JC History Tuition Online - How did Giant become the biggest bicycle manufacturer in the world

How did Giant become the biggest bicycle manufacturer in the world?

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Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan] 

Humble beginnings: A SME run by family and friends
In 1972, a 36 year-old engineer King Liu founded Giant with a group of associates, including Tony Lo, in Taichung (臺中). Lo was a business graduate from the National Taiwan University. Interestingly, Liu cycled to work at first to understand his product better.

In 1977, Liu secured a contract to produce bicycles for an overseas American company Schwinn, which was known for its 10-speed steel machines. Giant then functioned as an Original Equipment Manufacturer (OEM). Liu, who was fluent in Japanese, visited Japan to study the bicycle production process, replicating suitable work practices at Giant.

An unexpected turn of events: Turning setbacks into opportunities for success
In 1981, Giant set up its own bicycle brand as an Original Brand Manufacturer (OBM). It was a bold and unusual move as products that were manufactured in Taiwan were still viewed as low-quality and cheap.

Five years later, Giant brought its bicycles to the global market, starting with the Netherlands. Lo had identified Netherlands as a suitable European headquarters due to its geographical location, comprehensive infrastructure and integrated transport network. From there, Giant exported to other European markets. By the mid-1980s, Giant exported nearly 10 million bicycles a year.

The own-branding strategy was intensified when Schwinn shifted its OEM orders to its joint China’s company (China Bicycle Company) in 1985. Under this adverse condition, Liu steered the company into a new direction, through rapidly expanding its overseas branches around the world, in order to fill up the excess capacity generated by Schwinn’s withdrawal. The overseas branches were all targeted on pursuing entrepreneurial profit by promoting its own-brand Giant bicycles. Its overseas branch was established in Netherlands in 1986, the Us in 1987, Japan in 1989, Canada and Australia in 1991, and mainland China in 1992.

An excerpt from “Entrepreneurship and Taiwan’s Economic Dynamics” by Fu-Lai Tony Yu.

In the 1985, the US-based Schwinn switched to a Chinese supplier to keep production costs low. As a result, nearly three-quarters of Giant’s revenue had been affected. Yet, Giant did not relent. Instead, the company capitalised on the low production base in China, setting up two production plants in China, namely in Shanghai (上海) and Jiangsu (江苏).

Close collaboration with the government
In 1986, Giant launched a joint project with the government-funding Industrial Technology Research Institute (ITRI). They explored use of advanced materials to create carbon fiber bicycle frames. Giant also worked on other technology diffusion projects for aluminum welding with Chun Shan Institute of Science and Technology (CSIST).

Giant’s R&D efforts had paid off as tts revenue rose to over NT$ one billion.

In 1987, Giant pioneered the mass production of carbon bicycles, particularly the model called Cadex 980C. Lo dubbed it ‘Project 88’. Giant had applied computer-aided design and volume production techniques to manufacture these carbon fiber road bicycles. By 1991, Giant manufactured 20 thousand units of carbon bicycles.

Now, Giant one of the top bicycle manufacturers in the world.

Giant thinks of itself as an innovator in the fields of production and design, as well as competitive strategy. Giant was one of the first to upgrade parts and begin exporting them when Taiwan’s market became too costly. Giant was also the first Taiwanese company to use chrome alloy steel in their frames and to produce single-piece graphite bicycle frames.

An excerpt from “Strategy, Structure, and Performance of MNCs in China” by Yadong Luo.

What can we learn from this article?
Consider the following question:
– How far do you agree that Giant’s successes in export promotion were the result of Confucian culture?

Join our JC History Tuition to learn more about the rise of Asian Tiger economies and the Global Economy. 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 does United Microelectronics do - Asian Tigers Notes

What does United Microelectronics do?

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Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan] 

Historical context: Silicon Valley of the East
On 22 May 1980, the United Microelectronics Corporation (UMC) was formed as the first-ever private integrated circuit (IC) company in Taiwan. The UMC was a product of the state-backed technology R&D institution, known as the Industrial Technology Research Institute (ITRI).

Under the leadership of President Chiang Ching-kuo (蔣經國), the government embarked on an ambitious project to encourage knowledge and skills acquisition in the private sector to intensify Taiwan’s industrial development.

The UMC occupied the Hsinchu Science Park (HSIP, 新竹科學園區), which was modelled after the Silicon Valley.

Located in Hsinchu County, approximately 80 km to the south of the capital city Taipei, HSIP had easy access to the international airport and harbours, a skilled labour force and abundant technological resources, including two national universities and the government-sponsored ITRI. Since its inception, HSIP has received over US$500 million from the government, earmarked for the acquisition and development of land and construction of housing and factories.

An excerpt from “The Silicon Dragon: High-Tech Industry in Taiwan” by Terence Tsai and Bor-Shiuan Cheng.

Enter the age of semiconductors
Under the astute leadership of Robert Tsao (曹興誠), who became president of UMC in 1982, the UMC became the first IC manufacturer in Taiwan to provide wafer foundry services.

In the late 1980s, the UMC broadened its scope of production, venturing into Dynamic Random Access Memory (DRAMs) and telecommunications circuitry. Tsao believed that specialisation in foundry services was the ideal model for the UMC to thrive.

The UMC turned out to be a successful spin-off from HSIP, as seen by its entry to the Taiwan Stock Exchange in 1985. From then on, the UMC went further to build increasingly advanced chips, such as Static Random Access Memory (SRAMs).

A similar venture: The TSMC
In 1987, the Taiwan Semiconductor Manufacturing Company (TSMC) was set up. It was the second spin-off from the HSIP after the UMC. The company was a joint development with the Dutch company Philipps and the Taiwanese government.

Interestingly, the Chiang government had invited Morris Chang, who later became founder of the TSMC, to lead the ITRI in the early 1980s. Chang had put forward the idea of creating a foundry industry in Taiwan.

Originally the ERSO sent a team to RCA in the US to learn integrated circuit (IC) manufacturing technology. After the team returned to Taiwan, the members spun off from ERSO to form UMC, which began chip manufacturing.

[…] Chang led a team spun off from ITRI to form TSMC in 1987. The new business model proved effective, and TSMC became the largest semiconductor foundry in the world with $5.3 billion of sales in 2000. TSMC was therefore mainly a Taiwanese creation with state participation in ownership (48 per cent in the beginning).

An excerpt from “The East Asian High-Tech Drive” by Yun-Peng Chu and Hal Hill.

Evidently, the successes of the UMC and TSMC were partly attributed to the joint efforts of the Taiwanese and American governments (Electronics Research and Service Organization, ERSO, the Radio Corporation of America, RCA). By giving their founders and core team members the opportunities to acquire the technical know-how, the aim of creating a semiconductor industry in Taiwan could finally materialise.

What can we learn from this article?
Consider the following question:
– Assess the view the the United Microelectronics Corporation was a crucial piece of the puzzle in explaining the remarkable growth of Taiwan in the 1980s.

Join our JC History Tuition to learn more about the rise of Asian Tiger economies and the Global Economy. 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 - Why is Taiwan an Asian Tiger - Asian Tigers Notes

Why is Taiwan an Asian Tiger?

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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 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan] 

Historical context: The Cold War
During the Korean War, the Truman administration committed its armed forces to defend the Republic of China (ROC) government under Chiang Kai-shek. President Truman announced on 27 June 1950 that the Seventh Fleet would be deployed to the Taiwan Strait. His intention was to protect Taiwan from any possible Chinese attack.

The US government switched its foreign policy stance towards Taiwan from a “hands-off” approach to increased military commitment. Its purpose was to contain a possible expansion of Communist influence in East Asia.

In retrospect, Truman’s new policy of 1950 disengaged the Chinese from their hot civil war while engaging them in the global Cold War.

[…] It had secured the ROC in Taiwan from a major military showdown with the PRC on the mainland in the 1950s, it had preserved the political unity and social stability of Taiwan through the 1960s, and it had provided an opportunity for the island’s economic growth in the 1970s.

An excerpt from “The History of Taiwan” by Xiaobing Li.

Export promotion and industrial restructuring
In the 1960s, Taiwan was one of the world’s primary exporter for consumers goods, such as umbrellas, toys and shoes. In 1966, Taiwan established Export Processing Zones (EPZs). The Chiang government sought to pursue an export-driven strategy as seen by the provision of tax incentives to spur businesses to engage in international trade.

In the 1970s, the government had realised that its reliance on the maturing light industry was not sustainable, given the rise of other developing countries that possessed cheap and abundant labour. As such, it embarked on heavy and chemical industrialisation (HCI), targeting steel and petrochemical production.

In 1973, the Industrial Technology Research Institute (ITRI) was formed to facilitate the conduct of research and development (R&D). A year later, the Electronics Research Service Organisation (ERSO) was also set up, focusing on areas like electronic packaging, semiconductors and display devices. Similarly, the Hsinchu Science Park was created in 1980 to intensify efforts to develop high-tech industries. The government’s attempts have paid off as seen from the rise of tech firms like the Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC).

In August 1974, Sun contacted Dr. Pan in the United States and invited him to Taiwan to produce a study of ways in which the government could upgrade local industry, with the electronics industry playing the leading role. […] Pan recommended that the electronics industry should focus on semiconductor technology and that the technology be acquired from abroad; that a two-part strategic planning team be formed, one part in the United States and one in Taiwan; and that an organizational capability for implementation within the state be set up. A U.S. partner was to be located for an agreement for technology transfer and training.

An excerpt from “The Role of the State in Taiwan’s Development” by Joel B. Aberdach.

The 1980s tech drive: OEM and ODM
In the 1980s, the government went through institutional reforms to integrate Taiwan into the global economy. It intensified its policies of trade liberalisation and financial deregulation, opening the economy gradually. Yet, it proved challenging following the opening of China in the late 1970s as part of Deng Xiaoping’s Four Modernisations (四個現代化). Many Taiwanese manufacturers shifted production to China in response to rising production costs.

In this decade, more Taiwanese manufacturers in the electronics and technology sectors adopted either of the following two models: Original Equipment Manufacturer (OEM) or Original Design Manufacturer (ODM). For OEM, the local companies manufactured products for transnational corporations that focused on product design and R&D. Over time, some of these firms transitioned to become ODMs, such as Acer.

While the ERSO projects were important for the PC industry, the two industry leaders, Acer and Mitac, were doing OEM for ITT since 1982 and Mitac was not part of two of the three big desktop computer projects run by ERSO. […] OEM manufacturing firms can leverage their relationships with outsourcing partners to upgrade. The experience of Mitac, Acer and other fims, such as the printed circuit board manufacturer, Compeq, confirms this theory of upgrading.

An excerpt from “Technology Transfer Between the US, China and Taiwan: Moving Knowledge” by Douglas B. Fuller and Murray A. Rubinstein.

What can we learn from this article?
Consider the following question:
– How far do you agree that state intervention was indispensable in contributing to the economic miracle of Taiwan.

Join our JC History Tuition to learn more about the rise of Asian Tiger economies. 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.

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JC History Tuition Online - How did the USA help Japan's economy after WW2 - Global Economy Notes

How did the USA help Japan’s economy after WW2?

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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: Reasons for growth of the global economy

A shift of US priorities in Japan: ‘Reverse Course’ policy
After Japan was defeated in World War Two, the Allied Occupation oversaw social and political reform of Japan from 1945 to 1946, ensuring that it would not endanger world peace. Under the Supreme Commander for the Allied Powers (SCAP) led by American general Douglas MacArthur, the Japanese military was disbanded and the zaibatsu conglomerates were broken up.

Against the backdrop of the looming Cold War tensions in Europe, the US government relooked its priorities. Instead of punishing Japan for its wartime aggression, the government supported the post-war recovery of Japan, in hopes of cultivating it as a new Cold War ally. This was also known as the ‘Reverse Course’ policy (逆コース).

After the early stages of the Occupation, SCAP began showing a strong interest in stabilizing Japan’s economy near the end of 1946. In spite of the fact that the “Basic Directive” clearly stated that the Occupation would not be responsible for economic reconstruction, faced with the danger of rampant inflation unless production restarted, SCAP had no choice but to become involved in economic reconstruction.

An excerpt from “The Economic History of Japan: 1600-1990: Volume 3: Economic History of Japan 1914-1955: A Dual Structure” by Takafusa Nakamura, Konosuka Odaka and Noah S. Brannen.

Consequences of warm bilateral relations: US aid to Japan
In 1958, negotiations for a US-Japan Security Treaty (日本国とアメリカ合衆国との間の相互協力及び安全保障条約) were underway. In essence, the treaty permitted US military bases in Japan, thereby establishing a military alliance between the two countries.

At the same time, the USA provided a series of economic assistance to build up Japan as a bulwark against communist expansion in Asia. For instance, the US government offered low-interest loans to Japan. These substantial capital injections led to increase in Japanese investments that propelled economic growth.

Additionally, the USA sponsored Japan’s admission to the General Agreement on Tariffs and Trade (GATT) organisation in September 1955. The USA feared that an absence of market for Japanese exports may possibly draw Japan into the Communist bloc for economic cooperation. As such, the Eisenhower administration rejected protectionist demands from local groups in the USA and opened American markets to Japanese exports.

The United States needed Japan as a stable capitalist country that would provide a bulwark against communism in Asia. It therefore supported Japanese membership of the IMF and GATT in 1955 and assisted Japan in improving relations with other Asian countries in the late 1950s and early 1960s, while at the same time keeping its own market open to Japanese goods and making technology and capital available to Japanese enterprises. Japanese capitalism could thus pursue its own interests on the international stage under the umbrella of U.S. world strategy.

An excerpt from “Japanese Capitalism Since 1945: Critical Perspectives” by Tessa Morris-Suzuki and Seiyama Takuro.

From 1958 to 1960, US purchases from Japan rose by more than 150%. This enabled Japan to enjoy its first-ever trade surplus. The correction of Japan’s balance of payment deficits thus allowed it to grow rapidly.

What can we learn from this article?
Consider the following question:
– Assess the importance of the USA in contributing to the economic miracle of Japan after 1945.

Join our JC History Tuition to learn more about the growth of the Global Economy. 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 - When did the European Union start and why - Global Economy Notes

When did the European Union start and why?

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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

Historical context: The end of bipolarity and desires for a Common Market
Following the historic collapse of the Berlin Wall on 9 November 1989 that marked the end of the Cold War, the border between East and West is finally opened. Germany was united after more than 40 years, allowing its Eastern half to join the European Communities (EC) in 1990.

Apart from the political integration of Germany, member nations in the EC had expressed growing concerns about the slow economic progress by the mid-1980s. In comparison to rival economies like Japan and the USA, the EC members supported deregulation to boost production and trade.

The introduction of the Single or Internal Market Programme had the effect of launching a new phase in the integration process, spilling over into renewed efforts in institutional reform, reinforced EC social, regional and competition policies, and economic and monetary union. […] The programme was initially presented as an exercise in deregulation and received wholehearted support from the EC member states and business community.

An excerpt from “The European Union: Economics, Policy And History” by Susan Senior Nello.

Maastrict Treaty
European nations engaged in negotiations to anticipate the wave of globalisation in the 1990s. On 7 February 1992, the Maastrict Treaty was signed by twelve founding member states of the EC. Also known as the ‘Treaty on European Union’, it ushered in the next phase of regional integration. For instance, a single currency called the ‘Euro’ was introduced.

In December 1991 at Maastricht, member nations agreed on the Treaty on the European Union (EU), which became informally known as the “Maastricht Treaty”. […]Moreover, as part of the first pillar the Maastricht Treaty also called for an European Economic and Monetary Union (EMU) which entails the creation of the European Central Bank (ECB) and the European single currency, the Euro, by 1999.

An excerpt from “The Path to European Economic and Monetary Union” by Scheherazade S. Rehman.

Impacts of the EU on international trade
With the formation of the EU, the trading bloc had accelerated the increase in intra-regional trade. It coincided with the signing of the North American Free Trade Agreement (NAFTA) of 1994, which was a joint effort between the USA, Mexico and Canada. Overall, the EU did bring about a significant increase in world trade in comparison with NAFTA and Japan.

Trade openness, as measured by the average shares of extra-EU nominal goods exports and imports in GDP, rose from 8 per cent in the early 1960s to about 10 per cent in the late 1990s. Currently, the NAFTA area and Japan show somewhat lower trade shares in GDP, with the former increasing its share over the period. Since the mid-1980s, the European Union and Japanese trade have shown a decline. This is largely due to relative price changes of energy and raw materials.

An excerpt from “The European Union’s Trade Policies and their Economic Effects” by Peter Hoeller Nathalie Girouard and Alessandra Colecchia.

What can we learn from this article?
Consider the following question:
– How far do you agree that Europe had played a significant role in trade liberalisation?

Join our JC History Tuition to learn more about the growth of the Global Economy. 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 - How does protectionism affect the global economy

How does protectionism affect the global economy?

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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

Trade imbalances
By the late 1960s, the USA had faced economic setbacks, such as persistent trade deficits vis-à-vis Japan and Western Europe that surged to nearly US$40 billion in 1980. Throughout the 1960s, the USA had clashed with Japan over alleged dumping that hurt the profit levels of American businesses.

In particular, the automobile industry was affected by the entry of Japanese automakers which were known for their durability and fuel efficiency. The dominance of the ‘Big Three‘, namely General Motors, Ford and Daimler Chrysler, was being challenged by the Japanese counterparts.

The Nixon administration and economists generally attributed the emerging trade deficit to Vietnam War inflation, lagging productivity gains, an overvalued dollar, and ballooning energy costs.

An excerpt from “Opening America’s Market: U.S. Foreign Trade Policy Since 1776” by Alfred E. Eckes.

Trade Act of 1974
In the early 1970s, the US government contemplated on the use of protectionism to address the economic malaise. The problems were compounded by the first oil shock in 1973 that led to a surge in inflation rates.

The committee complained about the executive’s “soft” response to certain unfair foreign trade practices. “By pursuing a soft trade policy, by refusing to strike swiftly and surely at unfair trade practices, the Executive has actually fostered the proliferation of barriers to international commerce.”

As enacted, the Trade Act of 1974 appeared to represent a major shift away from the philosophy that had guided trade policy since 1934.

An excerpt from “Opening America’s Market: U.S. Foreign Trade Policy Since 1776” by Alfred E. Eckes.

Voluntary Export Restraints
In the early 1980s, the Reagan Administration negotiated a Voluntary Export Restraint (VER) with Japan to limit the number of Japanese automobile exports. The restriction was meant to ease the competition that local car producers were facing at that time. As intended, the VER had succeeded in preventing the potential collapse of the automobile industry in the USA.

By 1985, Honda was producing over 150,00 cars in Marysville, Ohio, and Nissan had started operations in Tennessee. In the years that immediately followed, Toyota, Mazda, and Mitsubishi followed suit. […] Finally, by the early 1980s, the surge in imported automobiles from Japan that occurred in the mid- and late 1970s had aged such that the demand for after market parts for Japanese cars was now increasing.

An excerpt from “The Effects of U.S. Trade Protection and Promotion Policies” by Robert C. Feenstra

What can we learn from this article?
Consider the following question:
– How far do you agree that the economic problems in the 1970s and 1980s were the result of US policies?

Join our JC History Tuition to learn more about the problems of the Global Economy. 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 - How did the Dutch influence the Indonesian economy

How did the Dutch influence the Indonesian economy?

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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
In the 19th century, the Dutch established the cultivation system known as the cultuurstelsel. The origin of the system can be traced to the early 1800s, in which the Dutch colonial government had struggled to engage private cultivators to raise crop production for export. Under the leadership of the Dutch Governor-General, van den Bosch, he switched to a different method to cultivate export crops.

In particular, the Dutch identified individual villages and instructed the people in each village to grow specific crops, such as rice, coffee and sugar. In the 1830s, export production from Java increased significantly due to the efforts put in by the Chinese merchants and indigenous Javanese ruling class and the Dutch officials.

The emergence of economic nationalism: Limitations of the Ethical Policy
Yet, the Dutch cultivation system was not deemed by all local natives as beneficial. Within the indigenous Indonesian community, some viewed economic participation by the Chinese merchants as a threats to their interests.

Influential merchant groups in urban Java, such as the Sarekat Dagang Islam, resented competition from the Chinese. The better-off farmers in Java, who controlled irrigated rice land, resented the enforced renting of land to the sugar companies. Most of those involved in the growing nationalist movement, including growing numbers of indigenous business people, would probably have agreed with the judgement of a later economist that ‘the developmental effort under the ethical system was too little and too late to be effective in raising levels of living of the Indonesian people’.

An excerpt from “Economic Change in Modern Indonesia: Colonial and Post-colonial Comparisons” by Anne Booth.

The Sarekat Dagang Islam (Islamic Trade Union) was initially formed as a Javanese traders’ cooperative to support textile traders against Chinese competitors. In 1912, it was renamed as Sarekat Islam as the organisation evolved into a mass political party.

The Dutch Ethnical Policy (Ethische Politiek) was identified as the root cause of the unequal economic opportunities that generated resentment towards the Chinese immigrants and the colonial power. The policy was guided by its slogan: ‘irrigation, education and emigration’.

The Dutch colonial administration aimed to enhance the irrigation facilities to increase agricultural productivity. However, the intended growth target was not realised. As a result, the poor living standards had fueled the growth of Indonesian nationalism instead.

The Ethical Policy sought to protect the ‘poor’ and ‘unenlightened’ Javanese peasant against the oppression by feudal Javanese overlords and ruthless Chinese. Its formulated lofty goal was to raise the prosperity of the indigenous population through direct state intervention in economic life.

[…] The economic downturn of the early 1920s and 1930s started a period of consolidation and eventually deterioration of the Ethical Policy. The political will to initiate ethical programs waned as the administration embarked on a policy of expenditure cuts to balance the budget.

An excerpt from “Dutch Commerce and Chinese Merchants in Java: Colonial Relationships in Trade and Finance, 1800-1942” by Alexander Claver.

What can we learn from this article?
Consider the following question:
– Assess the significance of economic challenges in influencing government intervention in post-independence Southeast Asian economies.

Join our JC History Tuition to learn more about colonial-era policies and their impacts on the Paths to Economic Development. 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 was Dag Hammarskjöld's Summary Study

What was Dag Hammarskjöld’s Summary Study?

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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 2: Political Effectiveness of the UN in maintaining international peace and security

Historical context
Following the outbreak of the Suez Canal Crisis in 1956, the United Nations Secretary-General (UNSG) Dag Hammarskjöld deployed the United Nations Emergency Force (UNEF) to supervise the “cessation of hostilities” involving the armed forces of France, Israel and the United Kingdom, as well as to “serve as a buffer between the Egyptian and Israeli forces”.

The Summary Study
On 9 October 1958, Hammarskjöld submitted to the General Assembly a report known as the “Summary Study of the Experience Derived from the Establishment of the United Nations Emergency Force“.

A reference table on the comparison between ‘Chapter VII’ (use of collective security) and the peacekeeping concept. [By Norrie MacQueen]

Also known more commonly as the “Summary Study” in short, the UNSG reported his reflections on the pioneer peacekeeping mission. His purpose was to institutionalise peacekeeping at the international level.

At the outset of the Summary Study, Hammarskjöld noted that peacekeeping did not involve ‘the type of force envisaged under Chapter VII of the Charter’. Without this legal base, the activity had to be an elective one.

There were two senses to this. First, there could be no deployment on a state’s territory ‘without the consent of the Government concerned’. Second, it followed that if Chapter VII was not to be used as the basis of a peacekeeping action then Article 43, with its obligations on member states to ‘make available to the Security Council, on its call’ whatever military forces were deemed necessary, could not be invoked. They could only be freely offered by contributing states in response to a request from the UN. These principles would ‘naturally hold valid for all similar operations in the future’.

An excerpt from “Peacekeeping and the International System” by Norrie MacQueen.

As described by MacQueen, the UNSG had envisaged peacekeeping as a concept that required consent from the host-state. Also, operational support to form the peacekeeping force had to be carried out on a voluntary basis. The second requirement proved to be costly and problematic later on, as observed in the United Nations Mission in Congo (ONUC).

In his Summary study, the Secretary-General held, with regard to the principle of freedom of movement, that an agreement as to what should be considered an area of operations of the force would be needed in future operations.

[…] In the Congo operation (1960-1964), secessionist movements exercised control from time to time over large tracts of the Congolese territory. The Secretary-General was therefore more or less forced to negotiate with those movements rather than use force to enter the territory. The UN also concluded cease-fire agreements with forces not under the control of the central Congolese government.

An excerpt from “Protection of Personnel in Peace Operations: The Role of the ‘Safety Convention’ against the Background of General International Law” by Ola Engdahl.

What can we learn from this article?
Consider the following question:
– Assess the view the the United Nations Secretary-Generals have played a vital role in the maintenance of international peace and security.

Join our JC History Tuition to recap on the United Nations topic. 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 - How was the Asian Financial Crisis resolved

How was the Asian Financial Crisis resolved?

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

An overview of the Crisis
In the early 1990s, many member nations of ASEAN pegged their exchange rates to the US dollar (USD). Given the dominant position of the Americans in the global economy, the peg instilled strong market confidence. Over time, the economic expansion in the region led to increased foreign capital inflows. By June 1997, cross-border flows in Southeast Asia totaled US$173 billion.

Greater access to capital had encouraged the provision of private loans. In turn, firms and household investors had ploughed funds into the real estate market. As a result, an asset bubble was formed. When the bubble burst, the Bank of Thailand declared its inability to prop up the largest finance company, Finance One, triggering fears of an impending market crash.

The anticipation of loan defaults resulted in the withdrawal of funds by short-term loan creditors. On the other hand, the gradual recovery of the Japanese economy resulted in the appreciation of the Yen and an interest rate hike. This led to shift of capital from Southeast Asia to Japan markets. The Bank of Thailand struggled to maintain the peg, such that nearly of its reserves were lost, forcing them to float the baht on 2 July 1997.

The unpegging of the Thai baht from the U.S. dollar in July 1997 and the baht’s subsequent collapse are commonly regarded as the triggers of the Asian crisis. The floating of the baht was made necessary by the exhaustion of Thai foreign exchange reserves, after months of futile efforts to stave off necessary policy adjustments and financial sector reforms. The crisis was preceded by an investment bubble, especially in real estate and stock markets, by widespread structural and prudential problems in the financial sector, and by a very rapid buildup of short-term foreign debt liabilities.

An excerpt from “The Asian Financial Crisis: Lessons for a Resilient Asia” by Wing Thye Woo, Jeffrey Sachs and Klaus Schwab.

Concerted efforts for crisis management
In view of the Asian Financial Crisis, governments in Southeast Asia sought solutions to dampen the adverse impacts. On 28 February 1998, finance ministers in ASEAN had gathered in Jakarta to set up a “mutual monitoring system. They agreed to seek technical support from the Asian Development Bank (ADB) to enhance the development of the system. Later, this system was known as the ASEAN Surveillance Process (ASP).

Ideally, the monitoring system will function as an early warning system, so that the affected member nations can intervene before the economic setback escalates into another crisis.

Before the Asian financial crisis, there were no surveillance mechanisms that functioned to detect irregularities in regional finance markets, either in ASEAN or in East Asia. In that respect, these two mechanisms were formed to address the same problem. However, while the ASEAN Surveillance Process oversees the ASEAN member states, the ASEAN+3 Surveillance Process addresses all East Asian countries.

An excerpt from “ASEAN as a Method: Re-centering Processes and Institutions in Contemporary Southeast Asian Regionalism” by Ceren Ergenç

ASEAN Plus Three: The Chiang Mai initiative
In 1999, the ASEAN Plus Three (APT) [or ASEAN+3] Summit was held, involving ASEAN members and three external powers – China, Japan and South Korea. In 6 May 2000, the APT met in Chiang Mai, Thailand, to derive a regional solution to avert another Asian Financial Crisis.

The Chiang Mai Initiative (CMI) became the first regional swap arrangement to address short-term liquidity difficulties in the Asia.

The CMI functioned on two branches:

  1. ASEAN Swap Arrangement (ASA) among the ASEAN member nations
  2. Bilateral Swap Arrangement (BSA) among ASEAN+3 countries

An important feature of the CMI was that crisis-affected members requesting short-term liquidity support could immediately obtain financial assistance up to an amount equivalent to 10 percent (later raised to 20 percent) of the maximum amount that could be borrowed, and that the remainder was to be provided to the requesting member under an IMF program. […] Essentially, the CMI was intended to be used for crisis lending and hence required conditionality.

An excerpt from “Monetary and Financial Cooperation in East Asia: The State of Affairs After the Global and European Crises” by Masahiro Kawai, Yung Chul Park and Charles Wyplosz.

In 2004, an expanded framework was proposed, known as the Chiang Mai Initiative Multilateralisation (CMIM). The CMIM would involve all ten members of ASEAN, China, Japan and South Korea, with a combined size of US$240 billion worth of foreign exchange reserves. Five years later, the CMIM was founded.

Structure of the Chiang Mai Initiative (CMI) [Source: Ministry of Finance, Japan]

What can we learn from this article?
Consider the following question:
– How far do you agree that the responses to manage the Asian Financial Crisis were adequate and effective?

Join our JC History Tuition to recap on the Asian Financial Crisis topic. 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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What happened in the Abyssinian crisis?

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

Historical Background
The Abyssinian crisis involved two key parties. In 1922, the Italian dictator Benito Mussolini rose to power. He heavily armed the nation and sought to assert greater influence in the rest of the world.

On the other hand, Abyssinia (now called ‘Ethiopia’) was ruled by Emperor Haile Selassie. It was situated in the middle of two Italian colonies, Eritrea and Somaliland and the lands were well-endowed with natural resources.

The invasion & the League’s muted response
On 3 October 1935, Mussolini mobilised troops and launched a full-scale invasion, crossing the Abyssinian border. Selassie sought the League of Nations (LON) for assistance.

The League Council issued a report in response to Selassie’s pleas for help. After a three-day debate, fifty out of fifty-four members agreed with the Council’s report. The report stated that the imposition of economic sanctions, in terms of exports of key commodities to Italy, should be carried out.

The task of overseeing the implementation of sanctions was charged to a co-ordination committee, which began work on 11 October – known as the Committee of Eighteen, chaired by the Portuguese diplomat, Vasconcellos. Its work was divided into five sections: placing an embargo on exporting arms to Italy, withholding loans and credits, prohibiting the import of Italian goods, a ban on the export of parts for industrial plants, and to minimize the economic effects on the sanctionist states of the imposition of these sanctions.

An excerpt from “Collision of Empires: Italy’s Invasion of Ethiopia and its International Impact” by G. Bruce Strang.

However, the lack of unanimity had stalled the League’s efforts to put the report into action.

A clash of interests: Enter Great Britain and France
Although economic sanctions eventually took effect in November 1935, they were futile in halting Mussolini’s occupation of Abyssinia. The sanctions did not ban the sale of oil. Furthermore, the British did not close the Suez Canal, which allowed open access of commodities, including oil.

As other members of the LON pressured the Council to step up the sanctions on Italy, Great Britain and France made a secret arrangement with Italy.

In December 1935, British Foreign Secretary Samuel Hoare and French Prime Minister Pierre Laval proposed the Hoare-Laval Pact that offered to partition Abyssinia, thereby giving much of the territories to Italy. In return, Italy must agree to end the war.

Then, the Pact was leaked to the press, sparking public outcry. The Pact was not signed and both the British and French ministers were removed from office.

Why British decision makers elected to let Mussolini off the hook engendered controversy at the time, which has continued ever since. When furore erupted over the Hoare-Laval Pact, which flew in the face of the government’s electoral promise that foreign policy was predicated on preserving the sanctity of the League, Stanley Baldwin resorted to the argument that his lips were sealed by national security considerations, a stance that prompted cartoonists to mock the Prime Minister and perplexed supporters and critics alike.

An excerpt from “Collision of Empires: Italy’s Invasion of Ethiopia and its International Impact” by G. Bruce Strang.

In May 1936, Italy annexed Ethiopia. The sanctions had failed to forestall the Italian victory, thus the League Assembly lifted sanctions.

A costly mistake: Impact on the League of Nations
The League’s inaction had diminished its credibility even though the Covenant had stated that all member states should adhere to the collective security system.

The Members of the League undertake to respect and preserve as against external aggression the territorial integrity and existing political independence of all Members of the League. In case of any such aggression or in case of any threat or danger of such aggression the Council shall advise upon the means by which this obligation shall be fulfilled.

Article 10 of the Covenant of the League of Nations.

Some even observed that the League’s failed attempts to prevent the Italian invasion of Ethiopia may have emboldened Hitler to carry out similar acts of aggression later in Czechoslovakia and Poland.

What can we learn from this article?
Consider the following question:
– How far do you agree that the United Nations was built on the foundations of the failed League of Nations?

Join our JC History Tuition to grasp the key concepts and events covered in the topic of the United Nations. 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.