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While Burma/Myanmar is increasingly isolated diplomatically, the military government itself is becoming ever more reclusive and unresponsive towards external pressure. Internationally, there is growing consensus that more needs to be done about the dismal and worsening political, human rights and socio-economic situation. It should be recognized nonetheless that the problems facing Burma/Myanmar today are inherently domestic. There are limits as to how much external actors can assist. At the core of the problem is the political confrontation among the three key domestic actors (the "Tripartite"): the military emphasizes the union of the state; the ethnic minorities want improved powersharing rights; and the opposition groups stress democratization. Disputes arise among the three actors as to how to prioritize and best balance their respective goals. While the Tatmadaw (the Armed Forces) can be considered the biggest obstacle to change, the ethnic nationalities issue has remained the largest, most enduring and intractable political challenge facing the country since independence in 1948.... This report advocates a policy of engagement with the present government to work towards sustainable dialogue. This does not mean appeasement in support of the status quo; rather, it advocates stability in change through gradualism. The international community needs to prioritize the challenges facing the country and decide how to deal with the most practical and urgent ones first.... It is accepted that democratization and a return to genuine civilian control is an essential ingredient for the treatment of the country's many ailments. The issue here concerns timing and process. A sensible solution is to facilitate the improvement of civilian-military relations, leading to eventual democratic transition. Such an approach is more realistic than the abrupt displacement of the existing military regime in the hope that a civilian government would be able to assume control.