Under British administration, Myanmar was the second-wealthiest country in South-East Asia. It had been the world's largest exporter of rice. Myanmar also had a wealth of natural and labour resources. British Burma began exporting crude oil in 1853, making it one of the earliest petroleum producers in the world.[233] It produced 75% of the world's teak and had a highly literate population.[25] The wealth was however, mainly concentrated in the hands of Europeans. In 1930s, agricultural production fell dramatically as international rice prices declined, and did not recover for several decades.[234]
During World War II, the British destroyed the major government buildings, oil wells and mines for tungsten, tin, lead and silver to keep them from the Japanese. Myanmar was bombed extensively by both sides. After independence, the country was in ruins with its major infrastructure completely destroyed. After a parliamentary government was formed in 1948, Prime Minister U Nu embarked upon a policy of nationalisation and the state was declared the owner of all land. The government also tried to implement a poorly considered Eight-Year plan. By the 1950s, rice exports had fallen by two thirds and mineral exports by over 96% (as compared to the pre-World War II period). Plans were partly financed by printing money, which led to inflation.[235]
The 1962 coup d'état was followed by an economic scheme called the Burmese Way to Socialism, a plan to nationalise all industries, with the exception of agriculture. The catastrophic programme turned Myanmar into one of the world's most impoverished countries.[72] Myanmar's admittance to least developed country status by the UN in 1987 highlighted its economic bankruptcy