The regime strictly controls Burma’s jade and gem sector. State-owned
enterprises, including Myanmar Economic Holdings Ltd. (MEHL) and
Myanmar Gems Enterprise, control the production of Burma’s gem and
jade mines and the sale of any extracted products. (Carl-Yoder, 2008)
Not only does this enable the military and state officials to monitor the activities of
various businesses in the private sector, it also establishes a means by which officials can
control who has access to certain geographical locations in the country and who is able to
participate in specific aspects of the economy. This is crucial when controlling industries
like the jade and gem trade—both of which are linked to gross human rights abuses, as
keeping a close watch on who is involved allows the military to protect itself from
international scrutiny and domestic outcry. Burma’s jade and gem mines have a longstanding record of deaths related to inhumane conditions and inadequate attention to the
health and safety of workers. Moreover, a Time magazine article entitled “Battling for
Blood Jade” by Hannah Beech (2019) explains that the jade industry exemplifies the
limits of democracy in Burma:
Most stones are smuggled over the border to neighboring China; only a
fraction are subject to the tax needed to fill government coffers in one of
Asia’s poorest countries. The scale of graft and unaccountability is such
that Global Witness calls Myanmar’s jade economy the “biggest naturalresource heist in modern history.”
Considering UMEHL’s business connection to China’s state-owned Wanbao, it is
not surprising that over 95% of Burma jade is exported to China or Hong Kong. Burmese
government pressure on local mines to drive up production to meet China’s demands
further reflects the close economic ties between UMEHL and high-ranking government
and Tatmadaw officials (Carl-Yoder, 2008). Many of Burma’s gemstone mines are in
Kachin State in the northernmost part of the country. By maintaining control of the
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