Over the last seventeen years, since the army seized power in Burma on 18 September 1988, there has been a series of extended power struggles within the top levels of Burma's ruling military clique that have severely affected the country's move towards democracy. The most crucial of these, perhaps, was the downfall of the prime minister and intelligence chief, General Khin Nyunt, in October 2004.

Khin Nyunt was arrested on 18 October at Mandalay airport, flown back to Rangoon, and placed under house arrest. His supporters in Cabinet and government were subsequently purged in a series of cabinet shakeups, dealing a severe blow to the pro-democracy movement.

General Khin Nyunt, who was appointed prime minister in August 2003, was a pragmatist, and favoured involving the pro-democracy leader Aung San Suu Kyi in the national reconciliation process — as the military prefers to call plans for political reform. But he was at odds with the country's hard-line leader, General Than Shwe. It is well known that the Senior General hates even hearing the mention of Aung San Suu Kyi's name.

Within weeks of Khin Nyunt's arrest, hundreds of military intelligence officers were arrested, interrogated, and charged with economic crimes and corruption. Most of them are facing more than thirty years' jail. The military intelligence division was immediately disbanded. More than thirty thousand junior officers and soldiers were summarily dismissed. Some senior officers were allowed to retire and some foot-soldiers were reassigned to infantry divisions and sent to the most isolated and dangerous border regions. Since then, anything to do with Khin Nyunt has been purged. Photographs, posters, and billboards showing him have been taken down. The spire in the famous Shwedagon temple in Rangoon that Khin Nyunt had covered in gold has been boarded up. The authorities have also scoured the civil service and sacked anyone who had got their post as a result of a recommendation from a military intelligence officer. It is reminiscent of the days of the former Burmese monarchs — when the king was overthrown or died, the next king had all the old king's relatives killed.