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Economic Dimension of Nation Building (Colonial Context that acts as a…
Economic Dimension of Nation Building
Colonial Context
that acts as a direct economic challenge during nation building
Un-industrialised SEA
Colonial master across SEA carried out a uniform policy of ensuring that SEA remained un-industrialised
Remained a
market for European manufactured goods
(fuel European economy)
Extraction and provision of
primary commodities
for
exports
such as rice, sugar, rubber, tin and spices
Vulnerable and Dependent
Vulnerable to
global market demands and prices
Growth
of economy was
not enjoyed by the locals
even though they were the main drivers behind the growth
Infrastructure Development
Infrastructure development
that facilitated trade was
not uniform
throughout SEA or even the country itself
Demographic changes
MIgrant labour
imported
changed
the
social makeup
and
ethnic composition
of the society
Benefitted the migrants at the
expense
of the locals
Did the locals benefit?
NO
Profits
tended to go to the
Europeans
or the
non-indigenious groups
like the
Chinese or Indians
.
e.g. In the
Philippines
, the Chinese owned
75%
of the
25000
rice mills and almost all of the saw mills.
Harsher taxes,
corvee
labour and focus on cash crops
caused starvation and hunger
Absentee landlords
and
inability to pay loans
led to the **loss of land^^ for the peasants.
YES
Local
elites
benefitted from the
lax lanf laws
under
America
rule which cemented their economic power.
Local
smallholders
who
own small shops
and
grew cash crops
benefitted by growing rubber and other crops.
Effects of non-indegenous control
a. Increased inter-ethnic tensions between locals and indigenous groups
Cause for
nationalism
Hampered nation building as it was a
source of division
b. General Exclusion of the Locals
e.g.
The Malay Reservation Act
protected Malay land and kept them as farmers which led to them being
incapable
of
adapting to capitalism
after independence. This resulted in a
chinese-dominated
society in Malaya.
c. Locals kept in low state of development
Local economy
was
not developed
and
profit
went to the
colonial masters
e.g. Netherlands was industrialised using the profits made by Dutch East Indies while the latter remained poor.
Impact of the
Japanese Occupation
Context
Japan saw SEA as an
area for resources
to fuel her
war economy
and incorporated it into the **Greater East Asia Co-Prosperiy Sphere
The military lived off supplies that was forcefully taken away from the locals.
Indonesia, Philippines, Malaysia, Burma and Vietnam
were affected by the JO
e.g.
"Scorched Earth" Policy
in Burma where allies destroyed most of Burma's infrastructure. Burma lost
all oil refineries
and
70%
of their railways
80%
of Manila was destroyed by the Allies
Impact
Devastation from JO
undermined SEA receptiveness
toward returning to
colonial rule
Devastation from JO meant that SEA required
foreign aid
for reconstruction which influenced the
economic and political
development.
Colonial Rule and the JO shaped how the SEA countries would respond and choose their economic development strategies.
Social changes brought about also affected the aim of government's economic development plans.
Goals set by the SEA government
a. Economic growth
Restructuring
of the economy to **increase national wealth
Industrialisation
to increase GDP by creating jobs
Import substitution
where
domestic industries
were developed to
produce goods that was previously
imported
to gain
self-sufficiency**
Export orientation
where domestic industries were develop to produce goods for
export
to venture into the
international economy
b. Economic Nationalism
Aimed to
Indigenize wealth and production
by
increasing local ownership
and
decreasing foreign influence
e.g.Bumiputera policy in Malaysia and Burmese way to socialism
However,
economic isolation
can lead to the
lack of foreign funding
which means
industrialisation may not be funded for
Development Strategies
Ideological route
Capitalist
Largest
and
most successful
group of countries
Free market
and
preservation
of
private
properties
But countries like Singapore
adopted *socialist
principles as part of their captalist ventures
Able to gain
international aid*
from Japan and the West
e.g. Philippines, Malaysia, Singapore, Thailand, Brunei, IN
'Third Way'
Socialist
Command economy
where the state owns the economy
Removal
of
private
properties
Unsuccessful
because it caused economic
stagnation
Appealed to governments that
prioritised
equity and equality e.g. in Vietnam and Burma (after
1962
)
Extent of government intervention
In SEA, the government was
directly involved
in the planning of the economy
regardless of the ideology
taken up.
e.g. In Singapore where 1/3 of all investments came from the public sector
Were they
forced to intervene
or did they
want to intervene
?
Central Planning of the economy
in Indonesia, Malaysia, Thailand, Vietnam, Burma
e.g. New Economic Policy in Malaysia, Twenty-Year Plan in Burma and Five-Year Plan in Thailand
State Enterprises
in
socialist and capitalist countries
e.g.
Pertamina
(State Oil Corparation in Indonesia),
Philippine Sugar Commission,
Malaysia's
Federal Land Development Authority
and
Jurong Town Corporation
Consider the
extent
and
intention
of government intervention
c. Equity
To build a
moral economy
where everyone has the
right to survive
though different countries have different definitions.
To provide
basic human rights and healthcare
Equitable
dsitribution of
opportunity of wealth
in the society
*Economic nationalism is not equivalent to economic equity