Technical Assistance Consultant’s Report Project Number: 46422-002 December 2015 Republic of the Union of Myanmar: Maximizing Transport Benefits through Community Engagement (Financed by the Technical Assistance Special Fund) Prepared by the Mekong Economics, Ltd. and the Adventist Development Relief Agency Myanmar For the Ministry of Construction and the Asian Development Bank This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. Kayin and Mon State Context, Stakeholders and Engagement Kayin and Mon States Context, Stakeholders and Engagement Guidance for the Asian Development Bank (ADB) and implementing partners December 2015 Mekong Economics / ADRA Myanmar 1 Kayin and Mon State Context, Stakeholders and Engagement Table of Contents Acronyms ....................................................................................... 3 Introduction .................................................................................... 6 Terminology ......................................................................................... 8 A note on place names and administrative demarcation .................................... 8 Ethnographic overview ............................................................................ 9 Overview of Conflict and peace in Kayin and Mon States ........................... 10 The Peace Process since 2011 .................................................................. 12 Humanitarian impacts: refugees and Internally Displaced Persons ...................... 14 Ethnic Armed Organizations in Southeast Myanmar .................................. 16 Karen National Union (KNU) and Karen National Liberation Army (KNLA) .............. 16 Democratic Karen Buddhist/ Benevolent Army (DKBA) ..................................... 20 KNU/KNLA Peace Council ......................................................................... 21 NMSP/MNLA ......................................................................................... 21 Ethnic Armed Organizations’ grievances and political aspirations/agendas ............ 22 Karen (and Mon) factionalism ................................................................... 24 Ceasefire Liaison Offices ......................................................................... 27 Civil Society In Southeast Myanmar ..................................................... 29 Development in the Karen and Mon context - opportunities and concerns ..... 32 Evolving Environment ............................................................................. 33 The legacy of state-led development .......................................................... 34 The political economy of armed conflict ...................................................... 38 Ethnic Political Parties and the November 2015 elections ......................... 39 The peace process since 2012 - a "contested peace", meaning different things to different stakeholders ..................................................................... 43 Recommendations when planning and implementing projects in Southeast Myanmar ...................................................................................... 46 2 Kayin and Mon State Context, Stakeholders and Engagement Acronyms ADB Asian Development Bank BGF Border Guard Forces BMA Burma Medical Association BPHWT Backpack Health Worker Team CBO Community Based Organization CSC Central Standing Committee CSO Civil Society Organization CIDKP Committee for Internally Displaced People CLO Ceasefire Liaison Offices DKBA Democratic Karen Benevolent/ Buddhist Army (DKBA) EAO Ethnic Armed Organization IDP Internally Displaced People INGO International Non-Governmental Organization JICA Japan International Cooperation Agency JMC Joint Monitoring Committee KAD Karen Agriculture Department KDHW Karen Department of Health and Welfare (KDHW) KED Karen Education Department KMSS Karuna Myanmar Social Services KNU/KNLA Karen National Union/ Karen National Liberation Army KPC KNU/KNLA Peace Council KPSN Karen Peace Support Network KSEAG Karen State Education Assistance Group KTWG Karen Teachers Working Group KUPC Karen Unity and Peace Committee NCA National Ceasefire Agreement NMSP/MNLA New Mon State Party/ Mon National Liberation Army NLD National League for Democracy MNEC Mon National Education Committee SDC Swiss Development Cooperation WB World Bank 3 Kayin and Mon State Context, Stakeholders and Engagement 4 Kayin and Mon State Context, Stakeholders and Engagement Source from MIMU 5 Kayin and Mon State Context, Stakeholders and Engagement Introduction As in other ethnic states in Myanmar, Kayin and Mon States have experienced armed-conflict since the country’s independence in 1948. The conflict between EAOs and successive Bamar- led military governments and its humanitarian impacts on local populations, has been the main characteristic of the socio-political environment of Southeast Myanmar. The protracted conflict has had severe consequences on the lives of the Karen and Mon people and has resulted in the displacement of thousands of populations, with many of them surviving as IDPs or as refugees at the Thai-Myanmar Border. Both Kayin & Mon States have not only suffered from conflict and conflict-related human rights abuses, but also from a systematic structural discrimination and political repression by successive military-led governments, which has been reflected in government’s low spending on social services as well as development aid in general. The peace process, which emerged in Myanmar in late 2011, represents the best opportunity in many decades to address issues that have structured armed conflict in the country since independence.1 Bi-lateral ceasefire agreements with all Ethnic Armed Organisations (EAO) in both states have been important steps in peace making and have improved the situation of conflict-affect populations, including the freedom of travel and association. However, they remain nothing more than rudimentary military truces, which have not yet materialized into a stable post-conflict environment in both Kayin and Mon States. The improved political situation, a result of the bi-lateral ceasefires, has also opened up a new chapter for humanitarian and development aid in Kayin and Mon State. Where humanitarian aid was formerly restricted heavily by the government and was mostly carried- out by local organizations across the Thai-Myanmar border, more and more international non-governmental (INGO) and local non-governmental organizations (NGO) have been able to establish operations from within the country. In addition, International Financial institutions (IFIs) such as the Asian Development Bank (ADB) and World Bank (WB) as well as bi-lateral donors such as the Japan International Cooperation Agency (JICA) and the Swiss Development Cooperation (SDC) have pledged support to the development of both states, including infrastructure development. The signing of the National Ceasefire Agreement (NCA) in October 2015, even though not all- inclusive and often regarded as controversial, will most likely open up new possibilities to provide international assistance in partnership and cooperation with the government, EAOs and civil society. However, Kayin and Mon States will remain characterized by a complex patchwork of different political and civil society actors, reflecting state-society tensions.2 In many areas local populations have limited trust in government authorities and generally perceive EAOs as more legitimate than the state, though this is sometimes contested. It is therefore of utmost importance for the international community and development actors to be aware of the complex socio-political environment and the impact development aid can have in conflict-affected areas and the peace process. Any focus on ‘state-building’ and development assistance must take into account the legitimacy of EAOs and ethnic CSOs 1 Myanmar Peace Support Initiative - MPSI (2014): Lesson Learned from MPSI’s work supporting the peace process in Myanmar, p. 6. 2 Ashley South (2011): Burma’s Longest War, Anatomy of the Karen Conflict, (Amsterdam, Burma Center Netherlands), p. 45 6 Kayin and Mon State Context, Stakeholders and Engagement and be sensitive to the lack of trust in government structures at community level. It should be understood that the better-established EAOs enjoy significant legitimacy among the ethnic communities they seek to represent, although their leadership roles are in most cases contested by other actors (ethnic parties or civil society groups). The peace process is perceived by conflict-affected communities and activist groups as still highly problematic. In this context, it is important that international actors entering the Southeast understand local concerns that the government and its development partners are “buying peace through development”, and that aid projects may be a distraction from communities and other stakeholders’ human rights and political aspirations and concerns. This report is part of the TA-8304 MYA, which was awarded by the Asian Development Bank (ADB) to Mekong Economics Ltd. in partnership with ADRA Myanmar. It provides the reader with an outline of the socio-political economy in Kayin and Mon States, with a special focus on the peace and conflict situation, including key actors and institutions. It also provides the reader with recommendations on how to engage with all relevant stakeholders in a conflict-sensitive