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Burma
Pyidaungzu Myanma Naingngandaw
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Foreign Relations - Burma

During the Cold War, Burmese foreign policy was grounded in principles of neutrality, often tending toward xenophobia. Since 1988, however, Burma has been less xenophobic, attempting to strengthen regional ties. It now is a member of the Association of Southeast Asian Nations (ASEAN), Bangladesh, India, Myanmar, Sri Lanka, and Thailand Economic Cooperation (BIMSTEC), and several other regional organizations and initiatives. On July 26, 2005, Burma relinquished its scheduled 2006 assumption of the ASEAN chairmanship.

Burmese-Thai relations have been tainted by a long history of protracted border conflicts, sporadic hostilities over narcotics trafficking, Burmese insurgents operating along the Burmese-Thai border, and the large number of Burmese who cross the border to work illegally or claim refugee status. In fact, the Burmese Government closed the Burma-Thai border for several months during the summer of 2002. However, official and unofficial economic ties between the two nations are significant, and the current Thai and Burmese Governments seem eager to reach a new, more cooperative, level in their bilateral relations. Despite their often-contentious history, Burma and China have grown closer in recent years, though most Burmese remain suspicious of China's economic influence. China is quickly becoming Burma's most important partner, offering debt relief, economic development grants, and soft loans used for the construction of infrastructure and light industry. China also is purportedly Burma's major supplier of arms and munitions. Burmaís ties with India are also growing.

In 2004, the junta continued to refuse requests by UN Secretary General Kofi Annanís Envoy Razali Ismail and the UN Commission on Human Rights Special Rapporteur for Human Rights Paulo Sergio Pinheiro to visit the country.

Burma is involved in the Asian Development Bank's (ADB) Program of Economic Cooperation in the Greater Mekong Subregion. As such, it participates in regional meetings and workshops supported by the ADB. Burma joined ASEAN in 1997, and has participated in that regional forum, even hosting a number of seminars, conferences, and ministerial meetings. Due to difficulties in reforming its economic and trading system, Burma has requested extensions on compliance with the ASEAN Free Trade Agreement (AFTA). As one of ASEAN's least developed members, Burma also has an extra five years (until 2008) to comply with most of AFTA's liberalization requirements. Burma also is a member of the World Trade Organization.

Most Western foreign aid ceased in the wake of the suppression of the democracy movement in 1988. The World Bank reports that aid now represents only about $2 per capita (compared with $53 per person in Laos and $33 per person in Cambodia). According to the United Nations, official development assistance totaled only $76 million in 2000. Burma receives grants of technical assistance (mostly from Asia), limited humanitarian aid and debt relief from Japan and China, and concessional loans from China and India.

Burma became a member of the International Monetary Fund (IMF) and World Bank in 1952, the International Financial Corporation (IFC) in 1956, the International Development Association (IDA) in 1962, and the ADB in 1973. Since July 1987, the World Bank has not made any loans to Burma. Since 1998 Burma has been in non-accrual status with the Bank. The IMF performs its mandated annual Article IV consultations, but there are no IMF assistance programs. The ADB has not extended loans to Burma since 1986. Technical assistance ended in 1988. Burma has not paid its loan service payments to the ADB since January 1998. Burma's total foreign debt now stands at over $6 billion.



This page was last updated on 29 September, 2008

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