Section 3 | RULES OF THE GAME
In addition to abiding concerns over cybersecurity, well-connected military, government,
and business interests undoubtedly view liberalization of the ICT sector as an opportunity
to further enrich themselves and their families. This is nothing new—an example from 2004
involved kickbacks in the tens of millions paid by Chinese telecom company ZTE as part of
a $150 million loan to MPT.197 Among growth sectors in Myanmar today, telecom is one of
the most coveted, estimated by analysts to be worth billions of dollars—and some very
visible corruption scandals in 2013 were clearly removing obstacles to rent-seekers behind
the scenes.
In an interview, following the 2013 corruption scandal at the Ministry of Communications
and Information Technology, a Myanmar expert at Macquarie University in Sydney described
Minister Thein Tun’s resignation in the wake of the scandal as a “net positive” for telecom
reform, since Tun was regarded by Myanmar watchers as an opponent of cheaper SIM cards
(at the time, still in excess of $150) and “a logjam generally in the process of reform” in the
sector.198 Following his ouster, the bidding process for mobile network providers was the first
large public tender outside the natural-resources sector to include foreign companies and
was “widely praised by consultants and participating companies as ‘world class.’”199
The 2012 local and 2015 parliamentary elections ushered in new political cadres, although
many, including Prime Minister Shwe Mann, merely fill different positions, and their
appointees and staff are likely to uphold patronage networks based upon old loyalties. In
addition, while it is important to acknowledge that the military still has constitutional and
extralegal control of the economic and security environment, it is also crucial to understand
that Daw Aung San Suu Kyi’s NLD retains many of the traits that enabled it to function
successfully as essentially an underground movement until 2011, including reliance on
personal loyalties over competence or merit, and a vertical decision-making structure in
which secrecy is paramount.
Larry Jagan, “Politics of Corruption in Myanmar,” Asia Times, April 15, 2013
Shibani Mahtani, “Telecom Officials Face Corruption Probe in Myanmar,” Wall Street Journal, January 24,
2013.
199
Gwen Robinson, “Myanmar Telco Auction: The Good and the Bad,” Financial Times, June 28, 2013.
197
198
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