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War-wracked Myanmar is now the world's top opium producer

  

Category:  News & Politics

Via:  perrie-halpern  •  10 months ago  •  11 comments

By:   The Associated Press

War-wracked Myanmar is now the world's top opium producer
Myanmar, already wracked by a brutal civil war, has regained the unenviable title of the world's biggest opium producer, according to a U.N. agency report.

S E E D E D   C O N T E N T


BANGKOK — Myanmar, already wracked by a brutal civil war, has regained the unenviable title of the world's biggest opium producer, according to a U.N. agency report released Tuesday.

The Southeast Asian country's opium output has topped that of Afghanistan, where the ruling Taliban imposed a ban on its production, the United Nations Office on Drugs and Crime said in its "Southeast Asia Opium Survey 2023."

The Taliban's ban has led to a 95% drop in the cultivation of opium poppies, UNODC said last month. Opium, the base from which morphine and heroin are produced, is harvested from poppy flowers.

From 2022 to 2023, Myanmar saw the estimated amount of land used to grow the illicit crop increase 18% to 47,100 hectares (116,400 acres), the new UNODC report said.

"Although the area under cultivation has not returned to historic peaks of nearly 58,000 ha (143,300 acres) cultivated in 2013, after three consecutive years of increases, poppy cultivation in Myanmar is expanding and becoming more productive," it said.

It also noted that the estimated opium yield expanded by 16% to 22.9 kilograms per hectare (20.43 pounds per acre) — topping the previous record set in 2022. It attributes that increase to "increasingly sophisticated means of cultivation, including increased plot density, improved organization of plants, and enhanced practices, such as the use of irrigation systems and potentially fertilizers."

The violent political turmoil in Myanmar has contributed to the opium production increase.

"The economic, security and governance disruptions that followed the military takeover of February 2021 continue to drive farmers in remote areas towards opium to make a living," UNODC Regional Representative Jeremy Douglas said.

The report notes that "opium poppy cultivation in Southeast Asia is closely linked to poverty, lack of government services, challenging macroeconomic environments, instability, and insecurity."

For farmers, the bottom line is simple economics.

UNODC said the average price paid to opium growers increased by 27% to about $355 per kilogram ($161 per pound), demonstrating the attractiveness of opium as a crop and commodity and strong demand.

The figures mean farmers earned around 75% more than in the previous year, said the U.N. agency.

231212-myanmar-opium-mb-0754-d506f6.jpg Flourishing poppy fields spread through hills at Nampatka village, Northern Shan State, Myanmar.Gemunu Amarasinghe / AP file

Douglas said that armed conflict in Shan state in Myanmar's northeast, a traditional growing region, and in other border areas "is expected to accelerate this trend." An offensive launched in late October by an alliance of three ethnic armed groups against Myanmar's military government has further destabilized the remote region.

Northeastern Myanmar is part of the infamous "Golden Triangle," where the borders of Myanmar, Laos and Thailand meet. The production of opium and heroin historically flourished there, largely because of the lawlessness in border areas where Myanmar's central government has been able to exercise only minimum control over various ethnic minority militias, some of them partners in the drug trade.

In recent decades, as the region's opium production dropped, methamphetamine in the form of tablets and crystal meth has supplanted it. It's easier to make on an industrial scale than the labor-intensive cultivation of opium, and gets distributed by land, sea and air around Asia and the Pacific.

UNODC said in a statement accompanying its report that the region's burgeoning drug production "feeds into a growing illicit economy ... which brings together continued high levels of synthetic drug production and a convergence of drug trafficking, money laundering and online criminal activities including casinos and scam operations."

Cyberscam operations, particularly in Myanmar's border areas, have come under the spotlight for employing tens of thousands of people, many lured by false offers of legitimate employment and then forced to work in conditions of near slavery.

The recent fighting in Shan state is linked to efforts to eradicate the criminal networks running the scam operations and other illegal enterprises.

The Associated Press


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Kavika
Professor Principal
1  Kavika     10 months ago

Three indigenous groups have combined and a fourth is close to joining the group and have taken over numerous border crossing and land from the military. Hopefully they will take their country back.

 
 
 
mocowgirl
Professor Quiet
1.1  mocowgirl  replied to  Kavika @1    10 months ago

I read about the arms sales and manufacturing base in Myanmar several months ago because of an article about international arms sales and manufacturing.  If the current government is control of arms manufacturing, I wonder who is going to supply the indigenous groups?

This might have been the article I read.

Global firms help Myanmar's military make weapons, says report - BBC News

Some of the equipment used to make weapons is believed to come from Austria. High-precision machines made by the Austrian supplier GFM Steyr are used in several locations, the Special Advisory Council says, to manufacture gun barrels.

When the machines need maintenance, they're shipped to Taiwan, where GFM Steyr technicians reportedly restore them before they're returned to Myanmar. The report says it's unclear whether the Austrian company's technicians are aware they're working on things that will be used inside Myanmar.

GFM Steyr did not respond to a BBC request for comment on the report's findings.

The authors of the report admit they have only uncovered a fraction of the weapons production network, but a number of countries are thought to be involved:

  • Raw materials from China have been traced to weapons production in Myanmar, including copper and iron believed to come from China and Singapore
  • Key components such as fuses and electric detonators have been tracked from companies in India and Russia using shipping records and interviews with former military sources
  • The machinery in Myanmar's weapons factories is said to come from Germany, Japan, Ukraine and the US. Software to programme the machines is believed to originate from Israel and France
  • Singapore appears to function as a transit hub, the report says, with Singaporean companies operating as go-betweens for Myanmar's military buyers and external suppliers.

For decades, Myanmar's military has been subject to a range of international sanctions, but they haven't stopped its production of weapons. The number of factories is multiplying - from around six in 1988 to as many as 25 factories today.

"The international sanctions have been very hit and miss," says Chris Sidoti. "There haven't been sanctions imposed by the United Nations Security Council, but only by individual states or groups of states.
 
 
 
mocowgirl
Professor Quiet
1.1.1  mocowgirl  replied to  mocowgirl @1.1    10 months ago

and more from another article on the extent of imports.

I wonder if the opium production is needed to buy weapons or does Myanmar have other resources to sell?

UN expert: Myanmar military imported $1 billion in weapons since 2021 coup | AP News

Published 6:28 PM CST, May 17, 2023

UNITED NATIONS (AP) — Myanmar’s military has imported at least $1 billion worth of weapons and related material from Russia, China and other countries since its February 2021 coup, some of which it has used to carry out atrocities against civilians, according to a U.N. report released Wednesday.

Andrews said at least 22,000 political prisoners have been detained since the coup, at least 3.500 civilians have been killed and 1.5 million people have been forcibly displaced.

The report documents over 12,500 purchases that were shipped directly to the Myanmar military or known Myanmar arms dealers working for the military from Feb. 1, 2021, when the military ousted the elected government of Aung San Suu Kyi, until December 2022, Andrews said at a news conference.

He said the volume and diversity of equipment the military received was “staggering,” ranging from fighter jets and attack helicopters and drones to advanced missile systems, tank upgrades, sophisticated communications equipment, radar complexes and components for naval ships.

 
 
 
Kavika
Professor Principal
1.1.2  Kavika   replied to  mocowgirl @1.1    10 months ago
I wonder who is going to supply the indigenous groups?

Here is a link to an excellent article on indigenous weapons, they make many of their own. 

There are eight races in Myanmar (Burma) the Karen being the one that I'm the most familiar with and they have been fighting the various military groups since around 1960 or so. A very interesting people who I have spent some time with and my wife has some original Karen women's clothes, quite beautiful

 
 
 
Kavika
Professor Principal
1.1.3  Kavika   replied to  mocowgirl @1.1.1    10 months ago
wonder if the opium production is needed to buy weapons or does Myanmar have other resources to sell?

Opium is the big money maker for them.

 
 
 
mocowgirl
Professor Quiet
1.1.4  mocowgirl  replied to  Kavika @1.1.3    10 months ago
Opium is the big money maker for them.

So are rubies and other gemstones.

‘Conflict rubies’ sold by top jewellers fund Myanmar junta atrocities, campaign group says (myanmar-now.org)

Myanmar is one of the world’s two largest ruby suppliers, and the source of some of the world’s finest precious stones. Around 90% of its ruby extraction takes place in Mogok, a town in Mandalay Region that is synonymous with the ruby industry. Most of the ruby mines operating there are controlled by or associated with the military conglomerate Myanma Economic Holdings Limited and its subsidiaries.

Based on research carried out from 2017 to 2021, Global Witness estimated that Myanmar’s ruby industry was worth between $346m and $415m a year. There has also been a boom in informal gemstone mining since the coup, it said. 

“The revenue from this lucrative trade has enabled the Myanmar military to consolidate power and financial resources, and bankroll atrocities including the February 2021 coup,” said Global Witness. 

Hammond said that by the time Myanmar rubies reach Thailand, where most of Myanmar’s rubies are processed, many dealers have no idea which mines they came from and often don’t even try to find out.
While the US has  introduced sanctions  against the junta-controlled Myanma Gems Enterprise, it has yet to ban the import of gems from Myanmar. Such a ban is included in the Burma Act 2021, which is now before Congress.
 
 
 
mocowgirl
Professor Quiet
1.1.5  mocowgirl  replied to  mocowgirl @1.1.4    10 months ago
So are rubies and other gemstones.

And natural gas.

Oil and gas industry in Myanmar - Wikipedia

Myanmar is today primarily a  natural gas  producer. As of 2015, Myanmar exports gas to  Thailand  and  China . [3]  Myanmar had proven gas reserves of 10 trillion cubic feet in 2012, with an annual production capacity of 416 BcF. [9

The country has classified 51 onshore blocks and 53 offshore blocks, including 26 deep water blocks, for oil and gas exploration. [7]

Major international oil companies (IOCs) engaged in Myanmar include  TotalEnergies , the  Essar Group CNOOC PTTEP Petronas  and  Sinopec . [10]  After some of the sanctions were lifted in 2012, many international investors such as for instance British Gas, Chevron, ConocoPhillips, ENI, Oil India, Ophir, PetroVietnam, Shell, Statoil, and Woodside entered Myanmar's petroleum market. [11]

Conflict and Controversy [ edit ]

The natural gas on shore extraction sites have been areas of continued human rights violations against local ethnic groups. The modern oil and gas reforms entrenched historical wealth inequality built on a legacy of corruption, ethnic inequality, and systemic sexism promoted through the Tatmadaw’s State and Peace Development Council (1988-2010), which resulted in 20 families re-branding themselves as Urban Elites seeking foreign investment during market liberalisation efforts around 2013. The scramble to open up Burma for business has played a direct role in inflaming community tensions. One of the most prominent culprits is the Shwe Gas Project led by South Korean and Indian companies, to export natural gas via pipeline from Arakan state to China's Yunnan province. The 2,800 km overland pipeline is slated to become operational this year.

The project plans to produce 500 million cubic feet (mcfd) of gas per day for 30 years, supplying 400 mcfd to China, and the remaining 100 mcfd to factories owned by the Burmese government, military and associated business elites. [13]

The losers from this venture are the Burmese people and environment. An extensive report by the Shwe Gas Movement (SGM), a Burmese community-based human rights network, documented the destruction of local fishing and farming industries, including confiscation of thousands of acres of land to "clear areas for the pipeline and associated infrastructure", from 2010 to 2011. Tens of thousands have been left jobless, with little or no compensation or employment opportunities. [14]

In 2021, a   coup d'état   took place, removing   Aung San Suu Kyi   with a military junta. In 4 February 2021, French oil multinational   TotalEnergies   (known as Total S.A. at the time) announced it was reviewing the impact of the coup on its domestic operations and projects. [15]   The company would later issue a statement on April that it would not withhold payments to the military junta and would not cease operations in its   Yadana offshore gasfield . [16]   On 22 January 2022, TotalEnergies and Chevron would later announce its departure from Myanmar in response to the human rights abuses from the military junta. TotalEnergies also calls for sanctions in response to such actions in Myanmar. [17]
 
 
 
Kavika
Professor Principal
1.1.6  Kavika   replied to  mocowgirl @1.1.4    10 months ago
So are rubies and other gemstones.

Yes, they are. The Kok River runs from Myanmar into Thailand at border town of Tha Ton and continues across Thailand right through the middle of the ''Golden Triangle'' smuggling of gem stones on the Myanmar/Thai border has been going on for decades. 

Jan 26, 2023 — The value of opium in Myanmar ranges up to US$2 billion, with the regional heroin trade valued at approximately US$10 billion. 
 
 
 
mocowgirl
Professor Quiet
1.1.7  mocowgirl  replied to  mocowgirl @1.1.5    10 months ago
And natural gas.

more info on Myanmar's oil industry that the US has not sanctioned.  The oil industry is Myanmar's largest revenue source - not surprising.

Revealed: how world’s biggest fossil fuel firms ‘profited in Myanmar after coup’ | Myanmar | The Guardian

In the two years since a murderous junta launched a coup in  Myanmar , some of the world’s biggest oil and gas service companies continued to make millions of dollars from operations that have helped prop up the military regime, tax documents seen by the Guardian suggest.

Amid this violence, leaked Myanmar tax records and other reports appear to show that US, UK and Irish oil and gas field contractors – which provide essential drilling and other services to Myanamar’s gas field operators – have continued to make millions in profit in the country after the coup.

The documents were obtained by transparency non-profit   Distributed Denial of Secrets   and analysed by Myanmar activist group   Justice For Myanmar , investigative journalism organisation   Finance Uncovered   and the Guardian .

The documents suggest that in some cases the subsidiaries of major US gas field service firms continued working in Myanmar – even after the US state department warned in January last year there were significant risks in doing business in the country – including with state-owned entities that financially benefit the junta, such as the national oil and gas company Myanma Oil and Gas Enterprise (MOGE).

On Tuesday the US, UK, Australia and Canada announced   more Myanmar sanctions , including on the managing director and deputy managing director of MOGE. But they stopped short of sanctioning MOGE itself.

Among the findings, the leaked tax documents show that:

  • US oil services giant Halliburton’s Singapore-based subsidiary   Myanmar Energy Services reported pre-tax profits of $6.3m in Myanmar in the year to September 2021, which includes eight months while the junta was in power.

  • Houston-headquartered oil services company Baker Hughes branch in Yangon reported pre-tax profits of $2.64m in the country in the six months to March 2022.

  • US firm Diamond Offshore Drilling reported $37m in fees to the Myanmar tax authority during the year to September 2021 and another $24.2m from then until March 2022.

  • Schlumberger Logelco (Yangon Branch), the Panama-based subsidiary of the US-listed world’s largest offshore drilling company, earned revenues of $51.7m in the year to September 2021 in Myanmar and as late as September 2022 was owed $200,000 in service fees from the junta’s energy ministry.

The services provided to Myanmar’s Asia-owned gas field operators by these companies gave vital support to MOGE, which is a major shareholder in all of the country’s most important oil and gas projects.

MOGE collects taxes and royalties for the state on gas field projects, ensuring that the junta gets lucrative tax and royalty payments, as well as a vast share of profits. According to the   junta’s own figures   the oil and gas industry is its biggest source of foreign-currency revenue, bringing in $1.72bn in the six months to 31 March 2022 alone.
 
 
 
mocowgirl
Professor Quiet
1.1.8  mocowgirl  replied to  Kavika @1.1.6    10 months ago

Rice is another large export crop.

The more I read about Myanmar, I can see why international organizations would desire to control the government to have control of the country's assets. 

And Myanmar may be the #1 supplier of methamphetamine according to Wiki.

Years ago, I read that the Taliban banned opium production because it was destroying the people of Afghanistan through becoming addicted.  I hope that this does not happen to the people of Myanmar.

Myanmar - Wikipedia At the same time, the Golden Triangle, and specifically Shan State of Myanmar, is believed to be the largest  methamphetamine  producing area in the world.
 
 
 
mocowgirl
Professor Quiet
1.2  mocowgirl  replied to  Kavika @1    10 months ago
Three indigenous groups have combined and a fourth is close to joining the group and have taken over numerous border crossing and land from the military.

I googled for info on Myanmar's population.  I used Wiki because it was easy to get a lot of info in one place.

With so much diversity, how has Myanmar ever had a cohesive government that represented by the various ethnic groups?

Myanmar - Wikipedia Myanmar is  ethnically diverse . The government recognises  135 distinct ethnic groups . There are at least 108 different ethnolinguistic groups in Myanmar, consisting mainly of distinct  Tibeto-Burman  peoples, but with sizeable populations of  Tai–Kadai Hmong–Mien , and Austroasiatic (Mon–Khmer) peoples. [305]
 
 

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