Burma Economy Near Collapse; Acute Lack of Investment.

Byline: Larry Jagan

Dec. 1--A rare report on Burma's economy suggests it is on the verge of collapse.

The Asia Development Bank in its latest report says the cash-strapped military government is unable to provide essential services or the infrastructure needed for economic development.

"There is a pressing need to increase the flow of public resources to basic health and education services and other areas where development needs are not being met," says the report,

Although the eight-page report is written in dry, statistical language, the ADB says Burma's economy needs thorough reform. Without it, the report argues there's little prospect of reducing widespread poverty.

The ADB says one of the key problems is the acute lack of investment. It has remained stagnant for more than a decade at only 13 percent of annual national production. This is less than a third of the investment levels the rest of South East Asia has maintained over the last three decades to help produce the Asian economic miracle.

Taxation is among the lowest in the world, preventing the government investing in essential services and infrastructural development, says the report. Only three people out of every 20 have access to electricity and the country's roads networks are totally inadequate. Only one person in 200 has a telephone and most rural areas lack even a single telephone link to the outside world. This makes the prospect of Internet-based learning a pipe-dream, says the report.