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THE BURMESE WAY
TO SOCIALISM BEYOND
THE WELFARE STATE
/ Mya Maung*
In some countries with a colonial heritage the option for socialism has
been made under the impact of nationalism and the demonstration effect
of the Sino-Soviet model of economic growth. The choice is made on grounds
of both equity in income distribution and the relative efficiency of a planned
socialist economy over the capitalist one. An ideological aversion to capital-
ism, born out of experiences under colonial rule and sociopolitical indig-
nation over the potential threat of alien economic intrusion, has been the
sin quo non for adopting socialism of the evolutionary and revolutionary
type. The statism of socialism not only seems to fit political nationalism but
also provides the psychic income derived from discrimination against aliens
in general.' The general preference for state enterprises and public owner-
ship of the means of production, a common phenomenon of development
planning in many underdeveloped countries, is an aspect of moderniza-
tion that cannot be dissected solely with respect to its economic or non-
economic aspects. This article, however, does not concern itself with the
political and ethical justification of "the Burmese Way to Socialism," but
rather with its economic effects.
At the outset it must be noted that the sources of statistical data and in-
formation on the functioning of the Burmese economy since 1962 are rather
limited and unreliable. It is essential, however, to record and analyze the
series of economic actions taken by the military government. With that
in mind, this study will scrutinize the economic effects of the Burmese ex-
periment with a command economy.
The main hypothesis of this study is that a "simple" transfer of owner-
ship and control of resources from the private to the public sector in the
533
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MYA MAUNG 534
name of equity and justice does not automatically create efficiency or ele-
vate technology, and that inefficiency may emerge due to the inflexibility of
large-scale public programs, bureaucratic delays, institutional disruption
of the market mechanism, inactions and conflicts among the governmental
agencies, loopholes and evasion associated with a system of direct controls
and the disincentive effects of socialization. Although on the functional level
all economic systems may be viewed as planned or deliberately organized
by the state, the ideals and methods of planning differ. While the controversy
over the relative efficiency of a planned economy versus an unplanned
economy is stale and confused.2 I would argue that the basic dilemma com-
mon to all underdeveloped countries is the issue of the type and extent of
state economic actions in the modernization process. This dilemma is crit-
ical for a country like Burma, whose aversion to capitalism has led to the
adoption of inappropriate economic policies which have totally abandoned
the functioning of market mechanism and private enterprise. Perhaps the
economics of socialism written by economists suffers from the defect of
"what economists take to be the end of economic life-the maximization of
output in terms of preferred products compared with satisfaction sacri-
ficed-and confined to the ways in which ownership of land and capital by
the state can facilitate this."3 Equally pronounced is the defect of the eco-
nomics of socialism advanced by the nationalist socialist leadership of de-
veloping countries in subjugating the principles of efficiency to those of
ideal equity. The Burmese experiment with socialism, particularly the re-
cent experiment with a command economy under "the Burmese Way to
Socialism, exemplifies a case of economic disaster generated by the neglect
of what economists consider to be the end of economic life.
2See: W. A. Lewis, The Principles of Economic Planning (London: Allen and Unwin
and Dennis Dobson, 1949), p. 14. Also: Gunnar Myrdal, Beyond the Welfare State
(New York: Yale University Press, 1960), Chap. I.
'Henry Smith, The Economics of Socialism Reconsidered (London: Oxford University
Press, 1962), p. 95.
'The term Pydawtha, associated with the Pyidawtha Plan (1952-60), means in
Burmese a happy and prosperous country, while its variant, Pyidawcha, connotes the
opposite. Even under the U Nu government, Pyidawcha was commonly used as a politi-
cal satire on the economic achievements of the Pyidawtha Plan.
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535 THE BURMESE WAY TO SOCIALISM
piness. The choice of socialism was made on the grounds that it is not only
a desirable socioeconomic system compatible with the traditional Burmese
culture and Weltanschaung, but also the quickest road to development. From
the earliest Declaration of the Naythuyein Conference in 1945, through the
launching of the Pyidawtha Plan in 1952, to the proclamation of "the
Burmese Way to Socialism" in 1962, the abuses of the colonial heritage
and capitalism have been unshakable memories behind the social and eco-
nomic philosophy of development. In 1947, at the Sorrento-Villa Conference
in Rangoon under the leadership of the late General Aung San, a general
program for building a socialist economy laid down a policy of national
planning via large-scale state controls of the economy as the most effective
strategy for the development of the Burmese economy. Thus, with inde-
pendence in 1948, the Land Nationalization Act, a Two-Year Development
Plan, and the Constitution of the Union of Burma gave the state the right
to own and control resources and regulate the nation's economic life.5
The Two-Year Development Plan was formally launched in 1948 but
was not implemented until 1951 due to the chronic political crisis follow-
ing independence. The Plan called for the nationalization of land and the
socialization of industry, but this was only partially accomplished. The
Land Nationalization Act had to be extended into the 1950's and the so-
cialization of industry was not achieved either. By 1951, the planning
machinery of the Burmese government had been organized with the assis-
tance of foreign experts (a group of Oxford economists, United Nations'
specialists, and the American firm of Knappen, Tippets, Abbett, and Mac-
Carthy Engineering Company). The U Nu government's socialist economy
may be termed a welfare state with heavy emphasis on large-scale state
interferences and controls. By 1952 a host of governmental departments,
boards and corporations were created to run the Burmese economy. Al-
though most of the foreign firms were nationalized, private trade and in-
dustries were allowed to operate under the direct control of the government.
Tolerance of the private sector and recognition of its importance were
evident under the Pyidawtha Plan. For example, with respect to gross capital
formation the Plan anticipated that the relative shares of the public and
private sectors would be equal at K. 559 million each by the end of 1959.0
It declared that "to some extent, the rate of rise in total expenditures will
depend upon the degree to which the Government creates an environment
favorable to private investment."7 It was further anticipated that the rela-
tive share of the private sector in the gross capital formation would exceed
5See: The Constitution of the Union of Burma (Rangoon: Government Printing &
Stationery, 1948), p. 93. Also: The Land Nationalization Act, 1948 (Rangoon: Govern-
ment Printing and Stationery, 1950), pp. 33-39.
'Kanppen, Tippets, Abbett, and MacCarthy Engineering Co., Comprehensive Report,
Vol. I (London: Hazel Watson & Viney Ltd., 1953), p. 50. The official exchange rate
of Burmese kyats for dollars is K 4.763 to $1.00.
7ibid., p. 40.
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MYA MAUNG 536
that of the public sector by more than 15% by the end of the planned period
in 1960. The anticipation proved wrong, however: by the end of 1960 the
government's share was more than 56% instead of 34%.8
The most conspicuous feature of development planning in Burma during
the 1950s was the congestion of governmental agencies and enterprises set
up to launch a massive state control of the economy (the catch words for
development were "the mass movement" -mass education, mass welfare
and mass cooperation). In the field of agriculture, for example, there were
the Department of Agriculture, the State Agricultural Marketing Board
(SAMB), the State Agricultural Bank (SAB), the Agricultural and Rural
Development Corporation (ARDC), the Land Development Corporation
(LDC), the Co-operative Societies Department (CSD), the District Com-
mission Office, and the Civil Supplies Department. All of these parallel
agencies directly or indirectly dispensed economic and technical aid to cul-
tivators, which produced not only functional conflict and tension but also
inefficiency and economic waste due to lack of managerial coordination.,
There was misallocation of both human and non-human resources, since
government officials in charge of various economic activities were usually
untrained for their specific functions. The role and power of each of these
agencies came also to depend upon the nation's changing power structure.
For example, the role of the CSD relative to the SAB diminished when U
Ba Swe became interim premier in 1956, while that of the ARDC grew by
leaps and bounds under the Caretaker Government (1958-60).
The economic philosophy and development strategy that underlay the
Pyidawtha Plan endorsed the balanced growth theory and the thesis that
large-scale state economic actions are not only necessary but also conducive
to the development of private incentives in saving and investment. But the
actual performance of the Burmese economy in the 1950s betrayed these
premised in terms of capital formation of the private sector. Massive state
controls and aid created a spirit of dependency among the cultivators, which
seems to confirm the case against the familiar infant industry argument in
economics. The net effect of large-scale but inept state interference with the
market mechanism was the misallocation of resources, sometimes in such
simple matters as price policy and marketing of products. One of the clearest
examples of inefficiency cited by Dr. Hla Mying was SAMB's uniform price
policy of offering a fixed price for rice throughout the year to all cultivators,
regardless of seasonal or regional differences. Government warehouses be-
came flooded with rice, and in the face of inadequate storage and marketing
the result was economic waste.10 U Hla Mying further states:
8The Economic Survey of Burma, 1960 (Rangoon: Government Printing & Stationery,
1960), p. 11.
9See: I. L. 0., Report to the Government of the Union of Burma on the Development
of Co-operatives (Geneva: 1. L. O., 1955). To. 12.
`0U Hila Mying, "Economic Theory and Underdeveloped Countries," The Journal of
Political Economy, Vol. LXXIII, No. 4 (1965), p. 486.
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537 THE BURMESE WAY TO SOCIALISM
Although this assertion may be slightly overstated with respect to the process
of economic development, it is true that many government development
programs in less developed countries commit simple errors in the pursuit
of the dubious rather than the obvious under the fervor of economic na-
tionalism and socialism.
The high hopes of the Pyidawtha Plan were shattered by the mid-1950s
when the world price of rice began to drop and foreign exchange reserves
dwindled. A Four-Year Development Plan was launched in 1956 with new
outlooks and strategy. A more sober attitude toward private enterprise be-
gan to appear in the official policies of the government. Foreign sources of
capital and technology were given serious attention for the first time, and
by 1957 the government indicated its willingness to transfer certain non-
key industries back to the private sector. The Four-Year Plan professed
to follow the model of a true welfare state in its objectives of desocializa-
tion, establishing an investment law for stimulating private foreign and
indigenous investments and attracting foreign capital.12 In 1959 an In-
vestment Act was passed to indicate the change in economic policy but be-
cause of the rapid political deterioration following U. Nu's return to power
after the 1960 election, the liberal policies were never really implemented.
In spite of the magnificent superstructuring of governmental enterprises and
controls, Burma in the 1950s had a mixed economy that employed planning
through the market mechanism to a certain extent. In banking, agriculture,
trade, and industry, private property and enterprises were tolerated behind
the vanguard of the state. Burma's economic performance during the 1950s
was poor relative to the prewar period, of course, yet the limited achieve-
ments of the Pyidawtha Plan are impressive when compared to economic
progress since 1962 under the present Revolutionary Council Government.
The growth of the Burmese economy in the 1950s was recorded as 6.3%o
for "the average annual rate of real gross domestic product at factor cost"
and 2.7% for per capita output.'3 The real gross domestic product by the
send of 1960 was 11% higher than in 1938-39.14 The growth rate for the
Pyidawtha period (1952-60) was less than these rates-about 4% for the
real gross domestic product. With all the failures and defects of the Pyidaw-
tha Plan, roughly 80% of its physical targets were achieved, i.e., the gross
"Ibid.
"See: Premier U. NIu on the Four-Year Plan (Rangoon: Director of Information,
1957), pp. 24-29.
"3United Nations, Statistical Yearbook 1966 (New York: United Nations, 1967), pp.
575-76.
"The Economic Survey of Burma 1962 (Rangoon: Government Printing & Stationery,
1962),p.5.
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MYA MAUNG 538
domestic product of 1960 in terms of 1950-51 prices was about K. 5.6 bil-
lion, instead of the ex-ante target of K billion.'5 With respect to the rela-
tive growth of ex-post versus ex-ante output, however, less than 40% of the
targets were achieved. Evidence of a relatively sustained growth rate for
the economy in the 1950s can be discerned in the annual value and volume
of exports, particularly rice. In spite of the balance-of-payments deficit in
1953-54 and the latter part of the Pyidawtha Plan period, the value of
Burma's exports averaged around K. 1 billion throughout the fifties. The
annual volume of rice export averaged about 1.5 million tons. Considering
the rate of population growth, which accounted for a greater domestic con-
sumption of rice, these sustained rates of export indicate a relatively healthy
economy. Rice exports in the 1950s, however, remained 50% below prewar
levels.
Between 1960 and 1962, the Burmese economy continued to function on
the basis of the Four-Year Development Plan, with no significant changes
in the organization of the government agencies of development. The growth
of military economic establishments, the Defense Services Institute and the
Burma Economic Development Corporation, as profit-making organizations
during the military interregnum of 1958-60 further indicated the tendency
toward liberalization of trade and industry. Political splits and power
struggles among the civilian politicians, along with minority unrest, led to
the seizure of political power by the army in March 1962, which drastically
transformed the Burmese economy from a welfare state to a command econ-
omy. The major indictment of the economic policy of the civilian govern-
ment was summed up by the Revolutionary Council as follows:
The Union was dominated by the feudalists for over a thousand years,
by the foreign imperialists over a hundred years, and was dominated
by the landlords and capitalists after it had attained independence.'6
The Pyidawtha Government was charged with essentially the same abuses
that it had charged against the colonial heritage and capitalism. The new
regime found the U Nu government guilty of having betrayed socialism
by perpetuating capitalism and infecting the masses with a bourgeoise men-
tality. The official philosophy, labeled "the Burmese Way to Socialism,"
adopted extreme Marxist ideologies and policies of socioeconomic change
as the best strategy for economic development. The coexistence of private
and public enterprises or private and public ownership of the means of
production was construed as an economic and social evil and as a fraud
perpetuated by the civilian government in the name of a socialist economy.
:"Adjusted to conform to the base year of 1950-51 used by the KTA planners. The
gross domestic product in 1960, in terms of 1947-48 prices, was K 5.513 billion. The
1950-51 prices are about 6% higher than the 1947-48 prices.
"6The Burma Socialist Programme Party, Central Organization Committee, Party
Seminar 1965: Speeches of General Ne Win and Political Report of the General Secre-
tary (Rangoon: Sapay Beikman Press, 1966), p. 101.
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539 THE BURMESE WAY TO SOCIALISM
The socialist economy which the military government has so far managed
to establish is far from this ideal form, except that total nationalization of
the economy has been achieved. For one thing, there is no planning ma-
chinery with respect to production other than the Socialist Planning Com-
mittee of the Burma Socialist Programme Party (BSPP), which nominally
came into being only after 1965.20 Furthermore, there has been no drawing
up or launching of a development plan since 1962. What exists in reality
is an unplanned economy owned and run by the state-i.e., "an unplanned
socialized economy" with centralized decision-making under the direct com-
mand of the military wungis (ministers).
Thus, although the socialist economy has remained unplanned, the first
step toward a command economy in line with classical Marxist prescriptions
was taken during the first three years (1962-65) of the military regime.
With state ownership as the top priority, "such vital means of production
as agricultural and industrial production, distribution, transportation, com-
munications, external trade, etc."21 were nationalized. The year 1963 saw
nationwide propagation of the Burmese Way to Socialism through various
Peasants' Seminars and the promulgation of laws empowering the govern-
ment to eliminate private enterprises obstructing its socialist goals. At the
Duya Peasants' Seminar on January 31, 1963, General Ne Win declared
that:
"The Philosophy of the Burma Socialist Programme Party: The System of Correla-
tion of Man and His Environment (Rangoon: The Ministry of Information, 1963), p. 45.
"'Ibid.
"Party Seminar 1965, op. cit., p. 64.
"Ibid., p. 127.
21Ibid., p. 65.
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MYA MAUNG 540
of permitting th
thing.22
22Ibid., p. 66
23Ibid., p. 67
24Ibid., p. 68.
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541 THE BURMESE WAY TO SOCIALISM
The men from our Defense Services know only how to wage war. For-
merly they ate what the wife cooked for them. They did not know the
prices of the various commodities. The politicians too know hardly
more. Thus, we had to undertake a task we know so little about.26
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MYA MAUNG 642
He further attr
who supported t
to the logical question of why the military elite introduced and resumed
management of such a deficient system with so little knowledge, the answer
was "we had to do so because we wished to establish a socialist economy."27
Indeed, the essence of the problem of development confronting Burma, un-
der the civilian and military governments alike, has been precisely the
matter of wishes out-running actual capacities. The problem is magnified
in the case of the military government, whose introduction of a completely
new and unfamiliar command economy system has augmented requirements
and created new pro-blems inherent in a system of direct controls.
The Revolutionary Council launched a direct attack on the purchasing
power in the hands of capitalists via the 1964 demonetization measure, but
without much success. In the name of the Law to Protect the Construction
of the Socialist Economy from Opposition, the government announced the
demonetization of currency notes K 100 and K 50 on the night of May 17,
1964. The notes were proclaimed "illegal tender" and ordered to be sur-
rendered to the government within a week. Exchange of surrendered notes
into smaller denominations was made by applying the progressive income
tax rates, which led to a phenomenal surrender of notes valuing under the
tax-exempt income bracket of K 1,500. The primary reason given for tak-
ing this action was "the fact that the money stock which could be used as
an instrument to attack the construction of the socialist economy"28 had
to be taken away from the opposition forces. The value of the notes sur-
rendered to the government was given as K. 930.8 million, out of the total
value of notes in circulation of K. 1.2022 billion, leaving about K. 270 mil-
lion in the hands of the people. Most of the notes surrendered were supposed
to have come from foreign capitalists who were held responsible for in-
flation, speculation and capitalist exploitation. The ineffectiveness of the
demonetization measure, as recognized explicitly by the government, came
from the evasion of direct personal surrender by the relatively wealthy
people, who worked through agents to take advantage of the government's
promise to redeem the notes of those who had saved the money honestly.
The government's restraint in taking action against these people was said
to be based on humanitarianism, but the real reason, of course, was the
impossibility of determining the source and type of earnings in an economy
in which accounting records and statistical information were poor.
The year 1965 witnessed the final stage of total nationalization. The last
remnants of imperialist capitalism were removed as the state took over the
two major joint ventures of the Burma Oil Company and the Burma Trade
Corporation, along with A. Scott Co., Unilever Co., and all other private
concerns. The Socialist Economy Construction Committee (SECC) had been
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543 THE BURMESE WAY TO SOCIALISM
formed on April 19, 1964, soon after the nationalization of businesses and
stores, to manage the nationalized big businesses (e.g., the People's Pearl
and Fishery Board, BEDC, DSI, Cigarette Enterprises and the Pyilon-awba
Rice Mill). The SECC was also given the power to decide amounts of com-
pensation30 and matters of nationalization through a sub-committee, the
Nationalization Committee. The township SECCs were formed under the
auspices of the BSPP and the local administrative bodies, the Security Ad-
ministration Committees (SACS), to manage the nationalized shops and
procure and distribute goods in areas where the PSCs did not then function.
Unfortunately, the inefficiency and mismanagement that had proved dis-
astrous for the PSC also plagued the SECCs, and they had to be dissolved
after the reorganization of the PSC in 1965. The PSC was reorganized under
the new name of the Trade Council, with attendant local councils, but except
for the change in name the system remained essentially the same.
This congestion of committees, councils and corporations in the manage-
ment of the economy is not really a new phenomenon in the development
planning of independent Burma. The same problem of functional conflict
and lack of coordination among governmental agencies and enterprises
beset the former civilian government's economic operations. But the mili-
tary government of Burma has confronted greater problems of inefficiency
due to fear, delay and disincentive effect in dispensing with the market
mechanism. While the central SECC was nominally preserved with its major
organs of the Production Committee, the Transportation Committee, the
Internal Trade Committee and the Foreign Trade Committee, the Ministry
of Trade really managed the entire trading and distributive system of
Burma. From the Trade Councils to the Myama Export-Import Corporation,
the executive administrators were mainly army officers and ex-servicemen.
Ex-businessmen, employees of the former governmental agencies, and sym-
pathizers of the BSPP were recruited to run the nationalized businesses and
PSCs, with the net result that a nationwide black market system-Corpora-
tion "24"-emerged.31
The hoarding of money by relatively wealthy people and the shortage of
goods under a mismanaged rationing system naturally led to private deal-
ings with government store keepers and consumers alike. The system of
musical chairs and personal privileges in the sale of goods on the basis of
quota slips created many loopholes through which goods of all kinds flowed
into black markets. The artificial scarcity value created for the quota slips
under a system of rationing with no checking or policing of purchases from
the government stores gave rise to a concealed price inflation that was un-
29Ibid.
"0Up to the present, no compensation has generally been paid to owners of businesses.
"Corporation "24" is a popularized name for the black markets, since there are 23 gov-
ernmental corporations, numbered accordingly, to manage the trade and industry of
Burma. See: Robert Keatley, "Burma's Sticky Way to Socialism," The Wall Street
Journal, September 16, 1968, p. 16.
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MYA MAUNG 54
82Kyay Mhoan, The Mirror Newspaper (Rangoon: Kyay Mhoan Press), Sept. 28, 1966,
p.1.
"3Newsletter on Party's Aflairs, No. 1, 1966 (In Burmese) (Rangoon: The Central
Party Organization Committee, BSPP, January 1966), p. 9.
34Ibid., p. 10.
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545 THE BURMESE WAY TO SOCIALISM
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MYA MAUNG 546
But there was no explanation of how the future price was determined, for,
under state monopsony and price control, without the free interplay of
market forces, the fair and equitable price becomes meaningless and
arbitrary. Indeed, the advance purchase system proved abortive as culti-
vators hoarded paddy and other agricultural produce. Throughout the
independent period the State Agricultural Marketing Board has been
confronted with a shortage of supply due to the unwillingness of the culti-
vators to sell their produce at the low purchase price set by the govern-
ment. Under the Burmese Way to Socialism, the problem has been
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547 THE BURMESE WAY TO SOCIALISM
"1UPI Release: U Ba Than, "Rice Crisis Strikes Burma" (Rangoon: UPI, October
1967).
42Revolutionary Council Government of the Union of Burma, Central Statistical and
Economic Department, Quarterly Bulletin of Statistics, Four Quarters 1966 (Rangoon:
Central Press, 1968), p. 132.
4"From I.M.F., International Financial Statistics, October 1968 and Newsletter on
Party's Affairs, no. 11, 1966, op. cit.
44Report of the Revolutionary Council to the People on the Budget Estimates of the
Revolutionary Government of the Union of Burma for 1966-67. Also, see The Working
People's Daily (Rangoon) Vol. IV, No. 252 (September 20, 1967), p. 1.
'5Keatley, loc. cit.
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MYA MAUNG 548
"6For details see, R. L. Allen, "The Burmese Clearing Account Agreements," Pacific
Affairs, Vol. XXXI, No. 2 (1958).
7 Working People's Daily, loc. cit.
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549 THE BURMESE WAY TO SOCIALISM
during the same period. In 1967-68, Burma also obtained a loan of over
K 13 million from West Germany.48 The Sino-Burmese rift in recent years
poses an interesting dilemma to the builders of Burma's command economy,
particularly in light of the continuing decline of exports and foreign ex-
change reserves and the limited inflow of technical and economic aid from
the West since 1962.
Since 1964 the Burmese economy has been suffering from a balance-of-
payments deficit, the worst part being a chronic trade deficit arising solely
from drastic declines in the value and volume of exports, mainly rice. Since
1962, the average annual value of exports has been around K 600 million,
or less than 60% of the 1962 value and less than 50% of the level in the
1950s. Similarly, the volume of exports has declined drastically, rice ex-
ports being the lowest since independence. Rice exports have been declining
since 1964, reaching its worst years in 1967 and 1968. The combination
of bad harvest and black marketeering has depressed the volume of rice
exports to 500,000 metric tons in 1967 and about 300,000 tons in 196849
or less than one-third of the average annual volume in the 1950s. The
deficit in the balance-of-payments averaged around K 80 million for the
1964-68 period, and foreign exchange reserves have therefore dwindled
seriously. There had been a sharp increase in foreign exchange reserves
between 1962 and 1964; this was proudly proclaimed 'by the Revolutionary
Council Government to be the result of its efficient management of the ex-
ternal sector, but was actually due to the pervasive carryover effect of favor-
able balance-of-payments under the previous government, the seizure of
all foreign exchanges and foreign banks, and direct controls of all inter-
national flow of goods and capital. In recent years, however, the large-
scale protection of the economy has resulted in reducing foreign exchange
reserves to below the average level of the late 1950s, and to a level of K
71.2 million in 1967.50 These unfavorable developments in the external
sector have led the government to pursue tighter foreign trade policies.
In fact, in 1967-68 higher duties were imposed on more than 30 items of
import withithe curious exception of golf equipment.
"The Burmese Way to Socialism beyond the Welfare State" has produced
a number of interesting results, the most pronounced of which is the gap
between the policy's pursuit of socialism and the individual's pursuit of
concrete personal ends.6' Although this gap has confounded the develop-
ment endeavor since independence, it has widened under the revolutionary
socialist economy as the military political elite proved more willing than
"Ibid., p. 8.
'91.M.F., International Financial Statistics, op. cit., pp. 64-65. Also, Keatley, loc. cit.
501.M.F., International Financial Statistics, loc. cit.
"1Max Weber termed these two processes wertrational and zweckrational. See his, The
Theory of Social and Economic Organization (Talcott Parsons, ed.) (Glencoe: The Free
Press, 1947), p. 115.
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MYA MAUNG 550
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551 THE BURMESE WAY TO SOCIALISM
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