A Level Content Training

1
A Level Content Training

• Economic Development and Consequences in
  Post-independence Southeast Asia
• Part One
• Economic Challenges and the Role of Government in
  Economic Development

2
The Legacy of Colonial Rule

• Why is the colonial legacy important?
• New nation states inherited the problems created
  by colonial state
• Essential characteristics of colonial economy
• Integration of colonial sphere into the world
  economic system
• Expansion in production of raw material
• Exposure of colonial areas for market economic
  forces
• Creation of a consumer market
• Investment opportunities for European capital
• Promotion of Western enterprise with
  infrastructure facilities
• General surveys
• Dixon, Chris 1991 57-84
• Owen, Norman G. 2005 161-200 and 268-282

3
The Effects of Colonial Economic Order

• Local integration through administrative and
  communication facilities
• Mobilization of labour and opening up hinterlands
  for production (Dixon 4.2)
• Rapid population growth (Owen 2005 225)
• A tripartite socio-economic order (Furnivall
  1944)
• A dual economic structure (Boeke 1953 Higgins
  and Geertz 1963)
• Prosperity without progress (Owen 1984)
• Slow increase in per-capita income
• Drain of wealth that could be used for economic
  development (Eng 1993)

4
The Effects of Colonial Economic Order General
Surveys

• Steinberg 1987
• Owen 2005 222-242
• Booth 1991
• Tarling 1992b 131-196
• Brown 1997 15-46
• Dixon 1991 85-148
• Scott 1976
• Geertz 1963
• Furnivall 1944

5
The Effects of Colonial Economic Order Country
Surveys

• Ricklefs 1981
• Andaya and Andaya 1982
• Steinberg 1982
• Robequain 1944
• Ingram 1955
• Adas 1971
• Owen 1984
• Elson 1984
• Larkin 1972
• Kaur 1985
• Drabble 2000

6
Problems Created by Colonial Economic Order

• The process of integration was incomplete and
  lacked cohesion
• Development was confined to the areas useful for
  colonial economic exploitation
• Disparity in regional development
• Lack of industrialization (Brown 1997 203-215
  and Sheperd 1941)
• Very low per capita income
• Industrialization was extremely difficult to
  achieve
• Colonial economic dependency remained intact to a
  large extent
• This made initiating new economic policies very
  difficult

7
Challenges for the New Nation-states

• The region was overwhelmingly agricultural
• Diversification of economic activities
• Rapid change towards industrialization would
  exacerbate the economic problems of people
• And yet industrialization was necessary for
  economic growth
• Reduction of poverty
• High unemployment and under-employment
• Extremely low per-capita income
• General surveys
• Owen 2005 379-398
• Myint 1960

8
Divergent Paths to Economic Development

• The Western model (Singapore, Malaysia, Thailand,
  Cambodia, South Vietnam and the Philippines)
• Free access to land and labour
• Investments on a large scale
• Risk minimization to ensure profits
• Large consumer markets
• The Soviet model (North Vietnam, Burma and
  Indonesia)
• State controlled economy
• Little room for private enterprise
• Agricultural sector supports other sectors of the
  economy
• Industries under state control
• Controlled consumer market
• General surveys
• Chris Dixon 1991 149-216.
• Brown 1997 63-78.

9
Where to Begin Economic Development ?

• The war compounded economic stasis created by the
  Great Depression (1929-1935)
• The region was economically devastated by 1945
• Infrastructure facilities had been destroyed
• Small industrial sector had collapsed
• Labour force had withdrawn into agriculture
• Poverty was widespread
• Countries lacked expertise
• Nationalist rhetoric made any step towards
  co-operation with former colonial masters
  unacceptable (in most parts of the region)
• General surveys
• Brown 1997 216-229 and 203-215.
• Dick, Houben, Lindblad and Thee 2002 153-193.

10
Achievements since Independence

• Overall rapid economic growth with some local
  variation
• Rapid industrialization
• Economic diversity
• The Green Revolution
• Modernization of transportation
• Reduction of poverty

11
Achievements since Independence General Surveys

• Tarling 1992 467-528
• Booth 1991
• Brown 1997
• Oshima 1987

12
Achievements since Independence Country Surveys

• Bautista and Lamberte 1996 (The Philippines)
• Hill 1994 (Indonesia)
• Huff 1999 (Singapore)
• Lucas and Verry 1999 (Malaysia)
• Riedel and Comer 1997 (Vietnam)
• Warr 1993 (Thailand)