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JC History Tuition - What caused the post-war economic miracle in Western Europe - Global Economy Notes

What caused the post-war economic miracle in Western Europe?

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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

Picking up the pieces: Post-war reconstruction
By the time the World War Two had concluded, many European nations were badly damaged by the military campaigns, especially Germany. A 1953 United States report noted that the Allied bombing campaign in Dresden had destroyed at least 50 percent of its residential buildings and at least 23 percent of the city’s industrial buildings.

Government leaders sought to introduce domestic policies to re-build their economies. At the same time, they turned to foreign aid and assistance, such as the United States, to augment their post-war plans.

In this article, we will be examining the case study of West Germany. It is important to note that other parts of Western Europe also experienced rapid economic growth in the early post-war years, such as France (Les Trente Glorieuses).

Wirtschaftswunder: The German Economic Miracle
Enter Ludwig Erhard. From 1949 to 1963, Erhard assumed the role as Minister of Economic Affairs under Chancellor Konrad Adenauer to spearhead the post-war economic reforms in West Germany. Erhard embarked on a multi-pronged approach to revive West Germany’s economy.

For example, Erhard came up with the currency reform (Deutsche Mark) on 22 June 1948 to replace the old Reichsmark. The West German government also imposed price control measures to avert the hyperinflation and the expansion of a black market.

On 25 June 1948 currency reform was introduced in the Western zones. The old money would be exchanged at a rate of one-tenth of the new, though for a while the two currencies ran side by side. The SBZ (Soviet Occupation Zone) had been excluded from monetary reform because the Russians could not have been trusted to print the right amounts. By June 1948 Ludwig Erhard had made arrangements to print 500 tons of banknotes in the US and have them airlifted to Frankfurt. Virtually all rationing and price controls were abolished.

An excerpt from “After the Reich: The Brutal History of the Allied Occupation” by Giles MacDonogh.

As a result of Erhard’s guidance, the West Germany economy flourished. The Deutsch Mark had encouraged the citizens to use it as a new currency for consumption of goods and services. People reduced their reliance on barter trade and the black market. With greater access to essentials like food, the Germans increased their time spent on work. From 1948 to 1958, industrial production increased more than four times its annual rate.

Changing priorities: Foreign aid and assistance & the Marshall Plan
Following the United States Secretary of State James Byrnes’ speech on 6 September 1946, the Western powers changed its stance towards the West German zones, focusing on post-war economic recovery. They focused on the recovery of key industries that produced coal, iron and steel. The United States also announced the introduction of the Marshall Plan on 5 June 1947, offering financial aid to European nations for reconstruction.

The influx of Marshall Plan funds intensified the new faith in the Deutsche Mark and hastened the reconstruction of West German capital and fixed assets. Although the economy was still subject to various Allied controls and rationing, the West German people now possessed sufficient confidence in the economy to conduct normal business and participate in the free circulation of goods and money that is so critical to a healthy economy.

… The combination of the currency reform, Marshall Plan funds, and the social market economy has been described as the foundation on which the expansion of the economic miracle was based. With the industrial boom prompted by the Korean War, the West German GNP (Gross National Product) gained 67 percent in real terms and industrial output rose by 110 percent between 1948 to 1952.

An excerpt from “Selling the Economic Miracle: Economic Reconstruction and Politics in West Germany, 1949-1957” by Mark E. Spicka.

What can we learn from this article?
Consider the following question:
– How far do you agree that the United States was chiefly responsible for the post-war economic miracle in Western Europe?

Join our JC History Tuition and learn more about the Global Economy (1945-2000). The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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

JC H2 H1 History Tuition Online - What happened during the United States invasion of Grenada - United Nations Essay Notes

What happened during the United States invasion of Grenada?

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Topic of Study [For H2 History Students]: 
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

Historical Context: The ‘Second Cold War’
Following the Soviet invasion of Afghanistan, United States (US) President Ronald Reagan renewed Cold War confrontation towards its ideological rival. As part of the ‘containment policy’, the US increased its military and financial support for counter-revolutionaries in other parts of the world. Along the same vein, the US became more involved in the toppling of pro-Communist regimes.

The prevention of another ‘hostage crisis’
The Reagan administration’s swift and firm response to the coup launched by the leftist Maurice Bishop and his New Jewel Movement was partly motivated by the fears of another ‘Iran Hostage Crisis’. In Grenada, there were nearly 1000 Americans. Most were medical students.

From the ideological standpoint, the US was concerned with the rise of a Marxist regime. In 1983, the Marxist Bernard Coard assassinated Bishop and replaced the government. The Reagan administration was concerned with the increasing Soviet influence in the Carribean.

The United States had grown increasingly uneasy about the expansion of Soviet and Cuban influence in the Caribbean and in Grenada in particular. By the early 1980s, Soviet support of the Communist Sandinista government of Nicaragua and of the Communist insurrection in El Salvador was on the rise. The new U.S. administration of President Ronald Reagan viewed further encroachments into traditional U.S. spheres of influence in South and Central America and the Caribbean as constituting an increasing menace. Soviet and Cuban military aid and equipment and construction of an airfield larger than any needed for purely civilian purposes set off alarm bells in the U.S. national security establishment.

An excerpt from “Operation Urgent Fury: The Invasion of Grenada, October 1983” by Richard W Stewart and Edgar F Raines.

On 25 October 1983, the US led a military invasion of Grenada, clashing with Grenadian armed forces and Cuban engineers. Eventually, the invasion was a success. Coard’s government was replaced by a pro-American Herbert Blaize.

International outrage
The American invasion drew strong criticisms from various countries. On 2 November 1983, the United Nations General Assembly passed a resolution, condemning the act as a ‘flagrant violation of international law’. Similarly, the United Nations Security Council drafted a resolution, but was vetoed by the US.

… President Reagan dispatched 1,900 US troops to Grenada on October 25. Encountering little resistance, US forces quickly gained control of the island, arrested what was left of the Grenadian government… Although popular in the United States, the US action was condemned by the United Nations, with only a US veto preventing a Security Council censure.

The invasion of Grenada, coupled with increases in support for the Contras and the Afghan resistance led to a codification of US policy toward the Third World which became known as the Reagan Doctrine.

An excerpt from “The Cold War: An International History” by David Painter.

What can we learn from this article?
Consider the following question:
– Assess the significance of the Cold War on the political effectiveness of the United Nations peacekeeping operations.

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

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

JC H2 H1 History Tuition Online - What were Dag Hammarskjöld's contributions - United Nations Essay Notes

What were Dag Hammarskjöld’s contributions?

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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

About the Secretary-General
Dag Hammarskjöld was a Swedish economist who was appointed as the Secretary-General of the United Nations on 7 April 1953. He was re-elected to serve another term in September 1957. Hammarskjöld was an exemplary diplomat who made remarkable contributions to the international organisation, such as the institutionalisation of peacekeeping and conflict prevention.

The Sino-American hostage crisis: ‘Peking Diplomacy’
Following the end of the Korean War, the Secretary-General visited the Chinese premier Zhou Enlai to secure the release of fifteen American pilots in January 1955. These pilots were captured by the People’s Republic of China (PRC) during the Korean conflict.

Hammarskjöld responded with sympathy to two claims made by Zhou Enlai, namely (1) the argument that communist China had wrongly been denied admission to the United Nations, and (2) criticism by China that the United States had unduly refused to allow Chinese students to return to the People’s Republic of China… But at the end of the talks, (Zhou) agreed to comply with two of the Secretary-General’s requests. He agreed that the People’s Republic of China would comply with the policy terms regarding the treatment of foreign prisoners, announced at Geneva, which implied lenient sentences.

An excerpt from “Peace Diplomacy, Global Justice and International Agency: Rethinking Human Security and Ethics in the Spirit of Dag Hammarskjöld” by Carsten Stahn and Henning Melber.

After the conclusion of the visit, Hammarskjöld described his diplomatic approach as the ‘Peking Formula‘, which referred to his role as the ‘Secretary-General under the Charter of the United Nations and not as a representative of what was stated in the General Assembly resolution’.

Eventually, PRC agreed to release the US airmen, reflecting the success of the Secretary-General’s personal touch in resolving the dispute in spite of the growing Sino-American tensions.

Peacekeeping: UNEF
During the Suez Canal Crisis in 1956, Hammarskjöld conceptualised peacekeeping and applied it to the first UN peacekeeping force – the United Nations Emergency Force (UNEF).

There are three guiding principles of peacekeeping:

  • Consent of the parties
  • Impartiality
  • Non-use of force except in self-defence and defence of the mandate

Ever since, these principles have set the standard for subsequent UN missions.

The most telling aspect of UNEF’s creation, and ultimately the most problematic from the Canadian perspective, was the need to respect Egypt’s sovereignty and obtain Nasser’s consent to place the peacekeeping force on Egyptian territory.

…The speed with which Hammarskjöld was able to organize the peacekeeping mission was nothing short of incredible. By 6 November, in just over two days, he had been able to sketch out the basics of the mission, and less than two weeks later the first troops landed on the ground in Egypt.

An excerpt from “Pearson’s Peacekeepers: Canada and the United Nations Emergency Force, 1956-67” by Michael K. Carroll.

What can we learn from this article?
Consider the following question:
– Assess the political effectiveness of the Dag Hammarskjöld in fulfilling his duties as the Secretary-General of the United Nations.

Join our JC History Tuition and learn more about the organisational structure of the United Nations. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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

JC H1 H2 History Tuition - When was the Berlin Wall built and why - Cold War Essay Notes

When was the Berlin Wall built and why?

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Topic of Study [For H2 and H1 History Students]: 
Paper 1: Understanding the Cold War (1945-1991)
Section A: Source-based Case Study
Theme I Chapter 2: A World Divided by the Cold War – Manifestations of the global Cold War: Cuban Missile Crisis (1962) 

What is the Berlin Wall?
The German Berliner Mauer is a man-made barrier that surrounded West Berlin. It was established to built by the German Democratic Republic (East Germany) on 13 August 1961 to prevent defections from East to West.

Why did the Germans flee from East to West Germany?
Following the end of World War Two, the signing of the Yalta and Potsdam Agreements led to the division of Germany into four occupation zones. The Soviet Union controlled the eastern zones, while the United States, Great Britain and France occupied the western part. Due to the deteriorating living conditions, most people moved from East to West Germany.

As difficult as life was in Berlin, refugees came to the city from Eastern Europe and other parts of Germany. Conditions were even worse in their hometowns, and they hoped they might have better luck surviving in Berlin.

Food was scarce across the city – a condition made worse by the Soviets. Before leaving the other sectors of Berlin, the Soviets had stolen 7,000 cows along with machinery and pipes from buildings. The Soviets also limited access to farms in the Soviet zone outside Berlin. The Soviets wanted the food for their troops in Germany. Still some Berliners managed to reach farms in the countryside.

An excerpt from “The Berlin Airlift: Breaking the Soviet Blockade” by Michael Burgan.

To prevent the departure of Berliners in the East, Stalin ordered the imposition of a Soviet blockade of West Berlin in 1948. In response, the Allies launched the Berlin Airlift that demonstrated their resolve to oversee the post-war recovery of the Western zones. More than 2.3 million tons of fuel and food were sent to West Berlin. A year later, the Berlin Blockade was lifted.

The Berlin Crisis
After the Berlin Wall was built, none could move from East to West Berlin, except through three checkpoints. “Checkpoint Charlie” (at Friedrichstrasse) was a site of flashpoint in October 1961.

On 22 October, a senior US diplomat in West Berlin was stopped by the East German border guards. General Lucius D. Clay ordered the deployment of American tanks to Checkpoint Charlie.

Moscow interpreted the move as an alarming threat. In retaliation, Soviet leader Nikita Khrushchev sent Russian tanks to the checkpoint as well. Both parties had military forces facing each other for nearly sixteen hours.

Fortunately, American President Kennedy opened communications with the Soviet government to de-escalate tensions. Eventually, both forces withdrew.

[Khrushchev] believed the peak of confrontation with the United States had passed, a perception that did not change during the October 26-27 tank stand-off in Berlin at Checkpoint Charlie. Khrushchev, tipped off by erroneous Soviet intelligence, believed that Lucius Clay, a commander of the U.S. forces in West Berlin, was ready to storm the Wall by force. Persuaded that Kennedy was not personally behind the ploy, the Soviet leader contacted him and the confrontation was quickly resolved.

An excerpt from “Khrushchev and the Berlin Crisis (1958-1962)” by Vladislav Martinovich Zubok.

What can we learn from this article?
Consider the following question:
– How far do you agree that the Soviet Union was responsible for the Berlin Crisis of 1961?

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

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

JC H2 History Tuition Online - An Agenda for Peace - United Nations Essay Notes

An Agenda for Peace

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Topic of Study [For H2 History Students]:
Paper 1: Safeguarding International Peace and Security 
Section B: Essay Writing
Theme III Chapter 2: Political Effectiveness of the UN in maintaining international peace and security

The report
In 1992, the Secretary-General Boutros Boutros-Ghali submitted a report titled “An Agenda for Peace: Preventive diplomacy, peacemaking and peace-keeping“. Earlier, the Security Council requested the Secretariat to assess the strengths and limitations of peacekeeping.

Changing context: New challenges
In the post-Cold War world, the circumstances have changed. Boutros-Ghali outlined these shifts in his report:

In the course of the past few years the immense ideological barrier that for decades gave rise to distrust and hostility and the terrible tools of destruction that were their inseparable companions has collapsed.

… With the end of the cold war there have been no such vetoes since 31 May 1990, and demands on the United Nations have surged. Its security arm, once disabled by circumstances it was not created or equipped to control, has emerged as a central instrument for the prevention and resolution of conflicts and for the preservation of peace.

An excerpt from “An Agenda for Peace” report, 17 June 1992.

In view of the changing global context, the Secretary-General proposed a few key concepts, such as preventive diplomacy and peace-making.

Preventive diplomacy
In other words, the United Nations should intervene through the conduct of diplomacy before conflicts break out or escalate. This course of action can be undertaken by the Secretary-General, Security Council or General Assembly.

Secretary-General Boutros Boutros-Ghali established six regional divisions within the consolidated Department for Political Affairs whose principal task was to gather and analyze information to assist him in preventing conflicts.

… between March and December 1992, the Department for Political Affairs had undertaken thirty-one missions to various trouble spots on the initiative either of the Secteray-General or a member state.

An excerpt from “Preventive Diplomacy at the UN” by Bertrand G. Ramcharan.

Preventive diplomacy was achieved through efforts like confidence-building measures, fact-finding and the use of early warning systems. Its application was observed in the above-mentioned missions in potential conflict zones like Moldova, Haiti and Tajikistan.

Peacemaking
In addition to preventive diplomacy, the report also proposed peacemaking. As stated in the report, the United Nations bear the “responsibility to try to bring hostile parties to agreement by peaceful means”. Such efforts are carried out with reference to Chapter VI of the United Nations Charter (Pacific Settlement of Disputes).

In practice, peacemaking was carried out in response to the conflicts in Cambodia and Somalia. The United Nations Transitional Authority in Cambodia (UNTAC) was supported by Yasushi Akashi, Special Representative in Cambodia, who combined the application of peacekeeping and peacemaking to oversee civil administration, demobilisation and disarmament of military factions.

However, the successes of peacemaking were limited in Somalia. The escalation of the civil war gave rise to casualties that resulted in eventual departure of the United Nations Operation in Somalia II (UNOSOM).

UN/US intervention in the civil war, initiated in December 1992 and entered into with high hopes both of saving millions from starvation and restoring peace and stability to the country, ending ignominiously in the killing first of 25 Pakistani peacekeepers on 6th June 1993, and then of 18 American Rangers in October 1993. President Clinton soon announced that US troops would be withdrawn from Somalia and the complete withdrawal of UN peacekeeping troops had been effected by March 1995, with few of the mandate objectives of UNOSOM II achieved.

An excerpt from “Peacekeeping and Peacemaking: Towards Effective Intervention in Post-Cold War Conflicts” by Tom Woodhouse, Robert Bruce and Malcolm Dando.

Funding issues
Lastly, the report described how peacekeeping operations during the Cold War were hampered by arrears that amounted to over $800 million. Between 1945 and 1987, 13 peacekeeping operations were established. These operations have cost nearly $8.3 billion in total. As such, Boutros-Ghali raised the suggestion for member nations for “their peace-keeping contributions to be financed from defence, rather than foreign affairs”.

The Secretary-General made three proposals to address the finance issue. The following is one of the proposals.

Proposal three: This suggested the establishment of a United Nations Peace Endowment Fund, with an initial target of $1 billion. The Fund would be created by a combination of assessed and voluntary contributions, with the latter being sought from Governments, the private sector as well as individuals. Once the Fund reached its target level, the proceeds from the investment of its principal would be used to finance the initial costs of authorized peace-keeping operations, other conflict resolution measures and related activities

An excerpt from “An Agenda for Peace” report, 17 June 1992.

What can we learn from this article?
Consider the following question:
– Assess the effectiveness of the UN reforms in maintain the relevance of the organisation in maintaining international peace and security in the post-Cold War era?

Join our JC History Tuition to reinforce your comprehension of historical concepts and apply them to your essay and source based case study questions. Our online learning programmes feature thematic revision and skills development workshops to prepare you for the GCE A Level History examinations.

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

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

JC H1 H2 History Tuition Online - Criticisms of the veto - United Nations Essay Notes

Criticisms of the veto

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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

Yea or nay?
As discussed in the previous article on the role of the Security Council, the Permanent Five (P5) Members possess special voting rights to either support or block resolutions.

Article 27(3) of the UN Charter states that consensus within the Security Council is only made possible with the “affirmative vote of nine members including the concurring votes of the permanent members“.

This means that if at least one of the P5 members exercised the “right to veto” (negative vote), the resolution would not be approved.

The use of veto by P5 members
Although the Charter states that the United Nations was formed with the primary aim to “save succeeding generations from the scourge of war“, the repeated use of the veto has sparked criticism among member nations over the relevance of the international organisation.

The following illustrations highlight the veto problem ever since the UN’s inception.

Security Council Vetoes - Bloomberg Opinion
Illustration by Bloomberg Opinion on the use of vetoes
Security Council Vetoes - Vocativ
Statistics by Vocativ on the use of vetoes

A flawed creation or a necessary evil?
One of the main criticisms was that the veto had allowed the P5 members to wield disproportionate powers, thereby creating an unrepresentative structure in the United Nations. On the other hand, defenders of the veto argued that the veto was essential in retaining membership of Great Powers and averting another world war.

For most UN Member states, Article 27 UN Charter is a codification of the painful reality that some States are more equal than others. This idea is obviously at odds with the principals laid down in the UN Charter, such as Article 1(2), pursuant to which the UN aims at developing friendly relations among nations based on respect for the principle of equal rights of peoples, and Article 2(1) which affirms the principle of sovereign equality as one of the basic pillars of the world body.

… The concerns underpinning the insertion of Article 27 were well-founded in light of the demise of the League of Nations. This organisation never managed to live up to its aspirations due to the requirement of unanimity among all members of its Council on the one hand, and the lack of support from various power States on the other hand… None of the P-5 has abandoned ship. Moreover, no direct military confrontation has occurred between them.

An excerpt from “Security council reform: a new veto for a new century?” by Jan Wouters and Tom Ruys.

Reforms to the veto mechanism
In 2015, France proposed the practice of ‘veto restraint‘ in the United Nations Security Council, particularly for conflicts of mass atrocities and genocide. Its basis was that the veto should not be abused.

Interestingly, France early on broke ranks with the other permanent members of the Security Council and led the third initiative calling for veto restraint.

… Veto restraint in atrocity situations was initially suggested in 2001 by French Foreign Minister Hubert Védrine at a roundtable sponsored by the ICISS in Paris. He called for the permanent members to create a “code of conduct” for themselves and not to apply their veto to block humanitarian action where their own national interests were involved.

An excerpt from “Existing Legal Limits to Security Council Veto Power in the Face of Atrocity Crimes” by Jennifer Trahan.

Another proposed reform was the expansion of the Permanent Membership to create a more representative structure in the Security Council. The G4 nations, comprising of Germany, Japan, India and Brazil, asserted that their admission would maintain the relevance of the principal organ.

The concept of new permanency is prefaced on the notion that the current council does not reflect the geopolitical realities of the twenty-first century. In short, the council’s permanent membership is outdated. To address the disequilibrium, the G4 proposes the inclusion of six new permanent seats and five new elected seats.

An excerpt from “UN Security Council Reform” by Peter Nadin.

However, any reform made to the Security Council membership composition requires full consensus from the existing Permanent Members.

What can we learn from this article?
Consider the following question:
– Assess the reasons for the limited effectiveness of the proposed reforms to the Security Council.

Join our JC History Tuition to derive a better understanding of the veto mechanism and other critical areas of study for the United Nations.

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

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

JC H2 History Tuition - What is the Mexican debt crisis - JC History Essay Notes

What is the Mexican debt crisis?

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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

The Latin American debt crisis of the 1980s
The 1970s and 1980s were characterised by a series of devastating problems that hampered the growth of the global economy. Apart from the twin oil shocks in 1973 and 1979, a serious debt crisis affected developing nations, particularly in the Latin American region. This financial crisis was known as “The Lost Decade” (La Década Perdida) in Mexico and Guatemala.

An unsustainable growth: A sticky situation
Before the Crisis Decades, most developed nations took loans from the World Bank to finance their infrastructural development. In view of the first oil crisis of 1973, commercial banks received a large inflow of funds from oil-exporting nations, particularly petrostates that belonged to the OPEC (Organization of the Petroleum Exporting Countries). In short, petrodollar recycling was carried out.

However, the loans did not translate into profitable investment activities. Some of these loans were mismanaged. For instance, President Mobutu Sese Seko stored $5 billion in personal Swiss bank accounts, which amounted to Zaire’s total foreign debt.

Additionally, in response to the oil shocks, the USA raised interest rates in 1979. This proved disastrous to the debtor nations as their loans originated from Western commercial banks in the USA and Europe.

When Paul Volcker, head of the Federal Reserve, raised U.S. interest rates in 1979 to fight inflation in the United States, he did not intend to create a global debt crisis. But rising U.S. interest rates, and the rising London Interbank Offered Rate (LIBOR), which set interest rates for Eurodollar lending, greatly increased the cost of southern loans, most of them now tied to floating rates set by the United States or LIBOR.

Rising interest rates had two important consequences. First, they increased interest payments on accumulated debt. “Mexico’s interest bill tripled from $2.3 billion in 1979 to $6.1 billion in 1982… for the region as a whole, interest payments more than doubled, from $14.4 billion in 1979 to $36.1 billion in 1982.” …

A second problem was that high U.S. interest rates acted like a magnet, attracting money from around the world… Massive capital flight created several problems for Latin American countries: it deprived them of money they might have used to invest in their own countries, pay for imports, repay debt, and it eroded their country’s tax base…

An excerpt from “Understanding Globalization: The Social Consequences of Political, Economic, and Environmental Change” by Robert K. Schaeffer.

The Trigger
In August 1982, the Mexican Finance Minister Jesús Silva Herzog announced that Mexico can no longer service its debt that amounted to $80 billion. Subsequently, other Latin American nations like Brazil, Chile and Argentina followed suit. Eventually, the International Monetary Fund (IMF) allowed sixteen Latin American countries to conduct debt rescheduling.

The threat of default by Mexico sent the first world bankers into panic. Many had lent more than 100 per cent of their shareholder capital to governments in Latin America and elsewhere. They knew that if the default was to be repeated across the developing world, it would lead to the collapse of the global financial system…

IMF conditionality varied from country to country but generally contained a mix of the following policy ingredients: a cut in public spending, promotion of exports, the elimination of government subsidies, currency devaluation, privatization of state-owned enterprises, and the liberalization of foreign trade and investment…

This approach became known as structural adjustment and, over the course of the 1980s and early 1990s, most Latin American countries fell subject to IMF conditionality. The support for such policies from the US government and powerful institutions based in Washington, DC meant that the policy package became known as the Washington Consensus.

An Excerpt from “Latin American Development” by Julie Cupples.

What can we learn from this article?
Consider the following question:
– Assess the view that the Latin American debt crisis of the 1980s was a devastating problem that affected the global economy.

Join our JC History Tuition and learn how to write JC History Essays for topics like the Global Economy. Join our online learning classes and receive study notes for A Level History.

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

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

JC H2 History Tuition - What is World Trade Organization and its function - JC History Essay Notes

What is World Trade Organization and its function?

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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

What is the World Trade Organization (WTO)?
The WTO is an inter-governmental organization that formalized international trade. Under the Marrakesh Agreement, the organization was formed on 1 January 1995, replacing the multilateral framework known as the General Agreement on Tariffs and Trade (GATT).

A Prelude to WTO: Trade Rounds under GATT
Before the WTO was established, GATT provided the essential guidelines on international trade from 1948 to 1994. During the Bretton Woods Conference, an International Trade Organization (ITO) was supposed to be formed alongside two other pillars (World Bank and the International Monetary Fund). Yet, the US Congress refused to ratify the Havana Charter. As such, the concept of an ITO was not realized.

Even so, GATT had played its part in promoting multilateral discussions. In the post-war years, GATT contributed to tariff reductions of nearly 8 percent on average till the 1960s.

1. Kennedy Round (1964-1967)
During the Kennedy Round, an Anti-Dumping Agreement was passed. ‘Dumping’ refers to an unfair trade practice in which a firm sell its exports at a price below the price set in the domestic market. The Act was recognized as a success, especially for developing nations.

Recognizing that anti-dumping practices should not constitute an unjustifiable impediment to international trade and that anti-dumping duties may be applied against dumping only if such dumping causes or threatens material injury to an established industry or materially retards the establishment of an industry;

Considering that it is desirable to provide for equitable and open procedures as the basis for a full examination of dumping cases;

An excerpt from the Kennedy Round.

2. Tokyo Round (1973-1979)
In the 1970s, the Tokyo Round was held with the intention to manage the imposition of non-tariff barriers (NTBs). Although participating countries managed to agree on the reduction of tariffs on industrial goods, they were unable to accept the use of plurilateral agreements (they are trade agreements between more than two countries).

The Tokyo Round also led to the adoption of a range of specific new disciplines. These included the legalization of preferential tariff and nontariff treatment in favour of developing countries and among developing countries.

Codes were negotiated on subsidies and countervailing measures, technical barriers to trade (product standards), government procurement, customs valuation, import licensing, antidumping (a revision of a Kennedy Round code), bovine meat, dairy products and civil aircraft…

By negotiating a code, like-minded countries were able to agree to new, legally binding commitments, without having all GATT contracting parties on board.

An excerpt from “The Political Economy of the World Trading System” by Bernard M. Hoekman, Michel M. Kostecki

3. Uruguay Round (1986-1994)
The eighth and final round lasted nearly seven and a half years. In the wake of the twin oil shocks of the 1970s, the Uruguay Round was held as the largest multilateral trade negotiation. The main purpose of the round was to reduce agricultural subsidies, introduce the protection of intellectual property and liberalise trade services in the banking sector. It was a tricky issue due to the sensitivity of the agricultural and textile sectors that affected many developing countries. Furthermore, the round dragged on due to the lack of consensus between the USA and European Union (EU) [also known as the “European Community”, EC] over the reforms to agricultural trade.

For much of the Round the USA and the EC held their own mini-round and their mutual intransigence, especially over agriculture and specifically a long-running dispute over oil seeds, stalled the Uruguay Round for some time. Completion of the Round was in the end facilitated by the so-called Blair House (Washington) accords…

Negotiations on agriculture were among the most contentious of the Round, the final Agreement on Agriculture seeking reforms for a ‘fair and market-oriented agricultural trading system’, but with special consideration for poorer countries and for non-trade concerns such as food security, environmental protection or schemes for diversification from narcotic crops and the like.

An excerpt from “The Free Trade Adventure: The WTO, the Uruguay Round and Globalism–a Critique” by Graham Dunkley.

The WTO
As the Uruguay Round concluded in December 1993, the Marrakesh Agreement was signed on 15 April 1994 by 123 participating nations. Officially, the WTO was formed eight months later, ushering a new era for international trade. The WTO replaced GATT as the institutional framework for trade.

1. The WTO shall facilitate the implementation, administration and operation, and further the objectives, of this Agreement and of the Multilateral Trade Agreements, and shall also provide the framework for the implementation, administration and operation of the Plurilateral Trade Agreements.

2. The WTO shall provide the forum for negotiations among its Members concerning their multilateral trade relations in matters dealt with under the agreements in the Annexes to this Agreement. The WTO may also provide a forum for further negotiations among its Members concerning their multilateral trade relations, and a framework for the implementation of the results of such negotiations, as may be decided by the Ministerial Conference.

An excerpt from the Marrakesh Agreement – Article 3 “Functions of the WTO”, 15 April 1994.

What can we learn from this article?
Consider the following question:
– How far do you agree that trade liberalization was beneficial to the global economy from 1945 to 2000?

Join our JC History Tuition and find out more about the Bretton Woods System and other areas relating to the global economy. The H2 and H1 History Tuition feature online discussion and writing practices to enhance your knowledge application skills. Get useful study notes and clarify your doubts on the subject with the tutor. You can also follow our Telegram Channel to get useful updates.

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

JC History Tuition - What is the main purpose of ASEAN - JC History Essay Notes

What is the main purpose of ASEAN?

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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: Reasons for the formation of ASEAN

Topic of Study [For H1 History Students]:
Essay Questions
Theme II Chapter 2: The Cold War and Southeast Asia (1945-1991): ASEAN and the Cold War (ASEAN’s responses to Cold War bipolarity)

The tumultuous sixties: Why was ASEAN formed?
The Association of Southeast Asian Nations (ASEAN) was established as a regional organisation on 8 August 1967 by five members – Singapore, Malaysia, Thailand, the Philippines and Indonesia.

The regional grouping was formed during a troubling decade in which Southeast Asian governments were pre-occupied with domestic challenges, such as the rise of Communist insurgencies.

Let’s take a look at the Bangkok Declaration that was signed by the five members:

SECOND, that the aims and purposes of the Association shall be:

1. To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of South-East Asian Nations;

2. To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations Charter;

An excerpt from the ASEAN Declaration (Bangkok Declaration), 8 August 1967.

In order to understand the purpose of ASEAN, it is imperative to consider the motivations of individual member states.

Singapore: Economics and Regional Security
For Singapore, ASEAN was a necessary grouping to address the immediate concerns of the government. On 9 August 1945, the leaders of an ‘accidental nation’ had to contend with the limited resources in Singapore. On 18 July 1967, the British announced its plans to withdraw from the East of Suez. The unexpected departure of the British forces left Singapore vulnerable to security threats.

As one of the founding fathers of ASEAN, Mr Rajaratnam played a pivotal role in fostering an ASEAN consensus and promoting a more cohesive and cooperative region. Initially, he argued that regional cooperation should be contemplated primarily in economic terms.

… Mr Rajaratnam articulated Singapore’s view that ASEAN was primarily an organisation for promoting economic cooperation and not for resolving the region’s military and security problems.

An excerpt from “S Rajaratnam on Singapore: From Ideas to Reality” by Chong Guan Kwa, S. Rajaratnam.

However, not all members were supportive of the reliance on external powers for regional security, such as Indonesia.

Indonesia: Regional leadership in a post-Konfrontasi era
The former President Sukarno’s policy of Confrontation had strained diplomatic relations with neighbouring countries like Malaysia and Singapore. Subsequently, Suharto supported the formation of ASEAN not only to mend relations but also strive to assume a leadership position in the grouping.

Nevertheless, Suharto still held a common view with his predecessor in pursuing a policy of non-alignment.

In effect, the policy of konfrontasi prevented Indonesia from winning recognition as a regional leader in Southeast Asia and beyond in the non-aligned movement. Later, President Suharto would argue that Sukarno’s konfrontasi had also violated Indonesia’s bebas-aktif principle in foreign affairs, whereby Jakarta was to pursue an independent and active foreign policy, which implied avoiding an alignment with any one bloc.

An excerpt from “ASEAN’s Diplomatic and Security Culture: Origins, Development and Prospects” by Jurgen Haacke.

On 16 August 1966, Tun Razak and Adam Malik signed the Jakarta Agreement that signified the official end to the Confrontation. The Agreement was built on the basis on an earlier Bangkok Accord that required Indonesia to recognise Malaysia diplomatically. Malaysian-Indonesian relations were eventually normalised on 31 August 1967, a few weeks after ASEAN was established.

Regional cooperation was firstly intended to exorcize the ghost of confrontation, to provide a contrast between Sukarno’s confrontative foreign policy and the New Order’s more conciliatory approach.

… Nevertheless, the urgency for Indonesia to co-found ASEAN was primarily to restore the country’s regional and international standing.

An excerpt from “Indonesia in ASEAN: Foreign Policy and Regionalism” by Dewi Fortuna Anwar.

The relevance of ASEAN in the post-Cold War era
Although some critics point out that ASEAN has yet to resolve the South China Sea dispute, many recognise ASEAN’s successes in contributing to the creation of a peaceful and stable region. In 2017, ASEAN celebrated its fiftieth anniversary. Moving forward, member nations have reaffirmed their commitment in advancing regional cooperation.

What can we learn from this article?
Consider the following question:
– Assess the view that the ASEAN was formed as a result of economic reasons.

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

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JC H1 History Tuition - Singapore's Foreign Policy - JC History Essay Notes - Cold War in Asia

What is Singapore’s Foreign Policy?

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Topic of Study [For H1 History Students]: 
Section B: Essay Writing
Theme II: Cold War in Asia [1945-1991] – Singapore’s Foreign Policy during the Cold War

“We have no eternal allies, and we have no perpetual enemies. Our interests are eternal and perpetual, and those interests it is our duty to follow.”

— Lord Palmerston, House of Commons, 1 March 1848

What is a ‘foreign policy’?
It refers to a set of strategies employed by the state to protect its domestic and international interests. A ‘foreign policy’ affects the state’s interactions with other states. Ultimately, the policy is implemented to safeguard national interests.

Foreign policies can involve the use of aggressive (military force) or non-coercive means (diplomacy). Also, these policies can also be carried out through engagement with other states in addressing a common challenge, such as regional security threats.

Singapore’s foreign policy: A summary
There are two key foreign policy theories that are covered the A Level H1 History syllabus: Survival and Realism.

1. Survival
One key ideology that shaped Singapore’s foreign policy is the concept of survival. Following the sudden Separation that led to Singapore’s independence in 1965, the government had to deal with political threats and economic challenges.

Amidst the Cold War context, the rise of Communist insurgencies was a common concern that affected the political stability of Southeast Asian nations. In Singapore, the government was challenged by the Barisan Sosialis.

As for the economic viewpoint, the People’s Action Party (PAP) took the first step towards modernisation by embarking on state-led industrialisation. In particular, the government aimed to establish strong trade ties with other countries, including Great Powers like the USA.

The historical roots of Singapore’s political ideology of survival lie in the events following the country’s ejection from Malaysia in 1965. Survival in both political and economic terms for newly independent Singapore was a very real issue for the PAP Government. The government in the period 1965-67 was involved in an intense, often violent struggle, for power against the Barisan Sosialis and the communists.

…In terms of economic policy, the survival ideology is linked with the concept of the “global city” first proposed in 1972 by Singapore Foreign Minister S. Rajaratnam. This concept suggests that if Singapore is to survive, it must establish a relationship of interdependence in the rapidly expanding global economic system.

An excerpt from “SINGAPORE: Reconciling the Survival Ideology with the Achievement Concept” by Lee Boon-Hiok [from the Southeast Asian Affairs 1978]

2. Realism
Realism describes the notion that states should act according to their best interest. From a realist’s perspective, the world is in a constant state of anarchy. Individuals are inherently egoistic and will do anything to pursue power. As such, states should protect their interests through means like the development of an independent defence force as well as the conduct of diplomacy.

Singapore’s interpretation of such a concept and practice was spelled out by Lee Hsien Loong in the same speech as follows:

This policy depends on the competing interests of several big powers in a region, rather than on linking the nation’s fortunes to one overbearing partner. The big powers can keep one another in check and will prevent any one of them from dominating the entire region, and so allow small states to survive in the interstices between them. It is not a foolproof method, as the equilibrium is a dynamic and possibly unstable one, and may be upset if one power changes course and withdraws. Nor can a small state manipulate the big powers with impunity. The most it can hope to do is to influence their policies in its favour.

An excerpt from “Singapore’s Foreign Policy: Coping with Vulnerability” by Michael Leifer

More importantly, Singapore did not rely solely on the goodwill of external powers to manage security challenges. Its emphasis on regionalism and multilateralism was also another vital channel, seen in terms of Singapore’s diplomatic role in ASEAN and the United Nations.

Through Singapore’s consistent lobbying efforts at the United Nations General Assembly, the government was successful in publicise the Cambodian conflict at the international level.

Singapore’s Ministry of Foreign Affairs distinguished itself as a diplomatic dynamo during the course of the Cambodian conflict. The advocacy, lobbying and drafting skills of its officials were employed to great effect within the United Nations against Vietnam and its client government in Phnom Penh. For example, the declaration of the International Conference on Kampuchea held at the UN in 1981 was drafted by Singapore’s delegation. Singapore’s diplomatic success was accomplished through playing on the political sensibilities of states that had been alarmed by the example of a government despatching its army across an internationally recognised boundary to remove an incumbent administration recognised at the United Nations and replacing it with another of its own manufacture.

An excerpt from “Singapore’s Foreign Policy: Coping with Vulnerability” by Michael Leifer

What can we learn from this article?
Consider the following question:
– Assess the view that Singapore’s foreign policy was largely shaped by Realism.

Join our JC History Tuition and learn more about Singapore’s foreign policy in response to the Second and Third Indochina Wars.

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

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