Myanmar
December 2012
Myanmar is
a hot, dusty “dilapidated” but beautiful country with few amenities available
to the average citizen. However the country is occupied by the friendliest,
open, happy and honest inhabitants who would go out of their way for a stranger
without thought of payment. There are many ethnic groups within the country,
some fair far better than others. (The generals are all ethic Burmese).70% of
all people live below the poverty line; many of these are single rural women
with families to support. Although education is compulsory for all children
between the ages of 5 and 10 years, we believe we saw many of that age selling
items to support their families. Many families rely on the Buddhist monks for a
basic education.
It is a
very mountainous country with only 18% arable land available for food crops.
Although previously it was the rice bowl of Asia, the land now is dry and
infertile due to the lack of available water (unless close to the major rivers).
The Shan State in the north (or dry zone) is by far the worst
Myanmar has
become the global traveller’s (top of the range as well as back packers) most popular
destination creating a severe lack of accommodation and causing hotel prices to
escalate astronomically. The top end resorts and hotels in the best locations
are owned by the ruling Generals, local business people have struggled in the
past yet see future prosperity for them in this industry. We only stayed at
locally owned places throughout the country.
All major
banks are controlled and owned by the government (the generals), these have
failed several times in the last 30 years causing inflation rates to run at
more than 30% thus forcing local people to “put their money under the mattress”
Since the release of Aung San Suu Kyi, people are far happier and prepared to
discuss politics, even display photos of her and her father. In the last 2
years independent banks have started to flourish providing increased local
confidence. I’m sure improved infrastructure will soon follow.
While there
I could not help noticing areas/aspects that outsiders could assist with at
little cost.
The
orphanage Jim supports caters for around 80 children, the girls and boys are
housed separately on two compounds. It now has excellent good new dwellings
which are set in large grounds so they can be quite self-supportive with
vegetables, fruit, milk and chickens. The new bathroom facilities, dormitories
and study rooms are of a most generous standard. Unfortunately the kitchens are
very primitive and inadequate for the required needs.
Their
educational programme encourages the children to remain at school right through
to tertiary level. They have a language lab and computers and are in the
process of buying 10 laptops for student use. Girls learn weaving and sewing. Jim
helps support 5 girls and 1 boy studying at university level, one of the girls
is doing well in her engineering course. It has been difficult to place
students, especially boys in training positions if they did not qualify for
university.
Through
UNDP, Aid organisations introduced Micro Banking to 4 zones within Myanmar in
the late 1980’s. These programmes followed the principles of the Grameen Bank;
to build, operate and then transfer to local staff.
Groups
involved were (US) PACT (Private
Agency Collaborating Together),Save the
Children, World Vision, CARE( Coop, Assist, Relief, Everywhere-AUSAID
helped), GRET (Dutch)
One zone selected
was the Shan State, (the highest poverty level and by far the very driest) it
was established for farmers, tradesmen and artisans. It is a very stable area and
one we visited to see the present results.
The loan
aim was to ensure health, food, water, security and education was provided to
remote areas.
The loan criteria stated; borrowers must
be female, landless and subsistence farmers.
In brief:
By 2005,with 440,000 female clients and
interest rate at 10%, the results were very mixed because the countries
inflation rate was running at up to 40% forcing women to take money lenders
loans to help repay first loan.
Because of
the government’s heavy restrictions, these organisations had no legal status or
regulating ability; private banks could not operate or open and the government
placed a low ceiling on interest rates. In fact the government did everything
to ensure the failure of any assistance.
In 2008
after the massive damage of Cyclone NARGIS the government was forced to see the
need for changes within banking and finance etc. Private Banks
entered and became trusted by the people.
By 2009
after negotiations with other AID groups; PACT was the group to survive (following
Grameen Banking Principles and working with the other groups in the back
ground) but they required an MOU with the government – case by case!! There was
no standard MOU- and it depended on the mood of the day as to what happened!!
However all
previous unpaid loans were treated as GRANTS- to allow borrowers to have a
fresh start. All involved see a light at the end and are acting positively.
After the
elections of 2010 new defining rules were promised- but not as yet Law. Small
borrowers still cannot take loan if no collateral. Therefore donor
institutions are working with the government to develop a Microfinance Aid strategy
which at this point appear to be working well, thanks to the incredible efforts
of Aung San Suu Kyi. Global interest rates and greater accountability are
required for greater success within MF schemes.
Jennie and Jim Russell, Melbourne, Australia.Jennie is President of the National Council of Women of Victoria. Jim is a former Professor of Engineering who has been supporting the orphanage descrined above for a number of years.
