JC History Tuition Bishan Singapore - How were Sino-American Relations - JC History Essay Notes

How were Sino-American relations during the Cold War?

Topic of Study [For H1 History Students]: 
Section B: Essay Writing
Theme II: Cold War in Asia [1945-1991] – Superpower relations with China (1950-1979): Sino-Soviet relations

Examine how Nixon’s historic visit to Beijing, China have changed the Sino-American relations in the 1970s.

Superpower Relations with China in the 1950s and 1960s
Following the Chinese Communist Party’s (CCP) victory during the Chinese Civil War in 1949, the People’s Republic of China (PRC) was established. In view of the Cold War climate, the perceived ideological threat in East Asia, USA did not recognise this historical development.

At the same time, the Republic of China (i.e. ROC or Taiwan) was formed, which became a focal point of dispute between the United States and PRC. For instance, ROC was granted one of the Permanent Five (P5) seats in the United Nations Security Council (UNSC). Notably, the Soviet Union, an ally of PRC, boycotted the UNSC meeting during the Korean War, as a form of protest against this matter.

The absence of diplomatic ties between the two countries was arguably of no surprise to political observers.

Taiwan Straits Crises
In the 1950s, US foreign policy was focused on Taiwan as a pivot for containment in Asia. The Seventh Fleet was situated in the vicinity to protect the security interests of Taiwan from potential threats.

On 11 August 1954, PRC launched an offensive against Kinmen and Matsu. In response, the Eisenhower administration perceived this as an act of military aggression, possibly occupation. As such, the Sino-American Mutual Defense Treaty was signed in December 1954, which assured ROC that the US would provide military support should the former come under attack. This Treaty later shaped US policy of containment in East Asia till 1979.

In August 1957, the “Second Taiwan Straits Crisis” occurred, in which Kinmen and Matsu were shelled and a naval confrontation took place between ROC and PRC. Eventually, the heightened tensions had de-escalated and the Chinese bombardment ceased by October 1958.

Sino-American Rapprochement in the 1970s
In view of the Sino-Soviet Split that culminated in the Sino-Soviet Border Conflict in 1969, the US began to assume a different diplomatic stance towards PRC, albeit a friendly one.

Given that the US still perceived the Soviet Union as its greatest threat, the notion of establishing diplomatic relations with PRC as a strategic advantage to gain a leverage over its Cold War rival.

“Ping Pong Diplomacy” and the historic meet between Nixon and Zhou Enlai
On 10 April 1971, the American table tennis team was invited to Beijing, China. The friendly sporting event was considered unprecedented, given the strained bilateral relations ever since the PRC’s involvement in the Korean War of 1950.

In July 1971, the Nixon administration’s National Security Advisor, Henry Kissinger, made a secret visit to Beijing. Pakistan, an ally of China, facilitated the meeting.

On 21 February 1972, US President Nixon met Chairman Mao Zedong in Beijing. Nixon also met Premier Zhou Enlai. More importantly, the visit concluded with the signing of the Shanghai Communiqué on 28 Feburary 1972.

The document signified the mutual interests of both USA and China in the normalization of bilateral relations. As such, USA agreed to recognise the “One-China policy” and reduced military support for Taiwan. Also, China occupied Taiwan’s position as one of the P5 members in the UNSC.

What can we learn from this article?
Consider the following question:
– To what extent do you agree that the Cold War rivalry was a major reason in shaping the Sino-American relations from 1950 to 1979? [to be discussed in class]

Following the assessment of the changing bilateral relations between USA and China, it is important to attempt History essay questions to review your conceptual application. Alternatively, you can join our JC History Tuition as we teach you to organise your content, develop your critical thinking skills and form persuasive and coherent arguments. Lessons are conducted with the aim of preparing you to answer essay and source-based case study questions effectively and feasibly within a given timeframe.

Besides, you can join our JC tuition, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.

JC History Tuition Bishan Singapore - What is the role of the International Court of Justice - JC History Essay Notes

What is the role of the International Court of Justice?

Topic of Study [For H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

Examine the role of the International Court of Justice to understand this judicial organ of the United Nations.

Role of the International Court of Justice (ICJ)
The ICJ is the principal judicial organ of the United Nations (UN). Its establishment took place during the San Francisco Conference (25 April to 26 June 1945) that officially formed the UN itself.

The International Court of Justice shall be the principal judicial organ of the United Nations. It shall function in accordance with the annexed Statute, which is based upon the Statute of the Permanent Court of International Justice and forms an integral part of the present Charter.

Article 93, Chapter XIV of the UN Charter

Functions of the ICJ
There are two main functions performed by the ICJ. The Court provides advisory opinions and facilitates dispute resolution.

Feature #1: Advisory Opinion
The ICJ can provide advisory opinions for UN members for any legal matters. In other words, the Court is an embodiment of world opinion to reflect the international community’s will. Examples include the ‘Legality of the Use or Threat of Nuclear Weapons‘ [19 December 1994].

The General Assembly or the Security Council may request the International Court of Justice to give an advisory opinion on any legal question.

Article 96, Chapter XIV of the UN Charter [Advisory Opinion]

Feature #2: Dispute Resolution
Second, the Court is responsible for dispute resolution between sovereign states. It acts as a fair mediator and provides an internationally-recognised platform. Examples include the Pedra Branca dispute‘ [24 July 2003] and Frontier Dispute‘ [18 October 1983].

The parties to any dispute, the continuance of which is likely to endanger the maintenance of international peace and security, shall, first of all, seek a solution by negotiation, enquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional agencies or arrangements, or other peaceful means of their own choice.

Article 33, Chapter VI of the UN Charter [Dispute Resolution]

In making recommendations under this Article the Security Council should also take into consideration that legal disputes should as a general rule be referred by the parties to the International Court of Justice in accordance with the provisions of the Statute of the Court.

Article 36, Chapter VI of the UN Charter [Dispute Resolution]

Institutionalization of the ICJ: First Case
In April 1946, the precursor to the ICJ, also known as the Permanent Court of International Justice (PCIJ), was dissolved. Subsequently, the President Judge, José Gustavo, was elected in the ICJ. In May 1947, the first case that was submitted by United Kingdom against Albania. It was known as the ‘Corfu Channel’ incident.

Enforcement of Court’s Decisions
Should any involved party refuse to comply with the Court’s decision, the Security Council can enforce the decisions. In fact, all members of the United Nations must adhere to the decisions of the Court, if they are involved in a submitted dispute.

Each Member of the United Nations undertakes to comply with the decision of the International Court of Justice in any case to which it is a party.

If any party to a case fails to perform the obligations incumbent upon it under a judgment rendered by the Court, the other party may have recourse to the Security Council, which may, if it deems necessary, make recommendations or decide upon measures to be taken to give effect to the judgment.

Article 94, Chapter XIV of the UN Charter

Final Summary
In view of the ICJ’s roles, the United Nations has arguably remained relevant in ensuring adherence to the international law. Although there are occasional setbacks that hamper its ability to resolve complex disputes, particularly in the South China Sea region, many countries still defer to the Court’s decision.

What can we learn from this article?
Consider the following questions to understand the topic:
– To what extent do you agree that the International Court of Justice was hindered by the great powers in ensuring adherence to the international law? [to be discussed in class].

Now that you have examined the functions of the ICJ, you can consider signing up for our JC History Tuition. We will teach you to write concise and well-organised paragraphs to ace your A Level History essay sections in Paper 1 and Paper 2 [for H2 History].

Besides, you can sign up for other JC tuition programs, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Singapore - What are the UN Reforms - JC History Essay Notes

What are the UN Reforms?

Topic of Study [For H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

Learn more about the obstacles encountered in the United Nations Security Council to understand why reforms are needed to keep this international organization relevant.

Obstacles that affected the United Nations (UN)
In the previous article, we have examined how the conceptualization of peacekeeping was essential in enhancing the United Nations’ role in maintaining international peace and security. Although such efforts are noteworthy, the UN encountered several impediments that hampered its functions.

Challenge #1: Operational Constraints
Given that the UN is an international organization that functions on the basis of cooperation by member states, these individual countries are expected to contribute troops and finances to enable the deployment of peacekeeping forces.

However, voluntary contribution is problematic as every member state is guided by political interests. This issue was even more severe during the Cold War as ideological interests shaped the decisions of superpowers and affected the availability of operational support. Examples include the Congo Crisis, Somali Civil War and Rwandan Genocide.

“An Agenda for Peace” Report
Fortunately, some of the UN Secretary-Generals (UNSGs) have exercised their independence and engaged in innovative attempts to reform the peacekeeping aspect. In 1992, the Egyptian UNSG Boutros Boutros-Ghali submitted the report titled “An Agenda for Peace: Preventive diplomacy, peacemaking and peace-keeping.

In this report, Boutros-Ghali proposed how the United Nations should respond to conflicts in the post-Cold War era. In particular, the Department of Peacekeeping Operations (DPKO) was established in the same year to streamline and manage peacekeeping operations effectively. For instance, the United Nations Standby Arrangements System (UNSAS) was formed to provide military forces that are capable of deploying in a short span of time to manage threats to international peace and security.

Challenge #2: Great Power Politics
With reference to the featured video in the above, great power politics have been a persistent obstacle that impeded the functioning of the United Nations Security Council (UNSC).

Some critics have claimed that the membership of the Permanent Five in the UNSC is outdated and irrelevant in the modern world. For example, there is over-representation of Europe, while other regions are not, such as Asia and Africa. In 2013, South African President Jacob Zuma expressed similar sentiments, arguing that the UNSC was ‘outdated’ and ‘undemocratic’.

The prime concern was the veto power, which challenges the democratic principles enshrined in the UN Charter. Again, the Cold War rivalry was known to create frequent political deadlocks within the UNSC. Superpowers were known to exercise the veto to block UN action should the UN response be perceived as a threat to their ideological interests. Examples include the Hungarian Revolution (1956), Soviet invasion of Afghanistan (1979) and the US invasion of Grenada (1983).

Veto Reforms
With regards to this contentious issue, some of the member states have supported the proposal of abolishing the veto. Yet, such an approach was unrealistic, given that any amendment to the UN Charter required complete consensus from the Permanent Five (P5). Furthermore, some of the P5 members have disagreed with the abolishment.

Others suggested a less extreme reform, such as the consideration of a ‘veto restraint’. This mean that the P5 UNSC would accept self-imposed restrictions without having to amend the Charter. The intention was to enable the freer changes in the membership and appointment of the UNSG. Again, these efforts were met with limited success.

Conclusion
From the above-mentioned reforms, we can conclude that there are several obstacles that limit the functioning of the United Nations, such as operational constraints and the outdated Security Council structure. Although the progress of UN reforms was constrained by the reluctance of some member states to comply, we should acknowledge these efforts to keeping the organization relevant in the 21st Century.

What can we learn from this article?
Consider the following questions to understand the topic:
– Assess the effectiveness of the United Nations reforms to maintain international peace and security. [to be discussed in class].

Join our JC History Tuition to broaden your content awareness and knowledge application. We prepare you by examining many basic and challenging essay questions to ensure that you are ready for the GCE A Level History examinations. Furthermore, you can sign up for other JC tuition classes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.

JC History Tuition Bishan Singapore - What is peacekeeping - JC History Essay Notes

What is peacekeeping?

Topic of Study [For H1/H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

Learn more about the role of the United Nations peacekeepers.

Origins of ‘Peacekeeping’
At the initial stage, the United Nations Charter did not consider the notion of ‘peacekeeping’. In the Chapter VI and Chapter VII, the United Nations Security Council is empowered to carry out ‘peace-making’ and ‘peace enforcement’. ‘Peacekeeping’ is commonly known as ‘Chapter V 1/2’ as it includes both diplomatic solutions and forceful actions.

‘Peacekeeping’ was formalized by the United Nations Secretary-General Dag Hammarskjold and Canadian Minister of External Affairs Lester Pearson. This development coincided with the Suez Canal Crisis of 1956.

Three principles of Peacekeeping
The conceptualization of peacekeeping led to the definition of three principles: (i) Consent of the parties (ii) Impartiality (iii) Non-use of force except in self-defence and defence of the mandate

(i) Consent of the parties
Before the United Nations peacekeepers are deployed to the conflict zone(s), the international organization must require consent by the involved parties. Should a country be involved, the government must grant host-state consent, as it reflects the respect of national sovereignty.

(ii) Impartiality
The second principle involves the need for United Nations peacekeepers to be neutral throughout the conflict. Impartiality is needed to preserve the legitimacy of the United Nations and maintain the consent of all parties.

(iii) Non-use of force except in self-defence and defence of the mandate
Although the peacekeepers are armed for self-defence, they are not authorized to use force as it may compromise the other two principles. Nevertheless, there are instances in which the United Nations Security Council authorizes the peacekeepers to ‘use all necessary means’ to fulfil the resolutions (e.g. Congo Crisis and Gulf War).

Phases of Peacekeeping
From the 1950s to 1980s, the United Nations was involved in ‘traditional peacekeeping’, which involved inter-state conflicts. The peacekeepers are charged with the responsibility of monitoring ceasefires. The relevant case studies include Suez Canal Crisis (UNEF I) and the Cyprus Crisis (UNFICYP).

From the 1980s onwards, the evolution of peacekeeping began, which included intra-state conflicts. The role of the United Nations peacekeepers expanded to the provision of humanitarian aid and monitoring of elections. Examples of such case studies are the Cambodian Crisis (UNTAC), East Timorese Crisis (UNTAET).

Reflections on peacekeeping
In view of these roles and responsibilities of peacekeeping, the successes of the United Nations were occasionally limited by obstacles, such as Cold War rivalry and operational constraints. In the next article, we will examine the challenges of peacekeeping and how the international organization has derived solutions to overcome them.

What can we learn from this case study?
Consider the following questions to understand the topic:
– How far do you agree that the effectiveness of the United Nations peacekeeping missions were dependent on great power consensus? [to be discussed in class].

Sign up for our JC History Tuition and learn more about peacekeeping case studies to answer JC History essay questions. Also, you can sign up for related JC tuition classes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Singapore - What is the role of the United Nations Security Council - JC History Essay Notes

What is the role of the United Nations Security Council?

Topic of Study [For H1/H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

Examine the role of the Security Council to understand its significance in maintaining international peace and security.

Role of the UN Security Council (UNSC)
The Security Council is the primary organ that bears the responsibility to maintain international peace and security. It is comprised of 15 members: Five permanent members (known as the ‘P5’ in short – namely USA, Russia, UK, France and China) as well as ten non-permanent members (elected for two-year terms).

In order to ensure prompt and effective action by the United Nations, its members confer on the Security Council primary responsibility for the maintenance of international peace and security, and agree that in carrying out its duties under this responsibility the Security Council acts on their behalf.

In discharging these duties the Security Council shall act in accordance with the Purposes and Principles of the United Nations. The specific powers granted to the Security Council for the discharge of these duties are laid down in Chapters VI, VII, VIII, and XII

Article 24, Chapter V of the United Nations Charter

#1: Empowerment of the UNSC
As outlined in Article 24, the UNSC is granted the empowerment tools to invoke Chapters VI (Pacific Settlement of Disputes), VII (Actions with respect to Threats to the Peace), VIII (Regional arrangements) and XII (International Trustee System) to fulfill its primary role.

The Members of the United Nations agree to accept and carry out the decisions of the Security Council in accordance with the present Charter.

Article 25, Chapter V of the United Nations Charter

Furthermore, the resolutions of the UNSC are binding, implying that affected parties, including members of the United Nations must comply.

Chapter VI: Pacific Settlement of Disputes
We will be examining three aspects to understand the significant role of the UNSC in invoking the relevant ‘Chapters’. First, Chapter VI involves the diplomatic and peaceful approach of encouraging warring parties to cooperate with the UN and resolve the conflicts without violence.

1. The parties to any dispute, the continuance of which is likely to endanger the maintenance of international peace and security, shall, first of all, seek a solution by negotiation, enquiry, mediation, conciliation, arbitration, judicial settlement, resort to regional agencies or arrangements, or other peaceful means of their own choice.

2. The Security Council shall, when it deems necessary, call upon the parties to settle their dispute by such means.

Article 33, Chapter VI of the United Nations Charter

In practice, the United Nations Secretary-General (UNSG) is instructed by the Security Council to act on these resolutions through peaceful means, if possible.

Chapter VII: Action with respect to Threats to the Peace, Breaches of the Peace, and Acts of Aggression
Another critical option that the UNSC can introduce is Chapter VII. Should diplomacy fail, the use of force is considered as the next possible option. According to the UN Charter, a ‘Military Staff Committee’ is established to oversee the procedures on how it can be carried out appropriately.

The ‘Collective Security’ principle was applied in practice notably in two situations: the Korean War (1950) and the Gulf War (1990).

The Security Council shall determine the existence of any threat to the peace, breach of the peace, or act of aggression and shall make recommendations, or decide what measures shall be taken in accordance with Articles 41 and 42, to maintain or restore international peace and security.

Should the Security Council consider that measures provided for in Article 41 would be inadequate or have proved to be inadequate, it may take such action by air, sea, or land forces as may be necessary to maintain or restore international peace and security. Such action may include demonstrations, blockade, and other operations by air, sea, or land forces of Members of the United Nations.

Article 39 and 42, Chapter VII of the United Nations Charter

Chapter VIII: Regional Arrangements
Lastly, the UNSC can employ the assistance of ‘regional arrangements’, which simply can be referred to regional organizations to fulfill its resolutions. The benefit of relying on these groupings is that UN can gather operational resources, including troop contributions, rapidly to conduct swift crisis responses. This is backed by the observation that the United Nations lacks a ‘permanent standing army’. Throughout the UN-sponsored operation, these ‘regional arrangements’ must adhere to the principles of the UN Charter to ensure the maintenance of international peace and security.

In particular, the UNSC must authorize any form of enforcement before the ‘regional arrangement’ can do so.

The Security Council shall, where appropriate, utilize such regional arrangements or agencies for enforcement action under its authority. But no enforcement action shall be taken under regional arrangements or by regional agencies without the authorization of the Security Council

Article 53, Chapter VIII of the United Nations Charter

Yet, there were instances in which authorization was not sought after, as exemplified by the Kosovo War. During the conflict, the North Atlantic Treaty Organization (NATO) carried out its bombing campaign in Yugoslavia from March to June 1999. China and Russia opposed NATO’s proposal for military action.

What can we learn from this case study?
Consider the following questions to understand the topic:
– Assess the view that structural limitations were the greatest hindrance to the functioning of the United Nations Security Council from 1945 to 2000. [to be discussed in class].

Join our JC History Tuition and find out how you can organise your areas of study for these comprehensive topics, such as ‘Safeguarding International Peace and Security’ and ‘Economic Development after Independence’. Additionally, you can sign up for related JC tuition classes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to register now!

JC History Tuition Bishan Singapore - What is the role of the United Nations General Assembly - JC History Essay Notes

What is the role of the United Nations General Assembly?

Topic of Study [For H1/H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

Examine the role of the UNGA to understand its contributions to the world.

Role of the UN General Assembly (UNGA)
The General Assembly is the principal deliberative organ of the United Nations. It comprises of the representatives of all member states that admitted the international organization.

#1: Discussions and recommendations on matters affecting international peace and security
In particular, the UNGA is charged with the responsibility to facilitate discussions among member states to address matters pertaining to international peace and security.

The General Assembly may discuss any questions or any matters within the scope of the present Charter or relating to the powers and functions of any organs provided for in the present Charter, and, except as provided in Article 12, may make recommendations to the Members of the United Nations or to the Security Council or to both on any such questions or matters.

Article 10, Chapter IV of the UN Charter

However, it is imperative to acknowledge the advisory role of the UNGA as the United Nations Security Council (UNSC) bears the primary responsibility in the authorization of use of force in dealing with such matters.

The General Assembly may discuss any questions relating to the maintenance of international peace and security brought before it by any Member of the United Nations, or by the Security Council, or by a state which is not a Member of the United Nations in accordance with Article 35, paragraph 2, and, except as provided in Article 12, may make recommendations with regard to any such questions to the state or states concerned or to the Security Council or to both. Any such question on which action is necessary shall be referred to the Security Council by the General Assembly either before or after discussion.

Article 11(2), Chapter IV of the UN Charter

#2: Voting Process and Resolutions
After much deliberation, member states of the UNGA would undertake a voting process to decide whether to adopt a resolution (i.e. a course of action). Each member state is entitled to one vote. A two-thirds majority must be made before the resolution can be passed.

These resolutions can be passed to address matters, such as the admission of new member states to the General Assembly.

Decisions of the General Assembly on important questions shall be made by a two-thirds majority of the members present and voting. These questions shall include: recommendations with respect to the maintenance of international peace and security, the election of the non-permanent members of the Security Council…

Article 18, Chapter IV of the UN Charter

#3: ‘Uniting for Peace’ Resolution
Although there were Charter limitations that inhibited the UNGA’s role, a reform was introduced on 3 November 1950, known as the ‘Uniting for Peace’ (UfP) resolution.

If the Security Council, because of lack of unanimity of the permanent members, fails to exercise its primary responsibility for the maintenance of international peace and security in any case where there appears to be a threat to the peace, breach of the peace, or act of aggression, the General Assembly shall consider the matter immediately with a view to making appropriate recommendations to Members for collective measures, including in the case of a breach of the peace or act of aggression the use of armed force when necessary, to maintain or restore international peace and security.

Resolution 377(V), 3 November 1950

In practice, the UfP resolution was first invoked during the Suez Canal Crisis of 1956. Due to the vetoes by France and the United Kingdom, the resolution empowered the UNGA to act. This lead to the successful formation of the United Nations Emergency Force (UNEF) that supervised the cessation of hostilities in Egypt.

What can we learn from this case study?
Consider the following questions to understand the topic:
– Assess the view that great power politics impeded the role of the United Nations General Assembly during the Cold War [to be discussed in class].

Sign up for our JC History Tuition as we teach you to organise your content for the United Nations topics, which is one of the most comprehensive chapters that JC History students will cover in the A Level History syllabus. Also, you can sign up for related JC tuition classes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.

JC History Tuition Bishan Singapore - What were the consequences of the Asian Financial Crisis in 1997 - JC History Essay Notes

What were the consequences of the Asian Financial Crisis?

Topic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 2: Asian Financial Crisis

The aftermath of the regional currency crisis
In view of the causes that explain how the Asian Financial Crisis began, it is important to examine its consequences. This includes the government responses that varied between Southeast Asian nations, such as the bail-out loans by the International Monetary Fund (IMF), crisis response packages and stringent financial regulatory measures.

Immediate government responses
After the Asian Financial Crisis happened, governments played a critical role in introducing immediate responses to arrest the situation.

For instance, the Thai government tried to maintain the peg by tapping on its reserves to prevent further currency depreciation, which was caused by speculative attacks. From 1997 to 1998, it was estimated that nearly US$30 billion was spent to maintain the baht.

Unfortunately, their efforts proved futile, such that the abandonment of the fixed exchange rate led to rapid currency depreciation. On 2 July 1997, the baht was allowed to float, resulting in the depreciation of the currency value by 18%. By January 1998, the value had fallen to US$1 to $55 baht.

Given the economic interconnectedness of Southeast Asian markets, the Thai economic crisis spread to other neighbouring economies, which was known as the contagion effect.

Crisis Response Measures
Another important consideration was the introduction of crisis response measures to contain the economic crisis. These measures involved large government spending to stimulate the markets and facilitate recovery.

For example, the Malaysian government formed the National Economic Action Council (NEAC) in 1998 to pursue economic stabilization. One method included the imposition of capital controls to stabilize the ringgit.

Additionally, the national asset management company, known as Pengurusan Danaharta Nasional Berhad, was in responsible for relieving the banking system of its non-performing loans (NPLs) and assets. By 30 September 2005, the Danaharta had resolved all of its NPLs. It was reported to have met its recovery target of RM30.35 billion.

In fact, Danaharta was one of the three-pronged strategy that the Malaysian government introduced to achieve stabilization of the banking system. It also included Danamodal Nasional Berhad and the Corporate Debt Restructuring Committee (CDRC).

Acceptance of IMF Bail-out Loans
Lastly, the IMF also offered to provide bail-out loans to affected Southeast Asian economies. These conditional loans required governments to accept an IMF-imposed set of policies. In particular, the IMF required recipient countries to engage in fiscal austerity (spending cuts) to correct their balance of payment deficits. Yet, these governments were not running budget deficits, thus worsening the economic slowdown.

“I thought this was a mistake. For one thing, unlike the Latin American nations, the East Asian countries were already running budget surpluses. In Thailand, the government was running such large surpluses that it was actually starving the economy of much ­needed investments in education and infrastructure, both essential to economic growth. And the East Asian nations already had tight monetary policies, as well: inflation was low and falling. (In South Korea, for example, inflation stood at a very respectable four percent.) The problem was not imprudent government, as in Latin America; the problem was an imprudent private sector­­ – all those bankers and borrowers, for instance, who’d gambled on the real estate bubble.”

Former World Bank Chief Economist, Joseph Stiglitz, New Republic, 17 April 2000 – Source: https://bit.ly/2GIk2cp

For example, Indonesia accepted the IMF bail-out reluctantly. By the time the third agreement was introduced, the government acceded to IMF’s demands to remove subsidies on essentials, like food, medicine and fertiliser.

This proved to be disastrous, given that the loss of state support raised the cost of living and worsened socio-economic conditions. As a result, the skyrocketing basic commodity prices resulted in a surge in inflation rate. Poverty rate increased from 11% before the crisis to nearly 60% afterwards.

Furthermore, the economic instability had severe socio-political consequences that culminated in the resignation of Suharto.

What can we learn from this case study?
Consider the following question:
– How far do you agree that governments of Southeast Asian economies were responsible for the consequences of the Asian Financial Crisis? [to be discussed in class]

Now that you have learnt the consequences of the Asian Financial Crisis, it is imperative that you apply your knowledge to A Level History essay questions. You can sign up for our JC History Tuition to find out how you can organise your content and form well-analyzed essays to ace the GCE A Level History examination.

Furthermore, we conduct other useful JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now.

JC History Tuition Bishan Singapore - What are the main aims of economic development - JC History Essay Notes

What are the main aims of economic development?

Nicholas Tarling’s three aims
According to the distinguished historians, Nicholas Tarling and Norman Owen, who published The Cambridge History of Southeast Asia, there are three aims of economic development: growth, equity and nationalism. We will be examining the significance of these aims individually to understand why there is a high degree of government intervention in the post-independence Southeast Asian states.

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

Aim #1: Economic Growth
One of the most common aims of economic development involves economic growth, which is typically measured in the monetized value of the goods and services produced within a country, seen in terms of Gross Domestic Product (GDP).

To assess the economic performance of a country, it is important to examine the ability of governments to achieve short-term and long-term economic growth.

Also, another relevant aspect is the percentage share of GDP contributed by the three sectors: agriculture, industry and finance. As a country advances, a large proportion of growth is derived from the secondary and tertiary sectors (industry and finance).

Aim #2: Economic Equity
The second aim involves the reduction of income gap between the rich and the poor. In some Southeast Asian states, leaders advocate the equality of opportunity, which can be measured by the percentage of population that suffering from poverty.

As such, their policies are extensively focused on a more equitable distribution of resources. For example, governments introduce legislation to facilitate land reforms for state acquisition and re-distribution to rural households.

Aim #3: Economic Nationalism
The third aim refers to the indigenization of wealth and production to reduce foreign ownership of domestic sectors of economy. Following the process of decolonization, many Southeast Asian states sought to reduce foreign influence in their economic development.

This aim is usually achieved by implementing policies of nationalization. The governments impose strict controls to limit or eradicate foreign ownership. At same time, state-owned enterprises are formed to replace these foreign companies. For example, in Indonesia, the Dutch assets in petroleum were nationalized, thus forming the Permina, known as the state-owned oil company. Later, it was renamed as Pertamina.

What can we learn from this article?
Consider the following question:
– The pursuit of economic growth is the most important aim that Southeast Asian governments should prioritize on after independence. Discuss. [to be discussed in class]

Now that you have examined the three aims of economic development, you should look for practice questions to apply your knowledge. You can also join our JC History Tuition as we provide summary notes and practice questions (with reference answers) to demonstrate the applicability of knowledge for examinations.

Furthermore, we conduct other related JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition classes, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now!

JC History Tuition Bishan Singapore - What caused the Asian Financial Crisis in 1997 - JC History Essay Notes

What caused the Asian Financial Crisis in 1997?

Topic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 2: Asian Financial Crisis

What exactly is the ‘East Asian Crisis’?
In July 1997, the markets in East and Southeast Asian were affected by a financial meltdown that began in Thailand. Due to a mix of factors, such as financial speculation and inadequate regulatory measures, the Thai government was forced to float the baht. This caused market pessimism, which led to the outflow of capital. In view of the inter-connected markets within the Southeast Asian region, the economic problems in Thailand began to spread to other neighbouring countries, like Thailand. This was known as a ‘financial contagion‘.

1. Unregulated financial liberalization
One possible factor for the Asian Financial Crisis was the unregulated liberalization. Partially, this was the result of the increased liberalization of the financial sector in the 1980s. As foreign investments were welcomed as major sources of economic growth, there were minimal regulations to stem the flow of capital.

As such, the sustained economic growth boosted market sentiments, thereby creating the optimistic outlook that Southeast Asia was a potential for future growth. Thus, foreign investors funded investment activities in the region. However, financial liberalization exposed several weaknesses.

In Thailand, the Bangkok International Banking Facility (BIBF) enabled banks and finance companies to access short-term credit with low interest rates. The credit was lent to Thai borrowers to finance long-term projects with high interest rates. Therefore, the ease of credit access resulted in the expansion of BIBF loans that amounted to nearly $115 billion baht.

2. The shortcomings of a fixed exchange rate system
The second contributing factor relates to the use of a fixed exchange rate system in some of the SEA economies. A fixed exchange rate system meant that governments could determine the external value of money. Currency stabilization was an ideal consideration as it raises market confidence to promote investment and trading activities.

However, a large pool of foreign reserve was needed in order for governments to intervene in the foreign exchange (i.e. ‘forex’ in short) market and maintain the exchange rate.

Initially, the Thai baht was pegged to the American dollar (USD) at 25 baht : 1 USD. Yet, the inability to maintain the currency value had left the economy vulnerable to speculative attacks that began in November 1996. Thailand’s reserves of US$39 billion declined to US$2 billion by June 1997.

Eventually, the inability to maintain the currency peg led to the eventual floating of the baht on 2 July 1997, thus losing 17% of its value relative to the USD. Consequently, there was a plunge in investor confidence, resulting in the withdrawal of foreign capital from the regional markets.

3. Speculative attacks
The third contributing factor relates to foreign currency speculation. Short-term capital flows created exchange rate instability, which was exacerbated by market pessimism. Therefore, the outflow of capital resulted in currency depreciation.

In Thailand, foreign investors sold their baht, causing a sharp fall in the currency value. By end 1997, the baht lost 80% of its value relative to the USD. There were lingering perceptions that the neighbouring economies were also susceptible to market volatility.

Therefore, this dampened investor confidence, resulting in the subsequent outflow of capital in other economies, like Indonesia. By February 1998, the Indonesian rupiah lost 76% of its value relative to the USD.

How did the financial crisis affect the Southeast Asian economies?
In general, the massive currency devaluation led to a significant economic downturn that hampered the development of many economies in Southeast Asia, including Singapore and Indonesia.

With currency depreciation, some of these economies experienced higher unemployment and inflation rates. For instance, Indonesia was adversely affected by the Thai financial crisis. The unemployment rate in Indonesia surged beyond 6% in 1999. Gross Domestic Product (GDP) growth rate was at -15% in 1998. In Malaysia, the GDP growth rate was at -5.8% in the same year.

What can we learn from this case study?
Consider the following question:
– How far do you agree that the Asian Financial Crisis of 1997 was the result of currency speculation? [to be discussed in class]

Now that you have examined the possible contributing factors that gave rise to the Asian Financial Crisis, it is important to apply this knowledge by answering similar practice questions. You can also join our JC History Tuition. We provide additional learning resources, such as summary notes, essay outlines and case study materials.

Additionally, we offer other related JC tuition programmes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to join now!

JC History Tuition Bishan Singapore - How did Myanmar develop its economy - JC History Essay Notes

How did Myanmar develop its economy?

Overall Economic Assessment of Myanmar
After Myanmar attained independence on 4 January 1948, the government pursued economic development, which is strongly guided by nationalistic and socialist influences. In view of the political challenges, there was strong government intervention. Over time, the military took a prominent role in maintaining political stability, while guiding the development of the economy. By the 1980s, Myanmar engaged in economic liberalization, encouraging the inflow of private investment.

Examine how the Chinese ‘Belt Road Initiative’ (BRI) will transform Myanmar’s economy.

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

1948 to 1962: U Nu’s Democratic Governance
Before Myanmar attained independence, the British colonial powers transformed its economy by focusing in agricultural production. By 1930s, nearly two-thirds of the labour force were involved in the agrarian sector. Following World War II, the devastation caused by war left many infrastructure in ruins.

Therefore, the government embarked in the Pyidawtha Plan, which is a eight-year economic plan that set higher targets for growth. The purpose was to rebuild the public infrastructure for economic recovery. Due to the high degree of foreign ownership in the economic sectors, nationalisation became one of the foremost approaches. For instance, the Land Nationalisation Act (1948) was passed to facilitate the consolidation and re-distribution of land for agricultural development.

1962 to 1988: Ne Win’s Burmese Way to Socialism
However, the country was faced with political instability due to internal divisions. Military intervention became necessary to restore stability, thus paving the way for the rise of Ne Win’s leadership. Ne Win’s military government centralised its economic development based on the ideology of ‘Burmese Way to Socialism’, which placed great emphasis on state control across economic sectors.

For example, the Burma Oil Company used to be a joint venture during U Nu’s time. In 1963, this company was nationalised. Likewise, in the banking sector, the government maintained a tight control to ensure that all domestic capital was in the hands of the state. As for the agricultural sector, the Tenancy Law (1965) was passed, which facilitated land redistribution.

1988 to 1997: State Law and Order Restoration Council (SLORC)
Following the resurgence of democratisation in the 1980s, the government engaged in economic liberalisation. The financial sector benefited from this increased openness, as seen by the Foreign Investment Law (1988). This law allowed foreign companies to invest in local ventures. Furthermore, the Financial Institutions Law (1992) was passed to allow the establishment of private commercial banks.

As a result of economic liberalisation, Myanmar’s Gross Domestic Product (GDP) increased by 7.3% per year in the period of 1992 to 1997. Additionally, financial openness contributed to greater inflow of foreign direct investment (FDI), which approximated at US$2.8 billion at one point in time.

In summary, the strong government intervention was a common feature in Myanmar throughout the time period since independence to 1997.

What can we learn from this case study?
Consider the following question to understand this country-specific case study:
– Assess the role of the government in shaping the economic development of Myanmar after independence. [to be discussed in class]

Now that you have considered the strategies employed by the government in guiding economic development of Myanmar, it is important to apply this knowledge by writing A Level History essays. Alternatively, you can sign up for our JC History Tuition. We provide summary notes, essay outlines and source-based case study question answers for effective revision.

Furthermore, we conduct other related JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now!