and
Chen Yi during their visit to Burma on 31 May 1964 Ne Win oversaw a number of reforms after taking power. The administration instituted a system including elements of
nationalism,
Marxism, and
Buddhism, though Ne Win lacked interest in either ideology or religion – terming this the
Burmese Way to Socialism. He founded the Burma Socialist Programme Party (BSPP), which in 1964 was formally declared to be the only legal party. Following the 1962 coup, Ne Win's government began implementing policies highlighting the centrality of Burmese language, Burmese culture, and Burmese Buddhism to the unity of the country. Such policies focused on the school curriuculum, military recruitment, and the advancement of Burmese-centric popular culture. Ethnic schools and hospitals were nationalized, and new staff assigned from Rangoon. When ethnic minority areas did not comply, the communities were attacked by the military. Collectively these policies later became known as General Ne Win's "Burmanization" policies. A system of state hospitals and institutions was established in Burma; medical care was free. Private hospitals were brought under
public ownership. A new system of public education was introduced. A campaign to liquidate illiteracy was carried out starting in 1965. Between 1962 and 1965 important laws against landlords and usury were adopted. They aimed at protecting peasants' rights to land and property and to renting the land. These measures included the law abolishing rents on land. On 2 March 1974, he disbanded the
Revolutionary Council and proclaimed the
Socialist Republic of the Union of Burma. He was elected
president of Myanmar and shortly afterward appointed
Brigadier General Sein Win as
Prime Minister. On 9 November 1981, Ne Win resigned as
president and was succeeded in that post by General
San Yu. However, Ne Win remained leader of the
party and thus remained the ultimate political authority in the land until his resignation in 1988.
Economic policies in June 1966 Ne Win's government nationalized the
economy and pursued a policy of
autarky, which involved the
economic isolation of Burma from the world. The ubiquitous
black market and rampant
smuggling supplied the needs of the people, while the central government slid slowly into
bankruptcy. Autarky also involved expelling foreigners and restricting visits by foreigners to three days, and after 1972, one week. The Burmanization of the economy included the expulsion of many Chinese (along with Indians). Ne Win's government prohibited foreigners from owning land and practicing certain professions. Ne Win also took drastic steps regarding the
currency. In 1985, he issued a decree that 25, 35, and 75 kyat notes would cease to be legal tender, alleging that they were subject to hoarding by
black-marketeers and were also used to finance the various insurgencies. Though limited compensation was offered, this wiped out people's savings overnight. At least one insurgency, that of the ethnic
Kayan, was triggered by this act. In 1987, reportedly on the recommendation of an
astrologer that
the number nine was auspicious, Ne Win ordered the withdrawal of several large-denomination kyat notes while issuing new denominations of 45 and 90 kyats. Both 45 and 90 are divisible by nine, and their numerals add up to nine. Again, millions of
Burmese lost their life savings, and the demonetization also rendered about 75% of the entire kyat reserves completely useless. This crippled the Burmese economy further still. Ne Win was well known for his penchant for
yadaya (traditional Burmese rituals performed in order to ward off misfortune). When his soothsayer warned him that there might be a bloodbath, he would stand in front of a mirror and trample on meat to simulate the blood, then shoot his reflection to avert the possibility of an
assassination attempt. Ne Win resigned as chairman of the ruling Burma Socialist Programme Party on 23 July 1988 at the height of the
uprising against his regime, and roughly one year after the United Nations declared Burma a "
Least Developed Country".
Student and worker riots Sporadic protests against the government continued. Students led protests in 1965, December 1969, and December 1970. These demonstrations took place mainly on campuses located in the cities of
Rangoon,
Mandalay and
Moulmein and were often followed by the closure of universities and colleges. In June 1974, workers from more than 100 factories throughout the nation participated in a strike, to which the government reacted by shooting about 100 workers and students on 6 June 1974 at the Thamaing Textile Factory and the Sinmalaik Dock Yard in Rangoon. Since Ne Win was in
Australia on an official visit at the time, responsibility for these shootings is unclear. On
5 December 1974, students turned the funeral of former
UN Secretary General U Thant into a demonstration, snatching the coffin on display at the
Kyaikkasan Race Course and erecting a makeshift mausoleum on the grounds of the former Student Union building in protest against the government for not honouring their famous countryman with a state funeral. The
military stormed the campus on 11 December, killing some of the students, recovered the coffin and buried
U Thant at the foot of the
Shwedagon pagoda, next to the tomb of
Thakin Kodaw Hmaing.
1967 anti-Chinese riots In February 1963, the Enterprise Nationalization Law was passed, effectively
nationalizing all major industries and prohibiting the formation of new factories. This law adversely affected many
industrialists and
entrepreneurs, especially those without full
citizenship. The government's
economic nationalization program further prohibited foreigners, including the
non-citizen Chinese, from owning land, sending
remittances, getting
business licenses and
practicing medicine. Such policies led to the beginnings of a major exodus of
Burmese Chinese to other countries – some 100,000 Chinese left Burma. Since Ne Win made
Burmese the medium of instruction, many
Chinese-language schools had to be closed. When the
Chinese embassy in
Rangoon distributed
Mao's red books in Burma, many Chinese went out on the streets in support of the Cultural Revolution. They were attacked by
Burmese citizens, the most violent
riots taking place in 1967. Similarly,
Chinese shops were looted and set on fire. Public attention was successfully diverted by Ne Win from the uncontrollable
inflation, scarcity of consumer items and rising prices of rice. The 1982 Citizenship Law further restricted Burmese citizenship for Burmese Chinese (as it stratified citizenship into three categories: full, associate, and naturalized) and severely limited Burmese Chinese, especially those without full
citizenship and those holding FRCs, from attending professional tertiary schools, including
medical,
engineering,
agricultural and
economics institutions. During this period, the country's failing economy and widespread discrimination accelerated an emigration of Burmese Chinese out of Burma. ==8888 Uprising, resignation, and military coup (1975–1988)==