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Economic policies

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. Even foreign aid organizations were banned; the only humanitarian aid permitted was on an intergovernmental basis. Furthermore, heavy-handed political oppression caused many in the educated workforce to emigrate.

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 ".