Burma should seriously and cautiously consider the building of a China-Burma oil and gas pipeline, as the project will not foster the long-term economic development of the country.
The proposed oil and gas pipeline, to pass through Burma from the coast of Arakan state to Muse on the Chinese-Burmese border, would provide little benefit for the military ruled country, while China would immensely benefit from the project.
Burma should not let the pipeline be built if it is to be managed by Chinese and dominated by fellow Chinese throughout the senior level of management.
The building of an oil and gas pipeline, as opposed to trade, is akin to permitting China to establish fixed assets in Burma.
A pipeline is not a factory, not a business. Burma will not benefit much from such an agreement, merely receiving a transit fee while being held responsible for the security of the project.
In short, Burma should be allowed to operate the section of the pipeline that runs through Burmese territory. Such an approach, in addition to the transit fee, would endow Burmese with additional job opportunities and technological advancement.
If China wants to build pipelines, they must grant financial aid, material and technological assistance, while permitting the pipeline to be operated by Burmese.
Though the National Development and Reform Commission (NDRC) of China approved the pipeline to link the deep-water port of Sittwe with Kunming in early 2007, a Rangoon-based energy expert and businessman close to senior officials at Burma's Ministry of Energy said there is so far no clear plan for the implementation of the project.
The businessman, mainly involved in engineering and offshore development, said Burma cannot significantly benefit form the project, despite some expected job creation for both skilled and unskilled labor, due to the projected high cost of construction.
Normally when a pipeline is erected, over 80 percent of the cost goes into raw materials and only 20 percent toward labor, logistics and service work.
However another businessman, who provides technical services in the energy infrastructure business, holds a different view of the project.
More opportunities for Burmese will be available as the pipeline will pass through highly forested areas and mountain ranges, the latter necessitating the completion of several tunnels.
He went on to say that over one thousand workers would be needed for the project.
Yet, unlike the Thai-Burma gas pipeline project in which Burmese gas is purchased, the China-Burma oil and gas pipeline is intended simply to transport oil and gas from Africa and the Middle East to China, thus avoiding the Strait of Malacca.
n summary, Burma's current policy of simply jumping at any chance to earn hard currency for the benefit of the ruling elite ignores the long-term best interests of the state and over 50 million Burmese people.
