A new Startfor Global Intelligence analysis makes sense of the current discriminatory polices in Myanmar:

Myanmar’s current constitution does not make Buddhism the state religion, but it recognizes the “special position of Buddhism as the faith professed by the great majority of the citizens of the Union.” It also bars monks from holding political office. As the recent run of political successes by the nationalist movement has shown, the central government has become increasingly open to giving in to the Buddhists’ demands.

To Naypyidaw, such concessions may be worthwhile. Many of the nation’s minority ethnic groups continue to support ongoing insurgencies, but these rebel groups depend on anti-government and anti-Bamar sentiment. Redirecting hostility toward Muslims unifies the country’s key ethnic groups along with Myanmar’s central core and the key upland region of Shan state. Moreover, Myanmar’s economy remains largely reliant on Chinese investment. Anti-Chinese communal riots broke out in 1967, pushing many Chinese out of the country. Naypyidaw does not want this to happen again. Resentment of Muslims as a foreign element may help displace resentment of the Chinese.

Putting Buddhism at the root of national identity comes at a cost for the government, as shown by the involvement of Buddhist monks in the 1988 anti-government protests and, especially, the 2007 “Saffron Revolution.” The Rohingya issue has also strained Naypyidaw’s relations with several Southeast Asian states, particularly Thailand, Malaysia and Indonesia, as thousands of Rohingya refugees continue to show up on their shores. Sectarian tension also heightens the risk of sparking an Islamist militant backlash. Nonetheless, as Myanmar continues consolidating as a nation, Buddhist nationalism will remain a force to reckon with in national politics. For now, the central government will continue to bend to Buddhist nationalist pressure, and the movement will be a powerful tool for key political figures. In time, however, the populist upsurge — and the Sangha itself — could come back to haunt the central government.