Burma Economic Development

Question 1

From which year to which year was U Nu’s third way economy

Answer 1

1948-62

Question 2

Upon independence, how was the state of 1. Natural resources and 2. Literacy rate

Answer 2

• Abundant natural resources
• high literacy rate (colonial education)

Question 3

From which year to which year did Burma pursue the Burmese way to socialism, leading it its economic decline

Answer 3

1962-1988

Question 4

In what year did Ne Win military pursue economic autarky

Answer 4

1962

Question 5

What was the SLORC, and when did it take over

Answer 5

State law and order restoration council (military) - 1988

Question 6

Is it true that the importance of the primary industry in its GDP had not decreased through the 1990s

Answer 6

True

Question 7

What was Burma a major exporter of pre-war (3)

Answer 7

Rice, lumber, oil

Question 8

Who dominated the financial sector, and why

Answer 8

Chettiars, money lenders for peasants who had borrowed during the Great Depression using land as collateral due to plunging commodity prices

Question 9

What did the dominance of the chettiars and resentment towards them lead to, when did the event occur

Answer 9

Saya san rebellion (1930-31)

Question 10

Why did the Burmese choose to adopt an ultra nationalistic policy

Answer 10

Resentment (deep and entrenched) generated by foreign domination of the economy

Question 11

In what 2 ways was Burma impacted by the world war

Answer 11

1. Swift Japanese occupation
2. Protracted allied reconquest from 1944-45

Question 12

What was the meaning of “pyidawtha” and its ideology, what was it part of

Answer 12

Land of happiness, part of U Nu’s economic plan in 1952, undergirded by Buddhism principles

Question 13

When was the economic planning board (EPB) established, and what was its main motive

Answer 13

1947, focus on Agro-based industrial economy

Question 14

What did the government do from the EPB with regards to land for peasants

Answer 14

Reallocated 10 million acres of land to new owners by 1955

Question 15

What role did the military play in independence

Answer 15

Central role

Question 16

Why did the pyidawtha plan fail (5)

Answer 16

1. SAMB (state Agri marketing board) purchased rice from farmers below global price to export - farmers had lack of profit motive
2. Slump in global price of rice (1955-56)
3. Lack of funds due to destruction from war
4. Large scale migration of Indians away - lack of technical personnel
5. Land reform programme poorly implemented

Question 17

When did Burmese GDP finally reach pre-war levels

Answer 17

1958-59

Question 18

What role did the state play during Ne Win’s socialist economy

Answer 18

Dominance in pursuing nationalism

Question 19

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

Answer 19

Socialist, state, central planning, state ownership of all sectors, priority given to development of an import substitution industrial base

Question 20

By which month of which year would all major industries be nationalised under Ne Win

Answer 20

June, 1963

Question 21

Which industry was emphasised by the government during Ne Win’s Burmese economy (Agri or manufacturing)

Answer 21

Manufacturing/ heavy industry

Question 22

From 1962 to 1973, how much did state investment in manufacturing sector rise by

Answer 22

25%

Question 23

Under which law of which year was land allocated by the government through the agrarian committee to peasants

Answer 23

Tenancy law (1963)

Question 24

What was the emphasis of agricultural policies under Ne Win on, did it succeed, and why or why not

Answer 24

• 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

Question 25

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

Answer 25

1.5mil to 200k tons - struggle for self reliance, with more rice production kept for domestic consumption

Question 26

Compare the balance of trade position between 1962 and 1972, how much were the surpluses/deficits (hint, same number)

Answer 26

1962: surplus of 230mil 1972: deficit of 230mil

Question 27

How did the stagnation of the agricultural sector impact the other sectors

Answer 27

- lack of foreing exchange due to drastic decrease in export and export revenue - heavy industries unable to import the parts and machinery needed

Question 28

Which law enabled state control of all economic activities and resources, and in which year (name is quite long), what did this lead to

Answer 28

Law to invest powers to construct the socialist economy, 1965 - thriving black market as a result of government domination

Question 29

How did Burmese cutting off international trade compare to other SEA countries, and how did that affect their economic decline

Answer 29

Contrast to other SEA economies pushing for export policies - decreased export earnings further exacerbated economic decline

Question 30

Overseas trade fell in 1971-72 to ___% of what it was in 1961-62

Answer 30

37%

Question 31

How was economic nationalism pursued (broadly speaking) with regards to the ethnic communities

Answer 31

- eliminated the role of the Chinese and Indians

Question 32

In what year was the 2nd 4 year plan implemented, which sector (industrial or agricultural, public or private) did it prioritise

Answer 32

1974, agricultural sector prioritised + private sector and foreign investment

Question 33

What was the GDP growth rate target of the 2nd 4 year plan, did it succeed

Answer 33

4.5% GDP growth rate average, exceeded by a 6+% average growth rate

Question 34

Only how many of 40,000 private enterprises under the 2nd 4 year plan employed more than 50 workers

Answer 34

13

Question 35

When and how did the government attempt to counter the black market, was it effective and why/why not

Answer 35

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)

Question 36

Why was Burmese currency kept in denominations of 9 during Ne Win’s time

Answer 36

9 was his lucky number, purely superstitious

Question 37

What did the devaluation of the various currency denominations from 1985 to 1987 culminate in (an event, then political impact)

Answer 37

1988 8888 uprising, Ne win’s removal as leader of the country, taken over by SLORC

Question 38

What percentage of the economy was contributed by the agricultural sector in 1990

Answer 38

57%

Question 39

When was the new SLORC government formed

Answer 39

1988

Question 40

What percentage of Burma’s export earnings in 1986-87 had to be used to service foreign debt

Answer 40

80%

Question 41

What law was passed in 1988 to promote foreign investment

Answer 41

Foreign investment law (foreign investors required to hold min. 35% stake

Question 42

When did Burma join ASEAN

Answer 42

1957

Question 43

By the end of 1997, what percentage of large firms were privately owned

Answer 43

5%

Question 44

Was the impact of the AFC significant or minimal? Why so?

Answer 44

No. Small, closed economy, without same vulnerabilities as other export-oriented neighbours

Question 45

How much did rice exports increase by from 1989 to 1994

Answer 45

180k to 1mil tons

Question 46

Why were people unwilling to visit Burma as a tourist destination in the 1990s

Answer 46

Dismal human rights record

Question 47

What 2 governments ruled Burma

Answer 47

1. Third way (U Nu) 2. Socialist (Ne Win)

Question 48

Why did the foreign investment law fail (2 reasons)

Answer 48

- majority still state monopolies - brutality of the SLORC regime — sanctioned by western countries, businesses not confident to set up

Question 49

Why was an initial focus on heavy industry not suitable (2)

Answer 49

- not feasible in an agrarian economy without an industrial base - lack of capital imports due to shortage of foreign trade and exchange

Question 50

What were the 3 limitations to government strategies used

Answer 50

1. Inherent contradiction with socialist development strategies (heavy industry vs agriculture) 2. Abscence of international trade 3. Political stability, investment climate

Question 51

How was Burma an equitable society (stat)

Answer 51

In 1972 the top 25% made just 5x more than bottom 25%

Question 52

What did the first congress of the BSPP in 1971 consist of discussing (4 points)

Answer 52

1. Agriculture prioritised over heavy industry 2. Prioritisation of production of consumer goods 3. Profit motive through performance bonuses 4. Foreign assistance

Question 53

What were the shortcomings of the government that lead to economic failure overall (4 points)

Answer 53

1. Excessive intervention in all economic activities 2. Poorly conceived intervention (lack of economic expertise resulted in poor policies and implementation) 3. Mismanagement of foreign aid 4. Brutal suppression of domestic opposition — opposed by foreign governments (SLORC)