Myanmar is heading towards a humanitarian crisis due to neglect and economic mismanagement, the US warned in a new report condemning the military-ruled nation for "severe" human rights abuses.
In a damning report, the State Department said the junta's "dismal economic policies" and "chronic economic mismanagement" led to widespread poverty, shrinking trade, a poor business and investment climate and flight of most foreign investors.
"We remain concerned that the junta's neglect and economic mismanagement are leading to a humanitarian crisis in Burma," warned the report, a six-monthly review of conditions in Myanmar and US policy toward the southeast Asian nation.
It attacked Myanmar for allegedly allowing forced labor and "egregious abuses," including rape, of ethnic minority women by the military.
The gloomy report overshadowed the government's guarded welcome on Tuesday over the release from house arrest of two senior members of the opposition National League for Democracy (NLD).
NLD chairman Aung Shwe and secretary U Lwin were freed by the junta after nearly a year in detention.
"We welcome these releases," State Department spokesman Richard Boucher said, but he added that it should lead to greater national reconciliation.
He called for the release of democracy icon Aung San Suu Kyi and another key NLD leader Tin Oo, both of whom are under house arrest following political unrest last May which triggered a crackdown on the party.
Boucher said Washington remained "concerned" that the military rulers had refused its request to see Suu Kyi and Oo.
"We also remain concerned about the continued detention of the hundreds of others imprisoned for the peaceful expression of their political beliefs and we reiterate our call for their immediate and unconditional release," he said.
The State Department report charged that the State Peace and Development Council, the official name of the junta, "continued to abuse severely the human rights of its citizens.
"Freedom of speech, press, religion, assembly, and association remain greatly restricted."
It said Washington would maintain sanctions against Myanmar "until there is significant progress toward political transition and genuine respect for human rights or until a democratically elected government in [Myanmar] requests that they be lifted.
The US Congress will formally consider renewing the sanctions against Yangon in the next few weeks.
Many legislators have called for a sanctions renewal.
The sanctions include an arms embargo, bans on new investment and imports, an asset freeze and a prohibition on the export of financial services to Myanmar or the provision of financial assistance to the government.
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