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Report to the Future Melbourne Committee Agenda item 7.1

Post travel report by Councillor Jackie Watts, Yangon, 10 June 2014 Myanmar, April 2014

Presenter: Councillor Jackie Watts

Purpose and background

1. The purpose of this report is to inform Committee on the outcome of meetings with city officials in Yangon, Myanmar held by Councillor Jackie Watts whilst on private travel in April 2014.

Key issues

2. At the invitation of a representative of the Yangon Heritage Trust (YHT), Councillor Watts met with officials of the YHT and Yangon City Development Committee (YCDC) to share City of Melbourne’s experience in planning for Melbourne’s future.

3. The YCDC is the administrative body of Yangon and has responsibility for a range of areas and services including planning, development, roads, waste, heritage and parks. The Chairman of the YCDC is also the Mayor of Yangon. The YCDC expressed interest in learning about Melbourne’s approach to city planning, development and liveability; a model it regarded as being highly successful.

4. Councillor Watts met with a number of officials and presented a broad package of information including the Future Melbourne Plan and City of Melbourne strategies covering transport, open space, sustainability, arts and heritage.

5. Also present at meetings with the YHT and YDCD were representatives from AusAID and the Australian Embassy. Discussions demonstrated an interest in exploring the potential for further city-to-city relationships supported by on-going dialogue and exchange.

6. Included at Attachment 2 is an overview of key observations and discussions held in Myanmar. It identifies areas in which there may be opportunities of mutual benefit to Melbourne and Yangon. The opportunities available for consideration include actions that support exchange and information sharing in the short to mid-term and those which may be of a longer-term strategic nature.

7. The opportunity to consider the potential for an on-going relationship with Yangon is best considered as part of Council’s proposed review of the International Engagement Framework. This will occur following detailed consideration of the ASEAN Statement which is proposed in the draft Annual Plan 2014–15. The proposed review is reflected in actions associated with the four-year priority to ‘build on city-to-city connections and identify opportunities in Business Partner Cities member cities within the ASEAN region for the municipality’s business’. The President of Myanmar is the Chair of ASEAN 2014.

8. The costs associated with travel by Councillor Watts were privately funded. Gifts and information packages were provided by City of Melbourne.

Recommendation

9. That the Future Melbourne Committee:

9.1. Note the report by Councillor Jackie Watts on outcomes of meetings with city officials in Yangon, Myanmar whilst on private travel in April 2014.

9.2. Refer to management the key observations and potential opportunities outlined in Attachment 2 for consideration as part of existing information exchange or dialogue programs.

9.3. Refer the potential for a formal Melbourne-Yangon relationship for consideration as part of the review of the International Engagement Framework following consideration of the ASEAN Statement as proposed in the actions contained in the Council’s draft Annual Plan 2014–15.

Attachment: 1. Supporting Attachment 2. Visit to Yangon, Myanmar, April 2014 : Key observations, meetings and opportunities

Page 2 of 7 Attachment 1 Agenda item 7.1 Future Melbourne Committee 10 June 2014 SUPPORTING ATTACHMENT

Finance

1. The costs associated with travel by Councillor Watts were privately funded.

Conflict of interest

2. No member of Council staff, or other person engaged under a contract, involved in advising on or preparing this report has declared a direct or indirect interest in relation to the matter of the report.

Relation to Council policy

3. The Manager Governance Services has confirmed that the travel undertaken accords with the requirements of the travel guidelines outlined in the Councillor Expenses and Resources Guidelines.

4. Goal 3 of the Council Plan 2013–17 provides for a Prosperous City and promotes the building of city-to- city connections to take advantage of opportunities for municipal businesses in BPC member cities within the ASEAN region.

Environmental sustainability

5. Sustainable modes of transport and approach to open space were some of the areas covered in the discussions held by Councillor Watts.

1 Page 3 of 7 Attachment 2 Agenda item 7.1 Future Melbourne Committee 10 June 2014

VISIT BY COUNCILLOR JACKIE WATTS TO YANGON, MYANMAR, APRIL 2014

KEY OBSERVATIONS, MEETINGS AND OPPORTUNITIES

1. Introduction

The comments and observations outlined below have been compiled from discussions and observations of my visit to Myanmar and offered as background for consideration of the potential for City of Melbourne engagement city-to-city with Yangon and inform consideration of the economic potential for Melbourne based businesses and educational institutions.

The Report Myanmar 2014 (Oxford Business Group) quotes the current President U Sein Thein as follows:

Myanmar is at an important part of its development. This is a critical moment in Myanmar’s economy. The transition from an authoritarian to democratic regime has led to a lifting of [international] sanctions. We are moving away from a centralised economy to one based on the free market. We have changed our investment laws and policies.

2. Background

There is a general recognition that Myanmar is poised to develop into a major ‘player’ in SE Asia and strangely, that its potential seems to have been enhanced in some ways by its seclusion under the isolationist military regimes of the recent past.

2.1. Politics and Government - Current President, U Thein Sein, has been in power for two years and has re-focussed Myanmar outwards. He is to commence as chair of ASEAN in 2014. Myanmar considers itself a constitutional republic with its President as Head of State with executive powers. There is universal suffrage and the next election is due in 2015. National unity is still an issue but agreements are progressing. There is an Upper House of Nationalities and a Lower House of Representatives and four levels of elected government; National, State, Township and Village Ward. This complexity reflects the 160 or more ethnic groupings. There are seven States with populations based on significant ethnicities), seven Divisions (units with the same status as States but populated by Burman people) six self-administered Zones, and 21 Administrative Divisions. Within Yangon, the former capital and now the designated commercial centre of Myanmar, there is another level of complex governance.

2.2. Law and Justice – The legal system is in need of attention having been neglected since 1962 but efforts to revive a common law system similar to that employed during British rule are being energetically pursued.

2.3. Population - No census since 1983 but one is underway and the current estimate is 60 million plus.

2.4. Economic positioning - In transition but now very ready to attract investment. It was the richest nation in SE Asia in 1962 but is now the poorest. Myanmar shares land borders with China, Thailand, India, Bangladesh and Laos. There are large navigable rivers, some new roads, several international airports of varying quality, an antiquated railway network and several seaports.

2.5. Resources - Rich in largely undeveloped natural resources including petroleum products, gas, jade, base metals and teak. Opportunities exist in developing both eco and cultural tourism.

2.6. Labour force - Comparatively young workforce and no minimum wage. Few are educated beyond a primary school education largely based on the British tradition but there is recognition that education will drive development.

2.7. Readiness for engagement or development - New Foreign Investment Law (2012), Trade Investment Framework, Investment Incentive Agreement, the Myanmar Foreign Investment Committee and the Myanmar Investment Commission.

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2.8. Education - Universities were shut down/dispersed after the military takeover in 1962 and again after student uprisings in 1988. Yangon University re-opened in 2013 and currently has approximately 200 students in three faculties focussed on four academic areas: governance, the peace process, rural development and education itself. There are 163 tertiary educational institutions scattered around the country under the control of 13 government departments.

3. Myanmar and Melbourne

3.1. City of Melbourne policy context

Goal 3 of the Council Plan 2013–17, A Prosperous City, aims to consolidate Melbourne as a globally connected municipal economy. It provides that Council will track progress in terms of the proportional change in trade connections made through business matching and information sessions with in- bound delegations per year.

An important initiative in the draft 2014–15 Annual Plan is the proposed implementation of actions from the ASEAN statement for Business Partner Cities in the context of the International Engagement Framework.

This will involve a review of the City of Melbourne International Engagement Strategy Framework proposed for June 2015. The Council last endorsed an International Engagement Framework in 2011.

As part of this review, engagement with Myanmar may be a valuable area of consideration for Council.

3.2. Potential

Although there is burgeoning international development in Myanmar (primarily led by Japan, Korea and China) there are no established city-to-city partnerships.

The Australian Embassy in Yangon advises that no other Australian municipalities are known to be connected with or actively engaging with Yangon.

City-to-city engagements may, therefore, be worth considering from an economic perspective.

3.3. Melbourne links

Melbourne already has established ‘links’ with Yangon, namely:

 The inaugural Australian-Myanmar Institute foundation conference, held in Melbourne in 2012 (which is committed to developing commercial initiatives and collaborative research).

 The Australian Institute of International Affairs (AIIA) tour in 2012 led by former Myanmar Ambassador and City of Melbourne resident Chris Lamb met with the Mayor of Yangon and there was some discussion of the prospects for Yangon and Melbourne finding common cause on matters of mutual interest.

 There are already several highly placed Melbourne-based academics and scientists from various universities and institutes actively engaged with Myanmar issues (e.g. Peter Dawkins, Janelle Saffin, Helen Sutherland, Mark Considine, Damien Kingsbury, Andrea Witcomb, Kit Andrews and Anthony Ware.

 Deakin University has formally agreed to host the Australia-Myanmar Institute, which is an independent body drawing together the research and program potential of many universities, business and non-government organisation concerns around Australia.

 There are at least 30 international students from Myanmar in higher education (2010).

 The Refugee Tertiary Education Committee, supported by the Australian Catholic University and Australian Open University, currently provides support for on-line undergraduate degrees for students on the Thai/Burma border and now in Myanmar. They currently have 75 graduates.

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 The Anglican Archbishop of Melbourne, Philip Frier, has established and is maintaining an on- going relationship with the Archbishop of Myanmar, Stephen Than Myint Oo. The focus has been on Myanmar refugees in Thailand. The Anglican Diocese of Melbourne is also a foundation member of the Australia-Myanmar Institute. The partnership has involved mutual exchange visits and participation in networks and projects of a humanitarian and aid nature.

 A substantial portion of Myanmar immigrants to Australia live in Victoria (2011: 4,847, 38 per cent).

 The Australia-Burma Society has celebrated its 5th anniversary.

 Radio Australia’s Burmese Service, which has a large audience in Myanmar, is produced from Melbourne.

 Refugee intake statistics 2008: 5.1 per cent were from Burma.

The visit to Yangon in April 2014 highlighted that the relevant municipal bureaucrats are aware of the City of Melbourne. In discussions, reference was made to the following:

 Physical similarities in built-form, location on river, shared British colonial heritage (achieved independence in 1948)

 Reputation for municipal planning expertise and exemplary governance practices

 Reputation for strong business sector

 Reputation in excellent education services and research

 Ethnic diversity (Myanmar has 135 official ethnic groups)

4. Opportunities for consideration

A number of short, mid and long-term opportunities presented themselves in considering how the City of Melbourne may build upon and benefit from the current embryonic relationship with a potentially powerful emerging neighbour and how the City of Melbourne may best position itself as a ‘lead city’ for business and investment in Myanmar. These opportunities can be assessed and considered in line with the upcoming review of the International Engagement Framework.

4.1. Opportunities in the short-term

 Information sharing

During the April 2014 visit, a range of City of Melbourne policy and strategy material was distributed to Yangon officials. This was well received and officials were impressed with the work undertaken by the Council. Contact details of relevant City of Melbourne officers were provided along with preparedness to engage in the future in areas of interest. Bureaucrats in the YCDC requested further specific information which may easily be provided by City of Melbourne officers. Some of this information relates to contact details and connections with other organisations such as VicRoads, professional associations and other government agencies.

 Apply for the two European Union (EU) funded project opportunities:

The YCDC and YHT advised of two short-term projects in Yangon, namely Senior Administrator and Communications specialist. These will be funded by the EU and details have been provided to Council officers for consideration.

4.2. Opportunities in the mid-term

 Visit by Yangon Head of Urban Planning

Invite the Yangon Head of Urban Planning or his nominated representative and/or a Yangon bureaucrat in the commerce/development area to spend a week in Melbourne meeting with Council officers and including visits with organisations such as VicRoads, Public Transport Victoria, Committee for Melbourne.

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 Higher education/Registered Training Organisation Forum

The City of Melbourne may wish to consider, in partnership with the Australia-Myanmar Institute (AMI), convening and facilitating a forum for key higher education sector representatives and AMI who are already engaged with Myanmar with the view to demonstrating our municipal leadership specifically in the knowledge sector.

 Consideration could also be given to arranging a high level delegation, led by the Lord Mayor to meet with the Mayor of Yangon and other relevant bureaucrats and introduce Melbourne based businesses.

4.3. Opportunities in the long-term

 Business Partner Cities (BPC)

Given the strong Japanese commercial aspirations in Myanmar, a proposal for the city to join the BPC may not be enthusiastically pursued by Osaka. Note that Japan has been to the forefront in massive and unprecedented debt restructuring with Myanmar, which inevitably enhances trade prospects.

 Strategic alliances

Given the urgent and expressed need in Yangon to address the dire shortage of all types of local government expertise, the potential for City of Melbourne engagement via study tours, seminars, ‘tied-aid’ partnerships and business delegations is strong.

This is essentially what occurred when China initially ’opened-up’ to the West and the Tianjin city-to- city relationship with the City of Melbourne (and Royal Melbourne Institute of Technology) commenced. The commercial opportunities, which are now flowing from the Tianjin study program into commercial opportunities, may emerge if a closer engagement with Yangon can be developed.

The City of Melbourne could consider progressing a strategic alliance with Yangon as the designated ‘commercial city’ of Myanmar. Following the model of Delhi–Melbourne Strategic City Alliance (2008) such an agreement with Yangon may present an opportunity to be the first of its kind between an Australian capital city and Myanmar.

 Cooperative agreements

City of Melbourne could progress a cooperative agreement with Yangon modeled on similar existing international relationships such as the following:

 Fengxian District, Shanghai (2002): senior government leadership training and business activities and exchanges

 Nanjing, Jiangsu Province (2002): senior government leadership training, business

 Guangzhou, Guangdong Province (2003): business and trade with knowledge-based industries

 Port Louis, Mauritius (2004): business, education and medical training opportunities.

Opportunities for on-going dialogue between Melbourne and Yangon provide the opportunity of working closely with key organisations such as the Australia-Myanmar Institute, Asialink and AusAID.

5. MYANMAR CONTACTS, APRIL 2014

 Australian Embassy Bronte Moules - Ambassador

 AUSAID Michael Hassett, Head of Development Assistance Amber Cernovs, First Secretary (Development Assistance)

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 City Council of Yangon (known as Yangon City Development Committee or YCDC)

U Hla Myint, Mayor of Yangon U Toe Aung, Deputy Head, Department of City Planning and Land Administration Dr. Kyaw Lat, Professor Emeritus - Advisor to YCDC, Urban Development Affairs U Khaing Moe Nyunt, YCDC Head of Urban Planning Division, City Planning and Land Administration Dept

 Yangon Heritage Trust (YHT)

Daw Moe Moe Lwin, Director and Vice Chairman Rupert Mann, Senior Program Officer U Kyan Dyne Aung, Project Manager

 Charltons Legal Consulting Ltd.

Paula Z Helfrich, Country Manager, Charltons Legal Consulting Limited

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