Economy of Burma - Industries

Industries

The major agricultural produce is rice which covers about 60% of the country's total cultivated land area. Rice accounts for 97% of total food grain production by weight. Through collaboration with the International Rice Research Institute (IRRI), 52 modern rice varieties were released in the country between 1966 and 1997, helping increase national rice production to 14 million tons in 1987 and to 19 million tons in 1996. By 1988, modern varieties were planted on half of the country's rice fields, including 98% of the irrigated areas.

In northern Burma opium, bans have ended a century old tradition of growing poppy. Between 20,000 and 30,000 ex-poppyfarmers left the Kokang region as a result of the ban in 2002. People from the Wa region, where the ban was implemented in 2005, fled to areas where growing opium is still possible. Other ex-poppyfarmers are being relocated to areas near rubber plantations. These are often mono-plantations from Chinese investors.

Rubber plantations are being promoted in areas of high elevation like Mong Mao. Sugar plantations are grown in the lowlands such as Mong Pawk District.

The lack of an educated workforce skilled in modern technology contributes to the growing problems of the economy.

Today, the country lacks adequate infrastructure. Goods travel primarily across the Thai border (where most illegal drugs are exported) and along the Ayeyarwady River. Railroads are old and rudimentary, with few repairs since their construction in the late nineteenth century. Highways are normally unpaved, except in the major cities. Energy shortages are common throughout the country including in Yangon.

Burma is also the world's second largest producer of opium, accounting for 8% of entire world production and is a major source of illegal drugs, including amphetamines. Other industries include agricultural goods, textiles, wood products, construction materials, gems, metals, oil and natural gas.

The private sector dominates in agriculture, light industry, and transport activities, while the military government controls energy, heavy industry, and rice trade.