JC H2 History Tuition Online - What is industrialisation - Economic Development - Essay Notes

What is industrialisation?

Topic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development

Jurong Town Hall was developed in 1968 to oversee the development of industrial estates in Singapore. It served as the headquarters for the Jurong Town Corporation (JTC) [Video by Urban Redevelopment Authority]

Historical Context: Why governments pursued industrialisation?
After the end of World War II, many Southeast Asian economies were severely damaged. These countries lost their physical infrastructure and were in dire need of immediate post-war recovery. In Philippines, nearly fourth-fifths of its infrastructure in Manila was wiped out by the war.

Additionally, the adverse consequences of the Japanese Occupation could be observed in the conversion of industries to support the war efforts of these adversaries. In Burma, the Japanese restructured its economy and caused severe famine. After the war, rice exports fell to 500,000 tons in 1950.

In view of these significant challenges, the governments in Southeast Asian states embarked on industrialisation.

1. Modernisation of the agricultural sector
For countries that had agrarian economies, industrialisation was carried out to raise production. Governments established state agencies and provided substantial funding to support producers in the agricultural sector.

In Malaysia, the Federal Land Development Authority (FELDA) [Lembaga Kemajuan Tanah Persekutuan] was established on 1 July 1956 under the Land Development Act. Its purpose was to support resettlement for the local families that had land with substantial oil palm or rubber.

In addition, FELDA received loans from the World Bank to finance infrastructural development. In particular, the Malaysian government supported the construction of roads, farms and water supply access.

2. Import-substitution industrialisation (ISI)
At the initial stages of economic development, many governments implemented ISI to nurture domestic firms. Their intent was to kick-start industrial production to grow the local economy rapidly.

In Singapore, the government reviewed the Winsemius Report that highlighted the importance of state-guided industrialisation. In 1959, the Pioneer Industries Ordinance was passed to grant exemptions from company tax for five years.

Furthermore, the Economic Development Board (EDB) was formed on 1 August 1961. Under the guidance of then Minister for Finance Dr Goh Keng Swee, the EDB would “plan, coordinate and direct” the industrialisation process.

3. Export-oriented industrialisation (EOI)
Yet, the emphasis on ISI was inadequate to sustain economic development in Southeast Asian states. Therefore, governments shifted their focus towards EOI.

As the global economy became more inter-connected due to the liberalisation of world trade, countries in Southeast Asia began to promote international trade.

In Indonesia, Suharto’s government signed the General Agreement on Tariffs and Trade (GATT), thus admitting the country as a member of GATT in March 1985. Also, the government reduced its tax rate and eased trade regulations.

Coupled with the process of financial liberalisation, the Indonesian government was successful in enabling the large inflows of foreign investment by the early 1990s.

What can we learn from this article?
Consider the following question:
– How far do you agree with the view that industrialisation was most important in shaping the economic development of independent Southeast Asian states [to be discussed in class]?

Join our JC History Tuition and find out how you can organise your content materials. We provide summary notes, essay outlines and source-based case study practices. Our exam-driven classes feature the refinement of reading and writing skills through the review of past examination questions. These programmes are offered to JC1 and JC2 students taking either H1 or H2 History.

We also have other JC tuition classes in our integrated WhyLearn portal, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Singapore - What is Rukun Negara - JC History Essay Notes

What is Rukun Negara?

Topic of Study [For H2 History Students]:
Paper 2: Search for Political Stability
Section B: Essay Writing
Theme I Chapter 2: Approaches to National Unity

Historical origins of the national ideology
The Rukun Negara (National Principles) was introduced on 31 August 1970 by the Malaysian Government to celebrate the 13th anniversary of the nation’s independence (Hari Merdeka).

Its creation as a national ideology was in response to “13 May” incident in 1969 , following the general election in Malaysia. The outbreak of riots had resulted in the creation of the National Operations Council (Majlis Gerakan Negara) to restore peace and stability to Malaysia till 1971.

From then on, the Rukun Negara was created to forge national unity among the citizens.

Details of the National Principles
According to this national ideology, the citizens of Malaysia pledge to achieve the following five principles:

  • Belief in God
  • Loyalty to King and Country
  • Upholding the Constitution
  • Rule of Law
  • Good Behaviour and Morality

Bahagian Kedua Menggariskan Lima Prinsip Rukun Negara yang berikut:

– Kepercayaan Kepada Tuhan

– Kesetiaan Kepada Raja dan Negara

– Keluhuran Perlembagaan

– Kedaulatan Undang-undang

– Kesopanan dan Kesusilaan

Excerpt from Rukun Negara, Department of Information, Malaysia

Implementation: Education
Students are required to sing the national anthem (Negaraku) and recite the Rukun Negara during school assemblies Over the years, this ideology has become a guiding principle to encourage racial harmony and mutual respect.

Apart from promoting unity among the people, Rukun Negara also maintains the democratic way of life; creates a just society; ensures a liberal approach to customs and culture; and develops a progressive society based on modern science and technology.

Tan Sri Lee Lam Thye, Malaysia Unity Foundation [From New Straits Times, 9 February 2020]

Other approaches were used as well such as the creation of an organisation to promote the ideology. The Kelab Rukun Negara (Rukun Negara Club) was formed in schools to conduct activities focused on promoting the appreciation and practice of this ideology among students.

What can we learn from this article?
Consider the following question:
– Assess the significance of ideology in supporting the government’s efforts in forging national unity [to be discussed in class].

Join our JC History Tuition and learn to organise your content effectively. We provide study notes, essay outlines and source based case study practices to ensure that you have adequate support to be ready for the GCE A Level examination. Our lessons are available for those taking either H2 or H1 History.

We have other JC tuition classes in our integrated WhyLearn portal, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.

JC History Tuition - What is GATT and its purpose - Global Economy Notes

What is GATT and its purpose?

Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapters 1: Reasons for growth of the global economy & Problems of economic liberalisation

Examine the history of the multilateral trading system, namely the GATT and the WTO [Video by the World Trade Organization]

Origins of a multilateral trading institution: ITO
Before the World Trade Organisation (WTO) was established on 1 January 1955, leaders from over 50 countries gathered during the “Bretton Woods” Conference and contemplated on the creation of an International Trade Organisation (ITO). Ideally, it was to be the third pillar of the Bretton Woods, together with the World Bank and the International Monetary Fund (IMF).

The proposed ITO was meant to promote world trade, cross-border investments and commodity agreements. Following the end of World War Two, more countries supported trade liberalisation. They sought to reverse the adverse protectionist stance since the early 1930s.

A by-product of failed negotiations: GATT
Amidst negotiations, 23 “contracting parties” signed the General Agreement on Tariffs and Trade (GATT) on 30 October 1947. GATT was created as a framework for international trade, taking effect on 1 January 1984.

The signatories were: Australia, Belgium, Brazil, Burma, Canada, Ceylon, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon, Luxembourg, Netherlands, New Zealand, Norway, Pakistan, Southern Rhodesia, Syria, South Africa, United Kingdom and the United States.

There were three provisions:

  • Conferment of “Most Favoured Nations” status to other members
  • Prohibition of trade restrictions (except for emerging industries)
  • Elimination of import tariffs (by developed countries to support the admission of developing countries)

However, the path to institutionalise world trade proved difficult. Although the USA was one of the key advocates of free trade, the US Congress opposed the decision. During the fifth Session of the Contracting Parties, USA announced that the ITO Charter (Havana Charter) would not be re-submitted to the US Congress. From then on, the ITO did not take shape. Instead, GATT became the multilateral framework from 1948 to 1995.

Periodic Bargaining: Trade Rounds
From 1949 to 1973, the trade rounds were focused on reduction of tariffs. In 1964, the “Kennedy” Round took place and a noteworthy act was signed. The Final Act was signed by 50 participating countries that accounted for three-quarters of world trade. Concessions were estimated at $40 billion of trade value.

Following the admission of newly-independent countries (Recall: the Third World decolonisation in Asia and Africa led to the admission of new developing member countries into the UN), the GATT included its third provision to support developing countries. The Committee on Trade and Development was established to ensure that developed countries gave priority to the reduction of trade barriers to exports of developing countries.

Setbacks: The advent of “New Protectionism”
Although trade rounds were still being conducted from 1973 to 1993, the start of the Crisis Decades made it difficult for member nations to fully adhere to the provisions of trade liberalisation. Although economic integration enabled freer access of goods and services between countries, it also meant the intensification of trade competition from developed and developing countries.

For example, USA experienced severe and persistent trade deficits vis-à-vis West Germany and Japan. In response, USA introduced protectionist policies, particularly non-tariff barriers to shield its economy from the adverse effects of trade competition. For example, the “Voluntary Export Restraint” (VER) agreement restricted the quantity of Japanese automobile exports to USA in 1981.

The next phase of international trade: WTO
Trade negotiations during the Uruguay Round finally made progress. On 15 April 1994, the Marrakesh Agreement was signed, which led to the formation of the WTO that succeeded the GATT.

Developing nations demanded that VERs should be outlawed. Notably, this led to the creation of the Multi-Fibre Arrangement that accelerated the liberalisation of trade in the agricultural sector.

What can we learn from this article?
Consider the following question:
– How far do you agree that GATT was the main driving force that caused the liberalisation of world trade [to be discussed in class]?

Sign up for our JC History Tuition and learn how to answer A Level History essay and source based case study questions effectively. We also incorporate online learning features to diversify your study methods such that learning the historical developments is enjoyable and productive at the same time.

We have other JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition - What is the difference between World Bank and the IMF - Global Economy Notes

What is the difference between the World Bank and the IMF?

Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapters 1: Reasons for growth of the global economy & Problems of economic liberalisation

Learn more about the differing functions of the World Bank and the IMF [Video by CNBC International]

A confusing perspective: The World Bank and IMF
It has become a common issue for people to ask what are the defining roles of the World Bank and the International Monetary Fund (IMF). In fact, during the inaugural meeting of the IMF, the British economist John Maynard Keynes was confused by the names. He added the the IMF should have been described as a ‘bank’, whereas the World Bank should be recognised as a ‘fund’.

Let’s recap on the roles of the IMF and the World Bank separately.

#1. The IMF
From 1945 to 1971, the IMF was established for two key purposes:

  • Currency stabilisation through a fixed exchange rate system
  • Provision of short-term loans to finance balance of payment deficits

Currency stabilisation was achieved through the US Dollar (USD) that was pegged to the gold. From 1958 to 1971, the USD was fixed in value to gold at $35 per ounce. Then, all other foreign currencies were pegged to the USD. In other words, USD became the international reserve currency. As such, stable currency values ascertain prices, thus encouraging greater trading and investment activities.

As for the second purpose, the IMF held a pool of funds that nations could borrow from to finance their debts. This pool of funds was to be contributed by member states, including the USA. The correction of balance of payment deficits is critical in maintaining exchange rate stability as well. These conditional loans were given to countries that agreed to correct their trade deficits through policy adjustments like austerity measures.

#2. The World Bank
As for the World Bank, its immediate role after World War Two was to provide long-term financing for devastated nations to rebuild their economies. Formerly known as the International Bank for Reconstruction and Development (IBRD), the institution was initially backed by the USA. For instance, the Marshall Aid was given to Europe for post-war reconstruction.

By the 1960s, the World Bank was more involved in financing the infrastructure projects in developing countries to realise their economic potential. Following the decolonisation of the Third World nations in Asia and Africa, many developing countries were in dire need of these loans.

Changes in the functions of the IMF and the World Bank: 1970s
After the US experienced the twin deficits in the 1960s and realised that a fixed exchange rate system was unsustainable, US President Nixon announced the abandonment of the fixed exchange rates regime on 15 August 1971. From 1973 onward, the IMF focused its efforts in providing short-terms to correct the balance of payment deficits of member nations.

Also, it was involved in managing the Third World Debt Crisis of the 1980s. In 1982, the Latin American nations negotiated with both banks and the IMF for debt repayments. As a result, the ‘bail-out loans’ were introduced. Should the debtor nation agree to accept the IMF loan, the government must agree to conduct policies to achieve macroeconomic stabilisation, such as reduction in government subsidies (part of the austerity measures).

However, the IMF bail-outs had disastrous impacts on the debtor nations. Without government subsidies, many households were unable to cope with the high cost of living. In Bolivia, the price of bread rose four times. Living standards deteriorated significantly. On separate but related note, the ‘IMF bail-out loans’ were introduced to Thailand and Indonesia during the Asian Financial Crisis.

As for the World Bank, it expanded its lending role to include “structural- and sector-adjustment loans” in the 1980s. These loans were meant to facilitate economic reforms to support the heavily indebted nations in Latin America and sub-Saharan Africa.

What can we learn from this article?
Consider the following question:
– Assess the significance of the IMF and World Bank in contributing to the growth of the global economy [to be discussed in class].

Sign up for our JC History Tuition and review your comprehension of the Global Economy as well as other topics like the United Nations to be ready for the GCE A Level History examinations. We also conduct classes for students taking H1 History, which covers contrasting topics such as Superpower Relations with China and the Cold War in Southeast Asia.

Besides, we have other JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.