Oct 08 2007
Burma: The Back Story
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By Rowan Wolf
10/4/07
The current protests in Burma are attributed to a 500% increase in fuel prices which crippled an already struggling population’s ability to survive (BBC). The people of Burma have been descending into deeper and deeper poverty over the last decade. According to Jonathan Head, author of the BBC article, the people of Burma spend an average of 70% of their income on food. The dramatic increase in fuel prices on August 15, 2007 was too much to bear.
It appears that the government of Burma (Myanmar) were reacting to a “suggestion” by the International Monetary Fund, that they needed to phase out the state subsidizing of oil prices. Myanmar is a member nation of the IMF. This makes one wonder at the seeming naivety of this statement by Head:
Like so many decisions made by the reclusive generals, the sudden hike in fuel prices is hard to fathom.
The IMF had advised weaning the population off subsidised fuel, because with rising world oil prices it was becoming an unsustainable burden for Burma, which although rich in natural gas, relies on imports for almost all of its refined petrol and diesel.