The most immediate evidence of Mandalay’s past glories as the pre-colonial capital of Burma is a sprawling, gilded palace (rebuilt after the Second World War) and some ancient religious buildings. Today there is little sign of romance in this shambolic city of about 1.3 million people dotted with shabby street cafés. But the former royal capital still has considerable charms, not least its vibrant mix of sectors, including its role as a religious centre for Burma’s Buddhist sects, a creative hub for traditional art and home to three large universities.

The city’s defining feature is its strategic location on the mighty Irrawaddy river. As the economic heart of what is known as Upper Burma, Mandalay is a crossroads for river routes and overland passages from India to Thailand and China’s Yunnan province.

The city’s transformation is summed up by the luxury resort hotels cropping up on the city’s fringes and the new fast-food joints competing with tatty old tea shops on the main streets. Mandalay’s ethnic make-up has also transformed in the last 20 years with an influx of Chinese immigrants, which now comprise more than one third of the city’s population.

Together with the local and national government, bigger investors – including a growing number of western businesses – are behind a push to develop commercial, tourism and industrial zones and bring more order to the city’s chaotic sprawl. The challenge, like most aspects of life in Burma, is daunting.

How much is it growing?
A population of 1.3 million in greater Mandalay could reach 1.5 million by 2016, say local officials.

Why it works
Strategic location on river and land routes to China.

What it should do next
Manage traffic chaos and population growth through urban planning.