The Economy of Myanmar
The Burmese Way to Socialism
After a 1962 coup, General Ne Win nationalised industry and isolated the country, turning a once-prosperous rice exporter into a stagnant economy.
A costly experiment.
Pre-1962
Burma was the world’s largest rice exporter and one of Asia’s promising economies.
Nationalisation
Banks, trade and industry were taken over and foreign firms expelled.
Currency demonetisation
In 1987, the government withdrew certain notes without compensation, wiping out savings.
Decline
Growth stagnated, and the country was declared a least developed country.
A vanished savings
Overnight, banknotes became worthless, and families lost their savings.
Ignoring how policy can destroy prosperity
Isolation had a big cost.
Key takeaways
- Ne Win seized power in 1962.
- Industry was nationalised.
- Demonetisation wiped out savings.
- The economy stagnated.
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