A report on the weekend says that EU foreign ministers are set to prolong sanctions against Myanmar when they meet today (although they also say they are ready to ease them and hold high-level talks if there is "genuine progress"). Genuine progress looks unlikely, which begs the question of why the EU is holding firm with a strategy that isn't working (and is looking less likely to work with every passing year).

If sanctions aren't working, then surely the time has come to i) determine why they're not working and ii) develop a new strategy.

The main reason sanctions aren't working is that unlike the EU, China and ASEAN countries see no reason why they should not invest in Myanmar; for every Western firm pressured to divest (or forced not to invest in the first place), there are numerous others in Asia that are under no such pressure. Unfortunately, the premise upon which sanctions are based (that economic power still resides exclusively with Western countries) just isn't true any more. And that isn't about to change back any time soon.

If that's true, then the EU foreign ministers will have to at some point rethink why they are prolonging sanctions. In the absence of "genuine progress", is it not worth considering whether targeted investment might achieve a better result. I know that talking of lifting sanctions is tantamount to support for the generals in some circles, but it's not as if EU companies don't invest in places with bad human rights records. And it's generally conceded that in supply chains at least there have been some improvements in the rights workers enjoy resulting from EU (and other) companies raising expectations of supplier workplace standards. Would this be possible in Myanmar?

I think it's time for a change. Unfortunately the old way is not only broken, nobody seems willing to fix it...

I am in Thailand at the moment and it is intersting to see a number of news stories about inward investment into the country from the Chinese. Thailand is rapidly putting in place policies and plans to attract investments from China and the Chinese government has offered support to Chinese businessmen seeking to invest in Thailand. This report says that Chinese investors will benefit if they invest in Thailand as the country is a gateway to other Southeast Asian countries and the Greater Mekong Sub-region through regional transportation links and strong supporting industries. Thailand hopes that the country's machinery and equipment, metalworking, pharmaceuticals and alternative energy sector will attract more Chinese investments. By way of illustration, Tsingtao Breweries plans to invest 2 billion baht in a brewery in Thailand to take advantage of low raw material taxes. Tsingtao, one of China's leading beer producers wants to expand its presence abroad but has no plants outside the mainland.

Sellers of recycled paper and metal in Cambodia have reported a sharp decline in business in recent months, which several said has coincided with the global economic downturn. For example, Tiv Theary, who runs a repository in Phnom Penh that purchases trash paper from individuals and small business and turns it into sellable recycled paper, said she used to sell four tonnes of paper each day; today, she only sells one tonne each day. The price per kilogram has fallen from seven Thai baht (19 US cents) last June to one baht (three US cents).  Another seller, Lim Thavy, who owns a paper factory in Phnom Penh that makes products from recycled paper, said her factory's sales had decreased by 75 percent since last summer. Read more here.

Headline news in Hong Kong this morning concerns the 21.8% drop in exports for January, the biggest since 1958, and a 27.1% drop in imports, the worsts since 1967 (see the official figures from the government here). As commentators explain, this will hit three sectors very hard: i) trading, ii) logistics, and iii) retail. What they are not saying (or at least not in the papers I've glanced through this morning) is that these three sectors account for 35.3% of all jobs in Hong Kong (in 2008 - see government statistics here).

Over the past few weeks, some Malaysian newspapers have been carrying prominent daily reports on the Gaza conflict, which has created anger throughout the world especially in Muslim nations including Malaysia. Malaysia’s former PM  Mahatir Mohammad and and the Malaysian Islamic Consumers Association as well as the Muslim Restaurant Operators Association are now urging boycotts against American brands, such as McDonald's and Coco-Cola.  The targeted companies are responding by pointing out that the boycott will primarily hurt the local economy and employees, most of whom are Malay Muslims. Read more here.