Burma (Myanmar)

Britain conquered Burma over a period of 62 years (1824-1886) and incorporated it into its Indian Empire. Burma was administered as a province of India until 1937 when it became a separate, self-governing colony; independence from the Commonwealth was attained in 1948. Gen. NE WIN dominated the government from 1962 to 1988, first as military ruler, then as self-appointed president, and later as political kingpin. Despite multiparty legislative elections in 1990 that resulted in the main opposition party - the National League for Democracy (NLD) - winning a landslide victory, the ruling junta refused to hand over power.

NLD leader and Nobel Peace Prize recipient AUNG SAN SUU KYI, who was under house arrest from 1989 to 1995 and 2000 to 2002, was imprisoned in May 2003 and is currently under house arrest. In December 2004, the junta announced it was extending her detention for at least an additional year. Her supporters, as well as all those who promote democracy and improved human rights, are routinely harassed or jailed.

conventional long form:

Union of Burma

conventional short form:

Burma

local long form:

Pyidaungzu Myanma Naingngandaw (translated by the US Government as Union of Myanma and by the Burmese as Union of Myanmar)

local short form:

Myanma Naingngandaw

former:

Socialist Republic of the Union of Burma

note: since 1989 the military authorities in Burma have promoted the name Myanmar as a conventional name for their state; this decision was not approved by any sitting legislature in Burma, and the US Government did not adopt the name, which is a derivative of the Burmese short-form name Myanma Naingngandaw

Burma is a resource-rich country that suffers from government controls and abject rural poverty. The military regime took steps in the early 1990s to liberalize the economy after decades of failure under the "Burmese Way to Socialism", but those efforts have since stalled. Burma has been unable to achieve monetary or fiscal stability, resulting in an economy that suffers from serious macroeconomic imbalances - including a steep inflation rate and an official exchange rate that overvalues the Burmese kyat by more than 100 times the market rate.

In addition, most overseas development assistance ceased after the junta suppressed the democracy movement in 1988 and subsequently ignored the results of the 1990 election. A crisis in the private banking sector in early 2003 followed by economic moves against Burma by the United States, the European Union, and Japan - including a US ban on imports from Burma and a Japanese freeze on new bilateral economic aid - further weakened the Burmese economy.

Burma is data poor, and official statistics are often dated and inaccurate. Published estimates of Burma's foreign trade are greatly understated because of the size of the black market and border trade - often estimated to be one to two times the official economy. Better relations with foreign countries and relaxed controls at home are needed to promote foreign investment, exports, and tourism.

In February 2003, a major banking crisis hit the country's 20 private banks, shutting them down and disrupting the economy. In July and August 2003, the United States imposed a ban on all Burmese imports and a ban on provision of financial services, hampering Burma's ability to obtain foreign exchange.

As of January 2004, the largest private banks remained moribund, leaving the private sector with little formal access to credit outside of government contracts.