A country bordered by a global tourism hotspot and two of the world's fastest growing economies may sound favourably placed to capitalise on an array of trade links, the demand for labour and the influx of disposable income. With China predicted as the next superpower, India attracting service jobs from western businesses and Thailand reaping the economic benefits of tourism, the neighbours are doing well. Yet Burma, the second largest country in South East Asia, remains one of the poorest nations on earth.


The Figures

The UN Human Development Report 2006 has ranked Burma in its Human Poverty Index table at 130 out of 177 countries, well below some other South East Asian countries such as Thailand (74) and Malaysia (61), though above Laos at 133 and close to Cambodia at 129. In 2004 the World Bank concluded that Burma is "trapped in abject poverty despite its rich resources base. Although there has been notable moderate growth in the economy, the trickle-down effect of this growth did not reach the poor. The country's poverty and development indicators have lagged behind those of its neighbours". An estimated 30 percent of the population ( or approximately 15 million people) live below the poverty line and inflation is running at a rate of between 30 and 40 percent a year.

A History of Bad Decisions

Burma's demise is by all accounts a sad affair. Once a prosperous country, it was one of the world's most prominent rice exporters. With its thriving agriculture, mining and timber industries, along with its rich deposits of jade and other gemstones, this naturally well-endowed nation was once labelled the 'Golden Land.' It also had a surprisingly literate workforce, and a description of Burma in the 1911 Edition Encyclopaedia Britannica notes that "even [compared] with some of the countries of Europe, Burma takes a very high place in the returns of those able to both read and write."So what happened to a country once hailed as the 'rice bowl of Asia?' Much of the blame can be laid at the door of the late General Ne Win and his 'Burmese Path to Socialism,' implemented after he seized power in a coup in 1962. The private business sector was nationalised, trade unions disbanded, the civil service militarised and foreign travel prohibited. The socialist agenda was pursued vigorously and the state effectively isolated itself from the rest of the world. From the unwise to the simply ridiculous, Ne Win caused economic havoc at one point when he introduced banknotes in denominations of 45 and 90 kyat because these were divisible by 9, his lucky number.

Poor Economic Policy

In the current era, it is the continuing incompetence of the government to correct its wayward policies that is largely to blame for Burma's devastating lack of wealth distribution. Even a cursory look at the administration's recent decisions displays its irresponsible and almost mindless disregard for the preservation of resources. A study conducted in 2004 by the World Bank highlighted the economic mismanagement that is rife within Burma. Last year's budget seems to reflect Burma's skewed priorities, with some 40% of it being spent on the military. This accounts for twice what was spent on education and a staggering nine times the figure allocated to health. To put this into perspective, the International Herald Tribune has noted that "Cambodia, which has a smaller income per capita than Burma, spends three times more on public health as a share of gross domestic product."
 
The problems are not solely due to the domestic agenda, but are compounded by the international community. The value of sanctions against an isolationist country such as Burma is somewhat debatable: as Nelson Rand of the Asia Times points out, "it seems the big losers are still the poverty-stricken people of Myanmar." The plight of the poor is characterised at its worst by hunger.
 
The UN Human Rights Special Rapporteur Professor Pinheiro has noted in his September 2006 report to the UN General Assembly that: “ A large-scale and effectively arbitrary land confiscation policy prevails throughout the country…….This policy has led to numerous forced evictions, relocations and resettlements, especially in rural areas…….The Special Rapporteur views the ongoing large-scale confiscation of lands as a matter of grave concern that will continue to impact dramatically on the political and economic stability of the country, if not addressed” in a country which, as he notes: “Some 75% of the population is engaged in the agricultural sector (including fisheries, forestry and livestock) which accounts for 40% of the gross domestic product.”

The junta maintains its stranglehold on the economy, with policy being dictated by the needs of the military rather than the citizens. Nepotism and a penchant for loss-making State enterprises have plunged Burma into a chasm of budget deficits. Burma's past may once have been prosperous, but its present is irrefutably bleak. On the question of its future, one can only hope that there is a return to democracy so that the needs of the poverty-stricken citizens can put to the fore, and that the resources already present in this country can be applied intelligently, humanely and without the savage wastefulness that pervades Burma's current economic leadership.

See also a recent article on poverty