n: Ambassador (vacant); Charge d'Affaires Larry M.
DINGER
embassy: 110 University Avenue, Kamayut Township, Rangoon
mailing address: Box B, APO AP 96546
telephone: [95] (1) 536-509, 535-756, 538-038
FAX: [95] (1) 650-306

Flag description:

red with a blue rectangle in the upper hoist-side corner bearing 14,
white, five-pointed stars encircling a cogwheel containing a stalk
of rice; the 14 stars represent the seven administrative divisions
and seven states

Economy
Burma

Economy - overview:

Burma, a resource-rich country, suffers from pervasive government
controls, inefficient economic policies, and rural poverty. The
junta took steps in the early 1990s to liberalize the economy after
decades of failure under the "Burmese Way to Socialism," but those
efforts stalled, and some of the liberalization measures were
rescinded. Despite Burma's increasing oil and gas revenue,
socio-economic conditions have deteriorated due to the regime's
mismanagement of the economy. Lacking monetary or fiscal stability,
the economy suffers from serious macroeconomic imbalances -
including rising inflation, fiscal deficits, multiple official
exchange rates that overvalue the Burmese kyat, a distorted interest
rate regime, unreliable statistics, and an inability to reconcile
national accounts to determine a realistic GDP figure. Most overseas
development assistance ceased after the junta began to suppress the
democracy movement in 1988 and subsequently refused to honor the
results of the 1990 legislative elections. In response to the
government of Burma's attack in May 2003 on AUNG SAN SUU KYI and her
convoy, the US imposed new economic sanctions in August 2003
including a ban on imports of Burmese products and a ban on
provision of financial services by US persons. Further, a poor
investment climate hampers attracting outside investment slowing the
inflow of foreign exchange. The most productive sectors will
continue to be in extractive industries, especially oil and gas,
mining, and timber with the latter especially causing environmental
degradation. Other areas, such as manufacturing and services, are
struggling with inadequate infrastructure, unpredictable
import/export policies, deteriorating health and education systems,
and endemic corruption. A major banking crisis in 2003 shuttered the
country's 20 private banks and disrupted the economy. As of 2007,
the largest private banks operated under tight restrictions limi