In 1988, the military government in Myanmar abandoned the socialist ideology and isolationism that had shaped the state since independence, embarking on a transition to an open economy and engagement of the international community. ¶ Where socialism had failed, economic development and partnerships with former insurgent groups became the new strategy to advance the military’s security agenda. The primary goal of the security agenda is to promote state consolidation based on a unitary state structure, and according to military values and interests. However, the military’s goals are antagonistic to much of the country’s population, especially its ethnic minority groups. Consequently, the military lacks moral authority, and is preoccupied with maintaining its power and seeking legitimacy. The state is oriented to regime maintenance rather than policy implementation, leaving the regime without autonomy to pursue policy goals outside of its security agenda. ¶ The changing nature of the state, and state-society relations during the period of transition is revealed by trends in social development. Specifically, this thesis explores these issues through a case study of the health system.