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(Adds details on by-election results, reaction, quote)

By Andrew R.C. Marshall

YANGON, April 2 (Reuters) – Soe Thein is a pious man. Every

evening he kneels before a Buddhist shrine in his Yangon home to

pray for the only woman he believes can lead Myanmar to a

brighter future.

“I pray for Aung San Suu Kyi’s health and long life,” says

Soe Thein, formerly a political prisoner and senior member of

Suu Kyi’s National League for Democracy (NLD).

“Who could replace her?”

Suu Kyi’s role in a reforming Myanmar will be no less

essential after sweeping the board in Sunday’s historic

by-elections. The NLD won all 44 seats it contested, claimed the

party on Monday, in a parliament still dominated by the military

and the rival party it created.

But after two decades in opposition, much of it spent as a

prisoner of the former junta, Suu Kyi now faces a slew of

unfamiliar challenges. She must find her place in a perhaps

hostile lower house while nurturing her crucial relationship

with reformist President Thein Sein and managing the

expectations of a nation impatient for change after decades of

isolation, poverty and military misrule.

“Converting people’s expectations into political reality is

the big challenge now,” says analyst Richard Horsey, a former

United Nations official in Myanmar. “And for a country as poor

as Myanmar, that means addressing the plight of families and

their ability to put food on the table, educate their children

and look after their health.”

Just 17 months ago, Suu Kyi was under house arrest and her

party outlawed. Sometimes portrayed as stubborn and unrealistic,

her rapid journey from prisoner to parliamentarian is the result

of a bold and pragmatic engagement with President Thein Sein

that remains critical to Myanmar’s reform process.

And she has done this, so far, without eroding the adoration

and moral authority she commands across Myanmar. A people who

once referred in fearful undertones to “The Lady” packed the

streets outside the NLD’s Yangon headquarters on Sunday night to

shout for “Mother Suu.”

“The pace of change has been breathtaking,” says Robert

Cooper, counselor to the European Union’s foreign policy chief

Catherine Ashton and a long-time friend of Suu Kyi’s, as he

toured polling stations on Sunday with other EU delegates.

How will a woman famous for unyielding moral stands — in

1998 she sat in a car for six days on a country road after

police stopped her visiting party members — fare in the

political arena of negotiation and compromise?

The next step in Suu Kyi’s extraordinary life could reveal

what Horsey calls the “essential tension” between her principled

and pragmatic sides. “There has to be give and take in

politics,” he says. “It remains to be seen whether she will be

able to make that transition.”

Cooper, who attended Oxford University with Suu Kyi,

disagrees. “She’s always been pragmatic, but she’s not had an

opportunity to engage,” he says. “And principles are quite a

good thing. It’s good that there is somebody who is not prepared

to accept second-rate standards.”

Even the NLD’s parliamentary toe-hold – it occupies only a

tiny fraction of the 440-seat lower house – could compel the

party to redefine itself after two decades spent opposing

military rule. Suu Kyi’s party was officially banned after

boycotting a fraudulent 2010 election that installed Thein

Sein’s quasi-civilian government a year ago.

AT ODDS WITH THE MILITARY

The turning point came in August, when Suu Kyi was invited

to meet Thein Sein, a former general, in the capital Naypyitaw.

Both risked alienating their respective support bases by seizing

an opportunity for reconciliation. Within months, the NLD was

legal again and preparing to run in Sunday’s by-elections.

Although Thein Sein and Suu Kyi haven’t met since, their

relationship seems almost symbiotic. Suu Kyi said last week that

the former general “genuinely wishes for democratic reform.”

Horsey notes that Suu Kyi’s party political broadcast on

nationwide television on March 14 was “remarkably similar” to

Thein Sein’s speech two weeks earlier to mark the anniversary of

his government taking office.

Both stressed the importance of the rule of law, the

fragility of ongoing reforms and the challenge of solving half a

century of ethnic conflict.

“It’s very important that they continue to have a good

working relationship because they rely on each other to maintain

the momentum of these reforms,” says Horsey.

Suu Kyi’s “very first priority” upon entering parliament

will be amending the constitution, says NLD campaign manager

Nyan Win. This could put her on a collision course with

Myanmar’s powerful and largely unreformed military.

Myanmar’s constitution, adopted after a heavily rigged

referendum in 2008, reserves a quarter of parliamentary seats

for the military and allows the president to hand power to the

armed forces chief in an ill-defined emergency.

In a speech delivered less than a week before the elections,

armed forces chief General Min Aung Hlaing vowed to protect a

constitution that guarantees a “political leadership role” to

the military.

That clashes with Suu Kyi’s vision. The military must

realise “the future of this country is their future, and that

reform in this country means reform for them as well,” she told

a news conference on Friday outside her lakeside home in Yangon.

Suu Kyi’s confidence is unsurprising, says a diplomat in

Yangon, who asked not to be named. “She believes very strongly

in her powers of persuasion, which are formidable,” he says.

Soe Thein, a prominent journalist also known by his pen-name

Muang Wuntha, won a seat for the NLD in the 1990 election, whose

results the regime later annulled. He notes a dramatic change in

Suu Kyi’s public statements on the military.

“She used to be very confrontational,” he says.

REVAMPING HER PARTY

Harder to charm will be lawmakers from the ruling Union

Solidarity and Development Party (USDP), created by the former

junta. It still occupies most of the parliament’s 664 seats,

thanks to the 2010 election held while Suu Kyi was detained.

Suu Kyi has accused the USDP of harassment, vote-buying and

slander during its campaign. Soe Thein describes relations

between the two parties as “bitter and confrontational.”

The Nobel Peace Prize winner’s other key relationship will

be with the powerful and ambitious lower house speaker Shwe

Mann, a former general with an increasingly public rivalry with

the president. “Thein Sein and Shwe Mann need each other — and

they both need her,” says the Yangon diplomat.

Soe Thein agrees. “The government can replace Thein Sein

with someone similar or even better,” he says. “But we have

nobody else of Aung San Suu Kyi’s quality.”

Suu Kyi must also revamp her own party, a challenge

symbolised by the dilapidated state of its Yangon headquarters.

The NLD, say critics, is short on concrete policies and the

experts who might formulate them and challenge the party’s

sometimes stifling lady-knows-best culture.

Conspicuously absent from its ranks are the widely admired

leaders of the 88 Generation Students Group. Fearless and

charismatic, they spent years in jail for their vital role in

the 1988 pro-democracy uprising and the monk-led Saffron

Revolution in 2007, both of which were brutally crushed.

They have expressed loyalty to Suu Kyi amid persistent

rumours they will soon form a rival party.

“We accept the parliamentary process, but we cannot rely on

parliament alone,” says Ko Ko Gyi, who spent nine of his almost

17 years in jail sleeping on a bare concrete floor.

For now, he prefers “direct democracy,” citing as an example

the protests that apparently encouraged President Thein Sein to

last year scrap the $3.6 billion Myitsone dam.

ENDURING INFLUENCE?

The United States and European Union view free and fair

by-elections as the last test before they begin dismantling

economic sanctions against Myanmar.

With Western companies lining up to invest in Southeast

Asia’s last frontier economy, it is feared that the lifting of

sanctions could be complicated if Suu Kyi doesn’t give the the

by-election result her blessing.

“We’ll have to wait and see what she has to say,” says

Cooper, whose trip to Myanmar precedes a crucial April 23

meeting of the EU Foreign Affairs Council, chaired by Catherine

Ashton. “Ultimately we’ll make our own judgment, but of course

we will listen to her, as we will listen to others.”

Despite NLD gripes about the campaign, irregularities

reported on voting day have been minor. But that still might not

satisfy Suu Kyi, hinted campaign manager Nyan Win on Thursday.

Sanctions should only be lifted at “the right time,” he

says, without elaborating, adding that their removal depended on

not just the election but on Myanmar’s movement toward reform.

When sanctions do come down, Suu Kyi’s sway over Western

governments will diminish, believes analyst Horsey.

“The days of her having an overwhelming influence on Western

policy should be over,” he says. “What she says is only part of

the equation” now that she is an elected representative.

Suu Kyi has dismissed suggestions she would accept a

position in Thein Sein’s cabinet, since this would legally

oblige her to give up her parliamentary seat.

“I have no intention of leaving the parliament which I’m

trying so hard to get into,” she has said.

Her age and uncertain health alone will likely rule out any

bid for the presidency in 2015, when Suu Kyi will turn 70. She

fell sick at least twice during her arduous election campaign,

and looked and sounded frail at Friday’s press conference.

Yet the event, which involved her standing in sweltering

heat for over an hour, also seemed to energise her. She answered

dozens of questions with a familiar mix of bluntness and charm,

and at one point ordered unruly photographers to sit down.

Later this year, Suu Kyi will attend her first session at

the gargantuan parliamentary complex in the purpose-built

capital Naypyitaw. She already paid an informal visit to the

lower house two weeks ago, says campaign manager Nyan Win.

Suu Kyi says she will look for a second home in Naypyitaw,

which is a four-hour drive from the commercial capital Yangon.

“Because don’t forget I have a dog,” she says, “and I have to

take him with me.”

Tai Chi Toe, a gift from her son Kim, will be a welcome

distraction: Naypyitaw is reputedly so dull no foreign embassy

has moved there.

(Editing by Jason Szep and Jonathan Thatcher)