Paper 2 Theme 2 — Economic Development after Independence

H2History(Paper2)Theme2:EconomicDevelopmentafterIndependenceArgument Burma Vietnam ThePhilippines Indonesia Thailand Malaysia SingaporeContextForeigndominationofeconomicresources Foreignfirms●EastAsiaticCompanyofBurma(ricemillers)●JohnDickenson&Company(paperdistributors)●SteelBrothers(rice,oil,timber,shipping) 1946PhilippineRehabilitationAct●Provided$620minaid1948●Filipinoparticipationinimporttradehoveredaround20% Dutchplantationsandfirms●300Dutchplantationsand300firmsinotherareas(e.g.mining,trade,finance,utilities)wouldlaterhavetobeexpropriatedbythegovernment Presenceoflocalcapital●ActiveChinesebusinessclass,e.g.NaiLert(cars),NaiBoonrawd(brewery),NaiKokliang(cigarettes)●1929:over20,000ricetradersand12,000timbertraders 1971●63%ofcorporatewealthwasforeign-owned,35%tootherMalaysians(largelyChinese),and2%toMalays Politicalinstability 1980s:8888Protests●LedtoWesternsanctions Stable●Nochangeofgovernmentsinceindependence 1983:Aquino’sassassination●Triggeredcapitalflight,whichwascatastrophicgivendependencyonforeignloans Stable●30yearsofSuhartorule 1973-76:Politicalchaos●Ledtowidespreadcapitalflight Stable●Nochangeofgovernmentsinceindependence Stable●Nochangeofgovernmentsinceindependence Physicaldestructionofinfrastructure WWII●Lostallitsoilrefineries,90%ofitsboatsand70%ofitsroads●1950:GDPwasamere⅗ofpre-warlevels,withagriculturalproductiononlyat65% 1964-75:2ndIndochineseWar●7.5mtonnesofbombsweredropped,doublethatofWWII●MostbridgesontheHanoi-LangsonandHanoi-Vinhlineswereblownup●29/30provincialcapitalsweredamaged,with9completelydestroyed WWII●80%ofManilawasdestroyed Agrarianeconomicendowment Rice●Totalexportsreached$173mbeforethewar Rice,rubber,coffee●SouthVietnamhadfertilefarmlandsandaconduciveclimate Sugar,vegetableoil,fruits/nuts●Earlyindustrialmanufacturingcentredaroundtheprocessingofexportcrops,e.g.sugarmilling,vegetableoilproduction,cigarmaking Plywood,rubber Rice,teak,rubber,tin Rubber,oilpalm,tea,pineapples●1957:85%ofexportearningsderivedfromtinandrubber Alreadyexport-oriented●1950s:Exportswere127%ofGDP●1947:31%services,23%commerce,17%manufacturing,8%agricultureNaturalresources Teak,oil,gems,silver●Shanstate:abundantteak,oil,gemsandsilver Coal,gold,zinc,iron,tin●ConcentratedintheNorth Oil●Indonesiawasanoilexporter Tin,rubber Tin,rubber●1957:85%ofexportearningsderivedfromtinandrubber None Lackofskilledworkforce Limitededucation●Educationwasrestrictedtotheelite,whowereonlyofferedlow-rankingcivilservicepositions Braindrain●By1982:Afurther1mrefugeeshadfledSouthVietnamafterthecommunistvictory,includingprofessions,intellectualsandtechniciansInternationalshocks Oilcrisis●1972-80:Oilpricessurged Oilcrisis●1972-80:Oilpricessurged 1980s:Lowpetroleumprices●Hurttheshiprepairingand

Argument Burma Vietnam ThePhilippines Indonesia Thailand Malaysia Singapore10-foldfrom$3abarrelto$30●HighdependenceonenergyimportsslowedgrowthCommoditycollapse●1974-78:Sugarpricesfellby90%●Highdependenceoncommodityexportsrenderedthecountryhitbydecliningprices 10-foldfrom$3abarrelto$