Myanmar

IV

Economy

Myanmar is primarily an agricultural country, and more than two thirds of the working population is engaged in growing or processing crops; before World War II the then Burma was the world’s foremost rice exporter. Industrial development, which was almost non-existent before World War II, accelerated in the 1960s and 1970s; around 10 per cent of the population now works in industry. From 1962 until 1988 the government of Burma attempted to develop the economy following a “Burmese way to socialism”, with most industries nationalized; the policy was a notable failure, and in recent years the economy has been opened to foreign investment, despite international reluctance to invest owing to Myanmar’s political climate. State enterprises continue to lose money, and there is a flourishing black economy and high inflation (fuelled by heavy military spending). Myanmar has been trying to encourage tourism as an extra source of foreign revenue, but success has been limited by international opposition to the ruling regime. The gross national product of Myanmar is about US$16,300 million (World Bank figure; 1989-1990 prices), or US$400 per capita. The estimated national budget in 2002 included about US$42,447 million in revenue and US$42,447 million in expenditure.

A

Agriculture, Forestry, and Fishing

About 15 per cent of the total land surface of Myanmar is suitable for farming; in the early 1990s, however, only a small portion of the arable land was under cultivation. The country is one of the leading rice producers in the world; 25.2 million tonnes of rice were harvested in 2006. Much rice is produced in the Irrawaddy delta. Other important crops, grown mainly on small farms in the central lowlands, are maize, cotton, peanuts, legumes, millet, nuts, sesame, sugar cane, and tobacco. A major, though illegal, export crop is opium, with production estimated at 2,560 tonnes in 1996; Myanmar ranks as the world’s second largest opium producer.

The forests of Myanmar are an important source of wealth, especially in teak and natural rubber. In 2006 timber roundwood removals amounted to about 42.5 million cu m (1,503 million cu ft). Important tree products, in addition to rubber, are quinine and catechu, or cutch, the source of a dye.

Fish are caught for local consumption and are a main source of protein in the diet. Freshwater fish are preferred, but the government is now encouraging salt-water fishing. In 2005 the total catch was estimated at about 2,217,466 tonnes.

B

Mining

Myanmar has a rich and varied supply of minerals. Most of the mines are located in the mountainous areas in the west and along the Tenasserim coast. Such precious stones as jade, rubies, and sapphires are mined, as are copper, nickel, silver, lead, and zinc. In 2004, about 5.48 million barrels of crude oil were produced. Mineral production in 2004 also included silver (1 tonnes), lead (500 tonnes), zinc (200 tonnes), and copper (31,756 tonnes). Large deposits of natural gas and iron ore have also been found.

C

Manufacturing

Rice-milling and the processing of agricultural products are the chief manufacturing enterprises. In order to spur the industrial sector of the economy, the government has started a steel mill, a jute mill, a brick and tile factory, and other plants. Timber mills, oil refineries, sugar refineries, plants for extracting vegetable oils, flour mills, and cotton mills are also in operation. In 1995-1996 manufacturing output included 67,600 tonnes of sugar, 524,000 tonnes of cement, and 16,800 tonnes of cotton yarn.

D

Energy

Myanmar has great potential for producing hydroelectricity, and in 2003 about 37 per cent of its electricity was produced by hydroelectric facilities. Most of the rest was generated by thermal plants using coal or refined oil. In 2003 the country’s output was some 7.4 billion kWh.