Massacre in Meiktila: That was my friend

More deaths are likely in Burma in the coming weeks as anti-Muslim violence intensifies.

Following recent attacks in central Myanmar against Muslims, the displaced have been fleeing to the central city of Mandalay. Buildings were burnt down and the "official" death toll stood at 32, as angry mobs roamed the streets. The reality of events is very different from what we have heard on our TV screens. Burmese state media is not the most reliable of sources and very few independent or Western journalists have reported directly from the ground.

The displaced are scattered across the city, accommodated by fellow Muslims and are still very scared to return to their homes in Meiktila, a hundred miles away.

I traversed through side streets to the site of one building housing the displaced. Young men stood guard, looking wary and suspect. After a long discussion we were allowed in to interview some of the refugees, they asked for their faces to be blurred out on camera. The metal gates to the building were unlocked and we were allowed in.

Hafiz, a seventeen-year-old student, had been in school at the time when the violence began. His teacher told him to run,
“we ran, we saw the younger children falling over, the older kids had to help them,” he said, recalling his account. “We hid, and then moved from place to place until we were rescued and brought here. I’m not sure where some of my other friends are.”

He looked around to his classmates in the small open space opposite a mosque in the mainly Muslim district of Mandalay. I showed him some pictures from a local journalist; two of them were of dead teenagers. He put his hand up to the camera touching the screen. "That’s my friend,” he said. We showed him another and he struggles to speak: “And this one, those are Osama and Karimullah,” he paused; his friends surrounded the camera and inspected the pictures of bodies on the ground, in unnatural poses.

One body, Osama’s, has a massive gash to the back of the neck, which looks like it was caused by a machete. The other boy had a massive laceration in a similar place, both bodies had been there for three days before a local journalist, Hein Aung, took the pictures. They are too graphic to print. The class mates consoled each other, two friends lost. The pictures confirm their fears, but there are still friends unaccounted for, but we have no more pictures that can be identified, the rest are of burnt corpses. Not that that was a comfort to these young men, to anyone. Nearby, one hundred and five year old Kairunbi, laid on the floor, exhausted. Her seventy-one year-old daughter watched over her.

“We had to use a stretcher to get her here,” she told me. “We will go back when it is safe to do so,” she added. “We could be here for a while.”

Muslims have long been an oppressed minority in Myanmar. Last year’s massacre of the Rohingya Muslims caused outrage in the Muslim world but the Western media gave it little attention. The Rohingya are not recognised as Burmese citizens. The darling of the West Aung San Suukyi, a former political prisoner, democracy advocate, and current member of the Burmese Parliament, remained silent when asked about the Rohingya, an action further cementing their fate, as the leader of democracy in Burma refrained to speak out for their freedom.

This time, the Muslims are Burmese citizens, not Rohingya, but this did not stop them from being attacked. Every person interviewed said that the police stood by and did nothing whilst they were being attacked. Many here believe that this was pre-planned and that the official story, that it began with a dispute in a gold shop, is just a cover for violence against Muslims. The extremist Buddhist monk, Wirathu, had only given one of his sermons ten days before the violence. His group, 969, is infamous for their extreme views and protests against Muslims who they call "invaders" and "Kalar" - a racist term used to describe Muslims. He is known in the country for his anti-Muslim stance, he has even published a book called "From the jaws of a wolf”, which tells a story of a Buddhist woman married to an abusive Muslim man.

We continued throughout Mandalay, interviewing person after person displaced by the riots. But this violence was different from that in the Arakan state last year, although the anti-Muslim sentiment was the same. This time, local Buddhists and student groups from nearby Mandalay city launched a rescue operation saving hundreds of lives. The local Buddhists from Mandalay city, who have lived side by side with Muslims for centuries, were not prepared to have their neighbours slaughtered.

Myint Myint, who was saved by a Buddhist monk, said she blames the Buddhists in Meiktila, not the ones in Mandalay. Her nephew, Farooq, aged just fourteen, saw people beaten to death and then burnt. His voice crackled recalling the events, he and others hid in some houses and looked on as the slaughter took place. None of the above interviewed wanted their face on camera; they fear reprisals from extremist Buddhists if they are found out to have spoken to a foreign journalist.

Khin Htay Yee, was not afraid, though. She broke down in tears as she recalled how her Buddhist factory manager sheltered them in the factory as the slaughter took place outside. The mob outside threatened the manager that if he did not let the women out that they would break in and rape every last woman. She managed to make a phone call to Mandalay where some Buddhist monks had already left to rescue Muslims from the onslaught of the enraged mob.

The violence took place over three days and only stopped once the army came in and restored order to the streets. The majority of the displaced are still being kept in a sports stadium in Meiktila, guarded by the military.

Muslims in Burma are now afraid that the violence will spread even further and there is even a strong indication, due to protests, leaflets and military movement that a third massacre against the Rohingya Muslims in Arakan is planned for the coming days. The language of propaganda is reminiscent of that in the Balkans before the Bosnian genocide, Muslims are accused of invading, of waging jihad, of acts of violence against Buddhists, but many here believe that the military is behind the increase in violence, something Human Rights Watch pointed out in their report on the violence in Arakan last year accusing the military of complicity in the massacre. The Burmese military junta ruled Burma until recent political reforms, which has opened up the country somewhat to the West.

A Muslim in Yangon told me “the military want to assert their power, and want to prove they are the ones that can restore order, they are using us to prove their point.”

If this is the case, then we will see more deaths in the coming week.

This article first appeared on Assed Baig's blog, and is crossposted here with his permission.

Riot control police in Burma. Photograph: Getty Images
Ralph Orlowski / Getty
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Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

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