British colonial policies deliberately exploited ethnic and religious differences as a means of maintaining control over the diverse populations of Burma, employing divide-and-rule tactics that pitted different communities against each other while preventing the emergence of unified opposition to colonial authority. The recruitment of ethnic minorities, particularly the Karen, Kachin, and Chin peoples, into colonial military and police forces created armed capabilities and political loyalties that would prove crucial during World War II and the subsequent struggle for independence. Meanwhile, the Bamar majority, who had previously dominated the region through various kingdoms and empires, found themselves excluded from many positions of authority while watching their traditional political structures dismantled by colonial administrators.
The economic transformation of Burma under British rule created new sources of wealth and power while disrupting traditional economic relationships and social hierarchies in ways that would contribute to post-independence conflicts. The development of rice cultivation in the Irrawaddy Delta attracted large numbers of Indian laborers and entrepreneurs who competed with local populations for economic opportunities while often enjoying preferential treatment from colonial authorities. The extraction of natural resources, particularly timber from the highland regions inhabited by ethnic minorities, created economic relationships that enriched British companies and their local collaborators while providing few benefits to the communities whose traditional lands were being exploited.