From Where China Meets India: Burma and the New Crossroads of Asia, by Thant Myint-U (Farrar, Straus and Giroux, 2011), Kindle Loc. 1569-1581:
In a way, the Burmese army’s policies towards their opponents were the direct opposite of the policy of Western governments towards the ruling junta. Western governments had employed economic embargoes and diplomatic isolation, hoping that by shunning the Burmese generals, the generals would eventually come around. They didn’t. The Burmese army employed very different tactics. They fêted their erstwhile foes, calling them ‘leaders of the national races’. They took them to the big cities, created new desires and allowed them to enrich themselves. Business links, even illicit ones, were actively promoted. They did this knowing that it would sap the insurgents’ strength as fighting organizations. By 2010 the Burmese army was in a far stronger position than when the ceasefires were first agreed.
Under the new constitution, some power would be devolved to local governments, each with their own semi-elected legislatures. It would be far from a federal system and the real authority of the local governments would be heavily circumscribed. But it was a small concession to ethnic minority leaders who had been fighting for genuine self-determination.
The Burmese military leadership also offered the ex-insurgent armies a deal on their future armed status: reorganize your men into a ‘Border Guard Force’, that will partly be officered by us and that will ultimately come under our authority. It meant a partial but not complete integration with the Burmese army. Acceptance would mean sweet business deals and a place for former rebel leaders in the new order. Some of the smaller militias accepted. The rest have not, so far.