The military coup of February 2021 marked a return to direct military rule in Myanmar, which has triggered large-scale protests and civil unrest. In response, the military used brutal force and clamped down on political freedoms. Meanwhile, politicians elected previously established an exile shadow government and armed groups declared war against the military.
Furthermore, the return to military rule has also undone much of the economic progress achieved in the last decade. While the junta has reintroduced import substitution policies and protectionism, the coup, the protests and the pandemic have had dire economic consequences, causing a bank crisis, soaring inflation rates, and widespread social issues.
Due to the political and economic turmoil, many international companies left, with hardly any new foreign investment coming into the country. The junta announced sham elections for late 2023 as an attempt to create legitimacy.
