If this is true, the 
executive director made the case that business associations 
have an educating role to play.  The trick, all agreed, was 
finding the best conduit to the key one or two decisionmakers. 
 
Civil Society Lacks Business Input 
 
5. (SBU) At a well-attended talk at the American Center, the 
executive director addressed the topic of "Business in Civil 
Society."  The remarks focused on issues like corporate 
citizenship and the advocacy and educating role of a trade 
association.  As business here plays very little role in 
society other than to make money, these topics were fairly 
new ground for most of the attendees.  However, the concepts 
were very well received and elicited many questions on the 
mechanics of business groups and many requests for further 
capacity building. 
 
Comment: Cautious but Interested 
 
6. (SBU) Throughout the sessions, the businesspeople were 
initially cautious and somewhat skeptical, coming up with 
many excuses why they couldn't become more politically 
active.  However, as our discussions progressed they came to 
accept the idea that the business community was not yet 
playing an adequate or positive role in civil society and 
that it should take steps to become better organized. Even if 
influencing this current government was difficult, thought 
and preparation now would pay dividends for progressive 
entrepreneurs in a future, democratic Burma.  End comment. 
Martinez