Changes

===Relations with China===

===Relations with China===

China has provided Burma with substantial military, economic, and infrastructure development assistance. According to a reported internal Department of Defense (DOD) document, China is building naval bases in Burma that will give China its

China has provided Burma with substantial military, economic, and infrastructure development assistance. According to a reported internal Department of Defense (DOD) document, China is building naval bases in Burma that will give China its

only access to the Indian Ocean.<ref>[http://www.kachinpost.com/article2005/jan18.html China Builds up Strategic Sea Lanes], ''[[Washington Times]]'', January 18, 2005. Retrieved from the Kachin Post, October 12, 2007.</ref> These close relations are one explanation for why the People's Republic of China, on January 12, 2007, vetoed a U.S.-sponsored U.N. Security Council resolution criticizing Burma’s [[human rights]] record. The veto was only the fifth that China has ever exercised in the [[U.N. Security Council]].

only access to the Indian Ocean.<ref>[http://www.kachinpost.com/article2005/jan18.html China Builds up Strategic Sea Lanes], ''[[Washington Times]]'', January 18, 2005. Retrieved from the Kachin Post, October 12, 2007.</ref> These close relations are one explanation for why the People's Republic of China, on January 12, 2007, vetoed a U.S.-sponsored U.N. Security Council resolution criticizing Burma's [[human rights]] record. The veto was only the fifth that China has ever exercised in the [[U.N. Security Council]].

==Economy==

==Economy==

Burma is a resource-rich country with a strong agricultural base. It also has vast timber, natural gas, and fishery reserves and is a leading source of gems and jade. Tourist potential remains undeveloped because of weak infrastructure and Burma's international image, which has been damaged by the junta's human rights abuses and oppression of the democratic opposition. Due to Burma's poor human rights record, the U.S. has imposed a range of trade sanctions, including bans on the importation of Burmese products into the U.S. and the export of financial services from the U.S. to Burma, passed in 2003.  

Burma is a resource-rich country with a strong agricultural base. It also has vast timber, natural gas, and fishery reserves and is a leading source of gems and jade. Tourist potential remains undeveloped because of weak infrastructure and Burma's international image, which has been damaged by the junta's human rights abuses and oppression of the democratic opposition. Due to Burma's poor human rights record, the U.S. has imposed a range of trade sanctions, including bans on the importation of Burmese products into the U.S. and the export of financial services from the U.S. to Burma, passed in 2003.  

The regime's mismanagement of the economy has created a downward economic spiral. The state remains heavily involved in most parts of the economy, infrastructure has deteriorated, and no rule of law exists. The majority of Burmese citizens subsist on an average annual income of less than $200 per capita. Inflation, caused primarily by public sector deficit spending and the eroding value of the local currency (the kyat), has reduced living standards. The Asian Development Bank estimated in December 2006 that inflation in Burma could reach 30% in 2006-2007, in contrast with official estimates of 10%.  

The regime's mismanagement of the economy has created a downward economic spiral. The state remains heavily involved in most parts of the economy, infrastructure has deteriorated, and no rule of law exists. The majority of Burmese citizens subsist on an average annual income of less than $200 per capita. Inflation, caused primarily by public sector deficit spending and the eroding value of the local currency (the kyat), has reduced living standards. The Asian Development Bank estimated in December 2006 that inflation in Burma could reach 30% in 2006–2007, in contrast with official estimates of 10%.  

The military's commercial arms play a major role in the economy. The limited moves to a market economy have been accompanied by a significant rise in crony capitalism. A handful of companies loyal to the regime have benefited from policies that promote monopoly and privilege. State-controlled activity predominates in energy, heavy industry, and the rice trade. Agriculture, light industry, trade, and transport dominate the private sector.  

The military's commercial arms play a major role in the economy. The limited moves to a market economy have been accompanied by a significant rise in crony capitalism. A handful of companies loyal to the regime have benefited from policies that promote monopoly and privilege. State-controlled activity predominates in energy, heavy industry, and the rice trade. Agriculture, light industry, trade, and transport dominate the private sector.  

In the near term, growth will continue to be constrained by government mismanagement and minimal investment. A number of other countries, including member states of the European Union, Canada, and Australia have joined the United States in applying some form of sanctions against the regime.  

In the near term, growth will continue to be constrained by government mismanagement and minimal investment. A number of other countries, including member states of the European Union, Canada, and Australia have joined the United States in applying some form of sanctions against the regime.  

Government economic statistics are unavailable and unreliable. According to official figures, GDP growth has been over 10% annually since FY 1999-2000. However, the rate is likely much smaller. Burma's limited economic growth results largely from its natural gas exports, which account for over half of Burma's export receipts and foreign direct investment. Natural gas exports will increase significantly once production begins from the offshore Shwe and Shwephyu Fields, estimated to hold 5.7-10 trillion cubic feet of natural gas. In 2005-2006, the oil and gas sector accounted for $69 million in foreign direct investment. Corporations based in China, India, South Korea, Thailand, and Malaysia have interests in the exploration and development of several offshore blocks.  

Government economic statistics are unavailable and unreliable. According to official figures, GDP growth has been over 10% annually since FY 1999–2000. However, the rate is likely much smaller. Burma's limited economic growth results largely from its natural gas exports, which account for over half of Burma's export receipts and foreign direct investment. Natural gas exports will increase significantly once production begins from the offshore Shwe and Shwephyu Fields, estimated to hold 5.7-10 trillion cubic feet of natural gas. In 2005–2006, the oil and gas sector accounted for $69 million in foreign direct investment. Corporations based in China, India, South Korea, Thailand, and Malaysia have interests in the exploration and development of several offshore blocks.  

Burma remains the world's second-largest producer of illicit opium—although it amounts to only 11% of the world's total. Annual production of opium is now estimated to be less than 20% of mid-1990 peak levels. Burma is also a primary source of amphetamine-type stimulants in Asia. Although the Burmese Government has expanded its counternarcotics measures in recent years, production and trafficking of narcotics and failure to adequately prosecute those involved remains a major problem in Burma.

Burma remains the world's second-largest producer of illicit opium—although it amounts to only 11% of the world's total. Annual production of opium is now estimated to be less than 20% of mid-1990 peak levels. Burma is also a primary source of amphetamine-type stimulants in Asia. Although the Burmese Government has expanded its counternarcotics measures in recent years, production and trafficking of narcotics and failure to adequately prosecute those involved remains a major problem in Burma.