Disputes - international: over half of Burma's population consists of diverse ethnic groups who have substantial numbers of kin in neighboring countries; Thailand must deal with Karen and other ethnic refugees, asylum seekers, and rebels, as well as illegal cross-border activities from Burma; Thailand is studying the feasibility of jointly constructing the Hatgyi Dam on the Salween River near the border with Burma; citing environmental, cultural, and social concerns, China is reconsidering construction of 13 dams on the Salween River but energy-starved Burma with backing from Thailand remains intent on building five hydro-electric dams downstream, despite identical regional and international protests; India seeks cooperation from Burma to keep Indian Nagaland separatists, such as the United Liberation Front of Assam, from hiding in remote Burmese Uplands; after 21 years, Bangladesh resumes talks with Burma on delimiting a maritime boundary in January 2008
Illicit drugs: remains world's second largest producer of illicit opium with an estimated production in 2008 of 340 metric tons, an increase of 26%, and poppy cultivation in 2008 totaled 22,500 hectares, a 4% increase from 2007; production in the United Wa State Army's areas of greatest control remains low; Shan state is the source of 94% of Burma's poppy cultivation; lack of government will to take on major narcotrafficking groups and lack of serious commitment against money laundering continues to hinder the overall antidrug effort; major source of methamphetamine and heroin for regional consumption (2008)