The concepts of a market-oriented economy, including reliance on market forces, has not worked its way through the bureaucracy to eliminate burdensome regulations and procedures. Procedures for issuing import and other business permits are not transparent, which provides opportunities for graft. Importers and exporters say it is extremely difficult to work in trade without paying officials for permits. The official exchange rate, which overvalues the currency by 60-fold, is a key impediment to foreign trade and investment. Burma also lacks a significant private banking sector, modern banking practices and an independent Central Bank.
Poor infrastructure is a major impediment to distribution of goods and services.
Due to its poor human rights record and the inadequacy of its narcotics suppression efforts, Burma is unable to obtain multilateral financial assistance and bilateral aid has been suspended. The U.S. does not offer EXIM bank or OPIC insurance coverage for Burma. In 1997, the President prohibited new U.S. investment. Consumer boycotts combined with a plethora of state and local sanctions in the U.S. create additional risk for companies involved in the Burma market. The GOB's motivation for this spate of restrictions appears to be an effort to capture scarce foreign exchange.