Blog: sanctions

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July 21, 2021

Beyond the Coup in Myanmar: The Tatmadaw Must Be Hit Where it Hurts – Its Wallet

Posted by Chris Sidoti

(Editor’s Note: This article is part of a Just Security series on the Feb. 1, 2021 coup in Myanmar. The series brings together expert local and international voices on the coup and its broader context. The series is a collaboration between Just Security and the International Human Rights Clinic at Harvard Law School.This post first appeared on Just Security on July 14, 2021.) 

The Tatmadaw, the Myanmar military that tried to seize outright power in an illegal coup in February, has to be one of the world’s most incompetent armed forces. Since its first coup in the early 1960s, it has turned one of the richest countries in Asia – with a GDP several times higher than some of its neighbours – into what is fast becoming a failed state.

The military has spent decades ruining Myanmar’s institutions and economy, while committing atrocities at will (in conflicts it is mostly losing), including leading genocidal persecution of the Rohingya minority. The army leadership is known to operate by its own baffling internal logic, where numerology and soothsayers are often key to decision making.

We have watched in anguish as security forces killed more than 900 civilians in under six months since the coup began. How can you convince a junta that is as ruthless as it is utterly irrational to abandon its murderous, disastrous policies? Appeals and ultimatums from leaders around the world have had no impact so far. There is, however, something even the Tatmadaw understands: money.

The Myanmar military is a multibillion-dollar enterprise. It has placed itself at the center of the country’s economy through a complex web of commercial interests, which include military-linked businesses and subsidiaries and private crony companies in everything from beer to precious stones. And now, since the coup, it has got its hands on state-owned enterprises too.

Two conglomerates – the Myanmar Economic Holding Limited (MEHL) and Myanmar Economic Corporation (MEC) – are at the heart of much of this activity. MEHL and MEC, which were both established explicitly to support the military, own over 100 businesses and are affiliated to another 27 companies through corporate structures. The revenue they generate has not only sustained the Tatmadaw’s grip on power. It has also shielded it from scrutiny as it commits atrocity crimes with impunity. In 2019, a U.N. investigation – which I co-led – found that any foreign government or business with commercial links to these companies is at best morally complicit in the Tatmadaw’s crimes, and in some cases even legally so.

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