Economy

The country is one of the poorest nations in South Asia / Southeast Asia, suffering from decades of stagnation, mismanagement and isolation. Myanmar’s GDP grows at a rate of 2.9% annually – the lowest rate of economic growth in the Greater Mekong Subregion.

Under British administration and in the early 1950s, Myanmar was the wealthiest country in Southeast Asia. It was once the world’s largest exporter of rice. During British administration, Myanmar supplied oil through the Burmah Oil Company. Myanmar also had a wealth of natural and labor resources. It produced 75% of the world’s teak and had a highly literate population. The country was believed to be on the fast track to development.

After a parliamentary government was formed in 1948, Prime Minister U Nu attempted to make Myanmar a welfare state. His administration adopted the Two-Year Economic Development Plan, which was a failure. The 1962 coup d’état was followed by an economic scheme called the Burmese Way to Socialism, a plan to nationalize all industries, with the exception of agriculture. In 1989, the government began decentralizing economic control. It has since liberalised certain sectors of the economy. Lucrative industries of gems, oil and forestry remain heavily regulated. They have recently been exploited by foreign corporations and governments which have partnered with the local government to gain access to Burma’s natural resources.

Burma was designated a least developed country in 1987. Private enterprises are often co-owned or indirectly owned by the Tatmadaw. In recent years, both China and India have attempted to strengthen ties with the government for economic benefit. Many nations, including the United States, Canada, and the European Union, have imposed investment and trade sanctions on Burma. Foreign investment comes primarily from China, Singapore, South Korea, India, and Thailand.

Modern economy

Today, the country lacks adequate infrastructure. Goods travel primarily across the Thai border, where most illegal drugs are exported, and along the Ayeyarwady River. Railroads are old and rudimentary, with few repairs since their construction in the late nineteenth century. Highways are normally unpaved, except in the major cities. Energy shortages are common throughout the country including in Yangon. Myanmar is also the world’s second largest producer of opium, accounting for 8% of entire world production and is a major source of illegal drugs, including amphetamines. Other industries include agricultural goods, textiles, wood products, construction materials, gems, metals, oil and natural gas.

The major agricultural product is rice which covers about 60% of the country’s total cultivated land area. Rice accounts for 97% of total food grain production by weight. Through collaboration with the International Rice Research Institute (IRRI), 52 modern rice varieties were released in the country between 1966 and 1997, helping increase national rice production to 14 million tons in 1987 and to 19 million tons in 1996. By 1988, modern varieties were planted on half of the country’s ricelands, including 98 percent of the irrigated areas.

The lack of an educated workforce skilled in modern technology contributes to the growing problems of the economy.

Inflation is a serious problem for the economy. In April 2007, the National League for Democracy organized a two-day workshop on the economy. The workshop concluded that skyrocketing inflation was impeding economic growth. “Basic commodity prices have increased from 30 to 60 percent since the military regime promoted a salary increase for government workers in April 2006,” said Soe Win, the moderator of the workshop. “Inflation is also correlated with corruption.” Myint Thein, an NLD spokesperson, added: “Inflation is the critical source of the current economic crisis.” The corruption watchdog organization Transparency International in its 2007 Corruption Perceptions Index released on September 26, 2007 ranked Myanmar the most corrupt country in the world, tied with Somalia.

Valley of Rubies

The Union of Myanmar’s rulers depend on sales of precious stones such as sapphires, pearls and jade to fund their regime. Rubies are the biggest earner; 90% of the world’s rubies come from the country, whose red stones are prized for their purity and hue. Thailand buys the majority of the country’s gems. Burma’s “Valley of Rubies”, the mountainous Mogok area, 200 km (125 miles) north of Mandalay, is noted for its rare pigeon’s blood rubies and blue sapphires.

Tourism

Since 1992, the government has encouraged tourism in the country. However, fewer than 750,000 tourists enter the country annually.

Aung San Suu Kyi has requested that international tourists not visit Myanmar. The junta’s forced labour programmes were focused around tourist destinations which have been heavily criticised for their human rights records.

Tourism has been promoted by a minority of advocacy groups as a method of providing economic benefit to Burmese civilians, and to avoid isolating the country from the rest of the world. “We believe that small-scale, responsible tourism can create more benefits than harm. So long as tourists are fully aware of the situation and take steps to maximise their positive impact and minimise the negatives, we feel their visit can be beneficial overall. Responsible tourists can help Burma primarily by bringing money to local communities and small businesses, and by raising awareness of the situation worldwide,” states Voices for Burma, a pro-democracy advocate group.

Humanitarian aid

In April 2007, the U.S. Government Accountability Office (GAO) identified financial and other restrictions that the military government places on international humanitarian assistance. The GAO report, entitled “Assistance Programs Constrained in Burma”, outlined the specific efforts of the government to hinder the humanitarian work of international organizations, including restrictions on the free movement of international staff within the country. The report notes that the regime has tightened its control over assistance work since former Prime Minister Khin Nyunt was purged in October 2004. The military junta passed guidelines in February 2006, which formalized these restrictive policies. According to the report, the guidelines require that programs run by humanitarian groups “enhance and safeguard the national interest” and that international organizations coordinate with state agents and select their Burmese staff from government-prepared lists of individuals. United Nations officials have declared these restrictions unacceptable.

2007 economic protests

The military junta detained eight people on Sunday, April 22, 2007 who took part in a rare demonstration in a Yangon suburb amid a growing military crackdown on protesters. A group of about ten protesters carrying placards and chanting slogans staged the protest Sunday morning in Yangon’s Thingangyun township, calling for lower prices and improved health, education and better utility services. The protest ended peacefully after about 70 minutes, but plainclothes police took away eight demonstrators as some 100 onlookers watched. The protesters carried placards with slogans such as “Down with consumer prices.” Some of those detained were the same protesters who took part in a downtown Yangon protest on February 22, 2007. That protest was one of the first such demonstrations in recent years to challenge the junta’s economic mismanagement rather than its legal right to rule. The protesters detained in the February rally had said they were released after signing an acknowledgment of police orders that they should not hold any future public demonstrations without first obtaining official permission.

The military government stated its intention to crack down on these human rights activists, according to an April 23, 2007, report in the country’s official press. The announcement, which comprised a full page of the official newspaper, followed calls by human rights advocacy groups, including London-based Amnesty International, for authorities to investigate recent violent attacks on rights activists in the country.

Two members of Human Rights Defenders and Promoters, Maung Maung Lay, 37, and Myint Naing, 40, were hospitalized with head injuries following attacks by more than 50 people while the two were working in Hinthada township, Irrawaddy Division in mid-April. On Sunday, April 22, 2007, eight people were arrested by plainclothes police, members of the pro-junta Union Solidarity and Development Association, and the Pyithu Swan Arr Shin (a paramilitary group) while demonstrating peacefully in a Rangoon suburb. The eight protesters were calling for lower commodity prices, better health-care and improved utility services. Htin Kyaw, 44, one of the eight who also took part in an earlier demonstration in late February in downtown Yangon, was beaten by a mob, according to sources at the scene of the protest.

Reports from opposition activists have emerged in recent weeks saying that authorities have directed the police and other government proxy groups to deal harshly with any sign of unrest in Yangon. “This proves that there is no rule of law [in Burma],” the 88 Generation Students group said in a statement issued today.[Mon 23 April 2007] “We seriously urge the authorities to prevent violence in the future and to guarantee the safety of every citizen.”

As of 22 September 2007, the Buddhist monks have withdrawn spiritual services from all military personnel in a symbolic move that is seen as very powerful in such a deeply religious country as Myanmar. The military rulers seem at a loss as to how to deal with the demonstrations by the monks as using violence against monks would incense and enrage the people of Myanmar even further, almost certainly prompting massive civil unrest and perhaps violence. However, the longer the junta allows the protests to continue, the weaker the regime looks. The danger is that eventually the military government will be forced to act rashly and doing so will provoke the citizenry even more. Some international news agencies are referring to the uprising as a Saffron Revolution.

20,000 monks protest

Anti-government protests started on August 15, 2007, and have been ongoing. Thousands of Buddhist monks started leading protests on September 18, and were joined by Buddhist nuns on September 23. On September 24, 20,000 monks and nuns led 30,000 people in a protest march from the golden Shwedagon Pagoda in Yangon, past the offices of the opposition National League for Democracy (NLD) party. Comedian Zaganar and star Kyaw Thu brought food and water to the monks. On September 22, monks marched to greet Aung San Suu Kyi, a peace activist who has been under house arrest since 1990.

On September 25, 2,000 people defied threats from Myanmar’s junta and marched to Shwedagon Pagoda amid army trucks and warning of Brigadier-General Thura Myint Maung not to violate Buddhist “rules and regulations.” The following morning, various prominent protesters were arrested and troops barricaded Shwedagon Pagoda and attacked the 700 people within. Despite this, 5,000 monks continued to protest in Yangon. At least four deaths were reported after security forces fired on the crowds in Yangon. The junta announced that ten people had died in the crackdown on 27 September 2007 but foreign diplomatic sources in Yangon said more than ten Buddhist monks and demonstrators were dead. Later a badly-beaten Buddhist monk’s body was found in Yangon River. A photo was released on an Internet site run by a Norway-based group of exiled journalists. On September 27, security forces began raiding monasteries and arresting monks throughout the country. The security forces also fired on the nearly 50,000 people protesting in Yangon, killing nine people.

Internet access within the nation has been suspended, reportedly in an attempt to dampen international awareness of the situation. It has also been reported that troops have been specifically targeting people with cameras. The junta’s violent response to peaceful protests has prompted international condemnation and calls for an immediate halt to the violence. In particular, Japanese Prime Minister Yasuo Fukuda has demanded an explanation for the killing of Nagai. Ibrahim Gambari, the United Nations special envoy to Myanmar, has arrived in Naypyidaw and has met with junta leaders and Aung San Suu Kyi.[136] Despite increasingly strong calls for peace, the junta continued to attack monks and raid monasteries through October 1.

By October 2, 2007, thousands of monks were unaccounted for and their whereabouts unknown. Many monasteries are being patrolled by government troops. There are eyewitness accounts of injured protesters being burned alive by the military regime in a crematorium on the outskirts of Rangoon.

On October 31, 2007 the monks started to protest again. 200 monks marched in Pakokku.

On November 29, 2007 the Junta has shut down a Yangon monastery which served as a hospice for HIV/AIDS patients.

The Myanmar state media says that all but 91 of the nearly 3,000 arrested in the crackdown were released. The United Nations special envoy Ibrahim Gambari criticised the closing of the monastery, yet was assured that the crackdown would stop. He expects to return to Myanmar in December.

“Myanmar.” Wikipedia, The Free Encyclopedia. 21 May 2008, 21:36 UTC. Wikimedia Foundation, Inc. 22 May 2008 .