The Union of Myanmar (Burma) has suffered political and ethnic conflict for more than half a century, which continues to hamper the country's social, political and economic development. The present report, prepared by the Crisis Management Initiative for the European Commission, seeks to map the conflict landscape, including its history, the actors involved, and the main obstacles and opportunities for dialogue and reconciliation. It assesses the change processes currently underway in the country and considers relevant comparative experiences from similar transitions elsewhere in the world. The final section contains specific recommendations to the EU and its member states, with particular attention to the possible role for a private (track-2) facilitator.....CONTENTS: EXECUTIVE SUMMARY... II. INTRODUCTION... A. Background... B. CMI and Its Mandate... C. The Report... III. OVERVIEW OF THE CONFLICTS... A. General Overview... 1. Types of Conflict... 2. Patterns of Conflict... 3. Consequences of conflict... B. The History of the Main Conflicts... 1. The Struggle over Democracy and Human Rights... 2. The Struggle over Ethnic Autonomy and Equal Rights... 3. Inter-linkages between the Two Struggles... IV. CONFLICT ACTORS... A. The Military Regime... 1. Leadership... 2. Regime structures... 3. Political Agenda ... 4. Underlying values and interests... B. The Democracy Movement... 1. The NLD... 2. Popular activism... 3. Border politics... 4. Exile groups... 5. Challenges for the democracy movement... 6. Facing the challenges: The "new opposition"... C. The Ethnic Nationalist Movement... 1. Ethnic organisations... 2. Ethnic grievances and aspirations... 3. Strategies for change... 4. Recent Trends... 5. Comparing constitutions... V. CONFLICT DIAGNOSIS... A. Obstacles to Reconciliation... 1. Complexity... 2. Mutually exclusive solutions... 3. Institutionalisation of the conflicts... 4. Asymmetric power (and conflict trends)... B. Opportunities for Reconciliation... 1. The search for legitimacy... 2. Institutional reform... 3. Generational change... 4. Burmese views and hopes... VI. PEACE AND THE NEED FOR INSTITUTIONAL DEVELOPMENT... A. The State... B. Civil society... VII. EU BURMA POLICY IN COMPARATIVE PERSPECTIVE: GLOBAL LESSONS FOR INTERNATIONAL SUPPORT TO DEMOCRATISATION AND CONFLICT RESOLUTION... A . European Objectives of Economic Pressure and Support of Democracy and Conflict Prevention... B. International Influence and Domestic Power Settings in Democratising Nations... C. Successful Strategy of Sanctions... 1. How to Make Sanctions Work?... D. Can Positive Means of Supporting Conflict Management Supplement Economic Pressure? ... 1. Burma's ethnic conflict structures... 2. Conflict Resolution in Burma ... E. Can Economic Pressure Be Complemented by Positive Means of Building Good Governance?... F. How Should Positive Work for Democracy Complement Economic Pressure?... VIII. CONCLUSION AND RECOMMENDATIONS... A. How to Prevent Violence in Burma?... B. Conflict Resolution... 1. Sanctions and beyond ... 2. Positive European Contribution for Conflict Resolution ... C. Could Europe Help the Transformation of Structures of Conflict in Burma?... LIST OF REFERENCES... Annex 1: The procedure for invoking Article 96 (consultation article) of the Cotonou Agreement... Annex 2: 20 Most Dramatic Processes of Democratization Since 1900.