The first Burma selective purchasing law was passed in Berkeley, California, in February, 1995. The impact of these laws was felt almost immediately. Hewlett-Packard, Apple Computer, Phillips Electronics and Eastman Kodak, all fearing the loss of multimillion dollar contracts with the Massachusetts state government, withdrew from Burma shortly after the Massachusetts bill was signed. Any company doing business in Burma, no matter where it is headquartered, can be affected. The Burmese currency is essentially worthless on foreign exchange markets, and the regime spends far more than it earns- much of it on arms to keep its own people in line.
Foreign investment is also key to the laundering of drug profits.
Very little of the money brought in by foreign investment actually reaches the people. Foreign companies wanting to invest in Burma can not freely choose their business partners. All foreign investment goes through the military, or the generals' friends or families. Profits from business enterprises will merely go toward enriching a small, already very privileged elite. One reason for the successoftheFreeBurmamovement so farhasbeen an unusual coalition of the American political left and right.