The Burman (or Burmese) people first arrived from Tibet in the 3rd century AD, gradually coming to dominate the Mon and Pyu peoples who were the first to inhabit the fertile Irrawaddy valley. During this period, Burma was part of a key overland trade route from China to India and thus became economically powerful. In 1057 King Anawrahta established the first unified Burmese kingdom, with its capital at Pagan (or Bagan). He introduced Theravada Buddhism as the dominant religion. The Pagan dynasty later fell to Mongol invaders and the country was subsequently run as a Chinese tributary. European traders from Portugal arrived in the region in 1519. From 1551, a new unified state, the Toungoo dynasty, was established with some Portuguese help. In 1612 the British East India Company established it's first trading posts near Rangoon.

By 1800, the empire under King Alaungpaya extended into Assam (India) and Thailand. The Second Anglo-Burmese War, in 1852, led to Lower Burma being occupied by the British. As a direct result, a vigorous new king, Mindon, took control of Upper Burma and proceed to modernise the country. He also nationalised to nascent petroleum industry which was then rapidly growing in importance. In 1885 the Third Anglo-Burmese War resulted in Upper Burma falling under British control and on 1 January 1886 the whole country became a province of British India. In 1886 the British-owned Burmah Oil Company was founded, and by 1915 Burma had become the 14th largest oil exporter in the world. It was also the world's largest exporter of rice.

In 1923 agitation by Burmese nationalists resulted in the creation of a partially elected legislature with limited powers. However, the economic depression of the early 1930s caused widespread unrest and increased calls for self government. On 1 April 1937 Burma was separated from India and made a crown colony under Prime Minister Ba Maw. Internal divisions within the Burmese nationalists resulted in Ba Maw being replaced by U Saw in 1939. This did not satisfy some Burmese nationalists, such as the 'Thirty Comrades' under Aung San, who travelled to Taiwan for training by the Japanese. In December 1941 Aung San announced the creation of the Burma Independence Army (BIA). In early 1942 the Japanese invaded and occupied Burma, with some help from the BIA. Ba Maw was installed as head of a Japanese puppet state. As the tide of World War 2 turned against Japan, the Burmese nationalists transformed themselves into the Burma National Army and commenced active resistance to occupation. At the same time, a political coalition called the Anti-Fascist People's Freedom League (AFPFL) was formed to represent nationalist views. In May 1945 Allied Forces completed the liberation of Burma, and in August the British civilian administration returned to the country.

In January 1947 Britain agreed to grant independence to Burma. Elections in April of that year saw a clear win for Aung San's Freedom League party. However, Aung San and nearly all of his cabinet were assassinated on 19 July 1947 in a plot inspired by political rival U Saw. U Nu took over as Prime Minister and led the country to independence on 4 January 1948. Burma left the Commonwealth, but joined The United Nations as its 59th member. U Nu oversaw a strategy of neutrality in the Cold War. Following independence, various ethnic monitories launched armed campaigns for self-determination, and this resulted in a series of gradually escalating battles along the Burmese border.

In March 1962 the civilian government of U Nu was overthrown in a military coup led by General Ne Win. He dissolved parliament, abandoned the constitution and nationalised industry. The government was named the 'Revolutionary Council'. In 1964 Ne Win's Burma Socialist Program Party (BSPP) was declared the sole legal party. There were no free elections and torture, political imprisonment, and other human rights abuses were common. Costly guerrilla wars along the country's borders continued. In March 1974 a new presidential-style constitution was adopted that made Burma a one-party state, the Socialist Republic of the Union of Burma. A new parliament was introduced, with Ne Win as President.

Burma had been the richest country in southeast Asia in 1940, but the years of socialism from 1962 had reduced the economy to a shambles. Now one of the poorest states in Asia, in 1986 Burma was forced to ask the United Nations for 'least developed country' status in order to qualify for emergency economic aid. All key industries in Burma are controlled by military-run state enterprises. Rich in natural resources such as a fertile soil, rich fisheries, timber, gems and offshore natural gas and oil, corruption and severe mismanagement by the military had produced a black-market driven economy. The armed forces were also active in large-scale drug trafficking in heroin, of which Burma was a major exporter. For the ordinary people, severe rice shortages were a major source of discontent.

In September 1987 the government announced a currency devaluation which wiped out many people's life savings. Riots and protests followed, often being met by police brutality. In early 1988 Aung San Suu Kyi - daughter of former leader Aung San - and ex-premier U Nu founded the National League for Democracy (NLD) to press for peaceful change. By March 1988, anti-government protests had spread across the country and the army was called out to restore order. Many people died when army units fired into the crowds.

In July 1988 General Ne Win was forced to resign after a general strike. In August civilian Dr. Maung Maung was installed as President, and he immediately promised free elections, the ending of martial law and the release of political prisoners. Dr Maung appeared to gain the support of a section of the armed forces. Tragically, a military coup on 18 September 1988 installed General Saw Maung as President. The State Law and Order Restoration Council (SLORC) was established to run the country. Protests were broken up by troops firing machine guns into the unarmed crowds. 10,000 people are estimated to have been murdered in this way. Thousands of NLD members where arrested. On 19 June 1989 Burma adopted the ancient name of Myanmar, reportedly to reflect the presence all sections of the population, not just the Burmans. Unfortunately, this name is now irrevocably associated with brutality and bloodshed.

In May 1990 SLORC was sufficiently confident of its position to hold national elections. The first multi-party elections in 30 years. The opposition National League for Democracy, under Aung San Suu Kyi, won 80% of the vote. The army-front National Unity Party won only 10 seats. This unexpected result was ignored by the military, who refused to hand over power. July 1990 saw thousands arrested in a renewed crackdown on opposition groups. In October Aung San Suu Kyi was awarded the Nobel Peace Prize for her commitment to peaceful change.

In 1992 General Than Shwe took over as SLORC leader when General Saw Maung unexpectedly resigned for health reasons. Some detainees were released and curfew abolished. A crackdown on corruption was also launched. SLORC was given the Orwellian name State Peace and Development Council (SPDC) in 1997. In the same year Myanmar was allowed to join ASEAN - the Association of South East Asian Nations.

In August 2003 Khin Nyunt became Prime Minister. He announced plans for a new constitution to restore democracy. Talks got under way in May 2004, but were boycotted by opposition groups who still had leading personnel under arrest. The talks were adjourned in July 2004. In October 2004 Khin Nyunt was replaced by Sow Win and placed under house arrest. The following month many leading dissidents were freed from prison. 26 December saw destruction along the coast as an undersea earthquake off Indonesia triggered a giant Tsunami which left over 3000 people homeless in Myanmar. In February 2005 talks on a new constitution resumed - still without the participation of opposition groups.

Despite recent superficial moves towards political reconciliation, Myanmar remains in the grip of a bloodstained corrupt military clique. The legitimate government remains under house arrest, and torture and human-rights abuses are commonplace. Attempts to free the economy from state control and invite foreign investment were stalled by the Asian Economic Crisis of 1997-98. While neighbouring economies have now picked-up again, the economy of Myanmar remains stagnant. Human rights concerns have led to Myanmar being shunned by international financial institutions. Spiralling inflation and the plunging value of the currency are destroying the value of existing investments and seriously threaten economic collapse without international financial aid.