Over half of Burma's population consists of diverse ethnic groups with substantial numbers of kin beyond its borders; despite continuing border committee talks, significant differences remain with Thailand over boundary alignment and the handling of ethnic rebels, refugees, and illegal cross-border activities; ethnic Karens flee into Thailand to escape fighting between Karen rebels and Burmese troops, in 2004 Thailand sheltered about 118,000 Burmese refugees; Karens also protest Thai support for a Burmese hydroelectric dam on the Salween River near the border; environmentalists in Burma and Thailand continue to voice concern over China's construction of hydroelectric dams upstream on the Nujiang/Salween River in Yunnan Province; India seeks cooperation from Burma to keep Indian Nagaland separatists from hiding in remote Burmese uplands
Britain conquered Burma over a period of 62 years (1824-1886) and incorporated it into its Indian Empire. Burma was administered as a province of India until 1937 when it became a separate, self-governing colony; independence from the Commonwealth was attained in 1948. Gen. NE WIN dominated the government from 1962 to 1988, first as military ruler, then as self-appointed president, and later as political kingpin. Despite multiparty legislative elections in 1990 that resulted in the main opposition party - the National League for Democracy (NLD) - winning a landslide victory, the ruling junta refused to hand over power. NLD leader and Nobel Peace Prize recipient AUNG SAN SUU KYI, who was under house arrest from 1989 to 1995 and 2000 to 2002, was imprisoned in May 2003 and is currently under house arrest. In December 2004, the junta announced it was extending her detention for at least an additional year. Her supporters, as well as all those who promote democracy and improved human rights, are routinely harassed or jailed.
Burma is a resource-rich country that suffers from government controls, inefficient economic policies, and abject 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the "Burmese Way to Socialism", but those efforts have since stalled and some of the liberalization measures have been rescinded. Burma has been unable to achieve monetary or fiscal stability, resulting in an economy that suffers from serious macroeconomic imbalances - including inflation and multiple official exchange rates that overvalue the Burmese kyat. In addition, most overseas development assistance ceased after the junta began to suppress the democracy movement in 1988 and subsequently ignored the results of the 1990 legislative elections. Economic sanctions against Burma by the United States - including a ban on imports of Burmese products and a ban on provision of financial services by US persons in response to the government of Burma's attack in May 2003 on AUNG SAN SUU KYI and her convoy - further slowed the inflow of foreign exchange. Official statistics are inaccurate. Published statistics on foreign trade are greatly understated because of the size of the black market and unofficial border trade - often estimated to be one to two times the size of the official economy. Though the Burmese government has good economic relations with its neighbors, a better investment climate and an improved political situation are needed to promote foreign investment, exports, and tourism. In February 2003, a major banking crisis hit the country's 20 private banks, shutting them down and disrupting the economy. As of January 2004, the largest private banks remained moribund, leaving the private sector with little formal access to credit.
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