Efforts continue towards democratic change, but progress is slow. International sanctions are proposed again due to the Rakhine State crisis, while the government’s “Panglong-21” process for national peace and reconciliation struggles to gather momentum. Fighting continues in the Kachin, Rakhine and Shan States; up to two million people remain refugees or displaced from their homes; and half the population is living below the poverty line. Reforms are continued in such areas as health, education and the economy. Modernisation is also rapid in Yangon, Mandalay and the main conurbations. But reforms on national scale are held back by conflict, the lack of funding and decades of inertia.