Abstract: A method and system for controlling congestion in an ATM network comprises the steps of pre-allocating, for a pre-determined interval of time, a set of burst access parameters to a set of pre-allocated virtual paths between a set of source node and destination node pairs in the ATM network, and controlling, at the burst level, the traffic at each source node based on the pre-allocated set of burst access parameters and without communicating with other nodes in the ATM network. Specifically, the network, for a pre-determined interval of time, pre-allocates a set of virtual paths between each source-destination node pair in the network, pre-allocates a set of maximum permitted rates to the pre-allocated set of virtual paths, respectively, and pre-assigns a set of burst access thresholds to a set of service classes, respectively, in the pre-allocated virtual paths, where the pre-assigned burst access thresholds are less than or equal to the corresponding pre-allocated maximum permitted rates.