Annex

The people of Myanmar have great nationalistic pride and it underlines many of the events that have taken place in our long history that has seen three great unifications when the country was under strong kings and which also saw sovereignty taken away and independence lost at a time when the country was weak, the unity and the court were at disarray.

The country went through turbulent times with insurgencies and constitutional crises even after regaining our independence in 1948. In 1988, the Armed Forces of the Union, born out of our independence movement and which had since then, saved the Union three times from disintegration, was once again compelled to assume responsibility of the State, when the one-party system in place at that time together with a centrally planned economy failed and the country erupted in chaos and anarchy.

But all that which has taken place in the past has a bearing in our future. In talking about our country, one needs to be aware of three attributes that play a great part in its future direction. The first attribute is that Myanmar has had to fight back for its independence after being under colonial rule for nearly 100 years. The second is that we are are multi-racial society, with 8 major racial groups found scattered in overlapping areas of the country and this points to why a unified country is so important. The third is the problem of insurgency that has plagued us from the time of our independence until recent years and which still exists in pocket area along our eastern border.

The present Government managed to restore law and order, peace and stability in the country post-1988 and it is committed to a multiparty democracy and a free market economy. We are certainly not going to revert back to the one party political system and a centrally planned economy that existed from 1962 to 1988, a time when the US saw the country as a valued neutral country during the cold war. Nor do the Armed Forces intend to hold on to power longer than necessary. However, taking the three attributes I outlined earlier into consideration, we are making sure that the nation building process evolves steadily and surely instead of haphazardly and hastily. We have seen how rapid transformations in many countries can often lead to anarchy and instability. A situation has been created to further proceed with the national reconciliation process and to work out a home grown political settlement at a pace beneficial to the country and the people.

To that end, many positive developments have been achieved in Myanmar in the recent past, not only due to the conciliatory stand that the Government has taken, but also because of the reliance it places on its own people and resources as well as the understanding shown by the relevant parties.

To cite a few important examples:

- The armed insurrections have practically come to an end, except in a few border areas while the country is experiencing unprecedented peace.

- The political deadlock that once existed between the Government and the leading political party, the NLD, has been overcome and confidence has been restored to a certain degree between the two parties, leading to an improved political situation.

- Over 900 detainees and prisoners have been released during the past months in the spirit of reconciliation and on humanitarian grounds.

- The Government has been able to make measurable progress in its efforts for the all round development of the country. In spite of this, the construction of 150 major bridges across numerous rivers, 136 irrigation dams and thousands of miles of roads and railroads, and many other achievements are left unnoticed by many from outside who only want to see and hear only the negative aspects.

- Counter narcotics efforts of the Government and the local populace is producing significant results with the decline in opium production for five straight years. The production of opium during the previous year is in fact less than one quarter of that produced six years earlier. All of this has been achieved with practically no assistance from outside.

- Cooperation with the United Nations has been even more enhanced than it has been. The Government has been working together with the representatives of the Secretary-General, the Human Rights Commission, as well as organizations such as the ICRC, ILO and UNHCR towards the betterment of the lives of our people.

On the economic front, necessary foundations for a market economy to function properly have been laid down and the door remains open for more interaction with the outside world. Changes in the economic policy from over 10 years ago have seen opportunities created for the people to participate more in the economic life of the country and many developments can be seen in the economic sector.

Myanmar is a small developing country in transition and if one looks back to the time when the present Government was compelled to take over the state power, it had inherited a rapidly deteriorating economy with very low monetary reserves. The political turmoil in that year left in its wake a completely devastated country in material terms. The whole administrative structure was in complete disarray. And to compound the problem, western countries and multilateral financial institutions had suspended official development assistance, loans and grants since 1989. Unilateral sanctions were applied and new foreign investments discouraged. Travel to the country was also discouraged so as to deter tourism, a promising source of income for the people. Plus, even UNDP assistance was limited to HDI projects only. The Government has had to revitalize the country's economy with its own human and natural resources since 1988, in a situation that is not normal and not conducive for an easy change.