Myanmar in 2005 experienced the aftermath of the purge of Khin Nyunt's Military Intelligence Faction, withdrew from chairing the Association of Southeast Asian Nations in 2006, and expanded relations with China and India. The aborted domestic reform program (1997–2004) and deteriorating relations with the ethnic minority ceasefire groups showed the State Peace and Development Council's inability to come to grips with Myanmar's severe economic and social problems.

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