Contexts - The Rough Guide to Myanmar - page 507

THE CRONIES: A BRIEF WHO'S WHO
Much of Myanmar's wealth and economy is controlled by a group of so-called cronycap-
italists , fewer than twenty businessmen and their families who grew fabulously wealthy
during the years of Than Shwe's military regime in a mutually beneficial arrangement
whereby the cronies would supply services to the regime (and jobs for their family mem-
bers)inreturnforlucrativecontractsandimportlicences.ManyhavebeenthetargetofUS
and EU sanctions, although given the proximity of huge and sanction-free markets in In-
dia and China these have had little effect. Some have also been implicated in human rights
abuses, the trafficking of arms and drugs, money laundering, land theft, forced labour and
assorted other crimes.
The cronies face an uncertain but possibly lucrative future following the return to partial
democracy. Some are window-dressing their activities in an attempt to appear less odious,
including establishing links with Aung San Suu Kyi and donating generously to NLD
causes. Ironically, despite the West's attempt to restrict their wealth and influence, the
formerly pariah cronies (or their immediate families) may soon prove essential partners to
Western companies looking to break into the Myanmar market, while their vast reserves of
capital and local nous may prove key to ensuring the country's future economic growth.
TayZa (b.1964) is Myanmar's most high-profile tycoon, now allegedly devoting himself
to charitable works through his Htoo Foundation following a near-fatal helicopter crash.
His Htoo Group owns numerous hotels , Air Bagan and Asian Wings airlines and the AGD
(Asia Green Development) Bank. Another leading crony is Zaw Zaw (b.1967), chairman
of sprawling Max Myanmar Group which has interests in logging, gems, jade mining, rub-
ber plantations, construction and hotels, and holdings including the Ayeyarwady Bank and
Max Hotels group.
More reclusive but no less influential is Aung Ko Win , a former schoolteacher closely
connected with the old junta, particularly General Maung Aye, the junta's former second-
in-command. His KBZ Group controls the KBZ Bank (Myanmar's largest private bank),
two airlines (Air KBZ and Myanmar Airways International), plus lucrative jade- and gem-
mining concessions. Shadier still is Steven Law (real name Tun Myint Naing; b.1958).
The sonofthe late LoHsingHan(“one ofthe world'skeyheroin traffickers”, according to
the US Treasury), Law is himself alleged to have been involved in drugs trafficking. Now
ownerofthehugeAsiaWorldconglomerate,asanethnicChineseLawhasservedasama-
jor conduit for Chinese investment and led Asia World into several large and controversial
Chinese-funded joint ventures, including the Myitsone hydroelectric dam .
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