INTRODUCTION: "When Myanmar (then known as Burma) attained its independence in 1948, international agencies identified it as one of the most promising regional candidates for economic take off. Its modern technical and university education system, high rate of literacy, well trained civil service and a cadre of educated middle class, basic infrastructure, and a well run legal system were considered as good ingredients for Myanmar?s expected take off. In the 1950s, Myanmar?s gross domestic product (GDP) was growing consistently at an annual average rate of over 4 per cent, in contrast with the chequered performance of its neighbours. In the early 1960s, the country was poised for labour intensive industrialization with a number of textile and consumer product firms manufacturing export quality goods. Then came the putsch and the socialist revolution, followed by stagnation and decline. Twenty six years passed before Myanmar finally erupted and the change to market economy was forcibly brought in. Myanmar is now in the throes of the struggle for modernization and change. With the military still holding on to the reins of power on the one hand and the contending democratic opposition and the ethnic groups with diverse claims and interests on the other, Myanmar has not come out of its pains of growing up, to meet the challenges of the outside world. This paper will review significant developments and changes in 1993 and re examine the complex of situations influencing its sluggish economic performance and the equally slow rate of political transformation. Myanmar?s problems and prospects for long term development and modernization are also analysed."