Report to the Future Melbourne Committee Agenda Item 7.1
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Page 1 of 7 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. 2 Page 4 of 7 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