PYIDAWTHATHENEWBURMA

UNusplanonawelfareBurma
MarjaLeenaHeikkilHorn
Mahidol University InternationalCollege,Salaya,NakhonPathom,Thailand
marlehei@loxinfo.co.th

Theme:PhilosophicalBasics
Field:Theory

Abstract

BurmesePrimeMinisterUNu(194862)presentedanextensiveeconomicplanin
1954tocreateaspirituallyhealthycountry,whichsimultaneouslyguaranteesmaterial
wellbeingtoallitscitizens.

ThiseconomicplanbecameablueprintforBurmatodevelopduringtheremaining
yearsofcivilianruleunderPrimeMinisterUNu.Hewasoustedbyamilitarycoup
detatinMarch1962,whichbroughtthemilitaryintopowerforseemingly
permanently.Themilitarygovernment,ledbyGeneralNeWin,presenteditsown
economicplancalledTheSystemoftheCorrelationof ManandHisEnvironment
from1963,whichhasinvitedlesssympatheticcuriositybytheforeignscholarsthanU
NusPyidawthaplan.

E.F.SchumacherarrivedinBurmainFebruary 1955inthetechnicalassistancemission
oftheUN,andhispathbreakingchapteronBuddhistEconomicsinthebookSmall
IsBeautifulfrom1973isassumedtohavebeeninspiredby experiencesinUNus
Burma.

ThispaperaimstolookintotheoriginalPyidawthaplan,whichwaspublishedin1954
toassesstowhatextentE.F.Schumacherwasinfluencedbytheplanandwhetherthe
planstilloffersalternativestoglobalisedindustrialcapitalism.

Background

Burmabecameindependentin1948after60yearsofcolonialplunderbytheBritish.
TheBritishhadalsodividedtheareathatthenbecameBurmaintovariousdifferent
administrativezonesLowerBurmawasadministrativelyaBritishcolonyknownas
MinisterialBurma,andtheareawaspopulatedmainlybyethnicBurmese,Mons,
KarensandArakanese.UpperBurmaremainedaprotectorateandwascalledFrontier
Areas.ItwasruledbylocalchiefsunderthesupervisionofBritishSuperintendents.
KarenniStatehadremainedabufferstatebetweenthetwodifferentzones.

TheBritishhadalsoclassifiedthepeopleintomartialracesandnonmartialraces.
Basicallyalltheethnicminoritiesweredeclaredasbraveandwarriorlikeandhence
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recruitedintheBritishcolonialarmy.Therestofthepopulationwasdividedintonine
differentcategories,Indiansdominatingthesecategories,asIndianshadbeen
encouragedtotakeadomicileinBritishBurma,particularlyinMinisterialBurma.

TheBritishracialengineeringturnedouttobecatastrophicforBurma,asthevarious
ethnicminoritiesturnedagainstthecentralgovernmentsassoonasBurmahadbeen
declaredindependent.Hence,UNusgovernmentstruggledthefirsttwoyearsonlyto
pacifythecountryandtotrytonegotiatewiththeethnicleadersforapeaceful
compromise.

By1950,thecentralgovernmenthadpracticallybeenabletotakeovertheentire
country,butitwasthenhitbyanothercatastrophe.ThedefeatedChineseGuomindang
troopsfromfledtonorthernBurma,andultimatelysettleddownintheNorthernShan
States.Fromthere,theGMDmadesomeattacksagainstthePeoplesRepublicof
China,butmoredisastrously,theGMDgaveahelpinghandtosomeKarenandShan
insurgentstorestartthearmedrebellionagainstthecentralgovernment.

UNusgovernmenttooktheGMDaggressiontotheUnitedNationsgeneral
Assembly,buttheBurmesecomplaintwasentirelywatereddownbytheclientstates
oftheUS.UNucancelledalltheeconomicaidthattheUShadbeenofferingto
Burma.ThisinfuriatedtheUSandtheUSstartedsoonafterwardsdumbfoodaidto
markets,whereBurmahadtraditionallybeenexportingitsricesurplus.

TheplanforNewBurma

TheplanfornewBurma,knownasthePyidawthaplan.Pyidawthahasbeen
sometimestranslatesashappy land.ItwasapetprojectofUNu,whoseinterestsin
FabianSocialismandMarxismoriginatedfromthe1930s.Theinsurrectionhad
preventedanyimplementationofgovernmenteconomicplans,buteventually417
August1952,UNuproudlyheadedaPyidawthaseminar,wheretheplanswere
finalised.UNusPyidawthaplancanbeseenasaresponsetothecritiquebythe
SocialistpoliticiansinBurma.ThePyidawthaplanwaspublishedasabookbythe
Government,consistingof128pageswithphotosandcharts.Theplanstartswitha
relativelyneutralintroductionbythePrimeMinisterhimself.

Beforetheprosetextstarts,thereadersaregivenashortsummaryoftheguiding
principles,presentedalmostintheformofpoetry.Ineachlineitliftsupthe
contradictionsofthemodern,postworldwarera.

Wecanremainfaithfultoourpast,yetliveconsciouslyandgladlyinthetwentieth
century.
Wecanbeproudlyindependent,yetawillingpartnerinthecommunityofnations.
Wecanblendsuccessfullythereligiousandspiritualvaluesofourheritagewiththe
benefitsofmoderntechnology.
TothecreationandperpetuationofthisgreatNewBurma,webendourbacksand
commitourhearts. [2,p.18]
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ThefirstchaptersadmitthatdespitethatfactthatBurmaisaprosperouscountryin
termsofnaturalresourcesandagriculturalpotential,manyofthecitizensofBurma
haveabysmallylowstandardofexistence.[2,p.9]

Theobjectiveof theplanisaBurmainwhichourpeoplearebetterclothed,better
housed,inbetterhealth,withgreatersecurityandmoreleisureandthusbetterable
toenjoyandpursuethespiritualvaluesthatareandwillremainourdearest
possession.Thespiritualvaluesareemphasizesanditisstatedthatspiritualhealth
andmaterialwellbeingarenotenemies:theyarenaturalallies.[2,p.10]

Thepriorityoftheauthoritiesis,however,tocreatepeacethroughoutBurmaandonly
thenthebuildingofNewBurmacanbepushedaheadwithmaximumspeed.[2,p.11]
Withthisstatementtheplanclearlyseemstoremainaplan,asitcannotbematerialised
throughoutthecountry.

Thegovernmenthasdraftedclearplansforallmajoreconomicandsocialfieldsfrom
agriculturetoeducation.

Theimmediateplanistodiversifyagriculturalproductionexpandindustryinrelation
toagriculture,improvetransportationandcommunication,makeelectricpowermore
generallyavailable,increasetradewithinthecountryandwiththeneighbours.

Alltheseplanswouldgivemoreproductsandmorekindsofproducts,newjob
opportunitiestothepeople.Educationalandhealthstandardswouldriseandtravel
andcommunicationwouldbecomeeasier.[2,p.13]

Theplanhasnofinaltarget,butremainsflexibleandadaptableandwillbereviewed
bytwoagenciestheMinistryofNationalPlanningandtheEconomicandSocial
Boards,headedbythePrimeMinister.Severalotherministrieswouldbeinvolved
MinistryofEducation,MinistryofTransportandCommunication,Ministryof
AgricultureandnewagencieslikeIndustrialDevelopmentCorporation,the
AgriculturalandRuralDevelopmentCorporation,andtheMineralResources
Corporation.ThroughsubsidiaryBoardsandCorporations,theseagencieswillbe
responsibleforbuildingandoperatingnewproductivegovernmententerprises,andfor
makingsurethatadequatetransport,power,housing,schools,hospitals,andother
communityfacilitiesareprovided.[2,p.14]

Itwasadmittedintheplanthatthecountrywouldurgentlyneedabout700new
managerialandsupervisorypersonnel,700additionalprofessionalpersonnel,more
than1,800subprofessionalandover10,000skilledworkers.Allthiswoulddemanda
drasticincreaseineducationandtraining,whichwasnotavailableinBurma.Burmese
neededtobesentabroadfortrainingandforeignexpertsshouldbeinvitedtospeedup
theprogrammes.[2,p.15]

HereinseemstoliethefutureproblemsofthePyidawthaplan,ittendstoberather
bureaucratic,topdown,anddoesnotreallyseemtohaveideashowtoengagethe
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peopleinthisprocess.Maybeforthisreasonthechapterconcludes:theDevelopment
ProgrammeinitsactivestageswilldirectlyaffectsmillionsofBurmansandforthese
reasonsmillionsofBurmansmustcontributedirectlytotheprogrammeifitisto
succeed.ThusourDevelopmentProgrammenotonlyisforthepeople,itmustbe,in
largemeasure,bythepeopleaswell.[2,p.15]

Thegoaloftheprogramme

ThegoalofthePyidawthaplanwastoincreasethepercapitaproductionwith50%by
195960.ThecurrentGDPwasstillin195253lowerthantheprewaryears.[1,p.18]
Thewaytoimprovethepercapitaconsumptionwastobeachievedalsobyatax
policythattheverylowincomefamilieswouldbenefit.[2,p.19]

Thegovernmentwilluseoverhalfofitstotalinvestmentonthesocialfieldi.e.on
housing,publicbuildings,schools,hospitalsandcommunityserviceslikewatersupply,
sanitation,fireprotectionandhealthandmedicalservices.OutoftheK750crores450
wouldgoforsocialwelfareandprivatesector.Thiswastobefinancedbythe
handsomesurplusofforeignexchangethatBurmahadtheimmediatepostwaryears
from1946to1953.[2,p.2023]

Thestatedgoaloftheeconomicpolicywastoremaineconomicallyindependentand
selfsupporting,butnoselfsufficient.Thiswouldbeachievedbyinvestmentsin
importsubstitutingindustriesandbylevyingimportdutiesagainstforeignproductsto
protectnewBurmaindustries.Muchemphasisisputondiscussingtheimportanceof
socialinvestmentandsocialcapital.Ahealthypopulationnotonlyneedsmedical
careandschooling,butfoodandclothingandmanyotherconsumergoodsessentialto
decentliving.[2,p.2425]

Agriculturalproductionwastobeincreasedwithreturnofallpreviouslycultivated
landtoactiveproductionandanoverallincreaseinuseofchemicals,irrigation,
improvedmarketing,storagesystemandresearch.Muchofthelandhadfallenintothe
handsonIndianmoneylendersduringtheBritishcolonialperiodby1940nearlyhalf
ofthelandownerswerenoncultivators.Thislandneededtobetakenbackas
agriculturalland.

Thegovernmentalsorecommendeddiversifyingthecrops,insteadofrelyingona
singlecropi.e.rice.Therecommendationshencewereintensifyanddiversify.

TheLandNationalizationActaimedatdistributinglandtocultivatorsandlabourersto
operateasstatetenants.TheActprovidesforthegrowthofcooperativesocietiesand
aimsatdevelopingcollectiveorcooperativefarming.Therearesomestriking
similaritiestoDr.PridiBanomyongsNewEconomicPlanforSiamfrom1933.[2,p.
36][1]

ThenewLandAlienationActprohibitstransferofagriculturallandtonon
agriculturalists,toavoidthedisasterofthecolonialperiod.
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StateAgriculturalBankwouldprovideloanstothecultivators,sothattheydidnot
havetoborrowfromtheprivateloansharksasduringthecolonialperiod.[2,p.44]

Timberandmineralextractionwastobeincreased.Hydropowerwastobedeveloped.
Withanextensivenetworkofrailways,waterways,highwaysandportsthecountry
wasreadytoincreaseitsforeignexchangesurplus.

ThreemajorindustrialcentresweretobedevelopedAkyabinArakan,Myingyanin
UpperBurmaandRangoon.Theindustrieswouldforemostconcentrateinimport
substitutingproductionwithaheavyconcentrationinfoodprocessing,textilesand
constructionmaterials.

Socialwelfareprogramme

Theeconomicplanpresentsambitiousgoalsfortheimprovementsinthenational
healthprogrammewithfollowingobjectives
Toensurefullhealthofourpeople.
Tolowerthemortalityrate.
Toreducedeathsinchildbirth.
Tominimizeinfantmortality.
Towipeoutepidemicandendemicdiseases.[2,p.107]

Muchemphasiswasputalsoinpreventivehealtheducation,nationalfitness,nutrition,
environmentalsanitationandvitamintabletdistribution.Indigenousmedicineshould
berevived.

Educationwastoberevolutionised.TheBritisheducationhadnotgenerateda
feelingofprideinourcultureitdidnotteachushowtousethetoolsofmodern
technologyitdidnotgiveusenoughscopeforteachingthewaysofdemocracynor
fortheexpressionof patriotismandcitizenship.[2,p.113]

ThenewBurmeseeducationprogrammewouldprovideabasiceducationforall,wipe
outilliteracyamongadultsandgrantscholarshipsforadvancedstudiesoverseas.

Everyvillageshouldhaveaprimaryschoolandmiddleschoolsandhighschoolswill
beopenedasquicklyaspossible.[2,p.114]Primaryschoolprovidesfouryearsof
educationcompletingthefourthstandardmiddleschoolprovidesanotherthreeyears
andhighschoolagaintwoyearsuptotheninthstandard.Itisstillafairlymodest
educationplan.

Manyofthetextbooksneedtoberewritten,astheywerewrittenduringthecolonial
daysandhadbecomeobsolete.[2,p.114]
Thehousingprogrammewasaggravatedbytheinsurrection,whichhaddrivenmany
villagerstotownsalreadyswollenwithlargepostwarpopulation.Thesituationin
Rangoonisparticularlysevere,asslumshadmushroomedalmostovernightas
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refugeeshadbuilthutonthevacantlotsandoncityssidewalks.[2,p.118]Hence
extensiveanddetailedconstructionplanswerepresentedinthePyidawthaplan.

Thesocialwelfareplanstatesasitsobjectivetohelptheyoungandtheold,the
handicappedandthedistressed,thesickandtheinfirm.Thegovernmentwillexpand
facilitiesforthecareoforphans,homelesschildren,andtheaged.Theblind,thedeaf,
themute,andotherhandicappedpersonswillreceiveourassistance.Special
emphasiswillbeputonnurseriesandchildcarecentres.

Communitydevelopmentpromotescommunityactivitiesintermsofhealthand
education.Literacyprogrammewillrevivalthemonasticschools,whichhadbeenmad
redundantbytheChristianmissionaryschoolsofthecolonialera.

Conclusion

ThePyidawthaplanoptimisticallyconcludes:

WeBurmanshavearighttodreambolddreamsandtomakeboldplansforour
future.Thiswehavedone.
WeBurmanshave,too,anobligationtoactthatthesedreamsmaycometrue.This
wearedoing.
Andfinally,weBurmanshaveasacreddutytoconformbothourdreamsandouracts
toourfaith.Thisweshalleverdo.[2,p.128]

ThePyidawthaplanaimedtosilencethevocalcritiquebySocialistpoliticians,who
accusedUNusgovernmentforbeingfeudal,compradoreandcapitalist.With
Pyidawhta,UNucreatedastateideology,whichwasthenhandeddowntothe
villagersbyspecialPyidawthacommittees.

TheambitiousPyidawthaplan,however,failedtobesuccessfulinBurma.Thehuge
foreignexchangesurplusdriedout,whenBurmastraditionalexportmarketsforrice
India,CeylonandMalayawerefloodedwithUSsurplusfoodaid.Thisledtoa
significantfallintheworldriceprices.

RiceharvestshadbeenpurchasedfromthefarmersbyStateAgriculturalMarketing
Boardonafixedpriceandexportedonahugeprofit.Thishadcreatedahealthy
surplusinforeignexchange.Importshadbeenlimited,butthestatehadsoldimport
licensesexclusivelyonlytoBurmesebusinessmeninordertotwisttheeconomic
powerfromtheIndiansandChinese.Thelicenseswere,however,oftenpurchasedby
Burmesepoliticiansortheirfamilymembers,whothensoldthemfurthertoIndiansor
Chinese.

Despiteallitsweaknesses,UNusPyidawthaplanisaninterestingcasestudyofa
countrysstruggletoremainneutralbothpoliticallyandeconomically.

Theideasofselfsupportingeconomies,wherethegovernmentsandthepeoplecan
 7

decidewhattoproduceandwhentoproduce,seemtohavebecomeobsoleteinthe
globalisedworld.

SchumachercriticisedtheBurmesegovernmentin1955forwastingforeignexchange
reservesinimports.Inthepresentglobalisedworld,protectingeconomiesagainst
importshasbeenpracticallycriminalised.

DespitealltheweaknessesintheimplementationofthePyidawthaplan,thisisthe
BurmathathadinspiredE.F.SchumachertowritehisfamoustreatiseonBuddhist
Economics.[3]

References

[1]OutlineEconomicPlan(1933)inPridiBanomyong.PridibyPridi.Selected
WritingsofLife,PoliticsandEconomy.TranslatedandintroducedbyChrisBakerand
PasukPhongpaichit.2000.SilkwormBooks.ChiangMai.pp.83123.
[2]Pyidawtha.TheNewBurma.AreportfromtheGovernmentofthePeopleofthe
UnionofBurmaonourLongtermProgrammeforEconomicandSocial
Development.EconomicandSocialBoard.GovernmentoftheUnionof Burma.1954
[3]Schumacher,E.F.(1973)Smallisbeautiful:astudyofeconomicsasifpeople
mattered.Specialedition:25yearslaterwithcommentaries.Hartley&Marks.
Vancouver1999.