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1.1 Introduction

Through British control and abolishment of the monarchy in 1885, Myanmar was ruled as part of the British Indian Empire until World War II and gained independence in 1948. Myanmar had a democratic Government between 1948 and 1962, however, through various upheavals, the military assumed the role of caretaker of the Government. After a period of socialist practices, policies were abandoned in 1988 and the State Law and Order Restoration Council (renamed the State Peace and Development Council) assumed control of the country.

Myanmar has 14 states, 64 districts, 324 townships, 2,470 wards and 13,747 villages.

1.2 Geography

Myanmar is located in South East Asia bordered on the north by the People's Republic of China, on the east and southeast by the Lao People's Democratic Republic and the Kingdom of Thailand on the south by the Andaman Sea and the Bay of Bengal and bordered on the west by the People's Republic of Bangladesh and the Republic of India. The total area of Myanmar is 677,000 square kilometers with a coastline from the mouth of the Naaf River to Kawthaung of approximately 1,930 kilometers.

Figure 2

Images: Myanmar's map

Source: Ministry of Foreign Affairs, Kingdom of Thailand

1.3 Socio-economic Profile

Demographics

Myanmar contains a diverse population of 135 different ethnic groups. Over 69% of the population is ethnic Bamar. Many of the ethnic groups live in highlands around the perimeter of the country and bordering Bangladesh, China, India, the Lao People's Democratic Republic, and Thailand. The major ethnic groups are Kachin, Kayah, Kayin (Karen), Chin, Mon, Rakhine, and Shan.

Due to its diverse population, numerous languages are spoken throughout Myanmar. The principal, and national language, is Myanmar, but English is also widely used in business and administration. At the local level, numerous ethnic groups tend to use their own languages.

Buddhism is practiced by the vast majority of the population comprising 89.3% while Christianity is practiced by 5.6% of the population, Islam comprises 3.8% and Hinduism accounts for 0.5% of population.

Population

The most recent census was held in 1983, with a recorded 35.31 million people. Current population estimates vary by different organizations, however, according to The Department of Population, the population of Myanmar is estimated at 52.17 million with an average growth rate of 2.02% as of October 2003, while the ESCAP Population Data Sheet estimates the population to be 50.1 million as of mid 2004. Males are estimated to constitute 25.94 million (49.72% of the total population) while females constitute 26.23 million (50.28% of the total population). According to Asian Development Bank, the vast majority of the population lives in rural areas accounting for approximately 75% of the total population.

Table 1
Population Estimates As of October 1, 2002 (in thousands)
Age Males % Females % Total %
0 - 4
3,148
12.1
3,070
11.7
6,218
11.9
5 - 9
2,873
11.1
2,881
11.0
5,754
11.0
10 - 14
2,611
10.1
2,473
9.4
5,084
9.7
15 - 19
2,484
9.6
2,310
8.8
4,794
9.2
20 - 24
2,376
9.2
2,291
8.7
4,667
8.9
25 - 29
2,189
8.4
2,169
8.3
4,358
8.4
30 - 34
1,981
7.6
2,022
7.7
4,003
7.7
35 - 39
1,761
6.8
1,834
7.0
3,595
6.9
40 - 44
1,503
5.8
1,580
6.0
3,083
5.9
45 - 49
1,260
4.9
1,337
5.1
2,597
5.0
50 - 54
1,021
3.9
1,093
4.2
2,114
4.1
55 - 59
817
3.1
890
3.4
1,707
3.3
60 - 64
657
2.5
741
2.8
1,398
2.7
65 +
1,260
4.9
1,539
5.9
2,799
5.4
Total
25,941
100.0
26,230
100.0
52,171
100.0
Gender Mix
 
49.7%
 
50.3%
   
Source:: Department of Population
Based on 1983 population census, 1991 population changes and fertility survey

Labor Force

A Labor Force Survey, by the Department of Labour, was conducted in 1990 and is the only current official data available. Males account for almost 70% of the total labor force while the vast majority of economic activity (over 70%) is conducted in rural areas. Unemployment figures from the Government indicate the number of unemployed at approximately 681,000 translating into an unemployment figure of 6%.

Table 2
Economically Active Population Labour Force Survey, 1990 (in thousands)
Location Male % Female % Total %
  Urban
2,025
25.9
1,060
29.9
3,085
27.2
  Rural
5,779
74.1
2,485
70.1
8,264
72.8
Total
7,804
100.0
3,545
100.0
11,349
100.0
Gender Mix
-
68.8
-
31.2
-
100.0
Total population aged 10 years and over
-
-
-
-
27,280
-
Employed Population
7,438
69.7
3,229
30.3
10,668
100.0
Unemployed Population
366
53.7
316
46.3
681
100.0
Unemployed Rate
-
4.9
-
9.8
6.0
-
Not in labor force
-
-
-
-
15,931
-
Source: Department of Labor
Economically active population does not include unpaid family workers
Table 3
Economically Active Population by Industry Labour Force Survey, 1990
(in thousands)
Industry Male % Female % Total %
  Agriculture
4,678.5
62.9
1,345.6
41.7
6,024.1
56.5
  Mining
89.8
1.2
11.9
0.4
101.7
1.0
  Manufacturing
708.1
9.5
504.3
15.6
1,212.4
11.4
  Electricity
18.9
0.3
-
0.0
18.9
0.2
  Construction
272.8
3.7
8.3
0.3
281.1
2.6
  Wholesale/Retail
712.7
9.6
974.0
30.2
1,686.7
15.8
  Transport
359.5
4.8
43.8
1.4
403.3
3.8
  Financial
21.1
0.3
7.4
0.2
28.5
0.3
  Community/Social
511.0
6.9
313.5
9.7
824.5
7.7
  Activities not defined
65.9
0.9
20.6
0.6
86.5
0.8
Total
7,438.3
100.0
3,229.4
100.0
10,667.7
100.0
Source:Department of Labor
Economically active population does not include unpaid family workers

Poverty Levels:

No information was available on the poverty levels within Myanmar as the Government does not have an official poverty line and therefore, estimates on poverty are rarely available.

Economic Indicators

Official data indicates that GDP grew by 11.1% for the fiscal year ending 31 March 2002 due in part to rapid growth in the agricultural and manufacturing sectors. Inflation increased to 56.8% by the end of 2002. The Kyat (currency of Myanmar) depreciated during the same period by approximately 70%.

Table 4
Gross Domestic Product At Current Producers' Prices
FY 2001 - 2002 (in millions)
Sectors Kyat US$ % of Sector % of Total
  Agriculture
1,735,950.1
261,355.6
72.8
-
  Livestock
259,939.6
39,135.2
10.9
-
  Forestry
17,823.2
2,683.4
0.7
-
  Energy
5,679.0
855.0
0.2
-
  Mining
10,440.4
1,571.9
0.4
-
  Processing/Manufacturing
273,893.8
41,236.0
11.5
-
  Electric Power
3,124.6
470.4
0.1
-
  Construction
76,668.5
11,542.8
3.2
-
Total Goods
2,383,519.2
358,850.2
100.0
67.6%
  Transport
179,289.8
26,992.9
63.1
-
  Communication
9,486.1
1,428.2
3.3
-
  Financial Services
3,231.5
486.5
1.1
-
  Social / Administrative
44,260.8
6,663.7
15.6
-
  Rental/Other Services
47,863.5
7,206.1
16.8
-
Total Services
284,131.7
42,777.4
100.0
8.1%
Total Trade Value
855,863.9
128,854.4
100.0
24.3%
Gross Domestic Product
3,523,514.8
530,482.0
-
100.0%
Note: Average 2002 foreign exchange rate: Kyat 6.6421:US$1
Source: Statistical Yearbook, 2002 Central Statistical Organization Planning Department

Budget

According to official data, the budget deficit decreased from 8.4% in FY2000 to 6.6% of GDP in FY2001. Expenditures were only available for the period ending 31 March 2000 and indicate that energy, trade and agriculture sectors consume that vast majority of the budget comprising over 50% of the total budget.

Table 5
Expenditures by Sector FY 1999 - 2000 (in millions)
Sector Kyat US$ %
  Energy
136,268.9
20,191.3
30.3
  Trade
61,779.7
9,154.0
13.7
  Agriculture
53,150.5
7,875.4
11.8
  Construction
37,095.8
5,496.6
8.2
  Industry
33,713.4
4,995.4
7.5
  Social Services
25,515.9
3,780.7
5.7
  Administration
25,151.6
3,726.8
5.6
  Finance
24,428.2
3,619.6
5.4
  Defense
19,279.5
2,856.7
4.3
  Transport
16,985.6
2,516.8
3.8
  Forestry
11,673.2
1,729.6
2.6
  Mines
3,634.6
538.5
0.8
  Livestock
1,641.7
243.3
0.4
  Development Committees
23.2
3.4
0.0
Total
450,341.8
66,728.2
100.0

Note: Average 2001 foreign exchange rate: Kyat 6.7489 : US$1
Source: Statistical Yearbook, 2002 Central Statistical Organization Budget Department

Imports

Imported products continue to outpace exports despite measures since 1998 to reduce the need for imported goods. Myanmar continues to rely on imports of machinery, vehicles and parts, edible oils, and other categories of goods. The opening of more border checkpoints along the borders with Thailand and China has resulted in a large influx of consumer products as well.

Table 6
Imports by Commodity FY 2001 - 2002 (in millions)
Commodity Kyat US$ %
  Machinery / Transport
5,110.1
769.4
27.8
  Manufactured Goods
4,548.1
684.7
24.7
  Mineral Fuels
3,839.2
578.0
20.9
  Chemicals
1,786.8
269.0
9.7
  Misc. Transactions
1,026.7
154.6
5.6
  Food
838.0
126.2
4.6
  Misc. Manufactured Articles
725.7
109.3
3.9
  Animal/Vegetable Oils
253.0
38.1
1.4
  Beverages and Tobacco
191.0
28.8
1.0
  Crude Materials
59.0
8.9
0.3
Total
18,377.7
2,766.8
100.0
Note: Average 2002 foreign exchange rate: Kyat 6.6421:US$1
Source: Statistical Yearbook 2002, Central Statistical Organization Customs Department
Figure 3

Imports by Country FY 2001 - 2002

Images: Pie Chart of Imports by Country Fy 2001 - 2002 Description
Source: Central Statistical Organization

Exports

Growth in export products, especially hardwoods, pulses, and fisheries, has helped boost export growth. Major export markets include Southeast Asia, which comprised approximately 45% of total exports during the fiscal 2001 - 2002 year. The rest of Asia comprised approximately 32% during the same period.

Table 7
Exports of Principal Commodities FY 2001 - 2002 (in millions)
Commodity Kyat US$ %
   Agricultural Products
3,021
455
17.6
   Animal Products
42
6
0.2
   Marine Products
861
130
5.0
   Timber
1,880
283
11.0
   Base Metal and Ores
288
43
1.7
   Precious and Semi-Precious Minerals
127
19
0.7
   Gas
4,247
639
24.8
   Garments
2,970
447
17.3
   Other
3,695
556
21.6
Total
17,131
2,579
100.0
Note: Average 2002 foreign exchange rate: Kyat 6.6421:US$1
Source : Statistical Yearbook, 2002, Central Statistical Organization Various government organizations
Figure 4

Exports by Country FY 2001 - 2002
Image:Pie Chart of Exports by COuntry FY 2001 - 2002 description
Source: Central Statistical Organization

1.4 Government

The Armed Forces took responsibility of the government in 1988 and formed the State Law and Order Restoration Council (now referred to as the State Peace and Development Council - SPDC) which is Chaired by Senior General Tan Shwe and comprises 19 top military officers. The Prime Minister, General Knin Nyunt was appointed by the SPDC in August 2003. The SPDC declared its intentions of creating a multi-party democratic State and held elections in May 1990 and convened a National Convention in January 1993 to draw up guidelines for the drafting of a new Constitution, which is still being considered.

The legislative branch of government is the unicameral People's Assembly (Pyithu Hluttaw) which holds 485 seats and its members are elected by popular vote for a four year period. The last elections were held in 1990, however the Assembly never convened. The Government is a member of the Association of South-East Asian Nations (ASEAN).

1.5 National Social Welfare System

The social security scheme was introduced in 1954. Employees in most occupations are covered by compulsory insurance, irrespective of the nature of work performed, including temporary. The Social Security Act of 1954 consists of two types of insurance, namely General Insurance, which includes sickness, maternity, death and Employment Injuries Insurance which includes temporary disability, permanent disability and survivor's pension. According to the Government there were 764, 900 registered insured people as of the end of 2002, of which 531,679 were actively insured (males comprised 302,776 and females comprised 228,903). Registered insured people were derived from over 25,060 establishments. Cash benefits include the following:

Sickness Benefit

Daily sickness cash benefits include approximately 50% of wages and are payable for a maximum period of 26 weeks.

Maternity Benefit

Daily maternity benefits include approximately 66.6% of wages which are payable for 6 weeks before and 6 weeks after confinement with a maximum duration of 26 weeks.

Funeral Grant

A funeral grant of Kyat1,000 for each insured person will be given to the surviving relative, or to any other person who incurs the expenses for the deceased worker's funeral, irrespective of the cause of death.

Temporary Disability Benefit

A temporary disability benefit is paid for a loss of earnings as a result of an employment accident. Approximately two thirds of the wages are payable as benefits for a duration of the incapacity to work or up to 52 weeks when permanent disability benefits or pensions are granted.

Permanent Disability Pension

If an insured person suffers a total or partial loss of earning capacity which is likely to be permanent, a monthly pension is paid. All persons are to be paid monthly free of tax.

1.6 Education Profile

According to the United Nations Committee on the Rights of the Child, 1995, The State Law and Order Restoration Council enacted the Child Law (Law No. 9/93) in 1993. The Child Law states that every child shall:

  • Have opportunities of acquiring education
  • Have the right to acquire free basic education (primary level) at schools opened by the State.

Based on the Child Law, the Ministry of Education shall:

  • Have an objective of implementing the system of free and compulsory primary education
  • Lay down and carry out measures as may be necessary for regular attendance at schools and the reduction of untimely drop-out rates
  • Make arrangements for literacy of children who are unable for various reasons to attend schools opened by the State

According to the 1973 Union of Myanmar Basic Education Law, one of the main objectives of basic education is to enable every citizen of the Union of Myanmar to become a physical and mental worker well equipped with basic education, good health and moral character.

The national plan states that for the survival and protection of children, universal access to basic education will be ensured by increasing the net primary school enrolment ratio from 62% to 100%, and the completion rate for basic education will be increased from the present 25% to 80% by the year 2000.

According to 1974 Union of Myanmar Technical, Agricultural and Vocational Education Law, with reference to the functions and duties of the Technical, Agricultural and Vocational Education Council, a provision is made for those who cannot continue basic education because of various reasons to receive vocational education by recommending them to the Ministry of Education.

Education Statistics Academic Year 2004 - 2002
  Number %
Schools
  Primary 36,010 92.1
  Middle 2,110 5.4
  High 958 2.5
Total Schools 39,078 100.0
Teacher
  Primary 143,490 67.3
  Middle 53,896 25.3
  High 15,947 7.5
Total Teachers 213,333 100.0
Students
  Primary 4,793,479 68.7
  Middle 1,600,953 22.9
  High 587,343 8.4
Total Teachers 6,981,775 100.0
Source: Statistical Yearbook 2002, Central Statistical Organization Department of Education Planning and Training

Education System:

Basic education is compulsory according to the Government as indicated in the Child Law. However, according to the All Burma Federation of Student Unions, the military who work for the Education sector and Educational authorities have ordered a self-reliance program in education in the rural regions. According to these programs, the parents and villagers must share the cost for the school buildings, teachers, teaching materials and other related expenses. According to the All Burma Federation of Students Union, they pay 3,000 Kyats at the time of enrollment and then must pay at least 500 Kyats per month for in-school tutoring fees. Moreover, they need to pay for other additional costs such as for student festivals, multi-media classrooms, text books, paper, pens, an annual forced contribution to the Parent Teacher Association Fund and contributions for school improvement.

Monastic Education Schools

According to the Government, there were 1,028 Monastic Education schools in 228 townships, attended by a total of 7,223 novices, 757 nuns and 75,650 boy students and 62,214 girl students in the 2001 - 2002 academic year.

Enrolment Ratios:

According to UNICEF, the gross primary school enrolment ratio during the period of 1997 to 2000 was estimated at 89% for both male and females. Net primary school enrolment was estimated for the same time period to be 84% and 83% for males and females respectively. Gross secondary enrolment was estimated at 40% and 38% for males and females respectively for the 1997 to 2000 period.

Public Expenditure on Education

In 1992/93 the budget allocation for basic education reached 13.5% of the total budget, while the total budget for education is 18.8% of the total budget for the whole country. 75% of the budget for education is allocated for basic education.

According to the United Nations, public expenditures on education as a percentage of current expenditures in 2000 was 8.7%.

Literacy Rates

According to official data from the Government, literacy rates in the country were 91.4% of the population in 2001, while males were slightly more literate at 91.7% compared to women at 91.0%.

1.7 Health Profile

According to the National Mortality Survey conducted by the Central Statistical Organization in 1999, infant mortality rates (per 1,000 live births) were estimated to be 48.3 as of 2001. The life expectancy for urban males in 2001 was estimated at 61.5 and 65.6 for urban females. Rural life expectancy for males was estimated at 60.8 and 63.3 for females. According to the World Health Organization (WHO) life expectancy was estimated to be 56.2 for males and 61.8 for females in 2002.

According to the Department of Health Planning, there were 750 government hospitals as of 2002 comprising over 38,000 beds. Rural health centers totaled 1,404 while maternity and child health centers totaled 348. There were 15,981 doctors registered, 14,925 nurses and over 13,000 midwives.

According to the WHO, UNAIDS has made a prevalence estimate for Myanmar using reported data up through 1999. The Ministry of Health believes that the HIV prevalence estimate of UNAIDS is too high. Based on an HIV prevalence estimate of about 500,000 in the year 2000, the annual number of adult AIDS cases in Myanmar was calculated by UNAIDS to be 46,600 in the year 2000 and is projected to reach over 55,000 in 2005.

1.8 Information Communication Technology

According to the Untied States Central Intelligence Agency, the number of telephone lines in use approximated 250,000 in 2000 while mobile phone users totaled approximately 8,500. As of September 2000, Internet connections were only legal for the government, tourist offices and a few large businesses. The Government is the only Internet Service Provider in the Country. It is estimated that there are approximately 10,000 interest users in the country. The Internet code is.mm.




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