Economic development of Burma (1948-1958): the clash between the capitalist-based economic plan and socialist ideology implementation

Abstract

Over 100 years of under British colony, Burma was liberated in 1948 inheritingmost of the colonial system especially in the administration and legal system however adopted the different political doctrine since the beginning. Socialism was chosen as the state ideology during the independent struggle and made it concrete by the AFPFL leaders especially by PM U Nu. Though widely hailed as a Socialist state yet not in the form of typical Socialist state seen in those Soviet-sphere countries but her own style combining the welfare system with traditional Buddhist culture.

The first attempt of economic development on national scale was drafted with the help of U.S. engineering and economic consultants assisted by the U.S. government. The opposite nature of these two doctrines, the so-called Socialist State and the Economic plan rooted in the Capitalism resulted in the failure ofBurma economic development during the 1950s.

This research will argue that the failure of economic development in Burma during the 1948-1958 was the result of the clash between the Capitalist-based economic plan and Socialist ideology implementation. The economic plan proposed or laid down by the U.S technicians to revitalize the economy back into the colonial period whereas the objective of U Nu, the then PM, and AFPFL Government was to apply socialist planned economy and the fraction of these two opposite political doctrines caused the disaster.