Ne Win and his allies in the Myanmar Armed Force overthrew the government of Prime Minister U Nu in a coup d'état on 2 March 1962.
[d] Ne Win's governance of Burma was characterised by totalitarianism, isolationism, superstition, xenophobia, and a rejection of Cold War politics.
However, on 18 September 1988 the Tatmadaw staged a coup against the BSPP, violently ended the protests, and established a new military junta, the State Law and Order Restoration Council (SLORC).
[4][page needed] The Union Parliament became very unstable, with U Nu barely surviving a no-confidence vote only with the support of the opposition National United Front (NUF), believed to have crypto-communists amongst them.
[4][page needed] On 28 October 1958, Ne Win staged an internal coup d'état under the auspices of U Nu and successfully restored Burma's political stability, a period known as the "Ne Win caretaker government", until the February 1960 general election which returned U Nu's Clean AFPFL, renamed as the Union Party, with a large majority.
The Shan federalists were aspiring to create a "loose" federation in Burma, and were seen as a separatist movement for insisting on the Burmese government honouring the right to secession in 10 years provided for by the 1947 Constitution.
Ne Win had already succeeded in stripping the Shan Saopha of their feudal powers in exchange for comfortable pensions for life in 1959, but the unresolved issues of federalism and social order continued.
The elected civilian government had lost most of its legitimacy by 1962; the Burmese public perceived it as corrupt, inept at ruling the country, and unable to restore law and order.
[3][page needed] Less than two years after returning to civilian rule, Ne Win launched a second military-backed coup d'état on 2 March 1962, this time without U Nu's blessing.
[6][page needed] The Revolutionary Council also founded the Burma Socialist Programme Party (BSPP) on 4 July 1962 to nominally separate the powers of the military from the government.
Instead, the government sponsored the travel of students, scientists and technicians to the Soviet Union and Eastern Europe, in order to receive training and to "counter years of Western influence" in the country.
The Enterprise Nationalization Law, passed by the Revolutionary Council in 1963, nationalised all major industries, including import-export trade, rice, banking, mining, teak and rubber on 1 June 1963.
[9] However, by 1988, foreign debt had ballooned to $4.9 billion, about three-fourths of the national GDP, and Ne Win's later attempt to make the kyat based in denominations divisible by 9, a number he considered to be auspicious, led to the wiping of millions of savings of the Burmese people, resulting in the 8888 Uprising.
[17] The program also may have served to increase domestic stability and keep Burma from being as entangled in the Cold War struggles that affected other Southeast Asian nations.