Making a profit in Burma

European companies operating in Burma face all sorts of pitfalls – pressure from their governments, campaigns by activists, boycotts by customers. So why do so many continue to work there?

Companies exist to make money, and there are plenty of opportunities to turn a profit in Burma.

But the US and several other nations have squeezed most of their firms out of Burma by maintaining tough sanctions.

Europe has imposed arms embargoes, asset freezes, import bans and penalties for companies knowingly supporting military activity or repression.

But there is no blanket ban on firms investing in the country – so travel agents, insurance firms, haulage companies, energy firms and telecom conglomerates can continue to work there.

In fact, doing business with the junta is “not so different from most other places”, according to one Western executive who has worked with the generals.

Analysis

Basically, Burma being a third-world country with a political crisis gives MNC’s (Multi National Corporations) a chance to exploit workers and the resources of the country. The military rule also makes more money out of this as the companies give them much more money than they give to the poorer people working in Burma. Hence, the economic growth for individuals or for the countries society.

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Emerging economies alter dynamics of oil demand

http://www.ft.com/cms/s/0/a6b6d93a-abc0-11df-9f02-00144feabdc0.html

Emerging economies have upended the long-standing pattern of global oil consumption, according to the west’s energy watchdog, in a further sign of how countries such as China and India are transforming commodities markets.

The International Energy Agency estimates that oil demand was higher this year during the second quarter for the first time, at about 86.6m barrels a day, ahead of the traditional peak winter season of January-March, at 86.0m b/d.

But with growing demand for oil coming from countries such as China, India, Saudi Arabia, Brazil and Indonesia, seasonal patterns are changing, a trend the Paris-based IEA believes will accelerate.

The IEA said: “This emerging seasonality will probably raise new refining and logistical challenges.”

In the past, oil demand fell 1.5-2.0m b/d between the first and second quarters, allowing refineries to undergo maintenance. Low demand periods helped to build inventories to meet peak consumption later.