Burma Economic Development Flashcards
From which year to which year was U Nu’s third way economy
1948-62
Upon independence, how was the state of 1. Natural resources and 2. Literacy rate
- Abundant natural resources
- high literacy rate (colonial education)
From which year to which year did Burma pursue the Burmese way to socialism, leading it its economic decline
1962-1988
In what year did Ne Win military pursue economic autarky
1962
What was the SLORC, and when did it take over
State law and order restoration council (military) - 1988
Is it true that the importance of the primary industry in its GDP had not decreased through the 1990s
True
What was Burma a major exporter of pre-war (3)
Rice, lumber, oil
Who dominated the financial sector, and why
Chettiars, money lenders for peasants who had borrowed during the Great Depression using land as collateral due to plunging commodity prices
What did the dominance of the chettiars and resentment towards them lead to, when did the event occur
Saya san rebellion (1930-31)
Why did the Burmese choose to adopt an ultra nationalistic policy
Resentment (deep and entrenched) generated by foreign domination of the economy
In what 2 ways was Burma impacted by the world war
- Swift Japanese occupation
- Protracted allied reconquest from 1944-45
What was the meaning of “pyidawtha” and its ideology, what was it part of
Land of happiness, part of U Nu’s economic plan in 1952, undergirded by Buddhism principles
When was the economic planning board (EPB) established, and what was its main motive
1947, focus on Agro-based industrial economy
What did the government do from the EPB with regards to land for peasants
Reallocated 10 million acres of land to new owners by 1955
What role did the military play in independence
Central role
Why did the pyidawtha plan fail (5)
- SAMB (state Agri marketing board) purchased rice from farmers below global price to export - farmers had lack of profit motive
- Slump in global price of rice (1955-56)
- Lack of funds due to destruction from war
- Large scale migration of Indians away - lack of technical personnel
- Land reform programme poorly implemented
When did Burmese GDP finally reach pre-war levels
1958-59
What role did the state play during Ne Win’s socialist economy
Dominance in pursuing nationalism
What was the Burmese way to socialism:
A ____ economic policy dominated by the ____, based on _______ and _______ ownership of ___ sectors, with priority given to development of an _____ (isi/eoi) industrial base
Socialist, state, central planning, state ownership of all sectors, priority given to development of an import substitution industrial base
By which month of which year would all major industries be nationalised under Ne Win
June, 1963
Which industry was emphasised by the government during Ne Win’s Burmese economy (Agri or manufacturing)
Manufacturing/ heavy industry
From 1962 to 1973, how much did state investment in manufacturing sector rise by
25%
Under which law of which year was land allocated by the government through the agrarian committee to peasants
Tenancy law (1963)
What was the emphasis of agricultural policies under Ne Win on, did it succeed, and why or why not
- introduction of technology in agriculture to raise productivity and increase production
- did not succeed
- loans were still provided based on necessity and equity rather than productivity
From 1962 to 1973, from how to how much did rice exports fall by (hint, from 1mil + to few hundred k), what does this show
1.5mil to 200k tons
- struggle for self reliance, with more rice production kept for domestic consumption
Compare the balance of trade position between 1962 and 1972, how much were the surpluses/deficits (hint, same number)
1962: surplus of 230mil
1972: deficit of 230mil
How did the stagnation of the agricultural sector impact the other sectors
- lack of foreing exchange due to drastic decrease in export and export revenue
- heavy industries unable to import the parts and machinery needed
Which law enabled state control of all economic activities and resources, and in which year (name is quite long), what did this lead to
Law to invest powers to construct the socialist economy, 1965
- thriving black market as a result of government domination
How did Burmese cutting off international trade compare to other SEA countries, and how did that affect their economic decline
Contrast to other SEA economies pushing for export policies
- decreased export earnings further exacerbated economic decline
Overseas trade fell in 1971-72 to ___% of what it was in 1961-62
37%
How was economic nationalism pursued (broadly speaking) with regards to the ethnic communities
- eliminated the role of the Chinese and Indians
In what year was the 2nd 4 year plan implemented, which sector (industrial or agricultural, public or private) did it prioritise
1974, agricultural sector prioritised + private sector and foreign investment
What was the GDP growth rate target of the 2nd 4 year plan, did it succeed
4.5% GDP growth rate average, exceeded by a 6+% average growth rate
Only how many of 40,000 private enterprises under the 2nd 4 year plan employed more than 50 workers
13
When and how did the government attempt to counter the black market, was it effective and why/why not
1985, changed legal tender and required large sums of money to be justified, not effective (smaller sums could still be exchanged amongst black market traders)
Why was Burmese currency kept in denominations of 9 during Ne Win’s time
9 was his lucky number, purely superstitious
What did the devaluation of the various currency denominations from 1985 to 1987 culminate in (an event, then political impact)
1988 8888 uprising, Ne win’s removal as leader of the country, taken over by SLORC
What percentage of the economy was contributed by the agricultural sector in 1990
57%
When was the new SLORC government formed
1988
What percentage of Burma’s export earnings in 1986-87 had to be used to service foreign debt
80%
What law was passed in 1988 to promote foreign investment
Foreign investment law (foreign investors required to hold min. 35% stake
When did Burma join ASEAN
1957
By the end of 1997, what percentage of large firms were privately owned
5%
Was the impact of the AFC significant or minimal? Why so?
No. Small, closed economy, without same vulnerabilities as other export-oriented neighbours
How much did rice exports increase by from 1989 to 1994
180k to 1mil tons
Why were people unwilling to visit Burma as a tourist destination in the 1990s
Dismal human rights record
What 2 governments ruled Burma
- Third way (U Nu)
- Socialist (Ne Win)
Why did the foreign investment law fail (2 reasons)
- majority still state monopolies
- brutality of the SLORC regime — sanctioned by western countries, businesses not confident to set up
Why was an initial focus on heavy industry not suitable (2)
- not feasible in an agrarian economy without an industrial base
- lack of capital imports due to shortage of foreign trade and exchange
What were the 3 limitations to government strategies used
- Inherent contradiction with socialist development strategies (heavy industry vs agriculture)
- Abscence of international trade
- Political stability, investment climate
How was Burma an equitable society (stat)
In 1972 the top 25% made just 5x more than bottom 25%
What did the first congress of the BSPP in 1971 consist of discussing (4 points)
- Agriculture prioritised over heavy industry
- Prioritisation of production of consumer goods
- Profit motive through performance bonuses
- Foreign assistance
What were the shortcomings of the government that lead to economic failure overall (4 points)
- Excessive intervention in all economic activities
- Poorly conceived intervention (lack of economic expertise resulted in poor policies and implementation)
- Mismanagement of foreign aid
- Brutal suppression of domestic opposition — opposed by foreign governments (SLORC)
