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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 outside of the Commonwealth was attained in 1948. Gen. NE WIN dominated the government from 1962 to 1988, first as military ruler, then as president, and later as political kingmaker. Despite multiparty 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 arrested in May 2003 and is currently under house arrest. Her supporters are routinely harassed or jailed.

LOCATION 

Southeastern Asia, bordering the Andaman Sea and the Bay of Bengal, between Bangladesh and Thailand.. Slightly smaller than Texas.

POPULATION

42,720,196
note: estimates for this country take into account the effects of excess mortality due to AIDS; this can result in lower life expectancy, higher infant mortality and death rates, lower population growth rates, and changes in the distribution of population by age and sex than would otherwise be expected (July 2004 est.)

Buddhist 89%, Christian 4% (Baptist 3%, Roman Catholic 1%), Muslim 4%, animist 1%, other 2%

NATURAL RESOURCES

petroleum, timber, tin, antimony, zinc, copper, tungsten, lead, coal, some marble, limestone, precious stones, natural gas, hydropower

NATURAL CHALLENGES

deforestation; industrial pollution of air, soil, and water; inadequate sanitation and water treatment contribute to disease.

ECONOMICS 

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.

CONFLICTS 

Despite continuing border committee talks, significant differences remain with Thailand over boundary alignment and the handling of ethnic rebels, refugees, and illegal cross-border activities; groups in Burma and Thailand express concern over China's construction of 13 hydroelectric dams on the Salween River in Yunnan Province; India seeks cooperation from Burma to keep out Indian Nagaland insurgents.

OTHER CONCERNS

World's second largest producer of illicit opium (potential production in 2003 - 484 metric tons, down 23% due to eradication efforts and alternate development; cultivation in 2003 - 47,130 hectares, a 39% decline from 2002); surrender of drug warlord KHUN SA's Mong Tai Army in January 1996 was hailed by Rangoon as a major counternarcotics success, but lack of government will and ability to take on major narcotrafficking groups and lack of serious commitment against money laundering continues to hinder the overall antidrug effort; major source of methamphetamine and heroin for regional consumption; currently under Financial Action Task Force countermeasures due to continued failure to address its inadequate money-laundering controls. ## All Rights Reserved. TheWeekInCongress.com. Image and data US CIA.