The illicit drugs industry worldwide is valued at US$322billion, greater than the Gross Domestic Product (GDP) of over 88% of the world’s economies.  Opiates account for around US$65bn (20%) of that market, and the ATS markets together (methamphetamine, amphetamine and ecstasy) amount to US$44 bn (13%).  About 26million people use Amphetamines, and 16million opiates.  (Ref 1).  The title of this article comes from the opening statements of the US Department of State’s report on worldwide narcotics related to Burma (Ref 2).  Although Burma only produces 8% of the amount produced by Afghanistan, the volumes of opiates and ATS, and the money involved are staggering.  This article draws on the report findings covering the situation in Burma. 

(I have added my own comments and drawn from the SHAN publications listed in the references (Ref 3), as well as other websites and recent press coverage of various events to support my observations, which are indicated by italics.  It is rather a positive report for the SPDC regarding the counter-narcotics performance of the SPDC Government, and I would have expected that the US Secretary of State, Condoleezza Rice would have added a preface – she and George Bush regularly push China, India and the ASEAN countries to put pressure on the regime – “The Burmese regime is now literally retreating into the depths of the country, closing its people off from the world and robbing them of their future.").

Country situation

Burma accounts for around 90% of the illicit opiates (Opium, Heroin, and Morphine) produced in South-East Asia.  Burma is also the primary producer of Amphetamine-type stimulants (ATS) in Asia.  The area in which these drugs are grown and produced is the ‘golden triangle’ of Shan State, Laos, Thailand and China and particularly the borders between the these countries.   Whilst the golden triangle ahs been the centre for opiate production for centuries, the pressure on poppy reduction and other factors has led to the use of these protected areas for ATS manufacture and as a centre for their distribution.  The growing areas and production facilities are mainly controlled by the United Wa State Party (UWSP) and their Army (UWSA), with many Chinese criminal gangs involved in the production and logistics trade.  The report notes that the poppy growers (Wa, Shan, Akha and other ethnic farmers) are amongst the poorest paid workers in Burma. 

Since the mid-1990s, the Burmese government has sought to agree a cessation of opium growing with cease-fire groups.  Although the UWSA have announced a ban on poppy growing, their activities in ATS production have increased, and the growth of poppies has spread to other areas outside of their control.  During 2005, the US Attorney for the Eastern district of New York placed indictments against 7 UWSA leaders for conspiracy to possess, manufacture, or distribute heroin and methamphetamine. 

(The SPDC have played ball with the international organisations, making a show of destroying some poppy fields – mostly those near main roads, and those that are not under the direct control of the armed groups with whom they have close relationships – regional SPDC commanders decide where poppies will be grown and which fields will be destroyed to show to the world that the Burmese government is responding to international concerns.  The SPDC generally does not target areas under control of the UWSA.  No key figures in the UWSA or any of the major Chinese criminal gangs operating in Shan State have been captured.  Those that are have effortlessly escaped, following massive bribes to their gaolers.

The SPDC often accuse the Shan State Army (South) with involvement in the drugs trade.  The SSA(S) repeatedly denounces these accusations as false.  In fact the SSA(S) take measures to destroy refineries and reduce poppy growth in the area that they control.  As usual, the SPDC are blaming others for the crimes that they themselves commit.)

  

Actions against drug trade

During the last year, the Burmese Government has worked with the US Drug Enforcement Agency (DEA) and the Australian Federal Police (AFP) on investigations that have led to arrests and seizures of large quantities of drugs; albeit less than 1% of the estimated annual production.  Much further work has been hampered by the difficulties between the two countries; the US stopped direct counter-narcotics assistance in 1988.   

Figures provided by Burmese drug officials indicate that there was one major bust which netted 496 kilograms of heroin, and the arrest of 49 UWSA soldiers including a brigade commander, causing a major disruption to international trafficking syndicates.  However, for the first 11 months of 2005, Burma seized a total of 1,000 kg of raw opium, 776 kg of heroin, 119 kg marijuana, and 1.6million methamphetamine tablets.  This haul however, accounts for just a tiny fraction of the total production for the year.

A joint operation between the Burmese drug officials, the US DEA and the AFP led to the seizure of 102 kg of methamphetamine crystal (ICE), disrupting a major Asian drugs syndicate working the markets of China, Malaysia, the Philippines and the USA.  The Burmese authorities dismantled two refineries, destroyed nearly 4,000 hectare of poppy fields and arrested 4,398 drug suspects.   

In general, the operations in Burma have intensified and been more successful than previous years, even though they make only a small impact on the overall position. 

(The SPDC continue to use intimidation of local farmers to prevent poppy growing in those areas that they wish to showcase to the world.  This has in the past included extrajudicial killings.  In other districts, groups of villagers have been jailed; men, women and children.  Evidence of these incidents is difficult to report as few outsiders are allowed into these areas unsupervised.  The SPDC claim that poppy growing in some areas has reduced, but this is usually to avert the attention from the area where they are practising forced relocations – to deprive groups such as SSA(S) of much needed agricultural produce and place the villagers in towns where they can be controlled.

Although some UWSA personnel have been apprehended and prosecuted, few key players have been brought to justice.  One of the leading drug lords is Wei Hsueh-kang, who is wanted in Thailand (where a death sentence awaits him) and the USA (who have a US$2million bounty for his capture).  The United States issued an indictment against Wei Hsueh Kang for drug smuggling, and considers him the head of the wealthiest and most powerful cartel in the world.  In 2003, for the first time he personally led a contingent of SPDC troops fighting alongside his UWSA 171st Special Division in an attack on the Shan State Army-South.  Wei moves around Shan State with impunity, including the major cities like Lashio, but has not been apprehended.)

Drug use in Burma

Drug use in Burma is low compared with neighbouring countries due in part to the poverty of the people.  There has been a change from the traditional opium smoking to injection of heroin.  This has adversely resulted in fuelling the increase of the incidence of HIV/AIDS, which is now considered to be an epidemic.  Infection rates are highest among the ethnic regions, especially along the northern and eastern borders.  Collecting data in this area has proved difficult; the estimates lie between the government figure of 70,000 and the UNODC estimate of 300,000; the estimates of ATS users is between 30,000 and 130,000. 

The government of Burma does run an addict registration program and treatment centres.  However, facilities are limited with 6 major treatment centres and 49 smaller detox centres and 8 rehabilitation centres.

(It may come as a surprise that the Government of Burma is investing in medical health, but it should be borne in mind that the healthcare budget is around 2% of the total annual spend, the military budget is ~40%.  International NGOs have supported development of HIV/AIDS medical facilities, in areas in which they are allowed to operate.  However, as time goes on more and more of the NGOs are finding that they cannot operate effectively under the restrictions placed on them by the SPDC.  Doctors without Borders (MSF) pulled out on 30^th March 2006, because government restrictions had made it impossible to work there. 

Local communities have in some cases set up their own treatment facilities; but some set up by a ceasefire group which became too successful where shut down by the jealous regime.) 

Alternative crops

 Whilst the work of the US departments are aimed primarily at reducing production of illicit drugs and criminal activity, there is recognition that a substitute for poppy growing is needed to sustain the agricultural community.  In this respect, the United Nations Office of Drug Control has been active in these areas for some years; Japan is one of the key sponsors of a buckwheat productions scheme.  However, these initiatives are limited and prove difficult to implement in areas that are ‘sensitive’ – the ceasefire groups and ‘insurgent’ groups. 

(There have been crop substitution projects in Burma over the last few years; some using a Chinese variety of rice, that failed as a crop, the buckwheat project has had poor harvest and the wheat has been known to rot in the four weeks it takes to get it to Japan.  Most projects failed due to poor planning, coercive implementation, and complete disregard for the welfare of local populations.  As a result it is the farming communities who have suffered the most.)

Corruption 

The report indicates that there is no reliable evidence that senior officials in the Burmese government are directly involved in the drugs trade.  However, lower ranking army, police and other government officials, especially those posted to border areas, are widely involved in the drugs trade.  The investigation and prosecution of such cases is minimal.  Although former prime minister Gen. Khin Nyunt and 100s of his military intelligence officers were accused of being involved with corruption, and also possibly the drugs trade, none have been prosecuted with drugs related offences. 

(Corruption is so widespread in the SPDC forces that they active provide protection for illicit drugs cultivation, refining and transport.  At one time the local SPDC commanders shared profits from drug sales 50:50 with UWSA.  The SPDC armed forces provide escort duties and transport (trucks and helicopters) to ensure the safe passage of drugs to the border crossings or exit points on the coast.  Internal money laundering is part of the SPDC’s method of benefiting from drugs money.  UWSA held construction companies, use profits from the drugs trade to build roads; in turn the UWSA set up check points to collect taxes, as does the SPDC.

The ex-drug king Khun Sa and his Mong Tai army who operated in Shan State for over 20 years before Khun Sa agreed a ceasefire in 1995.  Khun Sa now lives in luxury in Rangoon protected by the SPDC in exchange for large investments of his ill-gotten gains into Burmese industries controlled by the SPDC; despite a US$2million bounty on his head from the US Government. )

The road ahead

The reports notes that the Burmese government has made progress in reducing poppy cultivation and opium production and is co-operating with UNODC and neighbouring countries in drug control.  As the report puts it “Although large-scale and long-term international aid – including development assistance and law-enforcement aid – is necessary to help curb drug production and trafficking in Burma, the military regime’s ongoing political repression has limited international support of all kinds”. 

What is required is a crop replacement program, law-enforcement, long term sustainable support for poppy farmers and co-operation between the government and the ethnic groups involved in drug production and trafficking, especially the Wa. 

 During the 2005 drug certification process, the US Government determined that Burma was one of only two countries in the world that had "failed demonstrably" to meet international counter-narcotics obligations.

The US government is also concerned that the government of Burma should tackle corruption within government and military officials who facilitate or condone drug-trafficking and money laundering. 

(Comments by Taisamyone

Drug abuse is widespread in just about every country in the world; bringing misery, suffering and death to users and their families, escalation of crime to fund habits, and extensive criminal activity by the drug cartels.  It is right and proper to seek to eradicate drug production, but it is essential that crop replacement is effective as a long term solution.  Opium production in Afghanistan plummeted during the time of the Taliban, when penalties and enforcement were most severe.  Since liberation, Afghanis have returned to their traditional crop as it pays very well. 

The Akha Heritage Foundation rails against the activities of the US DEA in Thailand and Laos as it is said that it directly causes the loss of livelihood and life of the Akha people in those areas.  Being able to earn a modest living in Burma as a poppy grower is a boon to the local farmers. 

Although the US State Department report concludes that the government of Burma takes the drug trade issues seriously, it does not fully emphasis the scale of corruption among local military commanders and the SPDC hierarchy, or the mixture of ethnic politics that is directly linked to the industry.  The military junta is using the ethnic armies to fight amongst themselves to keep the people divided.  For instance, the UWSA has been supporting the SPDC in fighting the Shan State Army. 

The recent news that the centre of the drugs trade in Burma has moved from Shan State to Mandalay indicates the growth in business and trade routes into India, Bangladesh, and via Rangoon’s sea and air ports. 

Drugs in Burma is a complex issue and one that needs to be addressed by a political solution as well as the economic and law-enforcement issues.  As SHAN’s Show Business (2^nd Ed) puts it: “this report exposes as a charade the Burmese military regime's "War on Drugs" in Shan State.  It provides evidence that the drug industry is integral to the regime's political strategy to pacify and control Shan State, and concludes that only political reform can solve Burma's drug problems.”)