Topic of Study [For H2 History Students]: Paper 2: Regional Conflicts and Co-operation (SBCS) Theme III Chapter 1: Reasons for the formation of ASEAN
Topic of Study [For H1 History Students]: Theme II Chapter 2: The Cold War and Southeast Asia (1945-1991) (Essay): ASEAN and the Cold War (Formation of ASEAN)
Prelude to ASEAN: An invitation to promote co-operation In December 1966, Thailand put forth a proposal, known as the Southeast Asian Association for Regional Cooperation (SEAARC), to four other nations in the Southeast Asian (SEA) region. The SEAARC proposal states that countries in SEA “share a primary responsibility for ensuring the stability and maintaining the security of the area”. In particular, the proposal, which was drafted with Indonesia, specified the presence of “foreign bases” being temporary in nature, so as to protect the “national independence of Asian countries”.
Notably, this was an expected move by Thailand, given its disappointment expressed at the USA in view of the communist insurgency in Thailand that remained unaddressed even though it was part of the Southeast Asian Treaty Organisation (SEATO). Along the same vein, Indonesia was a strong advocate of keeping the Great Powers out of the region, given its involvement in the Non-Alignment Movement (NAM) ever since it hosted the Bandung Conference in April 1955.
Yet, the other countries opposed the proposal, citing the need to rely on foreign powers to protect their individual security interests.
Indonesia, despite undergoing a dramatic reorientation in foreign policy under Suharto, saw foreign powers targeting the region and maintained that its national security was best served by following a policy of self-reliance and nonalignment. It believed that the Southeast Asian states should follow its lead.
[…] The Filipinos felt that their security was best served by maintaining their strong bilateral defense ties with the United States, which kept major military bases there. Likewise, Singapore remained dependent on protection from Britain and was home to the largest British base in the region.
Eventually, a compromised was reached, such that the Bangkok Declaration (that officiated the formation of ASEAN) states that “all foreign bases are temporary and remain only with the expressed concurrence of the countries concerned”. There was no mention of collective defense arrangements that served the interests of Great Powers in the Declaration. The late international relations scholar Michael Leifer commented that this compromise was merely an effort by other nations to “placate Indonesia”.
A platform for reconciliation and cooperation On a separate note, ASEAN was also formed because of the common desire of neighbouring countries in the region to forge stronger diplomatic ties with one another. As a result of Sukarno‘s hyper-nationalist policies towards Singapore and Malaysia during the Konfrontasi, General Suharto of Indonesia sought to make amends and promote regional cooperation through the newly-formed organisation.
From 1962 to 1966, disagreements and conflicts between the region’s states had hamstrung any efforts at cooperation. These disputes largely centred upon the proposed amalgamation of Malaya, Singapore, Sarawak, and Sabah into the Federation of Malaysia. Both the Philippines and Indonesia refused to recognize the new Federation. The Philippines disputed the territorial claim of Sabah. Indonesia denounced the influence of Britain, which it viewed as ‘an imperial power imposing its will on Southeast Asia’.
As a result, Indonesia embarked on a violent four-year campaign of Konfrontasi, or confrontation, with the newly federated state of Malaysia, growing to include Singapore following its forced separation from the federation in 1965.
The negotiation: Thailand and Singapore on the creation of ASEAN At first, Singapore was not keen to join ASEAN, citing the growing ambitions of Indonesia. Given Singapore’s position with the Malaysian Federation during the Konfrontasi, the first multi-lateral discussions about the establishment of this regional organisation did not even mention the city-state.
Thailand was instrumental in including Singapore in ASEAN. […] Thanat Khoman (1914-2016), Thailand’s foreign minister, then met with Rajaratnam in Bangkok and allayed fears, explaining that ASEAN would be a purely cultural, economic, social, and technical group devoted to regional cooperation. Khoman promised that ASEAN, as a non-aligned association, would not support or partake in military operations of any kind. Khoman convinced Rajaratnam that Singapore would not be implicated in Cold War politics after joining ASEAN.
On 8 August 1967, the Association of Southeast Asian Nations (ASEAN) was formed in Bangkok, Thailand. ASEAN was established with the signing of the ASEAN Declaration (more commonly known as the ‘Bangkok Declaration’) by five founding member nations: Thailand, Indonesia, Malaysia, Singapore and the Philippines.
What can we learn from this article? Consider the following question: – How far do you agree with the view that ASEAN was largely a product of the Cold War?
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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]
Learn more about the world-renowned steelmaker POSCO [Video by Arirang News]
The steel industry in South Korea: A historical background In the 1960s, the steel industry in South Korea was largely absent. Three decades later, Korea became the world’s sixth-largest steel producing country. This development can be explained by General Park Chung-hee’s aim for Korea to be self-sufficient in steel production.
Steel has been commonly known as the ‘staple of industry‘, in which this versatile metal is highly applicable in many basic industries, such as shipbuilding, construction, machinery and automotive. Hence, its complementary nature further underpinned South Korea’s economic success.
Enter Park Tae-Joon In 1967, the Korean government picked Pohang as the location for the construction of the first integrated steelworks. The Korea Tungsten Company was selected as the end-user of the integrated steelworks. The president of the Korea Tungsten Company was Park Tae-Joon.
Park Tae-Jun was known for prioritizing “speedy operations.” Under his direction, the construction of POSCO in the early years were completed well ahead of schedule which not only saved time but millions of dollars (Seo 2011). This was even more extraordinary considering that the construction site was formerly a barren sand field that lacked any related and supporting infrastructure.
[…] CEO Park was also well known for his diligence and dedication. Park believed that the best way to lift his employees’ total commitment to work was for him to set a good example. Park spent most of his time on site with the workers while the first steel plant was being completed. He promptly abandoned all leisure activities and hobbies to focus on the plant construction. Park’s diligence had a marked impact on all of POSCO employees, who were motivated to follow the footsteps of their CEO.
Park Tae-Joon was then appointed to helm the newly-formed Pohang Iron and Steel Company (POSCO) on 1 April 1968. However, POSCO’s developments were not entirely smooth-sailing from the start.
Although the Korean President Park Chung-hee engaged foreign steel companies to form the Korea International Steel Associates (KISA) in 1966, the POSCO leader received confirmation that the securing of loans from KISA was not possible. In response, Park Tae-Joon capitalised on his extensive networks in Japan to find a solution.
In December 1969, the “Korea-Japan Framework Agreement” was signed, granting POSCO the right to sign a technology service contract with Japan Group. Japan Group comprised of three companies (Yawata Steel Works, Nippon-Kokan KK and Fuji Steel Corporation) that offered their technological expertise to facilitate the construction and operation of integrated steelworks in South Korea.
Korea’s economic rise in the 1970s On 1 April 1970, POSCO launched Phase 1 of its comprehensive construction of the Pohang steelworks at Yeongilman Bay. POSCO’s objectives were aligned with the Korean government’s, in which General Park later put forth the Heavy and Chemical Industrialisation (HCI) Plan in 1973.
Creating domestic capabilities for steel production was a vital step for sustainable economic development, given the changes to American foreign policy in Asia by the early 1970s. The diminished American military presence in Indochina and parts of East Asia made General Park Chung-hee more certain that the formulation of a HCI Plan was the right step to take.
The deteriorating condition of military security put the HCI drive on a qualitatively different plane as well. With President Nixon’s visit to China in 1972, the U.S. Seventh Infantry Division’s withdrawal from South Korea in 1971, and the U.S. military disengagement from South Vietnam in 1972, Park’s urgency in developing the steel industry as part of South Korea’s modern defense industries rose dramatically.
[…] The launching of HCI profoundly strengthened the status of the steel industry within the hierarchy of the national agendas. Park looked at the steel industry as the engine of deepening industrial development. This change of perception within the inner policy circles led to the announcement in July 1973 of plans to construct a second integrated steel mill upon the completion of POSCO. To support the simultaneous development of the shipbuilding, electronics, machinery, and nonmetal materials industries, Park called for increasing the South Korean steel production capacity from one million tons in 1973 to ten million by 1980.
What can we learn from this article? Consider the following question: – How far do you agree that the economic transformation of South Korea between 1970 and 1990 was the result of business conglomerates?
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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
Learn more about the historical significance of the Gold Standard [Video by Economics Explained].
Historical background In 1944, an international monetary agreement was signed in 1944 at the Bretton Woods Conference. Under this agreement, foreign currencies were defined in terms of the US dollar (USD). A new system was established in the post-WWII period to replace the Gold Standard that ended in 1993 following the Great Depression.
Under this system, a fixed exchange rate was established, in which one ounce of gold is equivalent to 35 USD.
When nations participate in a pegged exchange-rate system, they agree to fix the value of their currencies relative to another currency rather than to a commodity such as gold. The US dollar was chosen as the base currency and all the countries agreed to keep the value of their currency within plus or minus 1 percent of a specific value of the dollar. […] In contrast to all other nations, the US currency maintained a relationship with gold fixed at $35/ounce. Thus, because the US dollar remained fixed to gold, this was an indirect gold standard, but nations used US dollars rather than gold to settle international transactions.
With support from the International Monetary Fund (IMF), an automatic adjustment helped nations to avoid the onset of deflation, thereby maintaining stable exchange rates. By the late 1950s, key trading nations loosened exchange restrictions to accept the international gold standard.
Dollar shortage & the Gold Pool Following the Second World War, governments in Western Europe imported US-made machinery and merchandise. Consequently, there was a surge in demand for USD, given that more nations underwent post-war economic reconstruction. During the Presidential polls in August 1960, US Senator John F. Kennedy declared his plan to “get America moving again“, giving rise to a ‘gold rush’.
As a result, the increase in market price of gold in London to $40 sparked fears of an unstable USD-gold parity. As such, a “Gold Pool” was created in November 1961, in which eight central banks agreed to buy and sell gold only at the official price of $35. Seven other central banks agreed to provide half of the gold supply to keep the market price of gold stable.
The spike in the London market price sparked fears that governments, seeing the writing on the wall, might demand wholesale conversion of their dollars into gold. In response, the US Treasury provided the Bank of England with gold to be used to bring the price of gold on the London gold market, where the metal was bought and sold by private investors (some would say “speculators”), back down to $35, and the governments of principal industrial countries agreed to refrain from buying gold at a higher price.
[…] What the left hand gave, the right hand taketh away, in other words, in a classic instance of a collective-action problem. As a result, the Gold Pool did little to resolve the internal contradictions of what was now referred to as the Bretton Woods gold-dollar system.
Overvaluation of the USD: A currency crisis and a gold glut However, the USA faced problems with the system. In the early 1960s, the USA experienced rising inflation. As a result of inflation, the increase in silver prices made it difficult for the USA to ensure adequate circulation of coins and silver certificates. In response, the Congress repealed the Silver Purchase Act in 1963 and enabled the Federal Reserve to produce notes in $1 and $2 denominations. At the same time, silver certificates were gradually retired, thus freeing up the silver holdings for use as coins.
Yet, inflation persisted. In 1968, the Congress repealed the requirement to hold gold reserves against Federal Reserve notes. This led to the collapse of the “Gold Pool”.
By the late 1960s, the inflationary condition exacerbated by the large spending to finance the ‘Great Society’ and the Vietnam War strained the international monetary system. Although a two-tier gold market was created in March 1968, foreign governments viewed it with much skepticism. Central banks were unwilling to accept USD in settlement.
The Bretton Woods was based on gold, but the global gold stock could not meet the world’s demand for international reserves, without which pegged exchange rates were impossible. Consequently, the United States provided dollar reserves by running a persistent balance of payments deficit and promised to redeem those dollars for gold at $35 per ounce. By 1961, however, the amount of dollar claims outstanding began to exceed the US government’s stock of gold. The deficit of gold implied that the United States might not be able to keep its pledge to convert dollars for gold at the official price.
[…] The prospect of a dollar devaluation created strong incentives to exchange dollars for US gold. The US Treasury and the Federal Reserve tried to keep this from happening through stop-gap measures, but they could not solve the underlying paradox: Without additional dollar reserves, the system was unworkable; with additional dollar reserves, the system was unstable.
As a result, US President Richard Nixon ‘closed the gold window‘ in August 1971, thereby disallowing foreign central banks from exchanging USD for the US Treasury’s gold. Notably, Nixon blamed other countries for their reluctance to share the military burden of the Cold War, which in turn contributed to the persistent balance of payments deficit.
What can we learn from this article? Consider the following question: – How far do you agree that the problems of the Crisis Decades were the result of American economic policies?
Join our JC History Tuition to learn more about 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.
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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; Chapter 2: Reasons for problems of the global economy
How will the future of petrostates in the Persian Gulf be? Find out more. [Video by Al Jazeera English]
The value of ‘Black Gold’: Oil As the Allied powers concluded the Second World War (WWII) with the help of the USA, the latter recognised the strategic and economic value of oil, given its relevance to enable the continuation of war efforts then.
After the Yalta Conference, US President Franklin Roosevelt met the Saudi King Abdel Aziz on the cruiser USS Quincy on 14 February 1945. The Saudi King agreed to let the USA carry out port visits and build an airfield. At the same time, concession was given to the oil production by the Saudi-American Oil Company (Aramco). Notably, this collaborative relationship continued after WWII.
Since then, a special relationship between the two countries has evolved, due not only to mutual interest in reliable supplies of oil flowing to the West but also to their close cooperation in Middle East regional security. During the Cold War, Saudi Arabia considered atheistic Soviet Communist ideology to be the greatest threat to Muslim hearts and minds. Thus, the kingdom also opposed radical Arab leaders such as President Gamal Abdel Nasser of Egypt, who established cordial relations with the Soviet Union.
During the Cold War, the USA rose to prominence by acting as a security guarantor for the six Arab states in the Persian Gulf (Bahrain, Oman, Qatar, Kuwait, Saudi Arabia and the United Arab Emirates). Having a reliable access to oil supply was vital in facilitating post-war economic reconstruction. As such, the USA was a key importer of oil, thereby keeping the Middle Eastern powers relevant.
US interest in the Gulf was also a by-product of the postwar economy in the developed world. Postwar reconstruction, a growing western consumer power, and the mass hydrocarbons at the centre of the world’s wealthier economies, and created an explosion in demand, with the unsurprising result that ensuring secure and reliable access to oil supplies became a central pillar of US and western foreign policies. […] From that time, the sheer size and quality of the Middle East’s reserves meant that the region could probably never have avoided becoming entangled in international politics as it did during and after the Cold War.
Jockeying for position: Claiming ownership rights and petrodollars Before the Organisation of Petroleum Exporting Countries (OPEC) was formed in 1960, the “Seven Sisters” dominated the global oil industry. In 1908, the British discovered oil in western Persia (which later came to be known as Iran). Six years later, the Anglo-Persian Oil Company (APOC) was formed, with the British holding 51% stake in it.
In the 1950s, in line with developments in the international oil business, companies were compelled to shift to 50:50 profit-sharing agreements. For the first time, oil revenues were truly substantial: the Bahraini ruler received oil revenues of about £2.5 million in the mid-1950s. In Kuwait, the 50:50 agreement of 1950 generated £60 million from the Al Sabah in the mid-1950s, while the Qatari rulers received about £5 million per year. The Saudi oil income reached about £20 million in 1950, but rose faster than that of any other country in the region.
Initially, the OPEC was formed as a result of the Baghdad Conference of September 1960 to ensure stable oil prices in the markets. However, as its membership size grew (15 in the 1970s), the organisation began to challenge the “Seven Sisters”.
What can we learn from this article? Consider the following question: – How far do you agree that oil was the most important factor that shaped the global economy in the 20th century?
Join our JC History Tuition to learn more about 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.
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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
Learn more about the processes that define peacekeeping. [Video by the United Nations]
Saving succeeding generations from the scourge of war: The United Nations On 24 October 1945, an inter-governmental organisation known as the United Nations was established. Barely a month ago, the Second World War came to an end, giving many a stark reminder of the devastation and atrocities that warmongers can cause on others.
Five decades later, the Department of Peace Operations (DPO) was set up, streamlining processes to carry out peacekeeping missions to achieve myriad goals set and authorised by the United Nations Security Council (UNSC).
Defining peacekeeping: Origins The first peacekeeping mission took place in 1948 when the UNSC authorised the deployment of military observers to the Middle East. In particular, the United Nations Truce Supervision Organisation (UNTSO) was established in May 1948 to monitor ceasefires, supervise armistice agreements and prevent conflicts from threatening the security of Middle Eastern nations.
In its first manifestations in the United Nations, and indeed earlier, in the inter-war years, peacekeeping was strictly an inter-state activity. It had to do with the management of stressed or fractured relations between sovereign states in the international system. The United Nations Emergency Force sent to Suez in 1956 (which is often misleadingly described as the first peacekeeping operation) was interposed between Egypt and the states that had attacked it (Britain, France and Israel) following its nationalization of the Suez Canal. After Suez the essential principles of peacekeeping employed there were seen to apply as well to previous UN undertakings that had not, at the time they were established, been given the name peacekeeping.
Notably, peacekeeping became a more ‘organised’ activity for the United Nations in 1956 when its principles were defined by then United Nations Secretary-General Dag Hammarskjöld and Canadian minister Lester B. Pearson. Its principles were put to the test when the United Nations Emergency Force (UNEF) was deployed in response to the Suez Canal Crisis of 1956.
Ever since 1948, more than 70 peacekeeping missions have been undertaken by the United Nations, involving more than 120 countries that contributed hundreds of thousands of personnel. Notably, the UN Operation in the Congo (ONUC) was first large-scale mission that numbered 20,000 of military personnel.
Evolution of peacekeeping In the post-Cold War phase, the role of United Nations peacekeepers was re-defined to keep the organisation relevant. Initially, the ‘blue helmets’ took on a ‘traditional’ role, which included tasks like monitoring ceasefires. In view of the rise of new challenges posed by intra-state conflicts, peacekeepers took up new responsibilities, like providing humanitarian assistance, monitoring human rights, as well as disarmament and demobilisation of former combatants.
As Secretary-General Kofi Annan memorably described the new UN role in 1998: “Our job is to intervene: to prevent conflict where we can, to put a stop to it when it has broken out, or – when neither of those things is possible – at least to contain it and prevent it from spreading.” He was reflecting the activism of the Security Council, which between 1987 and 1994 had quadrupled the number of resolutions it issued, tripled the peacekeeping operations it authorized, and multiplied by seven the number of economic sanctions it imposed per year. Military forces deployed in peacekeeping operations increased from fewer than 10,000 to more than 70,000.
What can we learn from this article? Consider the following question: – Assess the view that United Nations peacekeeping was successful ever since its inception.
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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: Rise of NEDCOL After the end of World War Two, Prime Minister Plaek Phibunsongkhram led his government to oversee economic recovery. As a result of economic isolation, Thailand‘s rice trade declined significantly, with the exception of its continued trade efforts with imperial Japan during the war.
As part of its efforts to carry out import-substitution industrialisation (ISI), the Phibun government oversaw the creation of state agencies, such as the National Economic Development Corporation Limited (NEDCOL).
NEDCOL was established in 1954 as a holding company with five manufacturing subsidiaries, namely two sugar mills, a jute mill, marble factory and paper mill. NEDCOL functioned as a guarantor of loans, supporting the growth of Thai and Chinese businesses.
During the period 1947-57 development strategy, while never clearly stated, had all the characteristics of ISI. However, these policies did not centre on tariff protection. Tariffs were treated primarily as sources of revenue. In addition, Akrasanee and Juanjai have suggested that the Phibun regime ‘deliberately avoided protecting industries for fear of promoting the Chinese community’. Rather industrialisation was promoted through the direct participation of the state in production.
State enterprises were set up with monopolies in such areas as brewing, paper manufacture, sugar refining and gunny sack production. […] Through NEDCOL the state acted as a guarantor of loans enabling comparatively large-scale foreign funding to be obtained for many of these enterprises.
Notably, the government’s share of domestic investment from 32% in 1952 to more than 38% in the period 1953-55, highlighting the key role that direct state investment played in the manufacturing sector.
Political clashes: Phibun vs Sarit However, NEDCOL did not last as it became bankrupt in 1957. It coincided with the year in which Field Marshall Sarit Thanarat led a coup d’état against Phibun on 16 September 1957. It was revealed that corruption plagued NEDCOL, thus explaining the lack of productive investments.
NEDCOL was established in 1954 and was administratively subordinate to the Ministry of Defence. The Minister of Finance was closely affiliated with General Phao, the Director-General of the Police. When a coup d’état ousted Phao’s patron, in 1957, it was discovered that less than half the funds allocated to NEDCOL had actually been used for investment purposes. The remainder had disappeared. The belief is that these funds were used to keep Phao’s political clique together. This sort of activity has been repeated innumerable times since 1950.
Picking up the pieces: post-NEDCOL In the wake of the fallout, the Sarit government had to take over the company. With support from foreign economic advisor, John Alfred Loftus, the government managed to restructure and salvage the factories. As for the debt accumulated by NEDCOL, Loftus was able to renegotiate and extend the debt payment structure.
The NEDCOL experience stands out because of the foreign financial obligations it imposed on the Thai budget for five years and because it was the largest single industrial venture of the period. […]
Loftus was chagrined by the entire state enterprise policy and the economic wastage he observed that flowed from the disregard for ordinary good business practice. In a memorandum from 1961 addressed to M. L. Dej Snidwongse, the chairman of the Executive Committee of the National Economic Development Board (NEDB), Loftus observed that the government lacked even basic data on its own enterprises, was in no position to exercise financial or policy control over these enterprises, was allocating resources to them without applying any criteria or objectives, and was tolerating gross inefficiency in their operation.
What can we learn from this article? Consider the following question: – How far do you agree that that expertise was most crucial in determining the economic development of Southeast Asian states after independence?
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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: Power Struggle On 21 February 1957, President Sukarno delivered a speech, which claimed that Western parliamentary democracy was the root cause of political crises in Indonesia. As such, he proposed a change to the political system that will unify the Indonesian people. This was termed the ‘Guided Democracy‘.
Declaring that Western concepts of parliamentary democracy in Indonesia had led to recurring crises, because of the weakness of government authority and the vehemence of political opposition, Sukarno suggested a system “in harmony with the soul of the Indonesian people”, a system in which “all members of the family sit at the table – at the eating table and at the working table”.
An excerpt taken from “‘Guided Democracy’ in Indonesia” by Justus M. Van Der Kroef, published in the Far Eastern Survey Vol. 26, No. 8 (August 1957).
A month later, the cabinet of Ali Sastroamidjojo fell apart. Subsequently, it was replaced by an extra-parliamentary party of experts handpicked by Sukarno. The President made thorough attempts to quell the regional rebellions and consolidate power, with Major General Nasution leading the charge. Over the next two years, the Indonesian Army defeated the rebellions in Sumatra and Sulawesi. The 1945 Constitution made a comeback in July 1959. In March 1960, Sukarno dismissed the members of parliament and appointed a new body to back his economic policies.
Progress or Regress? Between 1957 and 1965, Gross Domestic Product (GDP) growth was comparatively lower than the period of 1950 to 1957, suggesting that the Guided Democracy had created more problems for the Indonesian economy. According to the Central Bureau of Statistics, the average annual growth of net national product was about 1.7% per annum. Given that population growth rate averaged 2% per annum, it meant there was declining per capita income.
One such observation can be made in the agricultural sector. The government made efforts to promote the use of new technologies to raise rice production, but to no avail. In 1959, a three-year rice production programme was launched.
Under this programme, fertiliser imports increased from 250,000 to 450,000 tons, but because of the succession of very poor rainfalls, especially in Java, in 1961, 1963, 1965 and 1967, rice output growth was disappointing. […]
Some authorities blamed the disappointing rice production performance, in spite of increased fertiliser use, on the declining effectiveness of the irrigation system, which made crops such as corn more attractive to farmers, especially in the dry season, but it is probable that most of the shift in hectarage from rice to corn in these years was due to poor rainfall, although lack of funds for irrigation maintenance certainly aggravated the situation.
Enter the New Order By the end of Sukarno’s Guided Democracy, Indonesia experienced hyperinflation and severe poverty. Following the ’30 September’ incident in 1965, General Suharto led the KOSTRAD against the Communist Party of Indonesia (PKI). Sukarno was then discredited, such that he transferred power to Suharto in March 1966. This enabled Suharto to implement policies to achieve economic stabilisation in the late 1960s, ushering the start of the New Order.
In fact, per capita GDP, while certainly lower than in the late 1950s, had not sunk back to the level of 1945. But even so the economic situation was grim enough. The most pressing problem concerned the balance of payments. Debt service payments were expected to be at least $530 million in 1966; as total export earnings (including oil) were estimated to be only $430 million, it was clear that substantial rescheduling of foreign debt was inevitable. […] In short, massive injections of aid, or loans on very soft terms, would be essential to achieve the twin objectives of lower inflation and faster economic growth.
What can we learn from this article? Consider the following question: – How far do you agree that the development of the Indonesian economy was largely shaped by politics than economics under the Guided Democracy?
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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 remarkable phase for the world economy: The Golden Age Initially, the economic conditions were dire. Critical infrastructure, such as factories, schools and hospitals, were destroyed by bombing campaigns. People starved as food was scarce. Unemployment rates were high, giving rise to strikes in parts of Europe. Governments were in need of monetary assistance to begin their post-war recovery efforts.
Against the Cold War backdrop, the USA stepped up and offered financial aid (e.g. Marshall Plan) to countries affected by WWII. While its financial support to countries was mainly for economic recovery, the USA also capitalised on its economic might to counter the encroaching influence of the Communists led by the Soviet Union.
Between 1945 and 1973, the global economy grew rapidly. Many countries achieved pre-war industrial levels by the 1950s. In addition, the advent of international trade accelerated growth of the world economy.
Between 1950 and 1975 income per person in the developing countries increased on average by 3 per cent p.a., accelerating from 2 per cent in the 1950s to 3.4 per cent in the 1960s. This rate of growth was historically unprecedented for these countries and in excess of that achieved by the developed countries in their period of industrialization.
Keep moving: The rise of automobiles During the ‘Golden Age’, many American households reaped the benefits of post-war economic advancements. It became a norm for each household to own an automobile. Interestingly, Elvis Presley purchased a pink Cadillac in 1955. The Cadillac represented pinnacle of American automobile production.
The 1950s are seen by many as the “golden age” of the automobile in America, with absolute and per capita car sales hitting new heights, styling on a rampage, and the auto becoming a part of every aspect of American life, with drive-in restaurants, movies, churches, and funeral parlors.
[…] The post-World War II period also marks the beginning of a series of studies that attempt to analyze the hierarchical organization and managerial techniques that have been and are being applied in the automotive industry.
The OECD: Club of the Rich? On 30 September 1961, the Organisation for Economic Co-operation and Development (OECD) was formed with the aim to promote economic progress and world trade. OECD members were considered advanced economies that occupied most of the world’s Gross Domestic Product (GDP).
However, the growth of the global economy was not entirely smooth sailing. As the post-war allies of the USA recovered, notably West Germany and Japan, the open markets had intensified trade competition. These growing economies then challenged the economic supremacy of the USA in the 1960s.
One of several ironies in these developments was that they were led by Germany and Japan, former enemies of the US and its allies, who are now major challengers to US economic power and serious competitors in world trade. By 1960, Germany and Japan together accounted for only 6.3 percent of world trade, but by 1970, after a decade of unprecedented growth and export expansion, their share of world trade had increased to 18.8 percent. Over the same period the US share of world trade fell from 20 percent to 15 percent, a situation reflected by a rapidly growing deficit on its national trade account.
What can we learn from this article? Consider the following question: – Assess the view that the first three decades after the Second World War was truly a ‘Golden Age of Capitalism’.
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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
Learn more about the ‘Father of Europe’ Jean Monnet [Video by SEAGoRM]
A historical background of the Trente Glorieuses: The French economic miracle By the end of World War Two, France was badly devastated. Infrastructure such as bridges and railways were destroyed. Industrial output was at 44% of pre-war level. The French had to rely on rationing. Given the urgent need for post-war economic recovery, Charles de Gaulle formed the General Planning Commission on 3 January 1946.
This Commission aimed to raise productivity, improve living standards, restore national production and increase employment. Key sectors were being identified and targeted, namely coal mining, steel, rail transport, electricity, farm machinery and cement. Subsequently, other sectors were included in the Plan, such as fertilisers, oil, shipbuilding and chemicals.
Enter Jean Monnet, who was later known as the ‘Father of Europe’. Monnet was appointed the Commissioner of the French Plan Commission. He came up with the ‘Modernisation and Re-equipment Plan’, which was more commonly known as the ‘Monnet Plan‘.
And the French economic plan became a landmark in the history of postwar Europe, helping to shape the structure of the Marshall Plan, the European Coal and Steel Community, the abortive attempt to construct a European Defense Community, and the Common Market itself. There was a direct line from the Monnet Plan through the Marshall Plan to the Schuman Plan and the Pleven Plan. All of them were, in varying degrees, Monnet Plans.
A giant leap for France: The Monnet Plan The Plan aimed to restore France’s production levels to pre-war standards. For instance, Monnet aimed to restore output level that of 1929 by 1948. Notably, the Monnet Plan was not simply a plan to modernise France and bring it back on its feet economically. In addition, the Plan was meant to shape the minds of the French.
The Monnet Plan was integral in accelerating steel production in France. The Monnet Plan aimed to attain an output of 15 million tonnes of steel, which exceeded the peak level in 1929. This ambitious target was to increase France’s international competitiveness, particularly against Germany. In other words, increased French steel exports should replace German steel exports.
The Monnet Plan had become a guideline to French policy towards the reconstruction of Europe as well as to domestic reconstruction. The Ministry of Foreign Affairs had tried to make it so from the outset and to draw out its implications for French national security.
[…] In 1950, at a level of pig-iron output of 7.76 million tonnes the total consumption of coke for all purposes by the French steel industry was 8.14 million tonnes. Of this, 4.66 million tonnes were domestically produced and 3.48 million came from imports. By 1952 pig-iron output had reached 9.77 million tonnes.
Between 1951 and 1973, France’s growth averaged 5.4% per annum. Compared to West Germany, its economic growth rate was considerably high, thus explaining why its thirty years after World War Two were termed as the ‘Glorious Thirties‘.
What can we learn from this article? Consider the following question: – How far do you agree that the post-war reconstruction of Europe can be explained by American aid?
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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
Examine the role of the third Secretary-General of the United Nations U Thant [Video by United Nations]
Background U Thant (သန့်) was appointed Secretary-General of the United Nations on 30 November 1961. It was six weeks after the distinguished Dag Hammarskjöld died in an air crash. U Thant was the first non-European Secretary-General. He served for two terms that eventually ended on 31 December 1971.
U Thant led diplomatic efforts in the different missions, such as the ongoing Congo Crisis in Sub-Saharan Africa, the protracted Arab-Israeli War in the Middle East and the Vietnam War in Indochina.
U Thant’s Diplomacy During the Cuban Missile Crisis, U Thant helped to pass messages between American and Soviet leaders, Kennedy and Khrushchev, averting a nuclear confrontation. U Thant also visited the Cuban leader Fidel Castro to oversee the smooth removal of missiles.
U Thant called for urgent negotiations, informing the Security Council that he had sent identical messages to Kennedy and Khrushchev appealing for a two- to three-week moratorium. […] U Thant received lavish praise inside and outside the Security Council for his part in helping defuse the crisis. In the Security Council on 25 October, Ambassador Quaison-Sackey expressed appreciation to U Thant for his “tremendous show of statesmanship and initiative.”
However, U Thant’s efforts were hindered by the United States. During the Vietnam War, he tried to mediate by arranging peace talks between Washington and Hanoi, but the Johnson administration rejected his proposals. The US Secretary of State Dean Rusk objected to U Thant’s ceasefire and peace talks in Rangoon. Rusk alleged that U Thant’s enthusiasm in facilitating peace talks was influenced by his desire to claim the Nobel Peace Prize.
The third UN Secretary-General, U Thant, made a spirited attempt to find a means of ending the disastrous Vietnam War. He evolved a plan for a cease-fire in place and for a meeting of all the parties in Rangoon, where all the diplomatic representation, to agree on how to negotiate a final end to the war.
[…] Nothing more was heard from Washington, and there is no written record of what Stevenson did about it, although it now seems likely that Secretary of State Dean Rusk, who distrusted U Thant’s efforts on Vietna, may have blocked it.
According to Sir Brian Urquhart, there was a stark contrast between the personality of U Thant and his predecessor Hammarskjöld. U Thant was viewed as a “simple and direct” individual who spoke few words, whereas Hammarskjöld was much more articulate.
[U Thant] was friendly, informal, and genuinely interested in what one had to say – in contrast to Hammarskjöld, who paid little heed to subordinates. U Thant also differed from his predecessor in more fundamental ways.
He was simple and direct where Hammarskjöld was complicated and nuanced; a man of few words where Hammarskjöld was immensely articulate; a devout traditional Buddhist where Hammarskjöld was increasingly inclined to a personal brand of mysticism; a man of imperturbable calm where Hammarskjöld could be highly emotional; a modest and unpretentious middlebrow where Hammarskjöld was intensely intellectual; a taker of advice where Hammarskjöld almost invariably stuck to his own opinion.
What can we learn from this article? Consider the following question: – How far do you agree that U Thant was effective in performing his duties as the United Nations Secretary-General in the 1960s?
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Revisited: When was ASEAN formed and why?
/in History SBCS, Regional Conflicts and Cooperation/by Justin NgTopic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation (SBCS)
Theme III Chapter 1: Reasons for the formation of ASEAN
Topic of Study [For H1 History Students]:
Theme II Chapter 2: The Cold War and Southeast Asia (1945-1991) (Essay):
ASEAN and the Cold War (Formation of ASEAN)
Prelude to ASEAN: An invitation to promote co-operation
In December 1966, Thailand put forth a proposal, known as the Southeast Asian Association for Regional Cooperation (SEAARC), to four other nations in the Southeast Asian (SEA) region. The SEAARC proposal states that countries in SEA “share a primary responsibility for ensuring the stability and maintaining the security of the area”. In particular, the proposal, which was drafted with Indonesia, specified the presence of “foreign bases” being temporary in nature, so as to protect the “national independence of Asian countries”.
Notably, this was an expected move by Thailand, given its disappointment expressed at the USA in view of the communist insurgency in Thailand that remained unaddressed even though it was part of the Southeast Asian Treaty Organisation (SEATO). Along the same vein, Indonesia was a strong advocate of keeping the Great Powers out of the region, given its involvement in the Non-Alignment Movement (NAM) ever since it hosted the Bandung Conference in April 1955.
Yet, the other countries opposed the proposal, citing the need to rely on foreign powers to protect their individual security interests.
Eventually, a compromised was reached, such that the Bangkok Declaration (that officiated the formation of ASEAN) states that “all foreign bases are temporary and remain only with the expressed concurrence of the countries concerned”. There was no mention of collective defense arrangements that served the interests of Great Powers in the Declaration. The late international relations scholar Michael Leifer commented that this compromise was merely an effort by other nations to “placate Indonesia”.
A platform for reconciliation and cooperation
On a separate note, ASEAN was also formed because of the common desire of neighbouring countries in the region to forge stronger diplomatic ties with one another. As a result of Sukarno‘s hyper-nationalist policies towards Singapore and Malaysia during the Konfrontasi, General Suharto of Indonesia sought to make amends and promote regional cooperation through the newly-formed organisation.
The negotiation: Thailand and Singapore on the creation of ASEAN
At first, Singapore was not keen to join ASEAN, citing the growing ambitions of Indonesia. Given Singapore’s position with the Malaysian Federation during the Konfrontasi, the first multi-lateral discussions about the establishment of this regional organisation did not even mention the city-state.
On 8 August 1967, the Association of Southeast Asian Nations (ASEAN) was formed in Bangkok, Thailand. ASEAN was established with the signing of the ASEAN Declaration (more commonly known as the ‘Bangkok Declaration’) by five founding member nations: Thailand, Indonesia, Malaysia, Singapore and the Philippines.
What can we learn from this article?
Consider the following question:
– How far do you agree with the view that ASEAN was largely a product of the Cold War?
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What is POSCO in South Korea?
/in Uncategorized/by Justin NgPaper 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]
Learn more about the world-renowned steelmaker POSCO [Video by Arirang News]
The steel industry in South Korea: A historical background
In the 1960s, the steel industry in South Korea was largely absent. Three decades later, Korea became the world’s sixth-largest steel producing country. This development can be explained by General Park Chung-hee’s aim for Korea to be self-sufficient in steel production.
Steel has been commonly known as the ‘staple of industry‘, in which this versatile metal is highly applicable in many basic industries, such as shipbuilding, construction, machinery and automotive. Hence, its complementary nature further underpinned South Korea’s economic success.
Enter Park Tae-Joon
In 1967, the Korean government picked Pohang as the location for the construction of the first integrated steelworks. The Korea Tungsten Company was selected as the end-user of the integrated steelworks. The president of the Korea Tungsten Company was Park Tae-Joon.
Park Tae-Joon was then appointed to helm the newly-formed Pohang Iron and Steel Company (POSCO) on 1 April 1968. However, POSCO’s developments were not entirely smooth-sailing from the start.
Although the Korean President Park Chung-hee engaged foreign steel companies to form the Korea International Steel Associates (KISA) in 1966, the POSCO leader received confirmation that the securing of loans from KISA was not possible. In response, Park Tae-Joon capitalised on his extensive networks in Japan to find a solution.
In December 1969, the “Korea-Japan Framework Agreement” was signed, granting POSCO the right to sign a technology service contract with Japan Group. Japan Group comprised of three companies (Yawata Steel Works, Nippon-Kokan KK and Fuji Steel Corporation) that offered their technological expertise to facilitate the construction and operation of integrated steelworks in South Korea.
Korea’s economic rise in the 1970s
On 1 April 1970, POSCO launched Phase 1 of its comprehensive construction of the Pohang steelworks at Yeongilman Bay. POSCO’s objectives were aligned with the Korean government’s, in which General Park later put forth the Heavy and Chemical Industrialisation (HCI) Plan in 1973.
Creating domestic capabilities for steel production was a vital step for sustainable economic development, given the changes to American foreign policy in Asia by the early 1970s. The diminished American military presence in Indochina and parts of East Asia made General Park Chung-hee more certain that the formulation of a HCI Plan was the right step to take.
What can we learn from this article?
Consider the following question:
– How far do you agree that the economic transformation of South Korea between 1970 and 1990 was the result of business conglomerates?
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Why did Nixon end the Bretton Woods system?
/in Global Economy, 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 1: Problems of economic liberalisation
Historical background
In 1944, an international monetary agreement was signed in 1944 at the Bretton Woods Conference. Under this agreement, foreign currencies were defined in terms of the US dollar (USD). A new system was established in the post-WWII period to replace the Gold Standard that ended in 1993 following the Great Depression.
Under this system, a fixed exchange rate was established, in which one ounce of gold is equivalent to 35 USD.
With support from the International Monetary Fund (IMF), an automatic adjustment helped nations to avoid the onset of deflation, thereby maintaining stable exchange rates. By the late 1950s, key trading nations loosened exchange restrictions to accept the international gold standard.
Dollar shortage & the Gold Pool
Following the Second World War, governments in Western Europe imported US-made machinery and merchandise. Consequently, there was a surge in demand for USD, given that more nations underwent post-war economic reconstruction. During the Presidential polls in August 1960, US Senator John F. Kennedy declared his plan to “get America moving again“, giving rise to a ‘gold rush’.
As a result, the increase in market price of gold in London to $40 sparked fears of an unstable USD-gold parity. As such, a “Gold Pool” was created in November 1961, in which eight central banks agreed to buy and sell gold only at the official price of $35. Seven other central banks agreed to provide half of the gold supply to keep the market price of gold stable.
Overvaluation of the USD: A currency crisis and a gold glut
However, the USA faced problems with the system. In the early 1960s, the USA experienced rising inflation. As a result of inflation, the increase in silver prices made it difficult for the USA to ensure adequate circulation of coins and silver certificates. In response, the Congress repealed the Silver Purchase Act in 1963 and enabled the Federal Reserve to produce notes in $1 and $2 denominations. At the same time, silver certificates were gradually retired, thus freeing up the silver holdings for use as coins.
Yet, inflation persisted. In 1968, the Congress repealed the requirement to hold gold reserves against Federal Reserve notes. This led to the collapse of the “Gold Pool”.
By the late 1960s, the inflationary condition exacerbated by the large spending to finance the ‘Great Society’ and the Vietnam War strained the international monetary system. Although a two-tier gold market was created in March 1968, foreign governments viewed it with much skepticism. Central banks were unwilling to accept USD in settlement.
As a result, US President Richard Nixon ‘closed the gold window‘ in August 1971, thereby disallowing foreign central banks from exchanging USD for the US Treasury’s gold. Notably, Nixon blamed other countries for their reluctance to share the military burden of the Cold War, which in turn contributed to the persistent balance of payments deficit.
What can we learn from this article?
Consider the following question:
– How far do you agree that the problems of the Crisis Decades were the result of American economic policies?
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How did the Gulf states dominate the global oil market?
/in Global Economy, 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 1: Reasons for growth of the global economy; Chapter 2: Reasons for problems of the global economy
The value of ‘Black Gold’: Oil
As the Allied powers concluded the Second World War (WWII) with the help of the USA, the latter recognised the strategic and economic value of oil, given its relevance to enable the continuation of war efforts then.
After the Yalta Conference, US President Franklin Roosevelt met the Saudi King Abdel Aziz on the cruiser USS Quincy on 14 February 1945. The Saudi King agreed to let the USA carry out port visits and build an airfield. At the same time, concession was given to the oil production by the Saudi-American Oil Company (Aramco). Notably, this collaborative relationship continued after WWII.
During the Cold War, the USA rose to prominence by acting as a security guarantor for the six Arab states in the Persian Gulf (Bahrain, Oman, Qatar, Kuwait, Saudi Arabia and the United Arab Emirates). Having a reliable access to oil supply was vital in facilitating post-war economic reconstruction. As such, the USA was a key importer of oil, thereby keeping the Middle Eastern powers relevant.
Jockeying for position: Claiming ownership rights and petrodollars
Before the Organisation of Petroleum Exporting Countries (OPEC) was formed in 1960, the “Seven Sisters” dominated the global oil industry. In 1908, the British discovered oil in western Persia (which later came to be known as Iran). Six years later, the Anglo-Persian Oil Company (APOC) was formed, with the British holding 51% stake in it.
Initially, the OPEC was formed as a result of the Baghdad Conference of September 1960 to ensure stable oil prices in the markets. However, as its membership size grew (15 in the 1970s), the organisation began to challenge the “Seven Sisters”.
In 1968, the regional group similar to OPEC, known as the Organisation of Arab Petroleum Exporting Countries (OAPEC) was formed. Its rising dominance in the oil markets was made known when an oil embargo was imposed against the USA during the Yom Kippur War, thus triggering the Energy Crisis of the 1970s.
What can we learn from this article?
Consider the following question:
– How far do you agree that oil was the most important factor that shaped the global economy in the 20th century?
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What is the peacekeeping role of the United Nations?
/in History Essays, United Nations/by Justin NgTopic 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
Saving succeeding generations from the scourge of war: The United Nations
On 24 October 1945, an inter-governmental organisation known as the United Nations was established. Barely a month ago, the Second World War came to an end, giving many a stark reminder of the devastation and atrocities that warmongers can cause on others.
Five decades later, the Department of Peace Operations (DPO) was set up, streamlining processes to carry out peacekeeping missions to achieve myriad goals set and authorised by the United Nations Security Council (UNSC).
Defining peacekeeping: Origins
The first peacekeeping mission took place in 1948 when the UNSC authorised the deployment of military observers to the Middle East. In particular, the United Nations Truce Supervision Organisation (UNTSO) was established in May 1948 to monitor ceasefires, supervise armistice agreements and prevent conflicts from threatening the security of Middle Eastern nations.
Notably, peacekeeping became a more ‘organised’ activity for the United Nations in 1956 when its principles were defined by then United Nations Secretary-General Dag Hammarskjöld and Canadian minister Lester B. Pearson. Its principles were put to the test when the United Nations Emergency Force (UNEF) was deployed in response to the Suez Canal Crisis of 1956.
Ever since 1948, more than 70 peacekeeping missions have been undertaken by the United Nations, involving more than 120 countries that contributed hundreds of thousands of personnel. Notably, the UN Operation in the Congo (ONUC) was first large-scale mission that numbered 20,000 of military personnel.
Evolution of peacekeeping
In the post-Cold War phase, the role of United Nations peacekeepers was re-defined to keep the organisation relevant. Initially, the ‘blue helmets’ took on a ‘traditional’ role, which included tasks like monitoring ceasefires. In view of the rise of new challenges posed by intra-state conflicts, peacekeepers took up new responsibilities, like providing humanitarian assistance, monitoring human rights, as well as disarmament and demobilisation of former combatants.
What can we learn from this article?
Consider the following question:
– Assess the view that United Nations peacekeeping was successful ever since its inception.
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Why was NEDCOL created?
/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
Historical context: Rise of NEDCOL
After the end of World War Two, Prime Minister Plaek Phibunsongkhram led his government to oversee economic recovery. As a result of economic isolation, Thailand‘s rice trade declined significantly, with the exception of its continued trade efforts with imperial Japan during the war.
As part of its efforts to carry out import-substitution industrialisation (ISI), the Phibun government oversaw the creation of state agencies, such as the National Economic Development Corporation Limited (NEDCOL).
NEDCOL was established in 1954 as a holding company with five manufacturing subsidiaries, namely two sugar mills, a jute mill, marble factory and paper mill. NEDCOL functioned as a guarantor of loans, supporting the growth of Thai and Chinese businesses.
Notably, the government’s share of domestic investment from 32% in 1952 to more than 38% in the period 1953-55, highlighting the key role that direct state investment played in the manufacturing sector.
Political clashes: Phibun vs Sarit
However, NEDCOL did not last as it became bankrupt in 1957. It coincided with the year in which Field Marshall Sarit Thanarat led a coup d’état against Phibun on 16 September 1957. It was revealed that corruption plagued NEDCOL, thus explaining the lack of productive investments.
Picking up the pieces: post-NEDCOL
In the wake of the fallout, the Sarit government had to take over the company. With support from foreign economic advisor, John Alfred Loftus, the government managed to restructure and salvage the factories. As for the debt accumulated by NEDCOL, Loftus was able to renegotiate and extend the debt payment structure.
What can we learn from this article?
Consider the following question:
– How far do you agree that that expertise was most crucial in determining the economic development of Southeast Asian states after independence?
Join our JC History Tuition to learn more about 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. 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 did the Guided Democracy affect the Indonesian Economy?
/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
Historical context: Power Struggle
On 21 February 1957, President Sukarno delivered a speech, which claimed that Western parliamentary democracy was the root cause of political crises in Indonesia. As such, he proposed a change to the political system that will unify the Indonesian people. This was termed the ‘Guided Democracy‘.
A month later, the cabinet of Ali Sastroamidjojo fell apart. Subsequently, it was replaced by an extra-parliamentary party of experts handpicked by Sukarno. The President made thorough attempts to quell the regional rebellions and consolidate power, with Major General Nasution leading the charge. Over the next two years, the Indonesian Army defeated the rebellions in Sumatra and Sulawesi. The 1945 Constitution made a comeback in July 1959. In March 1960, Sukarno dismissed the members of parliament and appointed a new body to back his economic policies.
Progress or Regress?
Between 1957 and 1965, Gross Domestic Product (GDP) growth was comparatively lower than the period of 1950 to 1957, suggesting that the Guided Democracy had created more problems for the Indonesian economy. According to the Central Bureau of Statistics, the average annual growth of net national product was about 1.7% per annum. Given that population growth rate averaged 2% per annum, it meant there was declining per capita income.
One such observation can be made in the agricultural sector. The government made efforts to promote the use of new technologies to raise rice production, but to no avail. In 1959, a three-year rice production programme was launched.
Enter the New Order
By the end of Sukarno’s Guided Democracy, Indonesia experienced hyperinflation and severe poverty. Following the ’30 September’ incident in 1965, General Suharto led the KOSTRAD against the Communist Party of Indonesia (PKI). Sukarno was then discredited, such that he transferred power to Suharto in March 1966. This enabled Suharto to implement policies to achieve economic stabilisation in the late 1960s, ushering the start of the New Order.
What can we learn from this article?
Consider the following question:
– How far do you agree that the development of the Indonesian economy was largely shaped by politics than economics under the Guided Democracy?
Join our JC History Tuition to learn more about 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. 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.
Golden Age of Capitalism: Revisited
/in Global Economy, 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 1: Reasons for growth of the global economy
A remarkable phase for the world economy: The Golden Age
Initially, the economic conditions were dire. Critical infrastructure, such as factories, schools and hospitals, were destroyed by bombing campaigns. People starved as food was scarce. Unemployment rates were high, giving rise to strikes in parts of Europe. Governments were in need of monetary assistance to begin their post-war recovery efforts.
Against the Cold War backdrop, the USA stepped up and offered financial aid (e.g. Marshall Plan) to countries affected by WWII. While its financial support to countries was mainly for economic recovery, the USA also capitalised on its economic might to counter the encroaching influence of the Communists led by the Soviet Union.
Between 1945 and 1973, the global economy grew rapidly. Many countries achieved pre-war industrial levels by the 1950s. In addition, the advent of international trade accelerated growth of the world economy.
Keep moving: The rise of automobiles
During the ‘Golden Age’, many American households reaped the benefits of post-war economic advancements. It became a norm for each household to own an automobile. Interestingly, Elvis Presley purchased a pink Cadillac in 1955. The Cadillac represented pinnacle of American automobile production.
The OECD: Club of the Rich?
On 30 September 1961, the Organisation for Economic Co-operation and Development (OECD) was formed with the aim to promote economic progress and world trade. OECD members were considered advanced economies that occupied most of the world’s Gross Domestic Product (GDP).
However, the growth of the global economy was not entirely smooth sailing. As the post-war allies of the USA recovered, notably West Germany and Japan, the open markets had intensified trade competition. These growing economies then challenged the economic supremacy of the USA in the 1960s.
What can we learn from this article?
Consider the following question:
– Assess the view that the first three decades after the Second World War was truly a ‘Golden Age of Capitalism’.
Join our JC History Tuition to learn more about 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. 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 Monnet Plan?
/in Global Economy, 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 1: Reasons for growth of the global economy
A historical background of the Trente Glorieuses: The French economic miracle
By the end of World War Two, France was badly devastated. Infrastructure such as bridges and railways were destroyed. Industrial output was at 44% of pre-war level. The French had to rely on rationing. Given the urgent need for post-war economic recovery, Charles de Gaulle formed the General Planning Commission on 3 January 1946.
This Commission aimed to raise productivity, improve living standards, restore national production and increase employment. Key sectors were being identified and targeted, namely coal mining, steel, rail transport, electricity, farm machinery and cement. Subsequently, other sectors were included in the Plan, such as fertilisers, oil, shipbuilding and chemicals.
Enter Jean Monnet, who was later known as the ‘Father of Europe’. Monnet was appointed the Commissioner of the French Plan Commission. He came up with the ‘Modernisation and Re-equipment Plan’, which was more commonly known as the ‘Monnet Plan‘.
A giant leap for France: The Monnet Plan
The Plan aimed to restore France’s production levels to pre-war standards. For instance, Monnet aimed to restore output level that of 1929 by 1948. Notably, the Monnet Plan was not simply a plan to modernise France and bring it back on its feet economically. In addition, the Plan was meant to shape the minds of the French.
The Monnet Plan was integral in accelerating steel production in France. The Monnet Plan aimed to attain an output of 15 million tonnes of steel, which exceeded the peak level in 1929. This ambitious target was to increase France’s international competitiveness, particularly against Germany. In other words, increased French steel exports should replace German steel exports.
Between 1951 and 1973, France’s growth averaged 5.4% per annum. Compared to West Germany, its economic growth rate was considerably high, thus explaining why its thirty years after World War Two were termed as the ‘Glorious Thirties‘.
What can we learn from this article?
Consider the following question:
– How far do you agree that the post-war reconstruction of Europe can be explained by American aid?
Join our JC History Tuition to learn more about 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. 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.
Who is U Thant?
/in History Essays, United Nations/by Justin NgTopic 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
Background
U Thant (သန့်) was appointed Secretary-General of the United Nations on 30 November 1961. It was six weeks after the distinguished Dag Hammarskjöld died in an air crash. U Thant was the first non-European Secretary-General. He served for two terms that eventually ended on 31 December 1971.
U Thant led diplomatic efforts in the different missions, such as the ongoing Congo Crisis in Sub-Saharan Africa, the protracted Arab-Israeli War in the Middle East and the Vietnam War in Indochina.
U Thant’s Diplomacy
During the Cuban Missile Crisis, U Thant helped to pass messages between American and Soviet leaders, Kennedy and Khrushchev, averting a nuclear confrontation. U Thant also visited the Cuban leader Fidel Castro to oversee the smooth removal of missiles.
However, U Thant’s efforts were hindered by the United States. During the Vietnam War, he tried to mediate by arranging peace talks between Washington and Hanoi, but the Johnson administration rejected his proposals. The US Secretary of State Dean Rusk objected to U Thant’s ceasefire and peace talks in Rangoon. Rusk alleged that U Thant’s enthusiasm in facilitating peace talks was influenced by his desire to claim the Nobel Peace Prize.
According to Sir Brian Urquhart, there was a stark contrast between the personality of U Thant and his predecessor Hammarskjöld. U Thant was viewed as a “simple and direct” individual who spoke few words, whereas Hammarskjöld was much more articulate.
What can we learn from this article?
Consider the following question:
– How far do you agree that U Thant was effective in performing his duties as the United Nations Secretary-General in the 1960s?
Join our JC History Tuition to learn more about 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. 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.