Background,
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. In September 1988, the military deposed NE WIN and established a new ruling junta. Despite multiparty legislative elections in 1990 that resulted in the main opposition party - the National League for Democracy (NLD) - winning a landslide victory, the 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 subsequently transferred to house arrest. After the ruling junta in August 2007 unexpectedly increased fuel prices, tens of thousands of Burmese marched in protest, led by prodemocracy activists and Buddhist monks. In late September 2007, the government brutally suppressed the protests, killing at least 13 people and arresting thousands for participating in the demonstrations. Since then, the regime has continued to raid homes and monasteries and arrest persons suspected of participating in the pro-democracy protests. The junta appointed Labor Minister AUNG KYI in October 2007 as liaison to AUNG SAN SUU KYI, who remains under house arrest and only recently gained the opportunity for limited communication with NLD leaders. Burma in early May 2008 was struck by Cyclone Nargis which official estimates claimed left over 80,000 dead and 50,000 injured. Despite this tragedy, the junta proceeded with its May constitutional referendum, the first vote in Burma since 1990, setting the stage for the 2010 parliamentary elections. AUNG SAN SUU KYI's house arrest was due to end in May 2009, but was extended for eighteen months after she was convicted for violating the terms of her house arrest.
Area,
total: 676,578 sq km
country comparison to the world: 40 land: 653,508 sq km
water: 23,070 sq km
Economy,
Burma, a resource-rich country, suffers from pervasive government controls, inefficient economic policies, and rural poverty. Despite Burma's emergence as a natural gas exporter, socio-economic conditions have deteriorated under the regime's mismanagement, leaving most of the public in poverty, while military leaders and their business cronies exploit the country's ample natural resources. The economy suffers from serious macroeconomic imbalances - including rising inflation, fiscal deficits, multiple official exchange rates that overvalue the Burmese kyat, a distorted interest rate regime, unreliable statistics, and an inability to reconcile national accounts to determine a realistic GDP figure. Burma's poor investment climate hampers the inflow of foreign investment; in recent years, foreign investors have shied away from nearly every sector except for natural gas, power generation, timber, and mining. The business climate is widely perceived as opaque, corrupt, and highly inefficient. Over 60% of the FY 2009-10 budget is allocated to state owned enterprises - most operating at a deficit. The most productive sectors will continue to be in extractive industries - especially oil and gas, mining, and timber - with the latter two causing significant environmental degradation. Other areas, such as manufacturing, tourism and services, struggle in the face of inadequate infrastructure, unpredictable trade policies, neglected health and education systems, and endemic corruption. A major banking crisis in 2003 caused 20 private banks to close; private banks still operate under tight restrictions, limiting the private sector's access to credit. The United States, the European Union, Canada, and Australia have imposed financial and economic sanctions on Burma, prohibiting most financial transactions with Burmese entities, imposing travel bans on Burmese officials and others connected to the ruling regime, and banning imports of certain Burmese products. These sanctions affected the country's fledgling garment industry, isolated the struggling banking sector, and raised the costs of doing business with Burmese companies, particularly firms tied to Burmese regime leaders. The global crisis of 2008-09 caused exports and domestic consumer demand to drop. Remittances from overseas Burmese workers - who had provided significant financial support for their families - slowed or dried up as jobs were lost and migrant workers returned home. Though the Burmese government has good economic relations with its neighbors, better investment and business climates and an improved political situation are needed to promote serious foreign investment, exports, and tourism.
Disputes,
over half of Burma's population consists of diverse ethnic groups who have substantial numbers of kin in neighboring countries; Thailand must deal with Karen and other ethnic refugees, asylum seekers, and rebels, as well as illegal cross-border activities from Burma; Thailand is studying the feasibility of jointly constructing the Hatgyi Dam on the Salween River near the border with Burma; citing environmental, cultural, and social concerns, China is reconsidering construction of 13 dams on the Salween River but energy-starved Burma with backing from Thailand remains intent on building five hydro-electric dams downstream, despite identical regional and international protests; India seeks cooperation from Burma to keep Indian Nagaland separatists, such as the United Liberation Front of Assam, from hiding in remote Burmese Uplands; after 21 years, Bangladesh resumes talks with Burma on delimiting a maritime boundary in January 2008
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