The Burmese Way to Socialism beyond the Welfare State

Abstract

In some countries with a colonial heritage option for socialism has been made under impact of nationalism and demonstration effect of Sino-Soviet model of economic growth. The choice is made on grounds of both equity in income distribution and relative efficiency of a planned socialist economy over capitalist one. An ideological aversion to capitalism, born out of experiences under colonial rule and sociopolitical indignation over potential threat of alien economic intrusion, has been sin quo non for adopting socialism of evolutionary and revolutionary type. The statism of socialism not only seems to fit political nationalism but also provides psychic income derived from discrimination against aliens in general.' The general preference for state enterprises and public ownership of means of production, a common phenomenon of development planning in many underdeveloped countries, is an aspect of modernization that cannot be dissected solely with respect to its economic or noneconomic aspects. This article, however, does not concern itself with political and ethical justification of the Burmese Way to Socialism, but rather with its economic effects. At outset it must be noted that sources of statistical data and information on functioning of Burmese economy since 1962 are rather limited and unreliable. It is essential, however, to record and analyze series of economic actions taken by military government. With that in mind, this study will scrutinize economic effects of Burmese experiment with a command economy. The main hypothesis of this study is that a simple transfer of ownership and control of resources from private to public sector in