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Economy tied to politics in Burma



Asahi Evening News
June 20 1996.

Economy tied to politics in Burma
--------------------------------
Reuter
Rangoon - Burma's ruling generals are not likely to pull their economy
	out of the doldrums until the precarious domestic political
situation stabilizes and national reconcilation is achieved, economists
and analysts say. The military government, dogged for years by Burma's
status as a "least developed nation", has brought improvements to the 
country in its eight years of power through various liberalization
policies. But there is still some way to go for Burma to attain a healthy
economy, they say. "The government's ongoing economic reform program has 
changed many facets of the Myanmar ( Burmese ) economy," the World Bank
says in its latest report on the country.
	However...the pace of economic growth is still not rapid enough
to compensate for the economic stagnation of the preceding quarter century,
and its sustainability is uncertain." Although the economy has growm at
about 6% annually over the past few years, inflation has soared to between
35%-45% and a stiffy overvalued official currency rate has also hurt the 
economy, economists say. Bloated military spending has further taxed the 
system by adding to high foreign debt and arrears on debt servicing.
	Analysts say most of the problems stem from mismanagement and ad 
hoc economic policies implemented during steady military rule since 1962,
causing resource-rich Burma to lose its economic might."The form of 
government is the central problem of their economy," one foreign analyst
noted. "They don't know macro-economics, they don't see the big picture,"
said a local economist who used to work for the government. "The way they 
are going right now is the way to hyperinflation."