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U.S. Department of State Background Note

Burma

PEOPLE

Although Burmese is the most widely spoken language (approx. 32 million speakers), other ethnic groups have retained their own identities and languages. Some of the most prominent are Shan; various Karen, Karenni and Chin languages; Arakanese; Jingpaw; Mon; Palaung; Parauk; Wa; and Yangbye. English is spoken in many areas frequented by tourists. The Indian and Chinese residents speak various languages and dialects of their homelands: Hindi, Urdu, Tamil, Bengali, Mandarin, Fujian, and Cantonese.

An estimated 89% of the population practices Buddhism. Other religions, Christian 4% (Baptist 3%, Roman Catholic 1%), Muslim 4%, and animist 1%, are less prevalent, although Christian and Muslim groups claim the regime significantly underestimates their number of adherents.

According to the UN Development Programme's 2006 Human Development Report, public health expenditure equaled only 0.3% of Burma's GDP. High infant mortality rates and short life expectancies further highlight poor health and living conditions. The HIV/AIDS epidemic poses a serious threat to the Burmese population, as do tuberculosis and malaria. In 2006, the UNDP's Human Development Index, which measures achievements in terms of life expectancy, educational attainment, and adjusted real income, ranked Burma 130 out of 177 countries.

There are numerous documented human rights violations, and internal displacement of ethnic minorities is prevalent. Over a million Burmese, many of them ethnic minorities, have fled for economic and political reasons to Bangladesh, India, China, Malaysia, and Thailand to seek work and asylum. More than 150,000 Burmese live in nine refugee camps in Thailand and roughly 30,000 live in two camps in Bangladesh. Roughly 30,000 Burmese (mostly Chin and Rohingya) have fled to Malaysia.

HISTORY

In the 15th century, the Taungoo Dynasty succeeded again in unifying under Burman rule a large, multi-ethnic kingdom. This dynasty, which lasted from 1486 until 1752, left little cultural legacy, but expanded the kingdom through conquest of the Shans. Internal power struggles, and the cost of protracted warfare, led to the eventual decline of the Taungoo Dynasty.

The final Burman royal dynasty, the Konbaung, was established in 1752 under the rule of King Alaungpaya. Like the Taungoo Kings, the Konbaung rulers focused on warfare and conquest. Wars were fought with the ethnic Mons and Arakanese, and with the Siamese. The Burmese sacked the Siamese capital of Ayuthaya in 1767. This period also saw four invasions by the Chinese and three devastating wars with the British.

The British began their conquest of Burma in 1824, expanding their holdings after each of the three wars. At the end of the third war in 1885, the British gained complete control of Burma, annexing it to India. Under British control, which lasted until 1948, Burma underwent enormous change. The British established strong administrative institutions and reorganized the economy from subsistence farming to a large-scale export economy. By 1939, Burma had become the world's leading exporter of rice.

Burmese nationalists, led by General Aung San and 29 other "Comrades," joined the Japanese forces in driving out the British at the outbreak of World War II. However, the Burmese Army switched sides in mid-1945 and aided U.S. and British forces in their drive to Rangoon. After the war, the Burmese, with General Aung San at the helm, demanded complete political and economic independence from Britain. The British Government acceded to these demands. A constitution was completed in 1947 and independence granted in January 1948. General Aung San was assassinated with most of his cabinet before the constitution went into effect.

During the constitutional period from 1948 to 1962, Burma suffered widespread conflict and internal struggle. Constitutional disputes and persistent division among political and ethnic groups contributed to the democratic government's weak hold on power. In 1958, Prime Minister U Nu invited the military to rule temporarily to restore political order. The military stepped down after 18 months; however, in 1962 General Ne Win led a military coup, abolishing the constitution and establishing a xenophobic military government with socialist economic policies. These policies had devastating effects on the country's economy and business climate.

In March 1988, student-led disturbances broke out in Rangoon in response to the worsening economic situation and evolved into a call for regime change. Despite repeated violent crackdowns by the military and police, the demonstrations increased in size as many in the general public joined the students. During mass demonstrations on August 8, 1988, military forces killed more than 1,000 demonstrators. At a rally following this massacre Aung San Suu Kyi, the daughter of General Aung San, made her first political speech and assumed the role of opposition leader.

In September 1988, the military deposed Ne Win's Burmese Socialist Program Party (BSPP), suspended the constitution, and established a new ruling junta called the State Law and Order Restoration Council (SLORC). In an effort to "restore order," the SLORC sent the army into the streets to suppress the ongoing public demonstrations. An estimated additional 3,000 were killed, and more than 10,000 students fled into the hills and border areas.

The SLORC ruled by martial law until national parliamentary elections were held in May 1990. The results were an overwhelming victory for Aung San Suu Kyi's National League for Democracy (NLD) party, which won 392 of the 485 seats, even though she was under house arrest. However, the SLORC refused to honor the results and call the Parliament into session, and instead imprisoned many political activists.

The ruling junta changed its name to the State Peace and Development Council (SPDC) in 1997, but did not change its policy of autocratic control and repression of the democratic opposition. It continued to subject Aung San Suu Kyi to varying forms of detention and other restrictions on her movement, which it periodically lifted only to reinstate later. In 2000, the SPDC began talks with the political opposition led by Aung San Suu Kyi. These talks were followed by the release of political prisoners and some increase in political freedoms for the NLD. In May 2002, Aung San Suu Kyi was allowed to leave her home, and subsequently traveled widely throughout the country. On May 30, 2003, Aung San Suu Kyi and a convoy of her supporters were attacked by a group of government-affiliated thugs. Many members of the convoy were killed or injured, and others disappeared. Aung San Suu Kyi and other members of her party were detained, and the military government forcibly closed the offices of the NLD. Today, only the NLD headquarters in Rangoon is open, all the party's other offices remain closed, and Aung San Suu Kyi and NLD Vice Chairman U Tin Oo remain under house arrest.

In October 2004, hard-line members of the senior leadership consolidated their power by ousting Prime Minister Khin Nyunt and removing him and his allies from control of the government and military intelligence apparatus. In late November 2004, the junta announced it would release approximately 9,000 prisoners it claimed had been improperly jailed by Khin Nyunt's National Intelligence Bureau. Approximately 86 of those released had been imprisoned for their political beliefs. Those released since November 2004 include Min Ko Naing and Ko Ko Gyi, both key figures in the 1988 demonstrations. On July 6, 2005, authorities released 323 additional political prisoners and on January 3, 2007, the authorities released over 2,800 prisoners, of whom over 40 were political prisoners. Despite these releases, the regime's policy of imprisoning its critics has not changed. Over 1,100 political activists are held in prisons around the country.

The military regime has a contentious relationship with Burma's ethnic groups, many of which have fought for greater autonomy or secession for their regions since the country's independence. In 1948, only Rangoon itself was under the control of national government authorities. Subsequent military campaigns brought more and more of the nation under central government control. Since 1989, the regime has signed a series of cease-fire agreements with insurgent groups, leaving only a handful still in active opposition.

In November 2005, the ruling regime unexpectedly relocated the capital city from Rangoon to Nay Pyi Taw, further isolating the government from the public. Nay Pyi Taw is a sparsely populated district located approximately midway between Rangoon and Mandalay. Most government workers and ministries moved to Nay Pyi Taw over the following six months, but construction and development of the new administrative capital remains incomplete. Foreign diplomatic missions are still located in Rangoon.

GOVERNMENT AND POLITICAL CONDITIONS

The Union of Burma (or Myanmar as it is called by the ruling junta) consists of 14 states and divisions. Administrative control is exercised from the central government through a system of subordinate executive bodies and regional military commanders.

Power is centered on the ruling junta--the State Peace and Development Council, or SPDC--which maintains strict authoritarian rule over the people of Burma. The Prime Minister is appointed directly by the SPDC. Control is maintained through intimidation, the strict censuring of information, repression of individual rights, and suppression of ethnic minority groups.

The SPDC continues its harsh rule and systematic human rights abuses today, and insists that any future political transition be negotiated on its terms. It proclaimed a seven-step roadmap to democracy beginning with a National Convention process, purportedly to develop a new constitution and pave the way for national elections. However the regime restricts public input and debate and handpicks the delegates, effectively excluding pro-democracy supporters.

Although the SPDC changed the name of the country to "Myanmar," the democratically elected but never convened Parliament of 1990 does not recognize the name change, and the democratic opposition continues to use the name "Burma." Due to consistent support for the democratically elected leaders, the U.S. Government likewise uses "Burma."

Principal Government Officials
Chairman of the State Peace and Development Council--Senior General Than Shwe
Prime Minister--Gen. Soe Win
Minister of Foreign Affairs--U Nyan Win
Chargé d' Affaires, Burmese Embassy in the United States--U Myint Lwin
Ambassador to the United Nations--U Kyaw Tint Swe

Burma maintains an embassy to the United States at 2300 S Street NW, Washington, DC 20008, tel.: (202) 332-3344; fax: (202) 332-4351.

ECONOMY

Burma is a resource-rich country with a strong agricultural base. It also has vast timber, natural gas, and fishery reserves and is a leading source of gems and jade. Tourist potential remains undeveloped because of weak infrastructure and Burma's international image, which has been damaged by the junta's human rights abuses and oppression of the democratic opposition. Due to Burma's poor human rights record, the U.S. has imposed a range of trade sanctions, including bans on the importation of Burmese products into the U.S. and the export of financial services from the U.S. to Burma passed in 2003.

The regime's mismanagement of the economy has created a downward economic spiral. The state remains heavily involved in most parts of the economy, infrastructure has deteriorated, and no rule of law exists. The majority of Burmese citizens subsist on an average annual income of less than $200 per capita. Inflation, caused primarily by public sector deficit spending and the eroding value of the local currency (the kyat), have reduced living standards. The Asian Development Bank estimated in December 2006 that inflation in Burma could reach 30% in 2006-2007, in contrast with official estimates of 10%.

The military's commercial arms play a major role in the economy. The limited moves to a market economy have been accompanied by a significant rise in crony capitalism. A handful of companies loyal to the regime has benefited from policies that promote monopoly and privilege. State-controlled activity predominates in energy, heavy industry, and the rice trade. Agriculture, light industry, trade, and transport dominate the private sector.

Burma remains a primarily agricultural economy with 50% of GDP derived from agriculture, livestock and fisheries, and forestry. Manufacturing/industry constitutes only 15% of recorded economic activity, and state industries continue to play a large role in that sector. Trade and services constitute only 35% of GDP.

Foreign investment has declined precipitously since 1999 due to the increasingly unfriendly business environment and political pressure from Western consumers and shareholders. The government conserves foreign exchange by limiting imports and promoting exports. Published estimates of Burma's foreign trade (particularly on the import side) are greatly understated because of the large volume of off-book, black-market, illicit, and unrecorded border trade.

In the near term, growth will continue to be constrained by government mismanagement and minimal investment. A number of other countries, including member states of the European Union, Canada, and Australia have joined the United States in applying some form of sanctions against the regime.

Government economic statistics are unavailable and unreliable. According to official figures, GDP growth has been over 10% annually since FY 1999-2000. However, the rate is likely much smaller. Burma's limited economic growth results largely from its natural gas exports, which account for over half of Burma's export receipts and foreign direct investment. Natural gas exports will increase significantly once production begins from the offshore Shwe and Shwephyu Fields, estimated to hold 5.7-10 trillion cubic feet of natural gas. In 2005-2006, the oil and gas sector accounted for $69 million in foreign direct investment. Corporations based in China, India, South Korea, Thailand, and Malaysia have interests in the exploration and development of several offshore blocks.

Burma remains the world's second-largest producer of illicit opium--although it amounts to only 11% of the world's total. Annual production of opium is now estimated to be less than 20% of mid-1990 peak levels. Burma is also a primary source of amphetamine-type stimulants in Asia. Although the Burmese Government has expanded its counternarcotics measures in recent years, production and trafficking of narcotics and failure to adequately prosecute those involved remains a major problem in Burma.

FOREIGN RELATIONS

Although Burmese-Thai relations are generally cooperative, they have been tainted by a long history of border conflicts and sporadic hostilities over narcotics trafficking and insurgents operating along the Burmese-Thai border. Nonetheless, official and unofficial economic ties remain strong. In addition to the sizeable population of Burmese refugees it hosts, the Thai Government issues temporary work permits to another one million Burmese who live outside the refugee camps in Thailand. Despite their often-contentious history, Burma and China have grown much closer in recent years. China quickly is becoming Burma's most important partner, offering debt relief, economic development grants, and soft loans used for the construction of infrastructure and light industry. China also is purportedly Burma's major supplier of arms and munitions. Burma's commercial and military ties with India are also growing steadily as well.

The UN has made several efforts to address international concerns over human rights in Burma. The UN Secretary General's Special Envoy to Burma, Tan Sri Razali Ismail, resigned his position in December 2005 due to the regime's lack of cooperation. UN Commission on Human Rights Special Rapporteur Paulo Sergio Pinheiro has not been allowed to visit the country since 2003. Former UN Undersecretary General for Political Affairs Ibrahim Gambari visited Burma in May and November 2006 and after his trips briefed the UN Security Council on the situation in Burma. Burma was placed on the UN Security Council agenda in September 2006. In January 2007, the United States and the U.K. sponsored a UN Security Council resolution calling on Burma to cooperate with the UN Secretary General's good offices mission, open dialogue with the political opposition, stop its military offensive in Karen State, and to allow humanitarian organizations greater access to needy populations. The resolution received nine votes in favor, three abstentions, and three "no" votes, including from Russia and China. The Russian and Chinese vetoes blocked the resolution.

Burma is involved in the Asian Development Bank's (ADB) Program of Economic Cooperation in the Greater Mekong Sub-region. As such, it participates in regional meetings and workshops supported by the ADB. Burma joined ASEAN in 1997, and has participated in that regional forum, even hosting a number of seminars, conferences, and ministerial meetings. As one of ASEAN's least developed members, Burma also has an extra five years (until 2008) to comply with most of ASEAN Free Trade Agreement's liberalization requirements. Burma also is a member of the World Trade Organization.

Most Western foreign aid diminished in the wake of the regime's suppression of the democracy movement in 1988. The UN Development Programme's 2006 Human Development Report indicates that official development assistance totaled $121.1 million in 2004, roughly $2 per capita (compared with $47 per person in Laos and $35 per person in Cambodia). Burma receives grants of technical assistance (mostly from Asia), limited humanitarian aid and debt relief from Japan and China, and concessional loans from China and India.

Burma became a member of the International Monetary Fund (IMF) and World Bank in 1952, the International Financial Corporation (IFC) in 1956, the International Development Association (IDA) in 1962, and the ADB in 1973. Since July 1987, the World Bank has not made any loans to Burma. Since 1998 Burma has been in non-accrual status with the Bank. The IMF performs its mandated annual Article IV consultations, but there are no IMF assistance programs. The ADB has not extended loans to Burma since 1986. Bilateral technical assistance ended in 1988. Burma has not serviced its ADB loans since January 1998. Burma's total foreign debt now stands at over $7 billion.

U.S.-BURMESE RELATIONS

The United States has imposed broad sanctions against Burma under several different legislative and policy vehicles. The Burma Freedom and Democracy Act (BFDA), passed by Congress and signed by the President in 2003, includes a ban on all imports from Burma, a ban on the export of financial services to Burma, a freeze on the assets of certain Burmese financial institutions, and extended visa restrictions on Burmese officials. Congress has renewed the BFDA annually, most recently in July 2006.

In addition, since May 1997, the U.S. Government has prohibited new investment by U.S. persons or entities. A number of U.S. companies exited the Burma market even prior to the imposition of sanctions due to a worsening business climate and mounting criticism from human rights groups, consumers, and shareholders. The United States has also imposed countermeasures on Burma due to its inadequate measures to eliminate money laundering.

Due to its particularly severe violations of religious freedom, the United States has designated Burma a Country of Particular Concern (CPC) under the International Religious Freedom Act. Burma is also designated a Tier 3 Country in the Trafficking in Persons Report for its use of forced labor, and is subject to additional sanctions as a result.

The United States downgraded its level of representation in Burma from Ambassador to Chargé d'Affaires after the government's crackdown on the democratic opposition in 1988 and its failure to honor the results of the 1990 parliamentary election.

Principal U.S. Embassy Officials
Chargé d'Affaires-- Shari Villarosa
Deputy Chief of Mission--Karl Stoltz
Political/Economic Affairs Officer--Leslie Hayden
Public Affairs Officer--Todd Pierce
Consul--Lee McManis
Management Officer--Robert Bare

The U.S. Embassy in Burma is located at 581 Merchant Street, Rangoon (GPO 521) mailing address: Box B, APO AP 96546, tel: [95] (1) 379880; fax: [95] (1) 256018.

TRAVEL AND BUSINESS INFORMATION
The U.S. Department of State's Consular Information Program advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled "Health Information for International Travel" (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.

STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.

Revised: Jun. 2007

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