Tag Archives: opium

Solving Southeast Asia’s drug problem

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Image of the Golden Triangle where Thailand, Laos, and Myanmar meet.

The Obama administration has once again named Myanmar and Laos to its list of twenty-two countries determined to be major drug trafficking countries or major drug transit countries. The White House memo, issued on Monday, noted that Myanmar “failed demonstrably during the last twelve months to make sufficient or meaningful efforts to adhere to their obligations under international counternarcotics agreements.” The United States, however, did extend Myanmar a National Interest Waiver to promote democracy and avoid reduction of aid to Burma as a result of the designation.

The Golden Triangle, an area formed roughly by the upland frontier areas of Thailand, Laos, Myanmar, and China, was the world’s leading opium producer from the 1960s to the 1980s. But just less than ten years ago, it was moving toward opium free status as deepening economic ties with a rising China brought new investment and governments supported crop substitution programs in the region. Now, opium, methamphetamines, and other drugs from the Golden Triangle are once again flooding regional and global markets.

In just the past two months alone, 26mn methamphetamine tablets were seized in Yangon, Myanmar and 1.5 tons of marijuana packed into coffee shipments from Laos were seized in Cambodia. Earlier this year The New York Times ran a series of exposes on opium production and heroin addiction in Myanmar’s conflict-ridden Shan and Kachin states. The United Nations estimates that Myanmar’s poppy cultivation has tripled since 2006 and takes up almost 150,000 acres.

Despite recent spurts of economic growth in Myanmar and Laos, flagging economic conditions on the countries’ peripheries and civil war in Myanmar are pushing marginal peoples toward the production of opium. Lucrative cash crops like opium won’t make farmers rich, but hired labor on an illegal opium farm in Kachin state will earn $8 per hour compared with $2.50 working on a legal farm.

A new push factor for upland drug production in Laos and Myanmar is the arrival of small-scale agricultural investors from China’s neighboring Yunnan province. Their projects, often set up on lowland concessions granted by national or local governments, utilize less local labor and thus create a landless poor classes that literally ‘head for the hills’ to cultivate opium. Another new addition to the landscape is recently built highways and other infrastructure development projects that link urban centers but often ignore the periphery. Poor road conditions in upland areas cannot facilitate logistical support or encourage investment that could promote legal and productive agricultural activities in upland areas. And once the opium makes its way down narrow trails to the lowland areas, the highway serve as quick conduits for global distribution networks.

Being out of reach from state security and legal institutions – which typically underperform at any rate in Laos and Myanmar – permits opium farmers and trafficking middlemen to operate with impunity. Upland Southeast Asia is not the only place affected. Evidence shows drug use is on the rise in China and within Southeast Asia’s growing urban and rural middle classes. Moreover, crackdown efforts in lowland areas of these countries has only pushed production further into upland areas which are harder to reach.

Efforts to control and stem opiate production in Laos and Myanmar are often focused on identification and eradication. Government agencies locate productive areas and destroy illegal crops. This often forces rural peoples into poverty or drives villagers to new, more remote areas ripe for opium production. The UN and China have introduced crop substitution as a solution in Myanmar and Laos. But this “big state solution” often fails in its implementation because it neglects the needs of upland agriculture and flounders in its long term commitment to solving the problem.

In 2007, China’s crop substitution programs looked to be succeeding in reducing opium production. However, poor investment in infrastructure and low commitment to technical assistance created a situation where alternative cash crops could not compete on a global market and upland farmers were left high and dry.

Investments in coffee and rubber – often seen as more lucrative cash crops – take three to seven years to yield a harvest. This, coupled with falling global food prices and high transportation costs due to lack of infrastructure, discourages alternative investment. As a result, crop substitution investments in sugar, buckwheat, coffee, and rubber have consistently failed or are currently flagging in upland Southeast Asia.

To effectively curb the production of opium and other illegal drugs in upland areas of Myanmar and Laos, expenditure on agricultural extension programs and infrastructure such as paved roads and logistical facilities must increase to attract suitable investment into these areas. Advances in the peace process in Myanmar and resultant spurts of legitimate economic growth in the country’s ethnic autonomous states will do much to curb opium and methamphetamine production. Laos, however, is a different story. Even peace cannot stem opiate production, with its current set of weak institutions dictated by the fiat of a few powerful families with strong ties to China. Counter-narcotic efforts are vital to stop the flow of opium and methamphetamines in Southeast Asia. But they must be paired with viable economic solutions for the upland farmers involved in drug production.

This article was first published here on The Diplomat website on September 17. 

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The Illicit Drug Industry & Counter-Narcotics in Southeast Asia

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Drug enforcement officials in Burma. Image: The Irrawaddy

On 5 October 2011, when Thai river police investigated reported gunshots on the middle reaches of the Mekong River, they discovered two cargo vessels and their 12 Chinese crew members, all of whom had been executed and their bodies dumped in the river. The ships were determined to have been hijacked to transport illicit cargo, and they contained over 920,000 amphetamine tablets, locally referred to as yaba, which were subsequently confiscated by Thai authorities.

Over the past 70 years stories like this have become commonplace in the notorious Golden Triangle, a delta area at the confluence of the Mekong and Ruak Rivers that takes up approximately 150,000 square kilometers of land in the tri-state Thai, Lao and Burmese (Myanmar) border region. Drug production and trafficking has brought this locality to international infamy, and it remains the world’s second largest cultivator of opium poppy, second only to Afghanistan. Faced with rising heroin and amphetamine-type stimulant (ATS) addiction levels, drug-related violence, and an expanding HIV epidemic, Southeast Asian governments have recently begun to intensify their efforts to combat this endemic problem. Using bilateral agreements and the frameworks of the Association of South-East Asian Nations (ASEAN), the Greater Mekong Subregion (GMS), and the Asian Regional Forum (ARF), actions by these governments have met varying levels of success.

 

Colonial Roots of the Southeast Asian Drug Trade

Opium poppy is native to the lush and remote Yunnan and Sichuan Provinces of China’s southwest. For hundreds of years small-scale cultivation by hill tribes in the region met the modest needs of Chinese opium-smokers, but in the early 19th century a powerful competitor arrived in Southeast Asia: the British Empire and its waves of merchants and imperialists, all trying to find new markets for seemingly unlimited supplies of India-grown opium. At the humiliating conclusion of the 1842 Opium War the British forced the Chinese emperor to accept opium imports, thereby unleashing one of the most devastating drug epidemics in history: a mere thirty years later, British opium imports were supplying an estimated 15 million Chinese opium addicts.

Social upheaval in China during the 19th and 20th century caused massive emigration of Chinese refugees to all parts of the world, and where they went, their opium habits followed. The large Chinese immigrant populations in Thailand, Burma, and Vietnam provided lucrative opportunities for the opium industry, and despite the protests of indigenous rulers, one by one state-mandated opium franchises were forced into being by British and French imperialists. It was also in this time that fleeing Chinese merchants and hill tribe people arrived in the Golden Triangle area and introduced poppy cultivation to the local populations.

In British Burma, the imperialist government lacked the ability to administer the western Shan States and so instead provided them with autonomy in exchange for loyalty. This autonomy provided a foundation for a thriving opium economy and a fiercely independent political consciousness, both of which would have strong legacies long after the British withdrawal. In French Indochina, the government-run Opium Monopoly worked industriously to incorporate Laotian poppy-growing hill tribes, and helped to sponsor the Yunnan-Tonkin railway, which provided a valuable link to the well-established opium cultivators of southwest China.

 

Colonial Events Timeline

In the years following World War II, almost all of the world’s major opium producers, the largest being Turkey, Iran, and India, brought an end to their legal opium exports to Southeast Asia, which created an enormous vacuum in the opium industry. Newly Communist China, independent Burma, and restored French Indochina all cracked down on local production, further choking supply. Eradication of the drug industry was not achieved however, primarily thanks to the actions of Chinese Nationalist Kuomintang (KMT) remnants in northern Burma, the corrupt Thai National Police Force, and the French and American covert intelligence agencies.

About 1,500 battered KMT troops entered Burma in 1949, fleeing the advance of the People’s Liberation Army into Yunnan Province. This weak force was nearly crushed by the Burmese army, but in 1950 they began receiving airdrops of weapons from the CIA, which was frantic to arm groups on the southern borders of the People’s Republic of China in case Mao Zedong had expansionist ambitions. Reinforced by additional troops flown in from Taiwan, the empowered KMT army executed several failed invasions to retake Yunnan, but afterward decided to remain in northern Burma and hold the line against the Communist threat. This well-armed army proceeded to force the local tribes-people into opium cultivation, and with the help of the corrupt Thai police force, created one of the most robust drug production and trafficking systems in history.

Opium produced in northern and eastern Burma was transported across the Thai border and down to Bangkok, where it was exported out of the rest of Southeast Asia. In 1961, provoked by aggressive expansionism on the part of the KMT, the Burmese Army and the PLA jointly ousted the Nationalists from Burma and forced them into Thailand and Laos, where their communities remain today. Although the KMT forces no longer directly controlled the opium cultivation, the system was in place and ethnic Chinese, then later various Burmese insurgent traffickers, maintained the lucrative trafficking network into Thailand.

 

Drug enforcement officials in Burma. Image: Business Week

Drug enforcement officials in Burma. Image: Business Week

In French Indochina, the under-financed French intelligence community covertly took over management of the formally illegal opium trade in order to continue their efforts in suppressing Ho Chi Minh’s Viet Minh. The Laotian opium industry that they nourished would later find its greatest successes during the American GI heroin epidemic of the Second Indochina Conflict, and following that, in its international spread into the continental US and Europe.

Currently, the vast majority of Southeast Asian illicit narcotics are produced in the semi-autonomous, rebel-administered eastern states of Burma, while smaller amounts also come from the remote areas of western Laos and northern Thailand. It is trafficked in two main routes: the southern route goes through Thailand to Bangkok for distribution, and the northern route enters China’s Yunnan Province, headed for Kunming and then all of East Asia. Recently, Golden Triangle supply has been unable to keep up with skyrocketing Asian demand for heroin and ATS, and approximately one third of East and Southeast Asia’s narcotics now originate in Afghanistan.

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Source: UNODC Southeast Asia Opium Survey 2013: Lao PDR, Myanmar

 

Temporarily successful eradication programs and sustained crackdowns brought Southeast Asian drug production to a historical low in 2006, but since then there has been a consistent increase in cultivation, production, trafficking, and consumption, with levels returning to those of the 1970s and 1980s. This steady expansion of the drug trade is occurring despite a 2005 self-imposed opium cultivating ban in the territories of the United Wa State Army (UWSA) in Burma, a rebel group that previously accounted for the lion’s share of Burma’s opium production. This worrying trend has many consequences for Southeast Asian society.

 

Threats Posed by the Illicit Drug Industry

The streaming supply of narcotics from the Golden Triangle into China and Thailand has negative impacts on myriad areas of Southeast Asian life. Mass drug addiction and drug trafficking causes the breakup of families and increases in crime rates, spreads diseases like HIV, burdens the economy through lost productivity, imposes financial costs on the state, spreads law enforcement thin, overwhelms justice systems, encourages corruption, and funds violent groups. As production continues to increase, these problems are becoming more pronounced and demand strong preventative action.

The United Nations Office on Drugs and Crime estimates that an average of 13% of injected-drug users are HIV positive, and more than half have hepatitis C. Coupled with China’s annually growing number of registered opioid users (official figures reported 1.3 million users in 2012, with actual rates likely almost double that), this situation makes the threat of a massive HIV epidemic in the world’s largest country ever more likely. Recent trends in China suggest that methamphetamine use is slowly overtaking heroin use as China’s most problematic drug, and just in China 228 meth labs were dismantled in 2012. Widespread amphetamine use continues to be a regional dilemma, as more than 8,980,000 people in East and Southeast Asian used ATS tablets in 2013. The Greater Mekong Subregion has the highest rate of crystal meth use in the world, and this drug use is exacting large tolls on society, as addiction-fueled crime expands and as families and communities spend time and resources helping addicts.

Number of Heroin Users 2010

Source: UNODC Transnational Organized Crime in East Asia and the Pacific: a Threat Assessment, April 2013

The criminals and insurgents that operate the drug trade are making enormous windfalls from their work: the value of all consumed East and Southeast Asian heroin was estimated at $16.3 billion USD in 2011, with methamphetamine and amphetamine consumption valued at an additional $15 billion USD. The traffickers and their associates encompass a wide variety of individuals: ethnic Chinese syndicates, Nigerian and Iranian criminal groups, high-ranking Southeast Asian officials and military personnel, and Burmese insurgent and paramilitary forces. Although on average 50,000 people are arrested each year for trafficking illicit narcotics in Southeast Asia, the high profits of the drug trade continue to lure thousands more into the business. In the case of Burmese fighters, drug earnings are usually spent on weapons, helping to intensify violence in those areas.

drug market value

Source: UNODC Transnational Organized Crime in East Asia and the Pacific: a Threat Assessment, April 2013

Some of the drug trade’s worst victims are the poverty-stricken opium cultivators in the Golden Triangle. Lacking other economic opportunities and desperate for income, many rural farmers are forced into dealings with violent traffickers and become trapped in a cycle of drug cultivation, slowly becoming more and more dependent on poppy income. They are prevented from growing crops that can benefit society, and oftentimes their communities are hit hard by addiction. Unfortunately, these rural villagers only make up a small portion of the people whose lives are destroyed by the drug trade.

 

International Cooperation and Efforts to Eliminate the Drug Industry

The governments of Southeast Asia have been working to combat the narcotics trade ever since their post-colonial independence, but unfortunately the vast majority of these efforts have been restricted to unilateral measures. Law enforcement is usually by definition national in character, but the drug trade is a transnational and regional problem, and increased cooperation on the part of Southeast Asian governments is critical for its sustainable reduction.

Thanks in large part to the prodding of the US government, which had recently declared its own War on Drugs, the 1976 ASEAN Bali Summit saw the adoption of the “ASEAN Declaration of Principles to Combat the Abuses of Narcotics Drugs.” Although mainly filled with rhetoric and containing few concrete measures, this declaration showed consensus among the ASEAN governments and kicked off the modern wave of counter-narcotics policies in Southeast Asia.

Thailand can be considered one of the more successful cases of sustainable reduction in illicit cultivation. Starting in 1984, the Thai government embarked on a 30-year intensive program of crop replacement, which has resulted in bringing opium cultivation in northern Thailand to negligible levels.

In contrast, the efforts of Burma’s Central Committee for Drug Abuse Control have been snared in the frequently contradicting objectives of the government’s anti-insurgent policy. Despite the ambitious 1999 declaration by the ruling regime to eliminate all illicit drug production by 2014, the Burmese government often turns a blind eye towards the narcotics industry in its efforts to co-opt various rebel groups. In the 1980s and 1990s the weak central government began signing ceasefire agreements with the numerous insurgent armies that control the Burmese borderlands, and many of those autonomy-granting agreements contained clauses permitting (and even encouraging) drug cultivation and production by the groups in exchange for their loyalty to the regime. Subsequently, drug enforcement policy became a tool of the state, and it was used both as a carrot and a stick to bring insurgent groups into the legal fold. When a United States grand jury indicted several leaders of the United Wa State Army, which had signed a ceasefire agreement and was the largest Burmese opium producer in the early 2000s, the government refused to arrest them or crack down on their illegal businesses. This lack of enforcement can be seen as a way of repayment for loyalty, and is in direct contrast to the government’s actions towards the Myanmar National Democratic Alliance Army (MNDAA). The MNDAA, another major opium producer, had refused to make peace with the government, and when the government attacked them in 2009, drug enforcement was the justification given. These two examples show how the central regime manipulates drug policy to its advantage in its state-building efforts, and explains the lack of sustained progress in eliminating the narcotics industry.

 

ASEAN response timeline            In addition to the unilateral efforts of individual states, regional organizations and agreements have been crucial to the evolution of drug enforcement in the Golden Triangle. In the late 1990s, ASEAN began examining anti-narcotics and other issues such as human trafficking and smuggling in the context of transnational crime, and started putting greater emphasis on regional cooperation. The expansion of ASEAN in 1997 to include the Lao People’s Democratic Republic and the Union of Myanmar allowed the other ASEAN governments to exert more diplomatic pressure on the newcomers to clean up their drug exporting regions, demonstrated in the ASEAN Declaration on Transnational Crime. Although the declaration contained no binding measures, it set up several communication and monitoring bodies, including the ASEAN Ministerial Meeting on Transnational Crime (AMMTC), the ASEAN Chiefs of National Police (ASEANAPOL) and the ASEAN Senior Officials on Drug Matters (ASOD). These bodies mainly monitor the progress of the 2000 Bangkok Political Declaration in Pursuit of a Drug-Free ASEAN 2015, but they also work to encourage development of bilateral extradition treaties, international criminal justice institutions, and cooperative border control, legal assistance, and data sharing.

 

The Future: Regional Integration and the Effectiveness of Anti-Narcotics Policy

2015 is marked to be the year in which the ASEAN Economic Community is brought into being, and many hope that it will bring with it great advances in regional trade, infrastructure, and cooperation. Already projects such as the North-South Economic Corridor, running from Kunming to Bangkok, and the building of ports and bridges along the Mekong River are generating enormous economic benefits. However, advances in regional integration also provide opportunities for those who would exploit them for illegal purposes. The increasing ease of transporting illicit narcotics and the improving communication technologies of criminal groups present a strong challenge to the national law enforcement agencies of ASEAN countries. Equally innovative and efficient use of new capabilities and technologies, as well as increased intelligence sharing and coordination must be implemented for Southeast Asian governments to effectively meet these new threats.

In November 2011, just a month after the “Mekong Massacre,” China, Laos, Burma, and Thailand agreed to cooperate on river patrols and law enforcement along the Mekong River. Their Joint Statement detailed numerous confidence building measures between the various national police forces, but mainly focused on the responsibility of each individual nation to properly patrol its own sovereign waters. This aspect reveals the major weakness of all ASEAN counter-narcotics efforts to date: ASEAN nations are caught in a paradoxical situation where despite the damaging effects of the drug industry and transnational crime on national sovereignty, the only way to effectively counter those threats is by each nation giving up some measure of their treasured sovereignty. Sovereignty and non-intervention are the two defining pillars of the “ASEAN Way,” and yet those two concepts desperately need to be reevaluated if transnational crime is to be confronted.

Confidence building measures and increased regional communication is a critical first step, but in order to make real progress in fighting the rising threat of transnational crime ASEAN nations need to accept the reduction of their sovereignty. A hopeful example is provided by the official conclusion of the Mekong Massacre: Naw Kham, the Burmese drug lord who supposedly masterminded the murders, was captured by Burmese counter-narcotics forces and extradited to China, where he and three of his subordinates were tried and executed in March 2013. Extradition treaties like these form the basis of effective cooperation, and similarly collaborative measures must be actively pursued by ASEAN governments if they are to successfully tackle the deeply-entrenched and continually evolving menace of the drug industry in Southeast Asia.

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The Godfather of the Golden Triangle: Lo Hsing Han, Obituary

Most crime bosses and drug barons never reach old age, unless they end up behind bars serving a life sentence. More often than not they are eliminated in a hail of bullets fired by either a police sharp-shooters or from a rival gang.

But  Lo Hsing Han ,the former ‘King of the Golden Triangle’ heroin trade  who survived several decades of opium wars in the Shan state and became one of the world’s ‘Most Wanted Men’, amazingly defied the odds to become an octogenarian. He died in Yangon on July 6th 2013 aged 80.

Nor did this legendary drug-trafficker die in lonely obscurity shunned by society. His lavish funeral was a VIP affair attended by former generals, two cabinet ministers, and hundreds of well-wishers from Burmese high society.

They paid tribute to his rare metamorphosis from a notorious drug-kingpin to a respected business tycoon, the founder of the Asia World Group that has become a dominating pillar of the Myanmar economy. He is also credited with being the key player in establishing the nation’s economic dependence on narco-profits in the 1990s.

Lo was born around 1935 into a poor ethnic Chinese family in the Kokang district of the Shan state northern Myanmar.

His career in the opium trade began in the 1960s not as an outlaw, but as the leader of a Yangon–sanctioned militia, the KKY, under the auspices of General Ne Win’s dictatorship.

The militias were supposed to fight Shan rebel armies and the Burmese communist guerrillas but expended most of their energy on taxing and protecting mule convoys carrying huge sacks of opium. Thanks to a complex chess-board of   nationalist rebels, opium warlords, the Burmese army and communist guerrillas backed by China, anarchy reigned supreme in the Shan state.

After the 1967 Opium War, Lo Hsing Han emerged as the big winner and consolidated much of the opium trade under his command, still enjoying the blessings of the Ne Win regime.

But the regime came to realise that their home guard KKY militias were a failure and started to disband them in 1973, prompting Lo to abruptly change sides and team up with his former enemies the SSA rebels –the Shan State Army.

During the next 20 years the Lo Hsing Han real–life story was packed with more intrigues, changing allegiances and betrayals, than a John Le Carre novel.

British film-maker Adrian Cowell filmed his classic ‘Opium Warlords’ (‘screened on ITV in 1974), after spending more than nine months trapped in the Shan jungles. It featured for the first time an interview with Lo, the legendary warlord.

Lo, the drug trafficker warlord, unexpectedly offered a diplomatic deal to end the narcotics trade in Burma, by offering to sell the whole opium harvest to the US government in exchange for a mere $12 million. It was taken seriously in Washington by a US congressional committee.

DEA agents based in Thailand arranged for Thai Police to pick him up inside Burma with a message that high-ranking US officials had agreed to talks in Chiangmai.  However after the Thai helicopter collected him from inside Burma, he was stunned to be immediately arrested upon arrival in Thailand July 1973.

US law enforcement plans were confounded by the sudden deportation of the prize catch to Yangon. Some Thai officials clearly wanted to stop Lo Hsing Han from talking. Many high-ranking Thai police and military officials were on Lo’s extensive payroll, which helped to grease the smooth transportation of narcotics delivery by road from the Shan state to Thai ports, without being intercepted by police checkpoints.

The Ne Win regime promptly indicted him for treason and he was sentenced to death. In another twist to the saga, the verdict was soon set aside in favour of an 8 years jail term, much of it served comfortably under house arrest. Then in 1980 amnesty was granted and he returned to Lashio in Shan state.

The military junta’s intelligence chief General Khin Nyunt had spotted an opportunity to recycle the resourceful man from Kokang, who had contacts with everybody in the ethnic mosaic of the Shan state, to work for the regime in a new capacity.

A 1989 mutiny inside the communist BCP proved to be a major game-changer, which allowed Lo Hsing Han to play his newly assigned role as a broker of ceasefires.

His contacts with all the Shan, Kokang and Wa rebel armies helped General Khin Nyunt to conclude a series of ceasefire agreements, and in return the military junta happily re-licensed Lo to resume the opium and heroin trade in opposition to rival drug warlord Khun Sa, who was still fighting the government under the banner of Shan nationalism.

In 1992 Asia World Corporation was set up in Yangon as a family partnership between Lo Hsing Han the chairman and his son US- educated Steven Law, the managing director.

The company’s portfolio included: import-export business, bus transport, property development and Rangoon’s port development.

But it was Singapore ‘s decision to get into bed with the Lo family’s Asia world conglomerate with a stake in two new luxury hotel through the government’s investment arm GIS, that garnered most international attention.

According to research based on all the available date of Myanmar’s trade investment and revenue in the fiscal year 1995-6, no less than US$600 million income in the state treasury could not be accounted for.

This conspicuous gap in Myanmar’s bookkeeping at a time when their official economy was on the rocks, points to only one plausible explanation–a generous infusion of narco-dollars from the Golden Triangle coming from Lo. One of the country’s most successful entrepreneurs had come to the rescue of a faltering economy in dire straits.

The grand wedding of  Steven Law to Singaporean business partner Cecilia Ng in 1996  clearly helped to cement the growing ties between the military junta, Asia World, and Singapore investors..

The Lo family’s guest of honour was Hotels and Tourism Minister Lieut. General Kyaw Ba, accompanied by four more cabinet ministers, and two planeloads of wedding guests from Singapore. The special charter flights not only carried the bride’s relatives, but also investors from representing one of Asia’s most important financial hubs.

US officials claimed that half of Singapore’s investments in Myanmar have been tied to Lo’s family.

It was far more than a grand wedding bash. It symbolised Lo Hsing Han’s metamorphosis from a drug baron to a corporate respectability, and his acceptance by investors from a key member of the Asean business community.

Asia World established three subsidiaries in Singapore jointly run by Steven Law and his wife Cecilia Ng (Ng Sor Hong) she allegedly also runs an underground banking system facilitating money-laundering and safe tax havens for narco-dollars.

Although Singapore is proud of its mandatory death penalty for small-time narcotics couriers and heroin addicts, both father and son travelled freely in and out of the island city state.

Steven Law and his father had become VIPs in Burma, and welcome business partners in Singapore, but they were forbidden to enter the United States since 1996 on “suspicion of involvement in narcotics trafficking.”

Under new US sanctions imposed in 2008 Asia World and six of its subsidiaries were blacklisted and similar sanctions were applied by the UK.

But these sanctions have done little to hinder Asia World‘s dynamic expansion. The company built on the illicit black economy has thrived,  and currently  partners major companies from mainland China in several mega-projects including an oil and gas pipeline, a deep sea port at Kyaukpyu, and the controversial Myitsone dam project.

Another irony is that Lo was closely connected to Taiwan’s military intelligence for 30 years, and deployed his Shan and Kokang soldiers to fight against Beijing-backed Burmese communist party.

Asia World has its financial foundations built on the law of the Burmese jungle and the 3 Gs :Guns, Gold and Goons. But  Lo’ s legacy will casts a long shadow over the aspirations of many groups to move the economy out of the hands of the cronies, and towards a respect for environment, human rights and the development of a democracy.

This account of the Life and Times of Lo Hsin Han provided the basis for the obituary published in The Economist in July, 2013.

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