Topic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 2: Asian Financial Crisis
Overview
The Asian Financial Crisis of 1997 was a devastating problem that impacted fast-growing economies in Southeast Asia. Before the crisis, the region was fuelled by unprecedented growth, as seen by the rise of the ‘Tiger economies’ like Singapore.
The epicentre: Thailand
With the Bank of Thailand (BOT) at the helm of the nation’s push for financial liberalisation from the 1980s to the early 1990s, few had expected the central bank to assume partial responsibility for the underlying problems.
Since the 1960s, the Thai baht was tied to the American dollar. This arrangement proved beneficial in accelerating the Thai government’s switch from import-substitution industrialisation (ISI) to export promotion. The establishment of export processing zones (EPZs) was carried out in tandem with the large capital inflows from newly industrialised economies, such as Taiwan.
Like a moth to a flame: Enter the BIBF
Furthermore, the BOT had accepted Article 8 of the International Monetary Fund (IMF) Agreement on 20 May 1990. It meant that BOT agreed to open the Thai economy to a larger degree of financial liberalisation. Notably, the Bangkok International Banking Facilities (BIBF) was formed in March 1993 as an offshore banking centre, turning the nation in to an investment hub that could compete with Singapore.
As a result of Thailand’s market-friendly measures, the economy gained from a tremendous amount of capital inflow.
In fact, between 1988 and 1996 Thailand was the recipient of the largest capital inflows relative to GDP in the world. According to the Bank of Thailand, between 1988 and 1996 Thailand received a staggering cumulative amount of US$100.3 billion, about 55 per cent of 1996 GDP, or 9.4 per cent of GDP on average per annum.
An excerpt from “The Asian Financial Crisis: Crisis, reform and recovery” by Shalendra Sharma.
An impending disaster
However, excessive capital inflow proved to be more detrimental than beneficial for Thailand. In particular, the influx of short-term capital, also known as ‘hot money‘, have debilitating effects on the economy, such as a widening current account deficit and an appreciation of the real exchange rate.
Although capital control measures were introduced on 8 August 1995, such responses proved futile. By mid-1997, Thailand’s external debt stood at US$94 billion. Its current account deficit was nearly 8.5% of the Gross Domestic Product (GDP).
In anticipation of the Thai government’s inability to finance their ever-growing foreign debt, foreign investors brought their money out of the nation. On 10 May 1996, the Bangkok Bank of Commerce (BBC) collapsed, causing widespread panic in the financial market. In December 1996, more than 50 percent of the companies listed on the Stock Exchange of Thailand (SET) declared falling earnings. On 5 February 1997, Somprasong Land Company defaulted.
On 5 February came the first Thai default, by the company Somprasong, on a foreign loan repayment. Later that month, it was announced that the largest of the finance companies, Finance One, was seeking a merger with a bank to stave off collapse. In the face of widespread fears of an impending financial implosion, Financial Minister Amnuay and central bank governor Rerngchai Marakanond suspended trading of financial sector shares on the stock exchange and went on national television to announce a series of emergency measures designed to reassure nervous markets.
An excerpt from “The Asian Financial Crisis and the Architecture of Global Finance” by Gregory W. Noble and John Ravenhill.
Although the Thai Prime Minister Chavalit Yongchaiyudh had claimed that the baht would never be allowed to devalue, a massive depreciation occurred on 2 July 1997. Subsequently, the Chavalit administration turned to the IMF for help.
What can we learn from this article?
Consider the following question:
– How far do you agree that the Asian Financial Crisis was inevitable?
Join our JC History Tuition and learn to answer essay questions on the Asian Financial Crisis. 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.
Why was NATO formed?
/in Cold War, History SBCS/by Justin NgTopic of Study [For H2 and H1 History Students]:
Paper 1: Understanding the Cold War (1945-1991)
Section A: Source-based Case Study
Theme I Chapter 1: Emergence of Bipolarity after the Second World War II
Aftermath: The Crisis of 1948
From 21 to 25 February 1948, a coup d’état in Czechoslovakia had signaled the fall of the last pro-Democratic government in Eastern Europe. In the eyes of the United States, it was a profound and alarming development largely orchestrated by the Soviet Union. Four months later, the Berlin Blockade began, escalating tensions between the two Big Powers.
Although the Western Powers were successful in mobilising their air forces to deliver essential aid to the Berliners, the conclusion of the blockade on 12 May 1949 meant the division of Germany. In order to protect its allies from any potential security threat posed by the Soviet Union, the United States supported the creation of the North Atlantic Treaty Organisation (NATO).
Article V: Collective Security
On 4 April 1949, the USA and eleven other countries (Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands, Norway, Portugal and the United Kingdom) signed the North Atlantic Treaty. Between 1952 and 1989, four countries admitted NATO, namely Greece and Turkey, West Germany and Spain.
The purpose of NATO was to “unite their efforts for collective defence and for the preservation of peace and security”. In particular, Article 5 outlines the concept of collective security, in the member countries are obligated to defend any member(s) is/are threatened by acts of aggression.
From a broader perspective, NATO was founded to fulfil three key aims:
However, Soviet distrust towards the US-led NATO had festered even before its inception. Explicit references made to the United Nations Charter were interpreted by the Soviets as convenient attempts to conceal the ‘true’ Western intentions to use military aggression to consolidate their power and influence.
What can we learn from this article?
Consider the following question:
– Assess the significance of NATO in shaping the outbreak of the Cold War in 1949.
Join our JC History Tuition to grasp the key concepts and historical developments in the Cold War. 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.
What is George Kennan known for?
/in Cold War, History SBCS/by Justin NgTopic of Study [For H2 and H1 History Students]:
Paper 1: Understanding the Cold War (1945-1991)
Section A: Source-based Case Study
Theme I Chapter 1: Emergence of Bipolarity after the Second World War II
The document
George Frost Kennan was an American diplomat known for his ‘containment policy’. During World War Two, Kennan assumed diplomatic posts in Libson and Moscow. On 22 February 1946, Kennan sent a five-thousand word document labelled ‘511’. Given its unusually long length of writing, it was called the ‘Long Telegram’.
Notably, Kennan’s had alarmed Washington as there were growing suspicions towards the Soviet Union over matters in post-war Europe. Kennan’s ‘telegram’ was delivered after Stalin gave a rousing speech at the Bolshoi Theatre on 9 February. Subsequently, Kennan assumed the role as director of the State Department’s planning-policy staff in 1947.
In July 1947, another article was written by Kennan, known as ‘X Article’. It was formally titled ‘The Sources of Soviet Conduct’. The article was considered an expansion of what Kennan had written in ‘511’.
What can we learn from this article?
Consider the following question:
– How far do you agree the outbreak of the Cold War was the result of Soviet expansionist policies?
Join our JC History Tuition and learn to analyse and answer source based case study questions on the Cold War. 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.
How was Thailand affected by the Asian Financial Crisis?
/in Economic Development, History Essays/by Justin NgTopic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 2: Asian Financial Crisis
Overview
The Asian Financial Crisis of 1997 was a devastating problem that impacted fast-growing economies in Southeast Asia. Before the crisis, the region was fuelled by unprecedented growth, as seen by the rise of the ‘Tiger economies’ like Singapore.
The epicentre: Thailand
With the Bank of Thailand (BOT) at the helm of the nation’s push for financial liberalisation from the 1980s to the early 1990s, few had expected the central bank to assume partial responsibility for the underlying problems.
Since the 1960s, the Thai baht was tied to the American dollar. This arrangement proved beneficial in accelerating the Thai government’s switch from import-substitution industrialisation (ISI) to export promotion. The establishment of export processing zones (EPZs) was carried out in tandem with the large capital inflows from newly industrialised economies, such as Taiwan.
Like a moth to a flame: Enter the BIBF
Furthermore, the BOT had accepted Article 8 of the International Monetary Fund (IMF) Agreement on 20 May 1990. It meant that BOT agreed to open the Thai economy to a larger degree of financial liberalisation. Notably, the Bangkok International Banking Facilities (BIBF) was formed in March 1993 as an offshore banking centre, turning the nation in to an investment hub that could compete with Singapore.
As a result of Thailand’s market-friendly measures, the economy gained from a tremendous amount of capital inflow.
An impending disaster
However, excessive capital inflow proved to be more detrimental than beneficial for Thailand. In particular, the influx of short-term capital, also known as ‘hot money‘, have debilitating effects on the economy, such as a widening current account deficit and an appreciation of the real exchange rate.
Although capital control measures were introduced on 8 August 1995, such responses proved futile. By mid-1997, Thailand’s external debt stood at US$94 billion. Its current account deficit was nearly 8.5% of the Gross Domestic Product (GDP).
In anticipation of the Thai government’s inability to finance their ever-growing foreign debt, foreign investors brought their money out of the nation. On 10 May 1996, the Bangkok Bank of Commerce (BBC) collapsed, causing widespread panic in the financial market. In December 1996, more than 50 percent of the companies listed on the Stock Exchange of Thailand (SET) declared falling earnings. On 5 February 1997, Somprasong Land Company defaulted.
Although the Thai Prime Minister Chavalit Yongchaiyudh had claimed that the baht would never be allowed to devalue, a massive depreciation occurred on 2 July 1997. Subsequently, the Chavalit administration turned to the IMF for help.
What can we learn from this article?
Consider the following question:
– How far do you agree that the Asian Financial Crisis was inevitable?
Join our JC History Tuition and learn to answer essay questions on the Asian Financial Crisis. 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.
South China Sea dispute – Cartoon Analysis
/in History SBCS, Regional Conflicts and Cooperation/by Justin NgTopic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN: Building regional peace and security – relations between ASEAN and external powers)
Gain insights to understand the significance of the dispute
In the following section, we will be examining some political cartoons to comprehend the perceptions and interpretations by various authors on the South China Sea dispute. As JC students preparing for the GCE A Level History examination, it is important to refine your critical thinking skills by exploring diverse sources. Try to critique the strengths and limitations of each cartoon to test your level of understanding.
About ASEAN’s repeated calls for the adherence to its ‘Code of Conduct’ while being surrounding by myriad claimants in the sea.
Depiction of conflicting clams among Vietnam, the Philippines and China, while ASEAN struggles to remind all parties to follow the ‘Code of Conduct’.
About a Chinese ‘dragon’ surrounding the sea while other claimants look on helplessly.
ASEAN member states facing a menacing-looking whale that deployed Chinese vessels into the disputed territory.
ASEAN struggles in its responses towards a ‘militarised’ China in the West Philippine Sea.
What can we learn from this article?
Consider the following question:
– How far do you agree that ASEAN was successful in maintaining its regional security in the post-Cold War world?
Join our JC History Tuition to find out how to revise for the Source Based Case Study section in Paper 2. 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.
What was ASEAN’s response to the Third Indochina War?
/in Cold War and Southeast Asia, History Essays, History SBCS, Regional Conflicts and Cooperation/by Justin NgTopic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN: Building regional peace and security – relations between ASEAN and external powers)
Topic of Study [For H1 History Students]:
Essay Questions
Theme II Chapter 2: The Cold War and Southeast Asia (1945-1991): ASEAN and the Cold War (ASEAN’s responses to Cold War bipolarity)
Historical context: A violation of national sovereignty
In December 1978, Vietnamese forces launched a full-scale assault, crossing the Cambodian-Vietnamese border.
In January 1979, the Cambodian capital Phnom Penh was occupied by an alternative government, the People’s Republic of Kampuchea (PRK).
In the same month, Singapore joined other member nations for an urgent meeting. After much deliberation, ASEAN issued a joint statement to deplore the invasion, calling for the immediate withdrawal of Vietnamese forces from Cambodia.
Notably, ASEAN not only made a united stand against military aggression, but also called on the United Nations to address this escalating threat that had endangered regional stability.
Contestation by Great Powers
On 17 February 1979, China engaged in a military confrontation with Vietnam. Observers interpreted the attack as a hint to Moscow that China would not remain on the sidelines following the invasion. Yet, ASEAN members were increasingly concerned with the Chinese involvement in the conflict.
After much persuasion with member nations in the United Nations General Assembly, the International Conference on Kampuchea (ICK) was held from 13 to 17 July 1981. However, there were some shortcomings.
The pro-Communist bloc nations like Soviet Union and Vietnam were absent. Additionally, China had disagreed with ASEAN’s draft for the ICK, particularly the disarmament of Khmer resistance groups and the creation of an interim administration.
The situation had become even more complex when the US delegation sided with China. Then Foreign Minister of Singapore Dhanabalan had revealed that attempts to convince Big Powers like the USA and China had been challenging, given their diverging interests with ASEAN members during the Cold War.
What can we learn from this article?
Consider the following question:
– Assess the challenges that ASEAN faced in response to the Third Indochina War.
Join our JC History Tuition to study how ASEAN managed various regional and international threats during the Cold War. 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.
What is the Kuantan Doctrine?
/in Cold War and Southeast Asia, Regional Conflicts and Cooperation/by Justin NgTopic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 2: ASEAN (Growth and Development of ASEAN: Building regional peace and security – relations between ASEAN and external powers)
Topic of Study [For H1 History Students]:
Essay Questions
Theme II Chapter 2: The Cold War and Southeast Asia (1945-1991): ASEAN and the Cold War (ASEAN’s responses to Cold War bipolarity)
Historical context: A looming threat of Great Powers
In response to Vietnam’s invasion of Cambodia in December 1978, the Indonesian President Suharto and Malaysian Prime Minister Hussein Onn met in Kuantan in March 1980. Both parties agreed that the Cambodian conflict posed a grave threat to regional security, if left unchecked.
The threat extended beyond the presence of a pro-Vietnam government in Cambodia, particularly the dangers posed by the Soviet Union and China.
However, the Kuantan Doctrine was never put into practice as other member states of ASEAN rejected the proposed solution. For instance, the frontline member Thailand was concerned with its border security, given its proximity to Cambodia.
Soviet Union or China: A greater threat?
Although ASEAN eventually issued a joint statement to deplore the Vietnamese aggression, diverging perceptions among some member states had given rise to disagreements.
From Suharto’s point of view, China was deemed a more serious threat than Vietnam. As such, Indonesia put forward the idea of granting a certain degree of autonomy to Vietnam for its presence in Cambodia.
On the other hand, both Thailand and Singapore perceived a Soviet-backed Vietnam as a more significant threat than China. To some political observers, inaction may mean that neighbouring countries in Southeast Asia condone sovereignty violation.
What can we learn from this article?
Consider the following question:
– How far do you agree that Singapore’s foreign policy responses were successful during the Third Indochina War?
Join our JC History Tuition to study conflicts and challenges such as the Third Indochina War. 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.
What is the SIOJRI Growth Triangle?
/in Economic Development, History Essays/by Justin NgTopic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development
Growth Triangle: What is it about?
In December 1989, the Deputy Prime Minister of Singapore, Goh Chok Tong, proposed the idea of a ‘Growth Triangle’. Countries could capitalise on the complementarity of resources and the geographical proximity to promote economic integration.
For Singapore, it had skilled labour and well-developed transportation and communications infrastructure. For Malaysia and Indonesia, Johor and Riau Islands had abundant natural resources like gas, water and land.
The SIJORI
The Singapore-Johor-Riau (SIJORI) Growth Triangle was created as a tripartite arrangement between Singapore, Malaysia and Indonesia on 20 December 1989. Notably, the Singapore-Riau link had contributed to the development of industrial parks and tourist resorts in the Indonesian islands like Batam and Bintan.
What can we learn from this article?
Consider the following question:
– Assess the view that regional cooperation was vital in shaping the economic development of Singapore in the 1990s.
Join our JC History Tuition to learn more about Paths to Economic Development in independent 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.
What is the Winsemius report?
/in Economic Development, History Essays/by Justin NgTopic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development
Who is Albert Winsemius?
Albert Winsemius began his career as a price controller in the Netherlands. After the end of the Second World War, Winsemius assumed the role as a director-general of industrial development in the Finance Ministry. After Singapore attained self-government in 1959, Winsemius made a visit to Singapore. He was involved in the United Nations Development Programme (UNDP) team to determine Singapore’s capacity for industrialisation.
The Report
Then Prime Minister Mr Lee Kuan Yew had welcomed the Dutch economist’s review of Singapore’s economic conditions. Alongside the finance and Deputy Prime Minister Dr Goh Keng Swee, Winsemius served as an economic advisor to the government from the early 1960s to mid-1980s. There were two key observations that were made in his report.
Notably, the Singapore government had accepted the report’s recommendations. On 1 August 1961, the Economic Development Board (EDB) was established as a statutory board to plan and implement strategies for Singapore. The EDB was helmed by Hon Sui Sen, overseeing the industrialisation policies, particularly the development of the Jurong Industrial Estate.
The Jurong Project
The Report concluded that the development of industrial infrastructure was of paramount importance to Singapore’s growth and expansion of its manufacturing sector. Jurong was identified as a viable location for industrialisation, given its flat terrain and proximity to commercial port installations.
What can we learn from this article?
Consider the following question:
– How far do you agree that the Winsemius Report was the fundamental cause of Singapore’s successful industrialisation policies.
Join our JC History Tuition to learn more about Paths to Economic Development in independent 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.
When was Acer founded?
/in Four Asian Tigers, History Essays/by Justin NgTopic 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]
The Origins: MultiTech
In 1976, Stan Shih (施振榮) founded MultiTech with six others, including his wife Carolyn Yeh (葉紫華). The company began its journey as an Original Equipment Manufacturer (OEM) by producing video games and distributing electronic imports. In the 1980s, MultiTech expanded its production by involving Amex as its first international distributor.
The Rising Star: Acer
In 1987, MultiTech was renamed to Acer, signifying its entry as a key player in the Personal Computer (PC) industry. Shih capitalised on the low labour costs in Taiwan to accelerate export production. By 1991, more than two-thirds of Acer’s sales were accrued from foreign markets. Although Acer sought to position itself as a full-line PC supplier, about a third of its sales was still derived from OEM in the mid-1990s.
In addition, Acer had the support from the Taiwan government to engage in a joint-project with Texas Instruments (TI) to produce semiconductors in the famed Hsinchu Science Park. Joint ventures proved advantageous as Acer acquired technology to broaden its scope of production and improve quality.
What can we learn from this article?
Consider the following question:
– Assess the importance of government intervention in shaping the rise of Acer.
Join our JC History Tuition to learn more about private businesses in Taiwan as part of the Rise of Asian Tigers 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.
Why is Hyundai so successful?
/in Four Asian Tigers, History Essays/by Justin NgTopic 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]
Humble beginnings
Chung Ju-yung was born in poverty-stricken family that relied on farming to make a living. After the end of the Second World War, Chung established the Hyundai Engineering and Construction Company (HECC). The HECC began its operations as a civil engineering subcontractor that provided maintenance and repair work in the 1950s.
A turn of events: The Korean War
During the Korean War, the HECC took on projects by the United States Army, enabling it to expand into one of the leading construction companies in South Korea. Furthermore, Chung worked with the Rhee administration to secure construction projects for the development of local infrastructure.
When General Park Chung-hee took over in the 1960s, Chung continued to obtain contracts to entrench Hyundai’s market dominance, such as the development of the Gyeongbu Expressway. Externally, the HECC helped to develop infrastructure in Vietnam and the Middle East, which proved to be a fortuitous time for diversification.
Enter Hyundai Motor
Initially, the Hyundai Motor Company (HMC) forged a joint agreement with the US-based Ford Motor Company. Yet, the lack of consensus over managerial and marketing issues led to the termination of the partnership in the early 1970s. In 1976, HMC developed its first car, the Hyundai Pony, in 1976.
The Hyundai pony was developed with the support of the Mitsubishi Motor Company that sought to expand its market access beyond the shores of Japan. Hyundai was granted a technical licensing agreement, which enabled it to develop its very own nameplate cars.
Additionally, Chung roped in George Turnbull, who was formerly the president of the British Leland – an automotive company. Turnbull assumed the role as vice president of the HMC. In two years, Turnbull oversaw the development of the car production facilities in Ulsan.
From mid-1970s onwards, the HMC moved beyond the limited domestic market to the export markets. Alongside other similar automakers like Daewoo and Kia, the HMC increased export production in the 1980s. Hyundai Motors set up a production facility in 1985, which had an annual capacity of 300,000 units. By the mid-1980s, more than half of the total car production was exported, enabling the South Korean economy to benefit from continued current account surpluses by 1989.
What can we learn from this article?
Consider the following question:
– Assess the reasons for the rise of Hyundai from the 1970s to 1980s.
Join our JC History Tuition to learn more about chaebols and other factors relating to the Asian Tigers. 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.