Burmese Socialism: Economic Problems of the First Decade

Abstract

Wl THEN THE BURMESE MILITARY seized power from the civilians in March i962 and established a revolutionary socialist government, a sense of relief prevailed in the harassed business community and among many foreign observers. Their expectations were derived from the order and discipline, combined with moderation in economic policy, which had previously been introduced by the military during the period of its temporary stewardship as a Caretaker Government in preparation for the national elections in i960. Although the Revolutionary Council's prompt policy declaration (The Burmese Way Socialism) stated its clear resolution to march unswervingly towards socialism, the rhetoric seemed merely echo the socialist aspirations which have been a universal aspect of Burma's modern political heritage.' The Revolutionary Council leaders rapidly demonstrated, however, that they were not content with a mere reiteration of the socialist prescription, as they shattered the hopes of the bourgeois community with sweeping measures of nationalization over the next several years. This article briefly examines the reasons for the sharp change in economic practice, the Revolutionary Government's unique economic objectives, and, by means of a study of the rice economy, the degree of success in achieving socialist goals during the first decade of the new regime. The Burmese economy in the early i960's was a disappointment of the optimistic expectations which existed at the time of independence. The faith in Burma's inherent natural wealth, coupled with the belief that the economic surplus under colonialism had been drained off in massive remittances India and England, contributed the notion that economic prosperity would be a corollary of independence. It was believed then that rapid rehabilitation of the economy was possible and the country could progress towards a welfare state with social justice and economic plenty for all citizens of the Union.2 The purely economic goals, however, were not