China and Yunnan Economic Relations with Myanmar and the Kachin State: Powering the Peace Process

David Dapice

No 801, Discussion Papers Series, Department of Economics, Tufts University from Department of Economics, Tufts University

Abstract: Myanmar, long isolated from western economies due to its government, is one of the poorest and worst governed countries in the world. Ruled for many years by a reclusive dictator, senior general Than Shwe, it was dependent on China for diplomatic protection and arms. Trade and investment deals reflected its lack of alternatives. China's "One nation, two oceans" policy and Yunnan's "Bridgehead" strategy envisioned Myanmar providing access to the sea via gas and oil pipelines, deep sea ports, naval docking facilities and transport for Yunnan. Yunnan through its Southern Grid along with CPI (China Power International) saw Myanmar's Kachin state as providing ample hydroelectric supplies for the landlocked Chinese province. Deals were singed under General Than Shwe without popular review or consultation with the Kachin whose state had most of the hydroelectric sites.

Date: 2012
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