JC H2 History Tuition Online - What are the founding principles of the United Nations - Essay Notes

What are the founding principles of the United Nations?

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Topic of Study [For H1/H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 1: Formation of the United Nations

Historical Context: The San Francisco Conference
In 1945, the 46 nations attended San Francisco Conference and signed the United Nations Declaration. Later, four other states joined the Conference – the Byelorussian Soviet Socialist Republic, the Ukrainian Soviet Socialist Republic, newly-liberated Denmark and Argentina. In total, fifty nations became the founding members of the United Nations.

On 24 October 1945, the United Nations was officially formed, with the Charter taking effect subsequently.

The aims of the United Nations
The following refers to the four purposes stated in the Charter:

1. To maintain international peace and security, and to that end: to take effective collective measures for the prevention and removal of threats to the peace, and for the suppression of acts of aggression or other breaches of the peace, and to bring about by peaceful means, and in conformity with the principles of justice and international law, adjustment or settlement of international disputes or situations which might lead to a breach of the peace;

2. To develop friendly relations among nations based on respect for the principle of equal rights and self-determination of peoples, and to take other appropriate measures to strengthen universal peace;

3. To achieve international co-operation in solving international problems of an economic, social, cultural, or humanitarian character, and in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion; and

4. To be a centre for harmonizing the actions of nations in the attainment of these common ends.

Article 1, Chapter 1, UN Charter.

The principles of the United Nations
The following section outlines the principles that shape the functions of the members in this international organisation:

1. The Organization is based on the principle of the sovereign equality of all its Members.

2. All Members, in order to ensure to all of them the rights and benefits resulting from membership, shall fulfill in good faith the obligations assumed by them in accordance with the present Charter.

3. All Members shall settle their international disputes by peaceful means in such a manner that international peace and security, and justice, are not endangered.

4. All Members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state, or in any other manner inconsistent with the Purposes of the United Nations.

5. All Members shall give the United Nations every assistance in any action it takes in accordance with the present Charter, and shall refrain from giving assistance to any state against which the United Nations is taking preventive or enforcement action.

6. The Organization shall ensure that states which are not Members of the United Nations act in accordance with these Principles so far as may be necessary for the maintenance of international peace and security.

7. Nothing contained in the present Charter shall authorize the United Nations to intervene in matters which are essentially within the domestic jurisdiction of any state or shall require the Members to submit such matters to settlement under the present Charter; but this principle shall not prejudice the application of enforcement measures under Chapter Vll.

Article 2, Chapter 1, UN Charter.

Notably, these principles shaped the functions of UN principle organs. With the primary role of the Security Council in maintaining international peace and security, all members and non-members of the United Nations are expected to adhere to the Charter [Article 2(6)]. From this observation, the principle of ‘collective security’ is practised in events such as the Korean War and the Gulf War.

Furthermore, Article 2(7) described the importance of consent by host-states that determined the legality of UN intervention in various conflicts. However, this principle can also be interpreted as a hindrance due to the refusal to grant consent. Applicable case studies are the Suez Crisis and the Hungarian Revolution.

The Organisational Structure of the United Nations: The Six Organs
As defined by the Charter, the United Nations comprises of six organs:

  • General Assembly
  • Security Council
  • Trusteeship Council
  • Economic and Social Council
  • International Court of Justice
  • The Secretariat [involves the Secretary-General]

The UN headquarters is located in New York, USA, in which meetings are frequently conducted there. For instance, the Security Council conducts its regular annual session in New York.

What can we learn from this article?
Consider the following question:
– How far do you agree that the aims and principles of the Untied Nations were flawed?

Join our JC History Tuition and find out how to structure your essays and source-based case study answers effectively. We conduct online learning programmes to ensure that you have an exam-oriented way to study productively. You will receive summary notes and outlines for reference. Review your answers with the JC History Tutor to identify the areas of improvement.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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JC H2 History Tuition Online - Why was the United Nations Formed in 1945 - Essay Notes

Why was the United Nations formed in 1945?

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Topic of Study [For H1/H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 1: Formation of the United Nations

Historical Context: The League of Nations
To understand why the United Nations was formed, it is imperative to examine the failures of the League of Nations. The US President Woodrow Wilson envisioned an international organisation that could resolve conflicts before war broke out. On 8 January 1918, President Wilson delivered his Fourteen Points speech that called for a stable world after World War I.

XIV. A general association of nations must be formed under specific covenants for the purpose of affording mutual guarantees of political independence and territorial integrity to great and small states alike.

Fourteen Points Speech, US President Woodrow Wilson, 8 January 1918.

Afterwards, Wilson negotiated with other Allied nations during the Paris Peace Conference in January 1919, particularly the United Kingdom, France and Italy (part of the “Big Four”). It concluded with the Treaty of Versailles that included the creation of the League of Nations. By 1920, 48 nations had joined the League of Nations.

THE HIGH CONTRACTING PARTIES, In order to promote international co-operation and to achieve international peace and security by the acceptance of obligations not to resort to war by the prescription of open, just and honourable relations between nations by the firm establishment of the understandings of international law as the actual rule of conduct among Governments, and by the maintenance of justice and a scrupulous respect for all treaty obligations in the dealings of organised peoples with one another Agree to this Covenant of the League of Nations.

The Covenant of the League of Nations, 28 April 1919.

The League of Nations comprised of three organs: The Council, Secretariat and the General Assembly. The Council comprised of four permanent members (Japan, Italy, France and Great Britain) and nine non-permanent members elected by the General Assembly every three years.

Inadequate global representation: Membership issues
However, Wilson’s idealistic dream of a world of “peace without victory” was not realised. Unexpectedly, USA did not join the League of Nations because Henry Lodge (headed the Senate Foreign Relations Committee) claimed that signing the treaty could coerce USA from acting against its own interests. Without USA, the League was frequently obstructed by political deadlocks.

Other notable powers were also excluded from the organisation, thus exposing its weaknesses in ensuring political commitment. Russia was not permitted to join the League till 1934 due to its ideological alignment with Communism.

Although Japan was a permanent member in the League Council, the League opposed the member nation’s invasion of Manchuria in September 1931. As such, Japan withdrew in 1933. Likewise, Italy withdrew in 1937 and Germany in 1933.

Lack of enforcement: Collective security principle
Also, member nations were unwilling to protect others even though the Covenant of the League of Nations specifically outlined the importance of collective security.

Any war or threat of war, whether immediately affecting any of the Members of the League or not, is hereby declared a matter of concern to the whole League, and the League shall take any action that may be deemed wise and effectual to safeguard the peace of nations. In case any such emergency should arise the Secretary General shall on the request of any Member of the League forthwith summon a meeting of the Council.

It is also declared to be the friendly right of each Member of the League to bring to the attention of the Assembly or of the Council any circumstance whatever affecting international relations which threatens to disturb international peace or the good understanding between nations upon which peace depends.

Article 11, The Covenant of the League of Nations, 28 April 1919.

For example, Russia attacked a port in Persia in 1920. As such, Persia requested the League to intervene, but was rejected on the grounds that Russia was not a member and would not recognise its jurisdiction.

Similarly, when Benito Mussolini of Italy invaded Abyssinia, the Abyssinian Emperor Haile Selassie appealed to the League for help, the organisation did not respond to the invasion. In fact, Great Britain and France made a secret agreement (Hoare-Laval Pact of 1935) with Italy to allow the dictator to conquer Abyssinia.

The prelude to World War Two: German Reparations
The Treaty required the provision of reparations by Germany, given its involvement in World War One. For instance, the Treaty required Germany to pay 269 billion gold marks (amounted to $37 billion). Also, Germany was demilitarised as its army was reduced to 100,000 men and weapons were confiscated.

As a result of the large reparations, Germany experienced a large fall in industrial output. General prices skyrocketed, giving rise to hyperinflation in the 1920s. Later, it paved the way for the Great Depression.

Economic problems then became a rallying point for Hitler and his Nazi Party occupied 230 out of 608 seats in the “Reichstag” (German parliament during the 1932 elections.

Failure of Disarmament: Hitler’s militarised Germany
After Hitler assumed control of the German government, he withdrew Germany from the League of Nations in 1933. Additionally, Germany underwent rearmament, which was an outright violation of the Treaty of Versailles.

In 1939, Germany invaded Czechoslovakia and Poland. As a result, Great Britain and France declared War on Germany, thus sparking off the World War Two.

Aftermath of the War: The formation of the United Nations
Following the disastrous conflict that engulfed the entire world, the United Nations was formed from the ashes of the League of Nations.

What can we learn from this article?
Consider the following question:
– How far do you agree that the lack of political representation was the main reason for the failure of the League of Nations [to be discussed in class]?

Join our JC History Tuition and learn how to consolidate your revision in preparation for the GEC A Level History examinations. Our online learning programme is suitable for JC students who are studying either H1 or H2 History. Receive summary notes and review your writing with the JC History Tutor to study productively.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.

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

What is financial liberalisation?

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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

The Pursuit of Economic Growth
As governments in independent Southeast Asian states raced to advance their economies through various approaches, financial liberalisation became of the pivotal efforts in fulfilling their targets. This trend was largely observed by the late 1980s across the nations in Southeast Asia.

Vietnam: Doi Moi
In 1986, Vietnam introduced free-market economic reforms known as Doi Moi (“economic renovation”) to revive its economy and spur growth. Led by the General secretary Nguyen Van Linh, the Vietnamese government passed the Foreign Investment Law (1987) that allowed foreign ownership for firms investing in areas like consumer goods. Two years later, the government floated the exchange rate, which supported further liberalisation of markets.

Thailand: Currency devaluation
In early 1980s, the Prem government sought to attract foreign investments to support its export-oriented industrialisation (EOI) policies and correct a trade deficit. In November 1984, the Thai baht was devaluated by 15%. This proved beneficial as foreign investments from Japan surged to $27.9 billion in 1990. In addition, the Bangkok International Banking Facility (BIBF) was set up in 1993, which provided tax incentives to its banks.

Singapore: Export Promotion
In comparison with its regional counterparts, Singapore embarked on financial liberalisation at a relatively earlier stage due to its inherent constraints, such as limited land size. As such, the government adopted EOI in the late 1960s, as observed by the Export Expansion Incentives Act (1967) that reduced the tax rate for selected industries to 4% for 15 years.

On 1 January 1971, the Monetary Authority of Singapore (MAS) was established. The MAS was granted the authority to regulate the financial services sector in Singapore. The MAS maintained a strong and stable exchange rate to attract foreign investments.

A Brewing Storm: The Washington Consensus
Against the backdrop of Crisis Decades that plagued many developed and developing economies in the 1970s and 1980s, particularly the Third World Debt Crisis, British economist John Williamson introduced the “Washington Consensus” term in 1989.

At that time, USA proposed that both the World Bank and the International Monetary Fund (IMF) should support debt management through a series of liberal reforms. These structural reforms included financial liberalisation, flexible exchange rates and free trade. In return, these developing countries would receive loans.

However, the increased emphasis on liberalisation proved disastrous to Southeast Asian economies. Without adequate regulatory frameworks, the adverse effects of currency speculation then triggered the Asian Financial Crisis in 1997.

What can we learn from this article?
Consider the following question:
– Assess the significance of financial liberalisation in shaping the economic growth of Southeast Asian states after independence [to be discussed in class].

Join our JC History Tuition and find out how you can apply your knowledge of Paths to Economic Development as well as other topics in the A Level History syllabus to essay and source based case study questions effectively. Our programmes are conducted online to support students taking either H1 or H2 History. Get feedback on how your answers can be further improved by consulting our JC History Tutor.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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

What is industrialisation?

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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

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.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.

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

What is Rukun Negara?

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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.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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

What is GATT and its purpose?

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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

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.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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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?

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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

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.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.

JC History Tuition Online - What is the Green Revolution - Economic Development - JC History Essay Notes

What is the Green Revolution?

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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

Origins of the Green Revolution: Enter Norman Borlaug
Many countries such as Mexico and India were facing hunger and poverty. Together with a growing population, rice producers could not keep up with the burgeoning demand for food.

After Norman Ernest Borlaug completed his studies at the University of Minnesota, he embarked on his research journey in Mexico. He held the belief that sustainable agriculture could be achieved. In time, Borlaug’s efforts had paid off. It led to the creation of disease-resistant wheat strains that paved the way for the Green Revolution.

In 1964, Borlaug joined the Centro Internacional de Mejoramiento de Maíz y Trigo (CIMMYT) that specialised in the improvement of maize and wheat as well as the Consultative Group for International Agricultural Research (CGIAR). The CGIAR later became the central network for international organisations that engaged in research on food security.

Over the years, Borlaug’s contributions led to the improvement of new crops like barley, sorghum and triticale.

International Rice Research Institute (IRRI)
In 1960, the Philippine Government oversaw the creation of the IRRI. The institute set up its headquarters in Los Baños, Laguna (near Manila). With funding support from the Ford and Rockefeller Foundations, the IRRI aims to reduce poverty and hunger via rice research.

In 1978, the government capitalised on the Green Revolution by launching the Masagana 99 (Rice production programme) to improve credit access to rice farmers and achieve rice self-sufficiency. As a result, the local farmers benefited from the cultivation of high-yielding varieties (HYVs).

Impacts on Southeast Asian economies
The Green Revolution was a boon to many economies in the region. In Thailand, the government increased its investments in fertilisers and high-yielding strains of rice. From the late 1960s to early 1970s, rice production doubled.

In Indonesia, Suharto introduced the BIMAS (agricultural guidance programme) to facilitate the distribution of high-yielding rice varieities. By 1985, poverty was significantly reduced and the country attained self-sufficiency in rice.

“BIMAS is a system of agricultural extension, planned and on a mass scale, that aims to raise agricultural production, and at the same time to increase the propserity of farmers and of society…”

Soedarsono Hadisapoetro, Agriculture Minister (1978-1973)

Conclusion: Was the Green Revolution important?
In view of these developments, it is imperative to consider the significance of the Green Revolution in driving the growth of the economies in independent Southeast Asian states. Its importance has to be understood by analysing the state-guided approaches as well as the outcomes.

What can we learn from this article?
Consider the following question:
– How far do you agree that the economic development of independent Southeast Asian states was largely the result of external factors [to be discussed in class]?

Sign up for our JC History Tuition and find out how you can organise your content for the topic on Paths to Economic Development. Given the wide spectrum of issues to consider, we have derived a condensed set of notes to support your revision.

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JC History Tuition - What is OPEC - Oil Shocks - Global Economy Notes

What is OPEC?

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Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 1: Problems of economic liberalisation

History of the OPEC
The Organization of the Petroleum Exporting Countries (OPEC) was formed in September 1960. Its five founding members comprised of Saudi Arabia, Kuwait, Iran, Iraq and Venezuela. The OPEC was established with a central aim of price stabilization for oil producers through discussions.

Before OPEC, seven multinational corporations dominated the petroleum industry since the mid-1940s. They were commonly known as the “Seven Sisters”, which consisted of

  • Anglo-Persian Oil Company [British Petroleum]
  • Gulf Oil
  • Standard Oil for California [Chevron]
  • Texaco
  • Royal Dutch Shell
  • Standard Oil Company for New Jersey [Exxon]
  • Standard Oil Company for New York [Mobil]

Ever since its establishment, the OPEC membership continued to grow (such as Algeria, Nigeria, Ecuador and Gabon). As of 2019, the OPEC has 14 members.

The “Black Gold”: Energy Crisis of the 1970s
In 1973, the OPEC members reduced oil output and caused a spike in the oil prices. Its consequences were devastating to many oil-dependent economies since it is an essential resource for industrialization. In 1979, the oil price surged extensively in the wake of the Iranian Revolution. By 1980, global oil price had peaked over US$35 per barrel.

Examine the trends to understand the volatility of oil prices, especially the 1970s and 1980s
[Chart taken from the World Economic Forum]

Even the economic giant, USA, was not spared from this unilateral action by the OPEC. The unprecedented impacts included stagflation (high inflation rates and economic stagnation) that forced households to conserve oil consumption for the first time in U.S. history.

Petrodollar Recycling
OPEC members benefited tremendously from this oil spike. With the increased in earning from oil exports (also known as ‘petrodollars’), these oil exporters engaged in petrodollar recycling, in which their money was loaned to the International Monetary Fund (IMF). Then, the IMF used these loans to finance the balance of payment deficits by oil-importing countries.

However, these non-oil exporting countries were disadvantaged, especially for the Latin American nations in the 1970s. Over time, these borrowing nations had growing debts that later gave rise to the Third World Debt Crisis in the 1980s.

The Oil Glut of 1986
By mid-1980s, some countries had reduced their dependence on oil to sustain economic development. For instance, advanced economies like USA and France explored alternative energy. Likewise, Japanese auto firms engaged in innovation to produce fuel-efficient automobiles. These developments led to the falling demand for oil in the global petroleum industry.

On the other hand, there were emerging oil producers that did not belong to the OPEC that engaged in oil extraction. In 1980, the Canadian Government introduced the National Energy Program to promote self-sufficiency for oil. As such, the increase in supply from these alternative sources had diminished the share of the OPEC members.

OPEC went for a last-ditch attempt to maintain high oil prices by decreasing oil production from 1980 to 1986. However, these efforts were unsuccessful. In 1986, oil price plunged from $27 to nearly above $10 per barrel.

Recent Developments
In view of the COVID-2019, the decreased economic activities (such as airline flights) led to the fall in demand for oil. OPEC has held online meetings to contemplate on the decrease in oil production. However, some countries are hesitant to follow through as Saudi Arabia takes the lead.

On 20 April 2020, the US crude oil (West Texas intermediate crude, WTI) plunged from US$17.85 a barrel to negative US$37.63 a barrel. This is a typical scenario in which oil glut combined with falling demand results in falling oil prices, such that there is negative crude oil price.

Negative oil prices for US WTI on 20 April 2020
[Published on BBC; Source: Bloomberg]

What can we learn from this article?
Consider the following question:
– Assess the economic impacts of volatile oil prices in affecting the development of the global economy from 1945 to 2000 [to be discussed in class].

Join our JC History Tuition and learn how to organise your learning materials to do well for the essay writing component at the A Level examination. Our online lessons feature content discussion and class practices to review knowledge application.

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JC History Tuition Bishan Singapore - What were the twin deficits of USA - Global Economy Notes

What were the twin deficits of USA?

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Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 1: Problems of economic liberalisation

Why was the “Golden Age of Capitalism” unsustainable?
In the first two decades of the post-WWII period were characterised by the miraculous economic recovery and expansion of many countries, such as Japan and Western Europe.

USA, as the major advocate of trade liberalisation, also benefited from this sustained period of economic progress, as observed by its wide-reaching influences through the deployment of American multi-national corporations (MNCs). Host countries gained from influx of foreign investment as well as job creation.

However, this economic exuberance did not last by the 1960s. USA experienced a severe economic problem known as the “twin deficits”. Furthermore, the energy crises (oil shocks) of the 1970s further exacerbated the problem as it gave rise to stagflation in the USA.

What are the “twin deficits”?
The “twin deficits” refer to the onset of fiscal deficit and current account deficit.

1. Fiscal Deficit: Overspending
By definition, fiscal deficit occurs when the government expenditure exceeds its revenues. This is more commonly known as a ‘budget deficit’. In the case of the post-war years, countries encounter a fiscal deficit when the government spend large sums of money to rebuild their infrastructure. Similarly, this form of deficit can also be seen when governments are trying to recover from a recession.

Fiscal Deficit - Problems of Economic Liberalisation
Understand the fiscal deficit of the USA to recognise its impacts on the economy.

The causes of fiscal deficit in USA were largely linked to two notable areas: US President Lyndon Johnson’s “Great Society” programme and the Vietnam War.

In 1964, Johnson introduced the welfare programme to eliminate poverty (War on Poverty) and improve the socioeconomic conditions of the American people.

However, as the American troops were increasingly deployed in Vietnam to fight the Cold War proxy conflict, the US President had to divert his funds from the above-mentioned welfare programme to sustain the war effort.

According to The New York Times, the American government spent approximately $141 billion in Vietnam over the course of 14 years. It was reported that the Vietnam War cost the USA nearly $2 billion per month.

Therefore, the US government directed the Federal Reserve to increase money supply by printing more US dollars (USD). Later, this created an oversupply issue that caused the collapse of the Gold-Dollar fixed exchange rate system in 1971.

2. Current Account Deficit: Trade Imbalances
The second type of deficit is more closely related to the condition whereby the import expenditure exceeds the export revenue. This is a problematic condition as the government has to finance the trade deficit.

US Trade Deficit - Problems of Economic Liberalisation
Examine the trends of the US trade deficit to understand how it hampered the economy.

This trade deficit can be explained by the increased trade competition with Western Europe and Japan. In the post-war years, USA tolerated the protectionist measures of these two growing economies so that they can become new markets for trade.

However, after these economies achieved pre-war industrial levels of production, many firms competed with American counterparts. In particular, West Germany and Japan became the key competitors that outpaced USA in the global markets.

For example, Japanese automobiles were highly sought-after due to its fuel efficiency and affordability. In fact, some of the top ten automobiles originated from Japan, such as Nissan and Toyota.

As a result of the loss of export competitiveness, USA experienced severe trade imbalances vis-à-vis West Germany and Japan. By 1980, US trade deficit rose to $40 billion. In response, USA reversed its trade liberalisation policy and engaged in protectionism, as seen by its imposition of the Voluntary Export Restraint (VER) towards Japan autos in May 1981 to mitigate the adverse effects of trade imbalances.

What can we learn from this article?
Consider the following question:
– How far do you agree that the twin deficits of USA were the most important cause for the decline of American economic dominance in the 1970s [to be discussed in class]?

Join our JC History Tuition and discover the essentials of essay writing for the topic of the Global Economy. We also offer H1 History Tuition for students who are in need of guidance. We provide summary notes, essay outlines and source based case study practice questions to raise the productivity of your revision.

The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

We have other JC tuition classes, such as JC Math Tuition and JC Chemistry Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition, Social Studies Tuition, Geography, History Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English, Math and Science Tuition. Call 9658 5789 to find out more.