Gradual democratic transition has been seen in Myanmar since the 2010 general elections. Prior to the elections, the EU and the US, which imposed sanctions, were sources of funding and support for democratic forces.
The objective of sanctions was to put pressure on the military generals to abandon authoritarian rule for a democratic regime.
Conditions set by the Western powers to normalize diplomatic relations included the release of political prisoners including Aung San Suu Kyi, inclusive dialogue with the National League for Democracy and ethnic minorities, adherence to the UN nonproliferation agreements on nuclear weapons, and free and fair by-elections in 2012.
Since most of their demands were either met or initiated, both the US and the EU suspended sanctions in 2012, except for arms embargo and individual sanctions to certain military leaders and their associates.
As a sign of the diplomatic thaw, European Commission chief Jose Manuel Barroso visited Myanmar and offered more than $100 million in development aid. The EU's move was followed by a historic visit by US President Barack Obama in November 2012, the first ever visit by a sitting US president.
On April 22, 2013, the EU unanimously lifted the sanctions it first suspended a year ago.
At its meeting in Luxembourg, the EU foreign ministers welcomed the changes that had taken place in the past year and decided to lift all sanctions except arms embargo.
Even prior to lifting sanctions, the European Commission on March 5 had announced a package of €150 million ($195 million) to support the country's democratic reform ahead of the national elections in 2015, and also pledged more EU development money and a bilateral investment agreement.
After the EU's decision, the US government said on May 3 that it would lift the visa ban on officials but extended targeted sanctions for another year. The rationale behind the action was to reward democratic progress in the past year, and the US also hoped to prevent backsliding from reform.
After the suspension of sanctions in 2012, bilateral trade reached $190.96 million, of which Myanmar's exports to the US accounted for $16.47 million and its import was at $174.49 million.
As of February 2013, the total US investments reached $243.56 million in 15 projects, accounting only for about 0.58 percent of total foreign investments in Myanmar since the country opened to such in late 1988.
Evidently, the EU is convinced that changes on the ground merits the lifting of sanctions.
The EU policy move is also based on the expectation that the reform process will continue. Suu Kyi's support for the removal of sanctions was an important factor in the EU's decision.
On the other hand, the US believes that the reform process is inconclusive and uncertainty still remains.
While rewarding the government for its democratic reforms, the US government maintains the flexibility to reimpose sanctions if situation warrants.
By retaining targeted sanctions, the US government intends to have the necessary leverage to punish individuals and companies that slow or thwart the reform process.
It is also aimed at sending a strong signal to human rights violators and officials who propagate military ties with North Korea.
How some pressing issues will be addressed remains to be seen. For example, is the central government willing to grant autonomy to the country's ethnic minorities? Is the government, still dominated by the military, willing to amend the undemocratic elements of the 2008 constitution ahead of the 2015 general elections?
If answers to these questions are negative or still doubtful, Myanmar may be heading toward an illiberal or a defective democracy with the survival of certain inherent authoritarian elements in a widely perceived democratic institutional arrangement.
The author is general secretary of the US-based Kuki International Forum. His research focuses on the politics of South and Southeast Asia. opinion@globaltimes.com.cn