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Resource Federalism resource federalism a roadmap for decentralised governance of Burma’s natural heritage resource federalism roadmap for decentralised governance of burma’s natural heritage www.bewg.org The Burma Environmental Working Group is a network of ten civil society organizations primar- ily working in the ethnic conflict affected areas of Burma. It was formed in 2005 to develop and advocate for policies that protect the livelihoods, natural resources and environment of affected communities and promote their participation in decision-making. See information about member organizations in Appendix 1. BEWG would like to thank our friends who helped in the editing process. Note for English readers The Pyidaungsu Hluttaw is the national-level bicameral legislature of Burma established by the 2008 Constitution. The Pyidaungsu Hluttaw is made up of two houses, the Amyotha Hluttaw (House of Nationalities), a 224-seat upper house, as well as the Pyithu Hluttaw (House of Representatives), a 440-seat lower house. The Tatmadaw are the Burma armed forces, composed of the Army, Navy, and Air Force. published in 2017 Table of Contents Summary..............................................................................................................2 Part 1: Centralised control..................................................................................................................... ...5 Calls from the people..........................................................................................................7 Conflict and control.............................................................................................................8 Constitutional powers over natural resources.....................................................................8 Investment paradigm.........................................................................................................10 Part 2: Natural resource sectors............................................................................................................14 Forests.....................................................................................................................14 Hugawng Valley...................................................................................................25 Land....................................................................................................................26 Customary practices.............................................................................................39 Water.............................................................................................................43 Coal..............................................................................................................................54 Jade.........................................................................................................................63 Oil and natural gas............................................................................................................69 Conclusion........................................................................................................................76 Part 3: Moving forward.......................................................................................................................77 Defining development: devolved decision-making key to sustaining peace....................77 Reject token decentralisation............................................................................................79 Importance of protection mechanisms..............................................................................79 Full representation: why women need to be at the decision-making table.......................81 Sequencing framework for devolved natural resource governance..................................82 Roadmap for devolved federal natural resource management..........................................84 Recommendations......................................................................................86 Endnotes............................................................................................................................89 Appendix: Member organisations..........................................................................................................96 Explanation of terms Centralise: to concentrate by placing power and authority in a center or central organization Decentralise: to disperse or distribute functions and powers from a central authority to regional and local authorities Devolve: the highest form of decentralisation, to transfer functions and powers to autonomous units of government through statutory provisions (in unitary systems) or constitutional provi- sions (in federal systems) Deconcentrate: the lowest form of decentralisation, merely to transfer tasks to state and regional field offices of central government ministries Central government: Burma currently has a unitary government with one main center of power in Naypyidaw; it is often called the “Union government” but is referred to in this report as “the central government” Federal government: a form of government in which power is distributed between a central authority and a number of constituent territorial units. Once a federal system is in place, the “federal government” often refers to the previous “central government” States: Burma’s fourteen subnational administrative areas, currently termed States and Regions Substate: an umbrella term that refers to an area or governance unit within States or Regions, such as a district or village. Substate units include the following referred to in this report: Substate self-administered zones: areas within States or Regions with concentrated ethnic popu- lation, including, but not limited to, currently designated self-administered zones and divisions. Substate customary management areas: local areas within states or regions that can demon- strate customary land and natural resource management systems and regulations. These may comprise one or more villages that are located within a traditional boundary (for example a Karen Kaw or Karenni Hgay). Summary While Burma’s ethnic states are blessed with a wealth of natural resources and biodiversity, they have been cursed by the unsustainable extraction and sale of those resources, which has fuelled armed conflict. Instituting a system of devolved federal management of natural resources can play a key role in resolving conflict and building a lasting peace in Burma. Despite some ceasefires on paper, Burma remains in a state of conflict. Ongoing offensives in Kachin and Shan states alone have left hundreds of thousands homeless. Fundamental calls for self-determination have gone unheeded in a lack of political dialogue to end decades of fighting. Military offensives into resource-rich ethnic areas have expanded Burma Army presence in plac- es previously controlled by de-facto ethnic governments. This has facilitated the rapid increase in the extraction and sale of natural resources in recent years. Resource projects have collected huge revenues for the army and the central government, but have not benefited local populations. Constitutional powers place natural resource ownership, control, and management fully in the hands of the central government. This report analyzes six key natural resources: forests, land, water, minerals, gems, and oil and gas. In each sector, a series of laws and practices prevent affected peoples from having a say in their own development: they cannot assess, provide input into, or censure the management of their natural resources. Ethnic women, particularly in rural areas, are doubly marginalized from natural resource governance. Centralised resource control is fanning the flames of discontent and anger. Resource projects are causing environmental destruction, human rights abuses, and loss of livelihoods, with unique impacts on women. Extracting and exporting raw, often non-renewable, resources is further inflicting an incalculable liability on future generations. Resources used to produce energy are consistently prioritised for export, contributing to the development of neighboring countries while resource-rich areas remain in the dark. People from across the country have staged protests and demonstrations, calling for an end to destructive resource exploitation and for constitutional rights to own, control, and manage their own resources. Ethnic political parties and armed groups are standing with the people in these demands. Devolved decision-making offers stronger accountability and representation at all levels of government, an opportunity for local input and control, benefits to local populations, and environmental sustainability. Burma does not need to start from zero in developing devolved governance structures. Local communities have managed lands, water, and forests with sustainable customary practices for generations, and de-facto governments have supported such practices with formal structures and laws. Based on decades of grassroots work by members of the Burma Environmental Working Group, the report presents a way out of conflict and toward a more sustainable management of natural resources under a federal system of governance. The proposed roadmap seeks to safeguard rights and tenure, safeguard against environmental destruction, and prevent the escalation of conflict. Steps are intended to build the capacity of local, representative governments to establish and implement development priorities appropriate for their respective populations. It
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