Myanmar

F

Energy

Myanmar, like Laos, has a great potential for producing hydroelectricity; in 2006 some 55 percent of its electricity (3.3 billion kilowatt-hours) was from hydroelectric plants. The remainder of Myanmar’s electricity is produced by thermal plants using natural gas, diesel fuel, or coal.

G

Tourism

The tourism industry in Myanmar has attracted funds from investors in volume second only to oil exploration. Investors from Thailand and Singapore are constructing world-class hotels and restoring airline connections. In 1989 the government loosened visa restrictions, allowing tourists on package tours to stay in the country for up to two weeks. However, the government restricts tourists to officially approved sites. In 2007, 248,000 tourists visited Myanmar, a substantial increase over the annual number of tourists that visited in the years prior to 1988. Although tourism is Myanmar’s leading source of foreign exchange, the political climate in the country has hindered any efforts to promote tourism there.

H

Foreign Trade

All foreign trade is controlled by the government, but since 1990 firms have been able to directly participate in trade. By making cross-border trade with China, Thailand, and India legal, the government has been able to collect more taxes and lessen black market trade with Thailand by rebel groups. Since the exchange rate for the official currency is high and a number of regulations remain, much illegal trade still takes place. In 2007 exports were valued at $6.49 billion. Exports typically consist of beans, rice, and teak and other hardwoods. The United States, India, China, Japan, Singapore, Germany, and France are the main purchasers.

Imports are mainly machinery, transportation equipment, chemicals, and food. In 2007 they totaled $3.1 billion. Singapore, China, Malaysia, South Korea, Japan, and Indonesia are the primary suppliers. In 1991 the United States and the member nations of the European Union (EU) imposed trade sanctions against Myanmar in response to alleged human rights violations. Strong, additional trade sanctions were imposed by the United States in 1997, again in response to human rights abuses by Myanmar’s military government. The sanctions restricted new investment in Myanmar by U.S. companies. In 2000 the EU also increased sanctions against Myanmar. The United States again tightened sanctions following a brutal crackdown on antigovernment protesters in 2007. Meanwhile, Myanmar expanded trade with its Asian neighbors, especially member states of the Association of Southeast Asian Nations (ASEAN).

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I

Currency and Banking

The unit of currency is the kyat (5.60 kyats equal U.S.$1; 2007 average), which is divided into 100 pya. The black market rate in 1995 was 100 to 120 kyats to the U.S. dollar. A dual currency system allows foreign exchange certificates to be used for some transactions. An increase in the printing of currency to pay for urban reconstruction and beautification has contributed to a high inflation rate. In addition to the Central Bank of Myanmar (founded in 1990), the government operates a number of specialized banks. Foreign banks also operate in Myanmar in a limited capacity.

J

Transportation

The railroad system has been owned and operated by the government since British times; it includes 3,955 km (2,458 mi) of track. The railroad links Moulmein, Yangon, Pegu, Mandalay, and the other major cities but does not connect with railroads outside of Myanmar. Far more important for moving domestic passengers and cargo are the inland waterways, which total about 12,800 km (about 8,000 mi) of navigable rivers and canals, about 3,200 km (about 2,000 mi) of which are open to large commercial vessels. Most of Myanmar’s larger towns and cities are river ports; Yangon and Pegu are near the mouths of the Irrawaddy River, Bassein is on one of the mouths of the Irrawaddy, Mandalay is on the upper Irrawaddy near the branching of the Chindwin River, and Moulmein is located at the mouth of the Salween River.

There are 27,966 km (17,377 mi) of roads in Myanmar, of which 11 percent are paved, two-thirds are gravel, and the rest passable most easily by jeep or ox cart. In the 1990s the government focused considerable energy on reconstructing roads, often with volunteer or forced labor. There are extensive road links and several bridge links with Thailand and China. The Burma Road, which extended from northeast of Mandalay into China, played an important role in World War II.

Myanmar Airways, the government-owned airline, has international service from Yangon to Hong Kong, Bangkok, and Kolkata. Other international carriers provide direct flights to Mandalay and the tourist site at Pagan. Domestic flights have also been modernized by joint ventures with Singapore companies.

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