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Myanmar's path to democracy, freedom and development has been marred by emerging Buddhist religious extremism targeted against the Rohingya Muslims. This article examines the rise of Buddhist religious extremism in Myanmar. Its core focus is on the political economy of state-building and development, and the structural and social conditions that have produced violence. We argue that contested state-society relations, negotiated by the discourse of state-building and development rather than religion and religious ideologies alone, can better explain the current dynamics of extremist violence in Myanmar. We show that hegemonic state-building processes (that have been ongoing since Myanmar became independent in 1948) and exploitative development serve as a site for inequalities and discriminatory policies. These policies and their manipulation for political and developmental gains have had multiple social effects: they have radicalised a section of Buddhists, resulting in the rise of violent religious extremism, and marginalisation and double victimisation of the Rohingya Muslims, targeted by the State security forces as well as Buddhist extremist groups. [ABSTRACT FROM AUTHOR]