In June, the government raised gasoline prices for most consumers from 25 Kyat to 180 Kyats per gallon, causing a concomitant rise in the price of transportation for most Burmese and further fueling the serious rise in inflation in the country, which was estimated to be over 40 percent during the month of August. Despite rampant inflation, the government has thus far been able to maintain a stable and low price for rice. However, severe monsoon flooding throughout much of Burma in July and August, concentrated particularly in rice-growing regions of central Burma and in the Irrawaddy delta region, could severely impact the country's main monsoon rice crop and lead to a serious rise in the price of rice. The Government restricts worker rights and uses forced labor on a widespread basis. In the past year, the military has begun using soldiers instead of civilians at certain infrastructure projects, following the issuance of directives in 1995 to end the practice of forced civilian labor.
Child labor continues to be a serious problem.
As a largely underdeveloped country, Burma, with a rapid population growth rate, faces increasing pressure on environmental quality. Although the government has taken some steps to stem widespread clear-cutting, Burma's large tracts of remaining tropical forest remain under intense commercial exploitation. Because of the severe restrictions on Embassy travel to outlying parts of Burma, it is difficult to document the overall extent of the problem. The poor quality of life is also reflected in rising drug abuse. Drug treatment services are not reaching most drug users because of a lack of facilities and a lack of properly trained personnel.