2015/6/2

IndiaJapanSoftPowerCooperationinMyanmar|TheDiplomat

Image Credit: Narendra Modi via Flickr.com

India-Japan Soft Power Cooperation in Myanmar

There is scope for these two increasingly friendly countries to work together in Myanmar.
By Purnendra Jain and Tridivesh Singh Maini
April 07, 2015

Witheconomicreformprocessesinplaceandanelectedgovernmentsince2010,Myanmarisnowconsidered
Asiasnewfrontier,orevenitsfinalfrontier,asprospectsforinvestmentandinternationaltradeincrease.Countries
thathadimposedsanctionsinthepastarenowwillingtoinvestanddobusinesswithMyanmar,whichboasts
abundantresourcesandaneconomywithenormouspotentialforgrowth.
ManycountrieshavealreadymadeinroadsintoMyanmar,withChinaleadingtheway.Chinasinfluenceisall
pervasive,whetheritbeintrade,aidorinfrastructuredevelopment.YetChinaisnowincreasinglyviewedasa
hegemonandresentmenttowardsBeijingappearstobemounting,withlargesectionsoftheBurmesepopulation
believingthatChinaseekstoexploitMyanmarsnaturalresources.RecentclashesinKokangalongtheChina
Myanmarborderhavecomplicatedthebilateralrelationshipstillfurther.
Myanmarisnowopenforbusiness,encouragingcountriesaroundtheworldtoconsideritasastrongdestination
forinvestment.Singapore,JapanandIndia,amongothers,areintheprocessofestablishinganeconomicfootprint
intheSoutheastAsiancountry.TwonationsofparticularimportancetoMyanmarareJapanandIndia,bothAsian
giants.
JapaninMyanmar
AlthoughJapanoperatingunderU.S.pressureappliedsanctionsduringtheruleofthejuntainMyanmar,
cuttingitsaid,Tokyodidnotcuttiesentirely.Throughprivatediplomacyandindividualconnections,Tokyo
maintaineditsnetworkswithbusinessesandofficialsinYangonandsince2005withNaypyidaw,thenewcapital.
JapanresumedaidtoMyanmarwhenthejuntawasreplacedwithaciviliangovernment.Infact,Japanhasbeena
longtimedonortoMayanmar,whichwasthefirstrecipientofJapanesereparationsinSoutheastAsiain1954.That
aidconnectionremainedstrong.WhentheciviliangovernmentcameinpowerinNaypyidaw,Tokyowaivedcloseto
$3billionindebtandcommittedtonewloansforarangeofinfrastructureprojects.Asubstantialamountof
Japaneseaidhasbeendevotedtoassistingwiththedevelopmentofthelocalrailsystem,healthfacilities,andother
civicamenities.
Meanwhile,Japansdirectinvestmenthasbeensteadilyrisinginrecentyears,andindeedJapaniscatchingupwith
China.In2013forinstance,JapaneseinvestmentinMyanmarwas$55.7million,notfarbehindChinas$56.9
million.ThreeJapanesebankstheBankofTokyoMitsubishiUFJ(BTMU),SumitomoMitsuiBankingCorp,and
MizuhoBankrecentlywonthreeoftheninelicensesgrantedtoforeignbankstooperateinMyanmar.Thesethree
banksalongwithJapansaidagency,theJapanInternationalCooperationAgency(JICA)willbejointlydeveloping
theThilawaSpecialEconomicZonejustoutsideYangon.JICAhasamajorpresenceinMyanmarwithsomethirty
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2015/6/2

IndiaJapanSoftPowerCooperationinMyanmar|TheDiplomat

fiveemployeesanditappearsJapaneseaidtoMyanmarwillonlyrise,asJapanesecorporationsinvolvedin
developmentprojectsarelikelytobenefit.
IndiasPresence
IndiahasalsobeenmakingsteadyinroadsintoMyanmaroverthepastdecade.Bilateraltrade,justover$1billionin
2009,hadrisentonearly$2billionin20132014.Estimatessuggestthatthisfiguremayriseto$3billionby2015
andbothsidesareaimingtoachieveanambitious$10billionby2020.
AnumberofIndiancompanieshavealsosetupoperationsinMyanmar,includingoilandgasplayerslikethe
ONGCVideshandGAIL.BankssuchastheStateBankofIndia,BankofIndia,andtheEximBankofIndiahave
openedrepresentativeoffices.
LikeJapan,Indiahasnotconfineditsrelationstotrade.NewDelhiisassistingMyanmarinareassuchas
informationtechnology,agriculture,andinfrastructure.Recently,IndiaofferedtoassistMyanmarinbolsteringits
tradetraininginstitutes,andtotrainMyanmartradeofficialsonWTOrelatedissues.
WhilebothJapanandIndiahaveaneconomicinterestinMyanmar,evenmoresignificantisitsstrategiclocation.
IndiasLookEastPolicyrecentlyredubbedActEastbythecurrentgovernmentwillbeanonstarterwithout
greaterconnectivityandrobustrelationswithMyanmar.ItisinthiscontextthatformerIndianPrimeMinister
ManmohanSinghtravelledtoMyanmarin2012thefirstofficialvisitbyanIndianprimeministersince1987.
SinghsubsequentlyvisitedMyanmarin2014,butthatwasinconnectionwiththeBIMSTECSummit.Prime
MinisterNarendraModivisitedMyanmarin2014toattendtheEastAsianSummit,andabilateralvisitisalsolikely
soon.
SoftPowerCooperation
Meanwhile,IndiaJapanrelationshavestrengthenedoverthepastdecade,andthescopehaswidenedtoinclude
securityanddefencecooperation.PrimeMinisterNarendraModisvisittoJapaninSeptember2014andthewarm
receptionhereceivedfromhishostfurtherillustratesthedeepeningofties..
BothcountrieshavestrategicinterestsinMyanmar.Ofcourse,anymilitarycooperationhasthepotentialtoratchet
uptensionswithChina.ButthereispotentialforIndiaandJapantoexploreothersynergiesinMyanmar.
TheJapanInternationalCooperationAgency(JICA)isinvesting$100millionindevelopinginfrastructurein
NortheastIndia,whichwillnotjusthelpinthedevelopmentofthatregionbutwillalsoenhanceconnectivitywith
Myanmar.
Lookingbeyondeconomics,assistingMyanmar,forexamplewithinstitutionbuildinganddevelopingcultural
assetsareasthatmightbeconsideredtocomeundersoftpowercouldservetheinterestsofbothJapanandIndia
inthelongrunandprovideausefulplatformforlaunchingotherformofcooperation,includingeconomic.Both
IndiaandJapancouldalsohelpdevelopMyanmarsinformationtechnicalsectorbyestablishingtraining
institutions.OtherpossibleareascouldbethedevelopmentofaBuddhisttouristcircuitextendingfromEastern
IndiatoMyanmar.Buddhismisanimportantlinkbetweenthethreecountries,andJapanhasalreadyprovided
generousassistanceforrevivingtheNalandaUniversityinBihar.Thetwocountriescanalsocooperatetodevelop
worldclassresearchcentersinMyanmarfocussingonBuddhism.
WhileaJapanIndiapartnershipinathirdcountryhasyettotakeshape,Myanmarcouldbeagoodplacetostart.In
fact,itmakesperfectsensegiventheincreasingstrategiccongruencebetweenIndiaandJapan,andthefactthatthe
natureoftheassistancetheyprovideisverysimilar,evenifthescaleisnot.
PurnendraJainisProfessorinAsianStudiesattheUniversityofAdelaide.TridiveshSinghMainiisaSenior
ResearchAssociatewithTheJindalSchoolofInternationalAffairs,Sonepat.

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