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OxMo-Vol.-3-No.-1

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Oxford Monitor of Forced Migration <strong>Vol</strong>. 3, <strong>No</strong>. 1<br />

For the purposes of this article, both South’s and Heppner’s characterisations of Karen forced<br />

migration are located in the wider context of the emergence of conflict post-independence.<br />

Nevertheless, this analysis is incomplete without addressing the means by which violence and<br />

conflict are reproduced as proximal causes of Karen displacement– this article thus delineates<br />

the British legacies which have structurally impacted upon these mechanisms. The particular<br />

case of Burma leads us to a historicised political economy of conflict, narco-trafficking and<br />

transnational engagement. Analysing the functions and beneficiaries of violence sheds light<br />

upon prevailing economic and political power relations (Keen 1997).<br />

Drugs and Guns<br />

Burma is a resource-rich country with a dismal economy. It is estimated that for decades the<br />

junta spent 25 to 40% of the national budget on the Tatmadaw - this year, expenditure stands<br />

at 14.4%, a 60% real increase on 2011 to 2012 (McCartan 2012). At its zenith, the Tatmadaw<br />

may have been the 12 th largest military in the world. This juxtaposes with Burma’s<br />

expenditure on health (as a percentage of GDP) and under-five mortality rate which are 90%<br />

and 40% lower/higher, respectively, than LDC averages. 53<br />

Expansive militarisation of the state as a response to ethnic division and strife is underscored<br />

by the fact that Burma has faced no external threat to its sovereignty since independence. In<br />

contrast to analyses which draw on ‘resource curses’ (see ERI 2007) to account for Burma’s<br />

internal discord, I contend that narco-trafficking, a colonial-era legacy, has significantly<br />

enabled the Tatmadaw’s build-up of arms and, hence, the reproduction and deepening of<br />

conditions generating displacement.<br />

In 1836, the British shipped 2,000 tonnes of Indian opium to China. By the century’s end the<br />

trade constituted the largest in any commodity internationally. Chinese opium smokers<br />

increased almost five fold over 80 years and domestic production skyrocketed to 85% of<br />

global total by 1906. The creation of a huge market for opiates in China corresponded with<br />

the British introduction of large-scale opium cultivation and use in Siam (Lintner 2000) and<br />

Burma (Wright 2008). The indirect administration of Burma’s Frontier Areas empowered<br />

indigenous princes, as noted, who raised revenues from poppy cultivation which were<br />

subsequently taxed by the British - as in India where they provided one fifth of total revenue.<br />

Wartime decimation of Burma’s economy rendered the British Treasury willing to cede<br />

independence. Heavily indebted, wracked by banditry and with over half of rice production<br />

wiped out, modern Burma was born into a climate of fiscal crisis, weak state institutions and<br />

endemic dissent within which the British rapidly allowed existing defence obligations to<br />

atrophy (Morris, 2008). Post-independence, exiled-Kuomintang, ethnic-insurgents and the<br />

Communist Party of Burma all took to intensive poppy cultivation to fund operations. The<br />

KNU, however, fund themselves through taxing cross-border smuggling and natural resource<br />

extraction, whilst consistently scorning the junta’s and DKBA’s complicity in the narcotics<br />

trade. Brown (1999) and Lintner (2000) provide damning accounts of the junta’s involvement<br />

in the international opium, heroin and methamphetamine markets vis-à-vis money laundering<br />

‘investment schemes’, high level corruption, patronage/strategic alliances with producers,<br />

Tatmadaw trafficking networks and direct government revenue raising. Large discrepancies<br />

in Burma’s 1995 to 1996 foreign exchange accounts place unaccounted for narcoticsearnings<br />

at some US $600,000,000 (USDS 1997: 73).<br />

53 2009 figures from http://hdrstats.undp.org/en/tables/<br />

73

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