Ceasefires, Governance, and Development: The Karen National Union in Times of Change Kim Jolliffe December 2016 Acknowledgements The author would like to thank the many individuals in the Karen National Union, Karen community based organizations, and other Karen armed organizations who contributed their time, knowledge and encouragement to make this study possible. In particular, this work was inspired by the impressive and diverse Karen social service and humanitarian networks that work tirelessly every day to support communities affected by war. Significant parts of this research would not have been possible without support from the Karen Environmental Social Action Network, which works for rural livelihoods and environmental security of indigenous Karen people. This study benefited greatly from the more than two decade’s worth of testimony from rural Karen civilians collected by the Karen Human Rights Group, which remains a crucial and extraordinary resource to any research on these conflicts. This work was improved immeasurably by input from Brian McCartan, Tim Schroeder, Ashley South, Paul Keenan, and Jared Bissinger, which included feedback on drafts and various published and unpublished materials. Encouragement and dialogue with multiple other Myanmar and international researchers and professionals were also highly valuable. This series of papers has been built on the firm foundations of the broader research program initiated and developed by The Asia Foundation’s Matthew Arnold, among other key individuals. It has been made possible by the tireless production, administrative and editorial work of Mim Koletschka, Win Po Po Aung and the rest of their team. About the Author Kim Jolliffe is an independent researcher, writer, analyst and trainer, specializing in security, aid policy, and ethnic politics in Myanmar/Burma. He is the lead researcher on the Social Services in Contested Areas (SSCA) research project. About The Asia Foundation The Asia Foundation is a nonprofit international development organization committed to improving lives across a dynamic and developing Asia. Informed by six decades of experience and deep local expertise, our programs address critical issues affecting Asia in the 21st century—governance and law, economic development, women’s empowerment, environment, and regional cooperation. In addition, our Books for Asia and professional exchanges are among the ways we encourage Asia’s continued development as a peaceful, just, and thriving region of the world. Headquartered in San Francisco, The Asia Foundation works through a network of offices in 18 Asian countries and in Washington, DC. Working with public and private partners, the Foundation receives funding from a diverse group of bilateral and multilateral development agencies, foundations, corporations, and individuals. Preface The Asia Foundation is pleased to present this report, which examines the governance dynamics in southeastern Myanmar around the 67-year-old conflict between the Karen National Union (KNU) and the Myanmar state. Ceasefires and political change over time have enabled the state to expand its presence in areas where previously only the military had operated, but at the same time, the KNU has also gained much greater freedom to interact with communities in areas of contested authority. The emergence of a quasi-civilian government in recent years has generated intense public discourse on the country’s nascent democratic transition and the need to resolve longstanding ethnic conflicts. In this evolving context, new opportunities for peacebuilding are emerging but also potentially new risks which need to be better understood given that the KNU is likely to continue to be an important governance actor for some time to come. This report seeks to offers both a historically grounded overview of the KNU’s internal structures, and the role of the organization in the governance of areas under its influence. The report traces changes in the KNU’s approach to governance over time, with particular focus on the conflict period between 1995 to 2011, and changes since ceasefires were signed as part of the peace process initiated in 2011. Emphasis is placed on exploring some of the dynamics that exist within the KNU itself, as different parts of the organization have formulated different responses to the challenges posed by development and the peace process. The paper concludes with reflections of the implications of these dynamics for reform, peacebuilding, and development. This research paper is authored by independent researcher Kim Jolliffe, who specializes in the areas of security, ethnic conflict and aid policy. The report was generously funded by the Australian Department of Foreign Affairs and Trade (DFAT). The opinions expressed in this report are solely those of the authors and do not necessarily reflect those of DFAT or The Asia Foundation. Dr. Kim N.B. Ninh Country Representative The Asia Foundation Table of Contents Acronyms ............................................................................................................................................... i Section ONE: Introduction and Background ...................................................................................... 1 Background and key concepts ......................................................................................................... 2 The Karen people ...................................................................................................................2 The political agenda of the KNU ................................................................................................. 3 The Tatmadaw’s four cuts strategy ............................................................................................ 4 Governance capacity of the KNU ............................................................................................... 4 Other Karen armed actors ......................................................................................................... 6 Section TWO: A Short History of the KNU ....................................................................................... 9 The colonial era ............................................................................................................................ 9 The formation of the KNU – 1947................................................................................................. 9 The war begins – 1948-1949 ........................................................................................................ 11 The 1950s-1970s ........................................................................................................................... 11 The 1970s-1990s ........................................................................................................................... 13 Section THREE: The KNU’s Governance Structure ............................................................................. 14 Congresses and plenary meetings ............................................................................................... 14 Who participates in congresses? .................................................................................................. 15 The functions of the congresses ................................................................................................... 15 Standing committees, executive committees, and line departments ........................................... 16 Structure and election of standing committees and executive committees ........................... 16 The functions of standing committees ................................................................................ 18 The functions of the Central Executive Committee ................................................................. 19 The functions of central line departments .............................................................................. 19 District and township administrations .................................................................................... 20 District executive committees ................................................................................................ 21 The functions of district and township line departments ........................................................ 21 Village and village tract governance and representation ............................................................. 22 Defense and security .................................................................................................................... 23 The Justice Department and the judiciary .................................................................................... 25 KNU councils and committees ...................................................................................................... 26 Community-based organizations .................................................................................................. 26 Taxation, revenue, and financial management ............................................................................. 27 Internal revenue: taxes and fees ............................................................................................. 27 Irregular taxation ..................................................................................................................... 29 Financial and resource management .................................................................................... 29 External sources of funding .................................................................................................