World > Asia > Burma > Foreign Relations (Notes)

Burma - Foreign Relations (Notes)

FOREIGN RELATIONS During the Cold War, Burmese foreign policy was based on principles of neutrality, often tending toward xenophobia. Since 1988, however, Burma has expanded its regional ties. It now is a member of the Association of Southeast Asian Nations (ASEAN), Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation (BIMSTEC), and several other regional organizations and initiatives. Burma's lack of progress on human rights and democracy has frayed some ties, and in July 2005, Burma passed up its scheduled 2006 ASEAN chairmanship. Although Burmese-Thai relations are generally cooperative, they have been tainted by a long history of border conflicts and sporadic hostilities over narcotics trafficking and insurgents operating along the Burmese-Thai border. Nonetheless, official and unofficial economic ties remain strong. In addition to the sizeable population of Burmese refugees it hosts, the Thai Government issues temporary work permits to another one million Burmese who live outside the refugee camps in Thailand. Despite their often-contentious history, Burma and China have grown much closer in recent years. China quickly is becoming Burma's most important partner, offering debt relief, economic development grants, and soft loans used for the construction of infrastructure and light industry. China also is purportedly Burma's major supplier of arms and munitions. Burma's commercial and military ties with India are also growing steadily as well. The UN has made several efforts to address international concerns over human rights in Burma. The UN Secretary General's Special Envoy to Burma, Tan Sri Razali Ismail, resigned his position in December 2005 due to the regime's lack of cooperation. UN Commission on Human Rights Special Rapporteur Paulo Sergio Pinheiro has not been allowed to visit the country since 2003. Former UN Undersecretary General for Political Affairs Ibrahim Gambari visited Burma in May and November 2006 and after his trips briefed the UN Security Council on the situation in Burma. Burma was placed on the UN Security Council agenda in September 2006. In January 2007, the United States and the U.K. sponsored a UN Security Council resolution calling on Burma to cooperate with the UN Secretary General's good offices mission, open dialogue with the political opposition, stop its military offensive in Karen State, and to allow humanitarian organizations greater access to needy populations. The resolution received nine votes in favor, three abstentions, and three 'no' votes, including from Russia and China. The Russian and Chinese vetoes blocked the resolution. Burma is involved in the Asian Development Bank's (ADB) Program of Economic Cooperation in the Greater Mekong Sub-region. As such, it participates in regional meetings and workshops supported by the ADB. Burma joined ASEAN in 1997, and has participated in that regional forum, even hosting a number of seminars, conferences, and ministerial meetings. As one of ASEAN's least developed members, Burma also has an extra five years (until 2008) to comply with most of ASEAN Free Trade Agreement's liberalization requirements. Burma also is a member of the World Trade Organization. Most Western foreign aid diminished in the wake of the regime's suppression of the democracy movement in 1988. The UN Development Programme's 2006 Human Development Report indicates that official development assistance totaled $121.1 million in 2004, roughly $2 per capita (compared with $47 per person in Laos and $35 per person in Cambodia). Burma receives grants of technical assistance (mostly from Asia), limited humanitarian aid and debt relief from Japan and China, and concessional loans from China and India. Burma became a member of the International Monetary Fund (IMF) and World Bank in 1952, the International Financial Corporation (IFC) in 1956, the International Development Association (IDA) in 1962, and the ADB in 1973. Since July 1987, the World Bank has not made any loans to Burma. Since 1998 Burma has been in non-accrual status with the Bank. The IMF performs its mandated annual Article IV consultations, but there are no IMF assistance programs. The ADB has not extended loans to Burma since 1986. Bilateral technical assistance ended in 1988. Burma has not serviced its ADB loans since January 1998. Burma's total foreign debt now stands at over $7 billion.