Tag Archive for: a level history

JC History Tuition Online - What is the Monnet Plan - Global Economy Notes

What is the Monnet Plan?

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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.

An excerpt taken from “Jean Monnet: The Path to European Unity” by Douglas G. Brinkley and Clifford Hackett.

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.

An excerpt taken from “The Reconstruction of Western Europe, 1945-51” by Alan S. Milward.

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.

JC History Tuition Online - How did the 1970s oil crises affect Southeast Asia

How did the 1970s oil crises affect Southeast Asia?

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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

Learn more about the 1973 oil crisis that impacted many economies, including the USA. [Video by ThamesTV]

Historical context: The 1970s oil shocks
In the early 1970s, petrostates in the Arab world agreed to boycott Western nations, such as the USA and UK, for their provision of support to Israel during the Yom Kippur War against Egypt. As a result, crude oil prices quadrupled from $3 per barrel to $12 per barrel by 1974.

The second oil shock took place between 1978-1979, in which the Iranian Revolution concluded with the fall of the Shah’s regime. At that time, Iran was the world’s second-largest oil exporter. With the temporary halt in oil production in Iran, the political turmoil had further devastated the world oil markets, causing oil prices to surge to nearly $30 per barrel by early 1980.

A windfall in Indonesia: Surge of petrodollars
In Southeast Asia, oil exporting nations like Indonesia benefited from this unprecedented development, given their membership in the Organisation of Petroleum Exporting Countries (OPEC). The oil price in Indonesia increased from $1.67 per barrel in 1970 to $35 in 1981.

With large inflows of revenues from oil exports, the Indonesian government used these surpluses to correct its balance of payment deficits. Furthermore, the New Order government used the oil revenues to expand the manufacturing sector, particularly through import purchases of raw materials and capital goods. More importantly, President Suharto embarked on ambitious large-scale development programs in different parts of Indonesia, including Java.

Due to the higher oil revenues, the Indonesian government was able to undertake substantial public investments and expand and improve the efficiency of the public administration sector (for instance by raising the salaries of public servants) which, in turn, contributed to economic growth.

[…] After the early 1970s first foreign aid and then oil revenues were spent on rehabilitating and expanding the long-neglected physical infrastructure (particularly in rural areas) and transport infrastructure. This rapid expansion and improvement of the physical and transport infrastructure involved roads, railways, bridges, harbours, airports and communications.

An excerpt from “Emergence of a National Economy: An Economic History of Indonesia, 1800-2000” by Howard Dick, Vincent J. H. Houben, J. Thomas Lindblad and Kian Wie Thee.

A temporary setback: For oil-importing nations in Southeast Asia
In contrast to Indonesia and Malaysia, oil-importing nations like Thailand, Malaysia, Singapore and the Philippines were adversely affected by the rise in oil prices. Higher oil prices meant a decline of the terms of trade as well as their balance of payment positions.

Thailand was hit harder by the second oil crisis and the subsequent world-wide recession because the country had become more dependent on external trade, and the external terms of trade were no longer favourable. […] The rate of inflation as measured by the consumer price index, which was 7 to 10 percent during the period 1977-1979, accelerated to 19.7 percent in 1980. Economic growth slowed somewhat to an annual growth rate of 7 percent in the 1970s, with the manufacturing sector growing at a higher-than-average rate of around 10 percent per annum.

An excerpt from “Economic Development in East and Southeast Asia: Essays in Honor of Professor Shinichi Ichimura” by Seiji Naya and Akira Takayama.

What can we learn from this article?
Consider the following question:
– How far do you agree that governments were responsible for the economic instability in independent Southeast Asia?

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 GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Lower Secondary English Tuition, Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English Tuition. Call 9658 5789 to find out more.

JC History Tuition Online - What was the United Nations Malaysia Mission of 1963

What was the United Nations Malaysia Mission of 1963?

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Topic of Study [For H2 History Students]:
Paper 2: Regional Conflicts and Co-operation
Source Based Case Study
Theme III Chapter 1: Inter-state tensions and co-operation: Causes of inter-state tensions

Historical context: A proposed merger and a political backlash
On 27 May 1961, the first Malayan Prime Minister Tunku Abdul Rahman announced the proposal to form a ‘Mighty Malaysia’ that included the Borneo territories (Sabah and Sarawak), Brunei and Singapore. The merger would lead to the formation of a Malaysian Federation.

However, Sukarno of Indonesia had opposed the proposed Federation of Malaysia after the Brunei Revolt. In December 1962, the North Kalimantan National Army (Tentera Nasional Kalimantan Utara) fought for independence, rejecting the plan to join the Federation. In response, the British sent troops from Singapore to Brunei to crush to revolt. A month later, Sukarno’s chief architect announced the Confrontation (Konfrontasi) policy.

Throughout the Brunei rebellion, Radio Jakarta had broadcast a series of inflammatory statements designed to destabilize British influence in the region and then on 20 January 1963 Foreign Minister Dr Subandrio declared that Malaya represented the ‘accomplices of neo-colonists and neo-imperialist forces that were hostile to Indonesia’ and from henceforth Indonesia would adopt a policy of konfrontasi. Konfrontasi, literally translated as confrontation, had been widely used in Indonesia for years as a term to refer to the diametrically opposed differences between conservative traditional and liberal modern modes of thought and cultural expression.

An excerpt from The Brunei Revolt: 1962-1963 by Nicholas van der Bijl

Attempts at defusal of tensions: The United Nations Malaysia Mission
In May 1963, Sukarno and the Tunku met to hold talks on how to resolve their differences over the Federation. Sukarno claimed that Indonesia would not oppose the Tunku should the people of North Borneo agree to join the Federation.

On 31 July 1963, Malaya, Indonesia and the Philippines signed the Manila Accord, signifying the mutual consensus to ascertain the wishes of the people in North Borneo whether to join the Malaysian Federation. The Accord was drafted in accordance to the United Nations General Assembly Resolution 1541 (XV).

Then, the United Nations Secretary-General U Thant led a mission to facilitate the referendum in North Borneo. However, on 29 August 1963, the Tunku announced that the Federation of Malaysia would be established on 16 September. This unilateral decision had angered Sukarno, who viewed Tunku’s action as a violation of their initial agreements.

During the course of the inquiry, the date of 16 September 1963 was announced by the Government of the Federation of Malaya with the concurrence of the British Government, the Singapore Government and the Governments of Sabah and Sarawak, for the establishment of the Federation of Malaysia. This has led to misunderstanding, confusion, and even resentment among other parties to the Manila agreement, which could have been avoided if the date could have been fixed after my conclusions had been reached and made known.

An excerpt from the ‘Final Conclusions of the Secretary-General regarding Malaysia‘, 13 September 1963.

As described by U Thant, the announcement was perceived to be a premature decision made by the Tunku which Thant thought should have been undertaken only after the completion of the UN mission. Nevertheless, the mission reported stated that the peoples of North Borneo were in favour of joining Malaysia, thus legitimising the Tunku’s plan. Excerpt for Brunei, Singapore, North Borneo and Malaya merged to form the Federation was planned on 16 September.

What can we learn from this article?
Consider the following question:
– How far do you agree that ideology was the main reason for the Indonesian Confrontation of 1963?

Join our JC History Tuition to learn more about the Indonesian Confrontation and other causes of inter-state tensions. 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 GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Lower Secondary English Tuition, Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English Tuition. Call 9658 5789 to find out more.

JC History Tuition Online - How was the Asian Financial Crisis resolved

How was the Asian Financial Crisis resolved?

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

Find out how ASEAN sought to contain the shocks created by the Asian Financial Crisis of 1997 [Video by ASEAN Plus 3 Macroeconomic research Office – AMRO]

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

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

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

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

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

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

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

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

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

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

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

The CMI functioned on two branches:

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

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

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

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

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

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

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

We have other JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Lower Secondary English Tuition, Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. For Primary Tuition, we have Primary English Tuition. Call 9658 5789 to find out more.

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

What is GATT and its purpose?

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Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapters 1: Reasons for growth of the global economy & Problems of economic liberalisation

Examine the history of the multilateral trading system, namely the GATT and the WTO [Video by the World Trade Organization]

Origins of a multilateral trading institution: ITO
Before the World Trade Organisation (WTO) was established on 1 January 1955, leaders from over 50 countries gathered during the “Bretton Woods” Conference and contemplated on the creation of an International Trade Organisation (ITO). Ideally, it was to be the third pillar of the Bretton Woods, together with the World Bank and the International Monetary Fund (IMF).

The proposed ITO was meant to promote world trade, cross-border investments and commodity agreements. Following the end of World War Two, more countries supported trade liberalisation. They sought to reverse the adverse protectionist stance since the early 1930s.

A by-product of failed negotiations: GATT
Amidst negotiations, 23 “contracting parties” signed the General Agreement on Tariffs and Trade (GATT) on 30 October 1947. GATT was created as a framework for international trade, taking effect on 1 January 1984.

The signatories were: Australia, Belgium, Brazil, Burma, Canada, Ceylon, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon, Luxembourg, Netherlands, New Zealand, Norway, Pakistan, Southern Rhodesia, Syria, South Africa, United Kingdom and the United States.

There were three provisions:

  • Conferment of “Most Favoured Nations” status to other members
  • Prohibition of trade restrictions (except for emerging industries)
  • Elimination of import tariffs (by developed countries to support the admission of developing countries)

However, the path to institutionalise world trade proved difficult. Although the USA was one of the key advocates of free trade, the US Congress opposed the decision. During the fifth Session of the Contracting Parties, USA announced that the ITO Charter (Havana Charter) would not be re-submitted to the US Congress. From then on, the ITO did not take shape. Instead, GATT became the multilateral framework from 1948 to 1995.

Periodic Bargaining: Trade Rounds
From 1949 to 1973, the trade rounds were focused on reduction of tariffs. In 1964, the “Kennedy” Round took place and a noteworthy act was signed. The Final Act was signed by 50 participating countries that accounted for three-quarters of world trade. Concessions were estimated at $40 billion of trade value.

Following the admission of newly-independent countries (Recall: the Third World decolonisation in Asia and Africa led to the admission of new developing member countries into the UN), the GATT included its third provision to support developing countries. The Committee on Trade and Development was established to ensure that developed countries gave priority to the reduction of trade barriers to exports of developing countries.

Setbacks: The advent of “New Protectionism”
Although trade rounds were still being conducted from 1973 to 1993, the start of the Crisis Decades made it difficult for member nations to fully adhere to the provisions of trade liberalisation. Although economic integration enabled freer access of goods and services between countries, it also meant the intensification of trade competition from developed and developing countries.

For example, USA experienced severe and persistent trade deficits vis-à-vis West Germany and Japan. In response, USA introduced protectionist policies, particularly non-tariff barriers to shield its economy from the adverse effects of trade competition. For example, the “Voluntary Export Restraint” (VER) agreement restricted the quantity of Japanese automobile exports to USA in 1981.

The next phase of international trade: WTO
Trade negotiations during the Uruguay Round finally made progress. On 15 April 1994, the Marrakesh Agreement was signed, which led to the formation of the WTO that succeeded the GATT.

Developing nations demanded that VERs should be outlawed. Notably, this led to the creation of the Multi-Fibre Arrangement that accelerated the liberalisation of trade in the agricultural sector.

What can we learn from this article?
Consider the following question:
– How far do you agree that GATT was the main driving force that caused the liberalisation of world trade [to be discussed in class]?

Sign up for our JC History Tuition and learn how to answer A Level History essay and source based case study questions effectively. We also incorporate online learning features to diversify your study methods such that learning the historical developments is enjoyable and productive at the same time.

We have other JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Singapore - What is the South China Sea dispute - JC History Essay Notes

What is the South China Sea dispute?

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Topic 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)

Find out more about these major developments that shaped the protracted territorial dispute.

Historical Background
South China Sea dispute involves a large region of islands, reefs and banks. In particular, the region relates to contentious parts like Spratly Islands and Scarborough Shoal. The dispute originated from competing territorial claims between ASEAN-related countries (Philippines and Vietnam) and external powers, particularly China. For example, China based its territorial claims on the ‘nine dash line’ map, which was contested on by other claimants.

Unfortunately, these competing claims have resulted in clashes that occasionally escalated into violent confrontations. In January 1974, China clashed with South Vietnam over the ‘Paracels’, which resulted in the sinking of several Vietnamese ships and a substantial number of casualties. In 1988, China attacked Vietnamese forces in the Spratlys Islands, leading to frayed bilateral tensions.

Competing Claims
From the late 1970s to 1980s, Philippines advanced its claims on the Spratlys. In June 1978, Marcos announced the Presidential Decree that established the Philippine Exclusive Economic Zone (EEZ), which covered 200 nautical miles of the affected region. Likewise, in 1988, Brunei outlined an EEZ that stretched into the southern part of the Spratlys.

ASEAN’s intervention I: The Manila Declaration
On 22 July 1992, during the 25th ASEAN Ministerial Meeting (AMM), the regional organization formed the ASEAN Declaration of the South China Sea at Manila, Philippines. The Declaration was formed on the basis of the Treaty of Amity and Cooperation (TAC) of 1976, which advocated non-violent means of dispute resolution. It was a significant milestone for ASEAN as China agreed to sign the document.

However, the competing claims resurfaced again in the mid-1990s. On 8 February 1995, Philippines observed the development of a militarised Mischief Reef. In the late 1990s, Philippines clashed with China at the Mischief Reef and the Scarborough Shoal.

A divided ASEAN?
Given Philippines’ proximity to the contested region, it raised the matter to ASEAN. Yet, not all ASEAN members held a similar position regarding the dispute. This was observed in the disagreements over Philippines’ proposal for a new code-of-conduct during the AMM in July 1999. Furthermore, most countries were occupied with their domestic matters, given the severity of the Asian Financial Crisis of July 1997.

Besides, Indonesia sought to pursue an alternative solution due to the lack of unanimity in ASEAN. In 1990, Indonesia conducted the Workshops on Managing Potential Conflicts in the South China Sea. The workshop functions on a ‘two-track diplomacy’: (a) regional cooperation between ASEAN and China (b) bilateral cooperation between claimant parties

This informal diplomacy did make significant contributions to the management of disputes as China was unwilling to work with multilateral arrangements.

ASEAN’s intervention II: Declaration on the Conduct of Parties in the South China Sea (DOC)
On 4 November 2002, ASEAN promulgated another landmark agreement, which was known as the DOC at Phnom Penh, Cambodia. The document was signed by both China and ASEAN.

Contents included the reaffirmed commitment to adhere to the UN Convention on the Law of the Sea (UNCLOS), TAC and other international law. For example, “The Parties concerned undertake to resolve their territorial and jurisdictional disputes by peaceful means“.

What can we learn from this article?
Consider the following question:
– How successful was ASEAN managing the South China Sea dispute? [to be discussed in class].

In view of the above-mentioned points, you should attempt source-based case study questions to review your knowledge competency. Join our JC History Tuition to improve your answering skills. You can consider other JC tuition programmes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we provide Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Singapore - What caused the Taiwan economic miracle - JC History Essay Notes

What caused the Taiwan economic miracle?

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What is the Taiwanese economic miracle?
Taiwan’s phenomenal economic transformation has been examined thoroughly by academics. Some argue that the economic miracle was attributed to internal factors, particularly the role of the government in spearheading heavy industrialization. In contrast, others believe that Taiwan’s meteoric rise in international markets was due to international developments, such the role of the USA in providing loans and access to foreign technology. Generally, both perspectives are valid and indeed contributed to the economic development of Taiwan.

Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan]

In the next section, we will examine the key contributing factors that led to the economic miracle of Taiwan, especially the government and private enterprises.

1. [Government] Import-substitution Industrialization
From the 1950s, the Taiwanese government engaged in import-substitution industrialization (ISI) to develop the manufacturing sector. Apart from the focus on restoring pre-war levels of production in the agricultural sector, the government insulated domestic firms from foreign competition, thereby enabling the production of textiles, plastics and plywood.

For example, in the textile industry, the government imposed tariffs and quotas on the imports of yarn. Additionally, the government improved access to credit, thus allowing firms to purchase capital. A limit of new entrants was imposed to prevent excessive competition from undermining the growth of local textile firms.

As a result, their efforts provided successful as Taiwan became a major textile exporter in the 1950s. The export of textiles increased twofold in the same time period. In fact, Taiwan was so successful that USA engaged in protectionism in 1961.

2. [Government] Export-oriented Industrialization
Over time, the government recognized the economic potential of export-led growth and pursued an outward strategy. This was known as export-oriented industrialization (EOI), which aligned with the trend of economic liberalization.

One of the many areas of focus was the provision of incentives to encourage export promotion. For example, a concessional export credit scheme was introduced. Also, the government devalued the exchange rate to raise export competitiveness.

Besides, the government pursued an indirect approach by nurturing the growth of small and medium enterprises (SMEs) in Taiwan. By having a sizable pool of SMEs, the government can benefit from an additional dimension of trade-led growth. For instance, the SME Development Fund was set up to grant financial assistance to the private enterprises. Firms were also granted access to foreign technology and manpower training.

As a result, SMEs dominated the domestic markets. In contrast to South Korea, in which the chaebols (large family-dominated conglomerates) occupied major shares of the economy, Taiwan was backed by numerous SMEs. By 1994, nearly 98% of Taiwan’s manufacturers were SMEs. Furthermore, SMEs were key producers that provided nearly half of the total production in the late 1970s and early 1980s.

3. [Private Enterprises] Greater emphasis on export promotion
Eventually, as SMEs grew and expanded in size, the government continued to play a vital role in supporting these private enterprises that became internationally competitive. Although many industrialized countries like Taiwan and South Korea were hit by the Crisis Decades, the SMES were able to endure these external shocks through continual state support.

For instance, the oil shocks in the 1970s eroded export competitiveness for Taiwanese manufacturers. In response, the government formulated a new plan in the mid-1970s to engage in economic restructuring. As such, Taiwan ventured into quality-driven exports, such as petrochemicals and electronics.

The government oversaw the transition from a labour-intensive to capital-intensive production by establishing the Industrial Technology Research Institute (ITRI) in 1973. The ITRI specialised in R&D. In 1987, the Taiwan Semiconductor Manufacturing Company (TSMC) was formed as a result of ITRI.

4. [USA] External support to enhance capital-intensive production
The private enterprises were also supported by the USA, which capitalized on the low-cost base and pro-liberalization policies of the government to set up firms in Taiwan. The entry of American MNCs (e.g. Taiwan) proved beneficial for Taiwan as it led to the influx of foreign direct investment (major source of growth) and foreign technology (raised quality of production).

What can we learn from this case study?
Consider the following question to understand this issue:
– How far do you agree that the economic transformation of Taiwan was the result of government intervention? [to be discussed in class]

After you have examined this case study to understand the importance of the above-mentioned factors in contributing to the growth of the Taiwanese economy from the 1970s to the 1990s, you should apply your knowledge to the essay questions. It is important that you review your learning through an application-oriented approach. You can consider joining our JC History Tuition and learn how to condense your content revision in a more productive way, such that you can answer both essay and source-based case study questions effectively.

Furthermore, you can join other JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition classes, we offer Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Bedok Singapore - How did trade protectionism affect economies in the 1970s - JC History Essays - Global Economy Notes

How did trade protectionism affect economies in the 1970s?

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Why did countries engage in trade protectionism?
In view of the Golden Age of Capitalism that took place from 1945 to 1973, the Bretton Woods System was established, in which the General Agreements on Tariffs and Trade (GATT) facilitated the liberalization of world trade. Over time, free trade seemingly proved beneficial to trading partners, as evidenced by benefits like access to larger markets and cheaper raw materials.

However, international trade also meant that firms were open to more intense forms of competition. Clearly, developing nations were disadvantaged due to obstacles like inadequate infrastructural support and financing. In contrast, developing nations possessed the capacity to support their multinational corporations (MNCs) in maintaining international competitiveness. Therefore, some member nations gradually imposed trade protectionism, thus reversing the liberalization effects caused by GATT.

Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 2: Reasons for problems of the global economy 

In the subsequent sections, we will study the limitations of free trade and the methods of protectionism that eventually caused the slowdown in the growth of the global economy in the 1970s and 1980s. Students should pay attention to the significance of trade protectionism with respect to other contributing factors that affect the Crisis Decades, such as the Third World Debt Crisis and the Oil Shocks.

1. Limitations of Free Trade
Although free trade is arguably beneficial to most economies, critics of economic liberalization remained hesitant to embrace this policy approach.

One reason is that free trade leaves many economies vulnerable to the volatile international markets. Trade-oriented growth can be disastrous as the fluctuating business cycles determine the growth and decline of economies.

Furthermore, should firms remain incapable of coping with international competition, their closure results in the rise of unemployment, thereby jeopardizing the social and political stability of nations.

2. [Developed Nations] Trade Protectionism: Rise of Non-Tariff Barriers (NTBs)
As such, governments in the industrial world introduced protectionism. In general, these measures can be grouped under a common type, known as ‘non-tariff barriers’ (NTBs).

NTBs comprised of different versions, like the provision of subsidies to local goods, strict standards and voluntary export restraints (VERs). For example, the US introduced the VERs in the 1980s, which affected the Japanese automakers. The US government perceived the increasingly popular Japanese automobile exports to be a significant threat to its trade position. In 1981, US introduced a VER in which Japan was pressured to reduce its export volume of cars. This created an artificial shortage of Japanese exports, thus raising their prices. As such, American automakers could profit from this effect.

Consequently, the share of imports restricted by NTBs increased extensively in the developed world, such as USA and Japan, thus causing a fall in the world output.

3. Consequences: A slowdown in the global economy
As a result of trade protectionism, the world economy experienced a major slowdown, which was further exacerbated by other problems like the Oil Shocks and the Third World Debt Crisis.

For example, the imposition of trade protectionism meant that MNCs were less mobile. Therefore, the the surge in market pessimism caused the decline in trading and investment activities. Given that these economies activities are vital for growth, the use of protectionist measures resulted in the economic slowdown in many developed nations.

What can we learn from this case study?
Consider the following questions to understand this economic issue:
– How far do you agree that the Crisis Decades was primarily caused by the rise of trade protectionism in the 1970s? [to be discussed in class]

In view of the trade protectionism problem that undermined the development of the global economy, we advise students to apply this knowledge to JC History essay questions. This is to ensure that what you know can be understood and applied effectively. Join our JC History Tuition and learn to synergize your knowledge of various factors to form persuasive and logical arguments. We teach students to do factor analysis and comparison through numerous class practices and discussions.

Additionally, you can consider other JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition classes, we offer Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more.

JC History Tuition Bishan Bedok Tampines Singapore - What caused the energy crisis of the 1970s - JC History Essays

What caused the energy crisis of the 1970s?

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What was the oil shocks about?
Following a period of rapid economic modernization, also known as the ‘Golden Age of Capitalism‘, the world witnessed a sudden turn of events that resulted in the gradual decline in this fast-paced growth, ushering the ‘Crisis Decades‘. The twin oil shocks that took place in 1973 and 1979 were the result of geopolitical conflicts that involved the key driver of the global economy – USA – as well as the OPEC (Organization of the Petroleum Exporting Countries) that dictated the output of oil. In general, the surge in oil prices dealt a significant blow to many economies, including USA, reflecting the significance of oil as an essential resource for households and firms.

Learn more about the causes and consequences of the energy crisis of the 1970s

Topic of Study [For H2 History Students]: 
Paper 1: Understanding the Global Economy (1945-2000)
Section B: Essay Writing
Theme II Chapter 2: Reasons for problems of the global economy 

In the next section, we will look at the background causes to understand what happened during the energy crisis of the 1970s.

1. [USA] 1973 Oil Crisis: Causes
There were two major factors that contributed to the start of the 1973 Oil Crisis – the dismantling of the ‘Gold Standard’ (US Dollars -Gold) fixed exchange rate system as well as the Yom Kippur War.

On 15 Aug 1971, US President Nixon announced that the United States would cease to maintain the Gold-USD standard fixed exchange rate system, which was based on the 1944 Bretton Woods Agreement. Consequently, the loss of market confidence towards the USD resulted in its depreciation (fall in currency value). In contrast, many firms and investors valued gold, contributing to the surge in gold prices.

However, the depreciation of USD undermined the OPEC as their export revenue (earnings from the sale of oil) was in USD. Therefore, OPEC lost a significant proportion of its export earnings.

The second factor was the Yom Kippur War, which began on 6 Oct 1973. Following Israel’s victory during the Six-Day War in 1967, both Egypt and Syria deployed its military to attack Israel on a religious day for the Jewish population, known as the Yom Kippur. Several weeks later, Nixon sought Congress funding of $2.2 billion to provide military backing for Israel.

2. [OPEC] Oil Embargo of 1973: Consequences
In view of the American intervention in the Yom Kippur War, the OPEC members in the Middle East, such as Egypt and Syria, protested by engaging in an oil embargo. This embargo persisted even after the end of the Yom Kippur War, thus triggering a global energy crisis.

The price of crude oil surged from $3/barrel to $12/barrel in 1974. The oil crisis was arguably a major cause of the economic recession in the developed economies from 1973 to 1975.

In the US, the economy experienced stagflation, in which there was high inflation, high unemployment and slow economic growth rates. Unemployment rate peaked at 9% in 1975.

In the UK, it experienced a fall in GDP (Gross Domestic Product) by 3.9% in the same time period. Also, the UK experienced double-digit inflation that went beyond 20%.

3. [USA & OPEC] 1979 Oil Crisis: Causes
The energy crisis resurfaced in the late 1970s. Primarily, the Iranian Revolution of 1979 was a major contributing factor that led to the spike in oil prices. After the departure of the Shah of Iran, the world supply of crude oil fell significantly.

4. 1979 Oil Shocks: Consequences
Similar to the 1973 energy crisis, the oil shortage was detrimental to the oil-dependent economies. The price of crude oil increased to nearly $40/barrel from 1979 to 1980.

In the US, many households were forced to undergo conservation, since petrol and fuel were needed for transport and other domestic purposes (like cooking). Also, the automobile companies, such as Detroit’s “Big Three” (General Motors, Chrysler and Ford) suffered from the oil spike.

In contrast, Japanese manufacturers adapted to the situation by producing fuel-efficient automobiles, which then captured a significant market share in the global industry.

On a separate but related note, the OPEC earned a significant sum from the sale of petroleum exports – known as ‘petrodollars’. OPEC members then placed their earnings in international banks, which were handed out to developing nations as loans. Later, this petrodollar recycling process was known to have contributed to the ‘Third World Debt Crisis‘ of the 1980s.

What can we learn from this case study?
Consider the following questions to understand this economic issue:
– How far do you agree that the energy crisis of the 1970s was more significant than the debt crises of the 1980s in causing the problems of the global economy? [to be discussed in class]

Now that you have studied the key considerations, you can enhance your knowledge application skills through the answering of History Essay questions. Join our JC History Tuition and find out how we teach you to form clear and logical arguments to answer fundamental and complex questions effectively and efficiently.

Furthermore, we offer other complementary JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition classes, we offer Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to learn more.

JC History Tuition Bishan Bedok Tampines Singapore - Origins of the Cold War Case Studies - JC History SBQ Skills

Origins of the Cold War – Cartoon Analysis

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In this article, we will be examining a series of illustrative cartoons that reflect the diverse interpretations of the Cold War. As the GCE A Level History examinations (both Paper 1 and Paper 2) feature visual- and text-based sources, we believe that this article will be useful in prepare students thoroughly.

Today, we will be focusing on the first part: The Emergence of Bipolarity (also known as the Origins of the Cold War).

Analyze Leslie Illingworth's cartoons to understand how the Cold War began. Join our JC History Tuition to get started.
By British cartoonist Leslie Illingworth [June 1947]
It depicts Stalin’s attempts to extend Soviet control beyond Eastern Europe, reflecting the concerns over the growing ideological threat that necessitates an urgent response by USA. Pay attention to the use of ‘question marks (?)’ , which hints at his intentions in Western Europe.
Learn more about the Iron Curtain speech to understand how the Cold War began. Join our JC History Tuition to get a head-start in your revision.
By British cartoonist Leslie Illingworth [6 Feb 1946]
The cartoon was published in the UK Daily Mail after Winston Churchill gave his historic ‘Iron Curtain’ speech. It depicts Churchill attempting to lift the ‘Iron Curtain’ to view what is taking place within the Eastern Europe.

Learn more about the Marshall Plan to comprehend its importance in explaining how the Cold War began. Sign up for our JC History Tuition and start learning effectively.
A cartoon published in Russia during the Cold War
It depicts USA (‘Uncle Sam’) holding a weapon that represents the Marshall Plan (dollar ‘$’ sign) that is pointed at the Greek communists. Following the US Congress’ approval of the Truman Doctrine.
Learn more about the 'rival buses' cartoon to understand how the superpower rivalry gave rise to the outbreak of the Cold War.
By English illustrator E. H. Shepard [18 June 1947]
The cartoon was published in a British magazine, focusing on the competition between the USA and Soviet Union in battle for global supremacy. Notice the gestures of Truman (bespectacled man on the left) and Stalin (a more aggressive man on the right).
Learn more about the cartoon depicting the start of the Cold War with our JC History Tuition.
By Roy Justus [1947]
The cartoon was published in an American journal, depicting Soviet communism (eagle) as a harbinger of chaos (baby). In contrast, the American Congress (doctor) is rushing to Western Europe to provide economic aid (Marshall Plan) to fight chaos (mentioned during George Marshall’s Harvard address in June 1947).
Learn more about the Marshall Aid to understand why this American response to the Soviet actions gave rise to the start of the Cold War.
By British Illustrator E H Shepard [1 October 1947]
Cartoon published in British magazine to portray USA (Uncle Sam) as a generous nation that offers economic aid (Marshall Plan) to the crumbling Western Europe
Find out what happened during the Berlin Blockade to comprehend its significance in causing the division of Europe. Learn more about the emergence of bipolarity or known as the start of the Cold War.
By British cartoonist Leslie Illingworth [9 September 1948]
The cartoon was published in UK Daily Mail during the Berlin Blockade. The key subject clearly is Stalin (cat), who is toying with the Berlin people (mouse in the top part). In contrast, the other three mice on the ground represents the Western Powers, which are in danger as well.

Are you familiar with these sources?
Preparation is vital. After examining these visual-based sources, it is imperative that you refer to practice questions, such as your school materials, to assess your knowledge competency. Reading alone is inadequate in preparing you for the rigours of the examinations as the factual information may lack the argumentative perspectives. During the JC History Tuition, we guide students through the process of source interpretation, comparison and evaluation to raise the quality of answers.

In addition, we conduct other related JC tuition classes, such as GP Tuition, Economics Tuition, JC Chemistry Tuition, JC Math Tuition and China Studies in English Tuition. For Secondary Tuition classes, we offer Secondary English Tuition, Secondary Math tuition, Secondary Chemistry Tuition and Secondary Economics Tuition. Your path to achieve excellence begins now. Call 9689 0510 to find out more.