The country is one of the poorest nations in Southeast Asia, suffering from decades of stagnation, mismanagement and isolation. The lack of an educated workforce skilled in modern technology contributes to the growing problems of the economy. The country lacks adequate infrastructure. Goods travel primarily across the Thai border, where most illegal drugs are exported and along the Irrawaddy River. Railways are old and rudimentary, with few repairs since their construction in the late 19th century. Highways are normally unpaved, except in the major cities. Energy shortages are common throughout the country including in Yangon.
Under British administration, Burma was the second-wealthiest country in South-East Asia. It had been the world's largest exporter of rice. Burma also had a wealth of natural and labour resources. It produced 75% of the world's teak and had a highly literate population. The country was believed to be on the fast track to development.
During World War II, the British destroyed the major oil wells and mines for tungsten, tin, lead and silver to keep them from the Japanese. Burma was bombed extensively by both sides. After a parliamentary government was formed in 1948, Prime Minister U Nu embarked upon a policy of nationalization and the state was declared the owner of all land. The government also tried to implement a poorly considered Eight-Year plan. By the 1950s, rice exports had fallen by two thirds and mineral exports by over 96% (as compared to the pre-World War II period). Plans were partly financed by printing money, which led to inflation. The 1962 coup d'état was followed by an economic scheme called the Burmese Way to Socialism, a plan to nationalise all industries, with the exception of agriculture. The catastrophic program turned Burma into one of the world's most impoverished countries. Burma's admittance to Least Developed Country status by the UN in 1987 highlighted its economic bankruptcy.
The national
