- Economy and Economic Policy, State Law and Order Restoration Council
- / State Peace and Development Council Era(1988- )The Burma Socialist Programme Party Extraordinary Congress, held in July 1988, determined that the socialist economic policy that had been in force since 1962 would be scrapped. In November 1988, after the State Law and Order Restoration Council (SLORC) assumed power, it decreed a Union of Burma [Myanmar] Foreign Investment Law, which allowed foreign companies to establish branches, wholly owned subsidiaries, and joint ventures with domestic firms in Burma. Cross-border trade with China was also legalized. By the mid-1990s, private foreign investment, particularly from neighboring countries (such as Singapore, Malaysia, and Thailand) and Western countries (such as the United States and France), was substantial, and Chinese businesspeople wielded considerable economic influence, especially in Kachin and Shan States and Mandalay. Military-owned conglomerates, such as Union of Myanmar Economic Holdings, Ltd. and the Myanmar Economic Corporation, played a dominant role in the postsocialist economy.Privately owned banks were permitted to exist for the first time since 1962, and some of these new financial institutions allegedly have links to drug-dealing warlord armies in the border areas. The extent to which the postsocialist economy is dependent on infusions of cash from the production and export of opium and other drugs is a matter of intense speculation. Drug exports earn groups, such as the United Wa State Army, hundreds of millions of U.S. dollars in revenues, some of which is apparently used for construction of condominiums, luxury hotels, and other projects in Rangoon (Yangon), Mandalay, and other central Burma cities.Although the SLORC/SPDC hoped to emulate the successes of postsocialist China and Vietnam and transform Burma into a newly industrializing economy, Burma's foreign investment was in steep decline by the late 1990s because of a complicated system of exchange rates for its currency, the kyat, lack of the rule of law in business dealings, widespread corruption, poor infrastructure, and Western sanctions. The Asian financial crisis of 1997 also had an impact. Despite its oft-stated commitment to liberalizing agricultural trade, the state continues to procure rice harvests from farmers at artificially low prices at the beginning of the 21st century, causing considerable rural hardship (in 2003, the SPDC decreed an end to state procurement; it is unclear whether this has actually happened). There is little evidence that the State Peace and Development Council listens to the advice of qualified economic planners, and policy decisions are made on an unpredictable, ad hoc basis. SPDC chairman Than Shwe apparently wishes to return Burma to a modified form of economic autarky, such as existed before 1988, while, before his purge in October 2004, Prime Minister Khin Nyunt wanted continued economic internationalization. Close economic ties with Asian countries are likely to intensify, especially in the face of stiffening Western sanctions.For ordinary Burmese people, conditions are probably harsher than they were under socialism, because of periodic shortages of necessities, high rates of inflation, and deteriorating health services. Malnutrition is widespread among poorer people in both urban and rural areas, and many children cannot afford to attend school. For lack of other opportunities, many poor women enter the sex industry, not only in Rangoon but also in provincial towns. The constant need to give bribes to military and government officials imposes great hardship, not only for businesspeople but also for ordinary citizens. An affluent few with the right connections and access to hard currency have been able to prosper, and Southern California-style "gated communities" with luxury housing have sprung up on the outskirts of Rangoon. As gaps between rich and poor widen, the economy of postsocialist Burma, like that of post-Soviet Russia, is in a state of chaotic transition, and it is unclear whether it will be able to achieve stability and sustained growth.
Historical Dictionary of Burma (Myanmar). Donald M. Seekins . 2014.
Look at other dictionaries:
Economy and Economic Policy, Burma Socialist Programme Party Era — (1962 1988) Following the coup d état of March 2, 1962, which put the Revolutionary Council (RC) in power, Burma s new leader, General Ne Win, promised to get the country moving along the Burmese Road to Socialism, with the goal of… … Historical Dictionary of Burma (Myanmar)
State Peace and Development Council (SPDC), Internal Dynamics — Because of the secrecy of its operations and tight state control of sensitive information, knowledge of the internal political dynamics of the military SPDC junta is limited, though rumors abound. Before the purge of Lieutenant General Khin… … Historical Dictionary of Burma (Myanmar)
ECONOMIC HISTORY — This article is arranged according to the following outline: first temple period exile and restoration second temple period talmudic era muslim middle ages medieval christendom economic doctrines early modern period sephardim and ashkenazim… … Encyclopedia of Judaism
Law, Crime, and Law Enforcement — ▪ 2006 Introduction Trials of former heads of state, U.S. Supreme Court rulings on eminent domain and the death penalty, and high profile cases against former executives of large corporations were leading legal and criminal issues in 2005.… … Universalium
Economy of East Germany — Like other East European communist states, the German Democratic Republic (GDR East Germany) had a centrally planned economy (CPE) similar to the one in the former Soviet Union, in contrast to the market economies or mixed economies of most… … Wikipedia
Economic history of China before 1911 — For developments after 1911, see Economic history of Modern China. A Chinese dragon seen floating among clouds, engraved on a golden canteen dated to the 15th century, during the … Wikipedia
Economy of Japan — The economy of Japan is the second largest economy in the world,cite web |url=http://www.imf.org/external/pubs/ft/weo/2006/02/data/weorept.aspx?sy=2005 ey=2005 scsm=1 ssd=1 sort=country ds=. br=1 c=512%2C446%2C914%2C666%2C612%2C668%2C614%2C672%2C3… … Wikipedia
Economy of metropolitan Detroit — The Renaissance Center is the world headquarters of General Motors. The economy of metropolitan Detroit, Michigan, is a key pillar of the economy of the United States. Its ten county area has a population of over 5.3 million, a workforce of 2.6… … Wikipedia
Economy of Bolivia — The economy of Bolivia has had a historic pattern of a single commodity focus. From silver to tin to coca, Bolivia has enjoyed only occasional periods of economic diversification. Political instability and difficult topography have constrained… … Wikipedia
Tatmadaw, Economic Role of — Both in terms of control of economic enterprises and defense expenditures by the central government the Tatmadaw has played a dominant role in the economy of Burma. After Ne Win established the Revolutionary Council in March 1962, he ordered… … Historical Dictionary of Burma (Myanmar)