The Times Australia
The Times News

.

The coup in Myanmar is partly about protecting the economic interests of the military elite

  • Written by Htwe Htwe Thein, Associate professor, Curtin University

The actions of the Myanmar military in arresting members of the government in dawn raids on February 1, the day parliament was set to convene, have been met with shock and dismay both within the country and around the world.

Why would the military stage a coup to depose a democratically-elected government of which it had been part? Why do it just before the government began a second term?

There are several plausible explanations, but one that has not received enough attention is the desire of the military to protect its wealth and business interests in Myanmar.

It should not be underestimated.

For decades the military has amassed wealth by controlling the state bureaucracy and establishing near-monopolies in key sectors.

The reform agenda of the civilian-led National League for Democracy government threatened to weaken - albeit gradually over time - this lucrative system of crony capitalism.

Read more: Myanmar's military reverts to its old strong-arm behaviour — and the country takes a major step backwards[1]

There is a saying in Myanmar that you “can touch the hair bun on top of my head, but don’t you dare touch the wallet tucked away at my waist”.

The consolidation of civilian rule likely after November 2020’s election threatened previously-untouchable wallets.

Military crony capitalism

Political reforms initiated in 2011 allowed the previously-banned National League for Democracy to contest the 2015 general election and win it in a landslide.

But in the decades leading up to 2011 two military-owned conglomerates, Myanmar Economic Corporation (MEC[2]) and Myanmar Economic Holding Ltd (MEHL[3]) used privatisations[4] to grab publicly-owned enterprises at fire-sale prices[5].

As well, military leaders and associates of military leaders grabbed licenses, land and economic concessions.

Read more: Ethical minefields: the dirty business of doing deals with Myanmar's military[6]

While there have been important reforms[7] in Myanmar over the past decade, including a stronger role for a private sector and international investors, the military has maintained its economic clout.

Its conglomerates control businesses and investments in sectors ranging from beer, tobacco and consumables to mines, mills, tourism, property development and telecommunications.

Indeed, this has posed a dilemma[8] for many international businesses that have been accused by the United Nations[9] and Amnesty International[10] of failing to respect human rights by engaging businesses controlled by the military.

The threat from civilian government

The first National League for Democracy government (2015-2020) was reluctant to directly or decisively target the interests of the military, although its opening of key sectors to competition and investment acted as counterweight.

It was intent on tackling the country’s deep-grained corruption[11] in government–business relations, but with weak impact on the businesses owned by the military.

However, in November 2018 a National League for Democracy spokesperson pointed to the military domination of key parts of the economy and stated that the government bureaucracy – historically dominated by retired military personnel - was a major stumbling block[12] to progress and would be an important target for reform after the 2020 election.

Read more: Why Myanmar is rising up in collective fury after a military coup – The Conversation Weekly podcast[13]

The civilian-led government began to gradually de-militarise the country. A major achievement was the 2019 transfer of the general administration department to civilian control[14].

This department, previously in the military-controlled ministry of home affairs, has been depicted as the spine of the government of Myanmar, with the power to appoint government officials across the country.

the coup in Myanmar is partly about protecting the economic interests of the military elite Families gather near the bodies of victims after a landslide at a jade mining site in Kachin State, Myanmar, July 2 2020. ZAW MOE HTET/EPA

Many were shocked that the military had been forced to relinquish control. It was a sign of the weakening grip of the military over the government administration and patronage – which had been at the heart of its ability to accumulate and protect its wealth.

Another achievement was a series of changes to the Myanmar Gemstones Law[15] that threatened military-dominated enterprises for whom the danger-ridden jade mining[16] industry had been extraordinarily lucrative.

We do not know exactly what the National League for Democracy was planning next for jade mining or its commitment to meaningful reform[17], but we can be sure that strengthened civilian oversight would have loomed large as a concern for the military.

International pressure

The military coup intensifies pressures on international businesses to take a stand on the ethical impacts of their interactions with Myanmar, especially for businesses in direct partnerships with the military.

The decision of the multinational Kirin Brewery Company that brews Australia’s Tooheys, XXXX and James Squire beers to exit[18] its partnership with a Myanmar military-owned business is a high-profile sign of the pressures on investors.

International trade sanctions are likely to return if things don’t improve, but many businesses in countries neighbouring Myanmar are unlikely to be swayed.

As civil disobedience gains traction it remains unclear whether the military coup will succeed. What is clear is that the fight for democracy in Myanmar is also a fight against military-dominated crony capitalism.

References

  1. ^ Myanmar's military reverts to its old strong-arm behaviour — and the country takes a major step backwards (theconversation.com)
  2. ^ MEC (www.mecwebsite.com)
  3. ^ MEHL (en.wikipedia.org)
  4. ^ privatisations (www.researchgate.net)
  5. ^ fire-sale prices (www.tandfonline.com)
  6. ^ Ethical minefields: the dirty business of doing deals with Myanmar's military (theconversation.com)
  7. ^ important reforms (www.taylorfrancis.com)
  8. ^ dilemma (theconversation.com)
  9. ^ United Nations (www.ohchr.org)
  10. ^ Amnesty International (www.amnesty.org)
  11. ^ deep-grained corruption (asiatimes.com)
  12. ^ stumbling block (www.mmtimes.com)
  13. ^ Why Myanmar is rising up in collective fury after a military coup – The Conversation Weekly podcast (theconversation.com)
  14. ^ civilian control (www.frontiermyanmar.net)
  15. ^ Myanmar Gemstones Law (oxfordbusinessgroup.com)
  16. ^ jade mining (www.globalwitness.org)
  17. ^ meaningful reform (www.myanmar-now.org)
  18. ^ exit (www.kirinholdings.co.jp)

Read more https://theconversation.com/taking-care-of-business-the-coup-in-myanmar-is-partly-about-protecting-the-economic-interests-of-the-military-elite-154727

Times Magazine

Headless CMS in Digital Twins and 3D Product Experiences

Image by freepik As the metaverse becomes more advanced and accessible, it's clear that multiple sectors will use digital twins and 3D product experiences to visualize, connect, and streamline efforts better. A digital twin is a virtual replica of ...

The Decline of Hyper-Casual: How Mid-Core Mobile Games Took Over in 2025

In recent years, the mobile gaming landscape has undergone a significant transformation, with mid-core mobile games emerging as the dominant force in app stores by 2025. This shift is underpinned by changing user habits and evolving monetization tr...

Understanding ITIL 4 and PRINCE2 Project Management Synergy

Key Highlights ITIL 4 focuses on IT service management, emphasising continual improvement and value creation through modern digital transformation approaches. PRINCE2 project management supports systematic planning and execution of projects wit...

What AI Adoption Means for the Future of Workplace Risk Management

Image by freepik As industrial operations become more complex and fast-paced, the risks faced by workers and employers alike continue to grow. Traditional safety models—reliant on manual oversight, reactive investigations, and standardised checklist...

From Beach Bops to Alpine Anthems: Your Sonos Survival Guide for a Long Weekend Escape

Alright, fellow adventurers and relaxation enthusiasts! So, you've packed your bags, charged your devices, and mentally prepared for that glorious King's Birthday long weekend. But hold on, are you really ready? Because a true long weekend warrior kn...

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Times Features

The Role of Your GP in Creating a Chronic Disease Management Plan That Works

Living with a long-term condition, whether that is diabetes, asthma, arthritis or heart disease, means making hundreds of small decisions every day. You plan your diet against m...

Troubleshooting Flickering Lights: A Comprehensive Guide for Homeowners

Image by rawpixel.com on Freepik Effectively addressing flickering lights in your home is more than just a matter of convenience; it's a pivotal aspect of both home safety and en...

My shins hurt after running. Could it be shin splints?

If you’ve started running for the first time, started again after a break, or your workout is more intense, you might have felt it. A dull, nagging ache down your shins after...

Metal Roof Replacement Cost Per Square Metre in 2025: A Comprehensive Guide for Australian Homeowners

In recent years, the trend of installing metal roofs has surged across Australia. With their reputation for being both robust and visually appealing, it's easy to understand thei...

Why You’re Always Adjusting Your Bra — and What to Do Instead

Image by freepik It starts with a gentle tug, then a subtle shift, and before you know it, you're adjusting your bra again — in the middle of work, at dinner, even on the couch. I...

How to Tell If Your Eyes Are Working Harder Than They Should Be

Image by freepik Most of us take our vision for granted—until it starts to let us down. Whether it's squinting at your phone, rubbing your eyes at the end of the day, or feeling ...