Japan can be a pivotal player in Myanmar's reform

The secret is out. Japan is working at full throttle to make sure Myanmar continues to move forward and fast. Why? For the past seven decades since the Second World War, Japan has been waiting patiently to provide assistance to Myanmar. Tokyo has always wanted to help the country but has so far not had the opportunity to do so. Now that reforms and democratisation are taking place and the international view of Myanmar is more conducive to providing support, with various sanctions being eased, Japan has stepped up immediately with its long-term plan to revitalise Myanmar’s economy.

Japan is the first country to waive all debts owed by Myanmar. This is a concession that the country needs most at this crucial moment. Prime Minister Noda of Japan made the announcement recently during the visit of Myanmar President Thein Sein for the Mekong Summit. Japan will write off US$3.72 billion worth of debt and overdue charges owed by the impoverished country. 

Indeed, this could be considered one of the most tangible outcomes so far of the ongoing reform efforts inside Myanmar. There will be a lot more assistance packages coming in if the reforms expand and continue and further involve all stakeholders in society, especially the opposition parties and nascent civil society organisations. 

Already, international financial institutions and United Nations agencies have moved into the country to undertake economic planning exercises. Despite the economic slowdown in Japan due to the triple disasters last year of earthquake, tsunami and nuclear meltdown, Japan is still playing a crucial role in providing funding for developing countries.

Of course, Japan sees an opportunity in which it can play a leading role in promoting progress in Myanmar. Consequently, it will be able to assert influence in a country that is a kind of buffer between China and India. 

For decades, Myanmar has been heavily under the influence of China in terms of economic support and security. Myanmar was isolated from the international community for nearly five decades due to its harsh political system and its brutal crackdowns on the pro-democracy movement and monks. However, over the past two years Myanmar has been indicating that it wants to rejoin the global community and break away from the Chinese embrace and move towards multilateral international relations.

These overtures have met with a good responses from the United States and European Union, which have continuously encouraged Nay Pyi Daw to make bold reforms. In fact, all the reforms started by the Myanmar regime – including the release of political prisoners, a national reconciliation process with the armed ethnic minorities, free and fair elections, as well as a pledge to stop cooperation with North Korea on its missile technology – have been realised due to Western pressure and a genuine desire to help. That explains why the US and EU have already eased almost all of their sanctions for the time being, except the arms embargo.

Japan’s presence in Myanmar is crucial because it will help the country to reconnect with the region, especially Asean, of which it is a member. Japan has already established extensive production networks in the region, so it can now add Myanmar to this scheme. The development of Dawei deep-sea port, for instance, will require Japanese financial backup and technological know-how, as will as the future plan for overall connectivity with all the Asean members.