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JC History Tuition Bishan Singapore - What were the consequences of the Asian Financial Crisis in 1997 - JC History Essay Notes

What were the consequences of the Asian Financial Crisis?

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

The aftermath of the regional currency crisis
In view of the causes that explain how the Asian Financial Crisis began, it is important to examine its consequences. This includes the government responses that varied between Southeast Asian nations, such as the bail-out loans by the International Monetary Fund (IMF), crisis response packages and stringent financial regulatory measures.

Immediate government responses
After the Asian Financial Crisis happened, governments played a critical role in introducing immediate responses to arrest the situation.

For instance, the Thai government tried to maintain the peg by tapping on its reserves to prevent further currency depreciation, which was caused by speculative attacks. From 1997 to 1998, it was estimated that nearly US$30 billion was spent to maintain the baht.

Unfortunately, their efforts proved futile, such that the abandonment of the fixed exchange rate led to rapid currency depreciation. On 2 July 1997, the baht was allowed to float, resulting in the depreciation of the currency value by 18%. By January 1998, the value had fallen to US$1 to $55 baht.

Given the economic interconnectedness of Southeast Asian markets, the Thai economic crisis spread to other neighbouring economies, which was known as the contagion effect.

Crisis Response Measures
Another important consideration was the introduction of crisis response measures to contain the economic crisis. These measures involved large government spending to stimulate the markets and facilitate recovery.

For example, the Malaysian government formed the National Economic Action Council (NEAC) in 1998 to pursue economic stabilization. One method included the imposition of capital controls to stabilize the ringgit.

Additionally, the national asset management company, known as Pengurusan Danaharta Nasional Berhad, was in responsible for relieving the banking system of its non-performing loans (NPLs) and assets. By 30 September 2005, the Danaharta had resolved all of its NPLs. It was reported to have met its recovery target of RM30.35 billion.

In fact, Danaharta was one of the three-pronged strategy that the Malaysian government introduced to achieve stabilization of the banking system. It also included Danamodal Nasional Berhad and the Corporate Debt Restructuring Committee (CDRC).

Acceptance of IMF Bail-out Loans
Lastly, the IMF also offered to provide bail-out loans to affected Southeast Asian economies. These conditional loans required governments to accept an IMF-imposed set of policies. In particular, the IMF required recipient countries to engage in fiscal austerity (spending cuts) to correct their balance of payment deficits. Yet, these governments were not running budget deficits, thus worsening the economic slowdown.

“I thought this was a mistake. For one thing, unlike the Latin American nations, the East Asian countries were already running budget surpluses. In Thailand, the government was running such large surpluses that it was actually starving the economy of much ­needed investments in education and infrastructure, both essential to economic growth. And the East Asian nations already had tight monetary policies, as well: inflation was low and falling. (In South Korea, for example, inflation stood at a very respectable four percent.) The problem was not imprudent government, as in Latin America; the problem was an imprudent private sector­­ – all those bankers and borrowers, for instance, who’d gambled on the real estate bubble.”

Former World Bank Chief Economist, Joseph Stiglitz, New Republic, 17 April 2000 – Source: https://bit.ly/2GIk2cp

For example, Indonesia accepted the IMF bail-out reluctantly. By the time the third agreement was introduced, the government acceded to IMF’s demands to remove subsidies on essentials, like food, medicine and fertiliser.

This proved to be disastrous, given that the loss of state support raised the cost of living and worsened socio-economic conditions. As a result, the skyrocketing basic commodity prices resulted in a surge in inflation rate. Poverty rate increased from 11% before the crisis to nearly 60% afterwards.

Furthermore, the economic instability had severe socio-political consequences that culminated in the resignation of Suharto.

What can we learn from this case study?
Consider the following question:
– How far do you agree that governments of Southeast Asian economies were responsible for the consequences of the Asian Financial Crisis? [to be discussed in class]

Now that you have learnt the consequences of the Asian Financial Crisis, it is imperative that you apply your knowledge to A Level History essay questions. You can sign up for our JC History Tuition to find out how you can organise your content and form well-analyzed essays to ace the GCE A Level History examination.

Furthermore, we conduct other useful JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now.

JC History Tuition Bishan Singapore - What are the main aims of economic development - JC History Essay Notes

What are the main aims of economic development?

Nicholas Tarling’s three aims
According to the distinguished historians, Nicholas Tarling and Norman Owen, who published The Cambridge History of Southeast Asia, there are three aims of economic development: growth, equity and nationalism. We will be examining the significance of these aims individually to understand why there is a high degree of government intervention in the post-independence Southeast Asian states.

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

Aim #1: Economic Growth
One of the most common aims of economic development involves economic growth, which is typically measured in the monetized value of the goods and services produced within a country, seen in terms of Gross Domestic Product (GDP).

To assess the economic performance of a country, it is important to examine the ability of governments to achieve short-term and long-term economic growth.

Also, another relevant aspect is the percentage share of GDP contributed by the three sectors: agriculture, industry and finance. As a country advances, a large proportion of growth is derived from the secondary and tertiary sectors (industry and finance).

Aim #2: Economic Equity
The second aim involves the reduction of income gap between the rich and the poor. In some Southeast Asian states, leaders advocate the equality of opportunity, which can be measured by the percentage of population that suffering from poverty.

As such, their policies are extensively focused on a more equitable distribution of resources. For example, governments introduce legislation to facilitate land reforms for state acquisition and re-distribution to rural households.

Aim #3: Economic Nationalism
The third aim refers to the indigenization of wealth and production to reduce foreign ownership of domestic sectors of economy. Following the process of decolonization, many Southeast Asian states sought to reduce foreign influence in their economic development.

This aim is usually achieved by implementing policies of nationalization. The governments impose strict controls to limit or eradicate foreign ownership. At same time, state-owned enterprises are formed to replace these foreign companies. For example, in Indonesia, the Dutch assets in petroleum were nationalized, thus forming the Permina, known as the state-owned oil company. Later, it was renamed as Pertamina.

What can we learn from this article?
Consider the following question:
– The pursuit of economic growth is the most important aim that Southeast Asian governments should prioritize on after independence. Discuss. [to be discussed in class]

Now that you have examined the three aims of economic development, you should look for practice questions to apply your knowledge. You can also join our JC History Tuition as we provide summary notes and practice questions (with reference answers) to demonstrate the applicability of knowledge for examinations.

Furthermore, we conduct other related JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition classes, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now!

JC History Tuition Bishan Singapore - How did Myanmar develop its economy - JC History Essay Notes

How did Myanmar develop its economy?

Overall Economic Assessment of Myanmar
After Myanmar attained independence on 4 January 1948, the government pursued economic development, which is strongly guided by nationalistic and socialist influences. In view of the political challenges, there was strong government intervention. Over time, the military took a prominent role in maintaining political stability, while guiding the development of the economy. By the 1980s, Myanmar engaged in economic liberalization, encouraging the inflow of private investment.

Examine how the Chinese ‘Belt Road Initiative’ (BRI) will transform Myanmar’s economy.

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

1948 to 1962: U Nu’s Democratic Governance
Before Myanmar attained independence, the British colonial powers transformed its economy by focusing in agricultural production. By 1930s, nearly two-thirds of the labour force were involved in the agrarian sector. Following World War II, the devastation caused by war left many infrastructure in ruins.

Therefore, the government embarked in the Pyidawtha Plan, which is a eight-year economic plan that set higher targets for growth. The purpose was to rebuild the public infrastructure for economic recovery. Due to the high degree of foreign ownership in the economic sectors, nationalisation became one of the foremost approaches. For instance, the Land Nationalisation Act (1948) was passed to facilitate the consolidation and re-distribution of land for agricultural development.

1962 to 1988: Ne Win’s Burmese Way to Socialism
However, the country was faced with political instability due to internal divisions. Military intervention became necessary to restore stability, thus paving the way for the rise of Ne Win’s leadership. Ne Win’s military government centralised its economic development based on the ideology of ‘Burmese Way to Socialism’, which placed great emphasis on state control across economic sectors.

For example, the Burma Oil Company used to be a joint venture during U Nu’s time. In 1963, this company was nationalised. Likewise, in the banking sector, the government maintained a tight control to ensure that all domestic capital was in the hands of the state. As for the agricultural sector, the Tenancy Law (1965) was passed, which facilitated land redistribution.

1988 to 1997: State Law and Order Restoration Council (SLORC)
Following the resurgence of democratisation in the 1980s, the government engaged in economic liberalisation. The financial sector benefited from this increased openness, as seen by the Foreign Investment Law (1988). This law allowed foreign companies to invest in local ventures. Furthermore, the Financial Institutions Law (1992) was passed to allow the establishment of private commercial banks.

As a result of economic liberalisation, Myanmar’s Gross Domestic Product (GDP) increased by 7.3% per year in the period of 1992 to 1997. Additionally, financial openness contributed to greater inflow of foreign direct investment (FDI), which approximated at US$2.8 billion at one point in time.

In summary, the strong government intervention was a common feature in Myanmar throughout the time period since independence to 1997.

What can we learn from this case study?
Consider the following question to understand this country-specific case study:
– Assess the role of the government in shaping the economic development of Myanmar after independence. [to be discussed in class]

Now that you have considered the strategies employed by the government in guiding economic development of Myanmar, it is important to apply this knowledge by writing A Level History essays. Alternatively, you can sign up for our JC History Tuition. We provide summary notes, essay outlines and source-based case study question answers for effective revision.

Furthermore, we conduct other related JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now!

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

What caused the economic miracle in Vietnam?

The post-unification Vietnam
After the prolonged military confrontation between the Vietnam and the French/Americans (Indochina Wars), the unified Vietnamese economy was relatively unstable. Due to strong government intervention, swift resource consolidation was achieved. Fast forward to the 21st century, Vietnam is recognised as one of the leading emerging economies.

IMF examines the changing economic development of Vietnam from 1986 onward.

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

1976-1985: Post-unification Vietnam
The Second Five-Year Plan (1976-1980) focused on two major areas – agricultural development and industrialization. For the agriculture sector, the New Management System was established to facilitate large-scale collectivisation. For industry, the government held strong control over many private sectors.

Although there were setbacks to the Second Five-Year Plan, the government persisted, as observed by the Third Five-Year Plan (1981-1985). The latter focused on the policy of decentralisation, in which there was greater private economic participation. For example, peasants in the agriculture sector were allowed to sell their produce in the open market, thereby facilitating the development of a ‘family economy’.

1986-1996: ‘Doi Moi
In 1986, the Doi Moi (renovation) was introduced. In short, it focused economic liberalisation. One of the most significant policies involved the Foreign Investment Law (1987). This law allowed greater foreign ownership and provided greater incentives for export production. In 1990, the Vietnamese government set up four commercial banks.

In the agriculture sector, the government introduced Resolution 10, which involved the de-collectivisation of agriculture. The Land Law and Agricultural Land Use Law were introduced.

As a result, economic liberalisation contributed to the rapid economic growth in Vietnam. From 1992 to 1997, its Gross Domestic Product (GDP) rate was 8% per annum. By 1996, Vietnam received foreign direct investment (FDI) that was estimated at US$8.5 billion per year. Furthermore, Vietnam became the third largest exporter in the world.  

What can we learn from this case study?
Consider the following question to understand this country-specific case study:
– How far do you agree that resource consolidation is the most important government strategy in developing the economy of Vietnam after 1975? [to be discussed in class]

Now that you have studied the government strategies that shaped the Vietnamese economy, it is imperative to review your knowledge application by writing essays. You can also sign up for our JC History Tuition. We provide condensed learning materials and essay outlines for references and revision.

Additionally, we offer other related JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuition classes, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to join now!

JC History Tuition Bishan Singapore - How did Philippines grow its economy - JC History Essay Notes

How did Philippines grow its economy?

About the Philippine economy
After the attainment of independence, the Philippines became one of the leading Southeast Asian economies that was comparable to neighbouring countries, like Malaysia and Singapore. The 1970s became the turning point due to internal economic mismanagement, thus contributing to political turmoil that ended with a switch to the new administration by the early 1990s.

Find out more about the modern economic development of the Philippines after independence.

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

1946 to 1965: Post-independent Philippines
During the early stages of independence, Philippines was heavily reliant on primary exports, due to its trade links with USA. This can be explained by the pre-indpendence policies, like the Payne Aldrich Tariff Act (1909) that granted US access to some Philippine goods.

One significant approach involved economic indigenization via the establishment of the National Development Company, which facilitated the formation of state agencies to control key sectors of the economy. For example, the Philippine Sugar Institute was formed in 1951.

The second strategy involved agricultural development. Given the heavy reliance on primary exports for growth, the government engaged in major land reforms, as seen by the Rice Share Tenancy Act (1946). The purpose was for resource consolidation and re-distribution.

1965 to 1986: The ‘era of Marcos’
Under the leadership of Ferdinand Marcos, the government continued its extensive state intervention to guide the development of the Philippine economy.

The government undergone transition for import-substitution industrialization (ISI) to export-oriented industrialization (EOI), as exemplified by policies that encouraged the inflow of foreign investment. For example, the Board of Investment was formed. This public entity then implemented the Investment Incentives Act (1967) to facilitate the influx of foreign investment. Additionally, the Export Incentives Act (1970) was introduced to provide incentives for the production of manufactured exports.

Following the imposition of martial law in 1972, the government raised its level of intervention in the economy. There was greater state ownership in various sectors, as seen by organizations like the Philippine Sugar Commission and the Asia Brewery.

Around the 1960s to 1970s, Marcos also capitalized on the Green Revolution to enhance the productivity of agriculture. The International Rice Research Institute (IRRI) was set up to allow the development of high-yielding and disease-resistant rice varieties. In addition, the ‘Masagana 99’ (Rice Production Programme) was introduced to grant rice farmers access to fertilizer subsidies and credit. Hence, the farmers benefited from state support, as seen by the achievement of self-sufficiency in rice production by 1972.

1986 to 1997: Post-Marcos Era
Following the economic instability and political unrest that caused the transition to a new administration, the Philippine government sought to resolve these past setbacks urgently.

One such obstacle was the large external debt due to Marco’s extensive borrowing. Austerity measures were introduced to reduce deficits. Also, the Comprehensive Agrarian Reform Law was passed in 1988 to facilitate land reforms, thereby transferring ownership to farmers.

Besides, there was greater privatization to reduce excessive state ownership, which was recognized as an inefficient approach for economic development. For example, monopolies in industries like telecommunications and power generation were dismantled.

Over time, the post-Marco period was met with greater success due to the restoration of economic stability. Privatization was effective in providing the country with its much-needed revenue for recovery. Gross Domestic Product (GDP) growth rate in the 1990s averaged at 3.3%.

What can we learn from this case study?
Consider the following question to understand this country-specific case study:
– To what extent was state involvement beneficial to the economic development of the Philippines after independence? [to be discussed in class]

Now that you have examined the strategies and outcomes of the Philippine economy, we encourage you to attempt essay questions to review your knowledge thoroughly. An alternative approach is to join our JC History Tuition. We provide useful summary notes and essay outlines to enhance your knowledge application skills.

Furthermore, we conduct other related JC tuition classes, like GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuitionclasses, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to sign up now and get discounts!

JC History Tuition Bishan Singapore - How did Indonesia build its economy - JC History Essay Notes

How did Indonesia build its economy?

Overall economic trend of Indonesia
From independence to 1970s, the Indonesian government was pre-occupied with its political development. Also, there was much emphasis on agriculture, given its substantial natural endowments. Although the country encountered several setbacks, astute government intervention resulted in the rapid economic growth from 1970s to 1980s due to the continued emphasis on industrialization. Nevertheless, given its large geographical size, the Indonesian economy has a massive potential for economic growth.

Find out more about the critical factors that explain the economic successes of modern Indonesia.

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

1957 to 1965: ‘Guided Democracy’ [Soekarno]
Following the harsh and disruptive colonial rule and World War Two, the Indonesian government, under Soekarno’s leadership, pursuit economic nationalism to restore state control of key economic sectors. In 1957, the seizure of foreign-owned assets was carried out for state consolidation and re-allocation. For instance, the ‘Peraturan Presiden Nomor 10 tahun 1959‘ (Government Regulation 10) disallowed foreigners from conducting businesses in specific areas. At the same time, the regulation forced the transfer of business ownership to local citizens.

In addition, under the guidance of the Bappenas [Badan Perencanaan Pembangunan Nasional] (National Planning Council), the Indonesian government focused on national development. The plan involved an estimated spending of $30 billion rupiah on an annual basis. Land reform was also conducted to nurture the development of the agricultural sector, as observed by the Basic Agrarian Law (Peraturan Dasar Pokok-Pokok Agraria).

1965 to 1997: ‘New Order’ [Suharto]
After the sudden political transition, Suharto led a major economic transformation that resulted in the rapid modernisation of Indonesia. Together with his team of Western-educated technocrats, also known as the ‘Berkeley Mafia‘, Suharto introduced liberal economic policies.

The BULOG [Badan Urusan Logistik] (National Logistics Body) was established in 1966 for price stabilization in the agriculture sector. To protect the interests of the locals, the government introduce price control measures to reduce inflationary pressures for crops, such as rice.

At the same time, the BIMAS (Mass Guidance Programme) was implemented in 1969 to nurture the rice industry through the provision of access to foreign technology. Also, Suharto capitalized on the Green Revolution by providing disease-resistant and high-yielding varieties.

As a result, Indonesia flourished tremendously from its successful efforts in raising rice production. In fact, agriculture contributed to nearly one-third of the country’s Gross Domestic Product (GDP).

Another critical aspect of Indonesia’s rapid economic growth can be traced to its emphasis on export-oriented industrialization (EOI). It began with the provision of incentives to attract foreign investment, such as the New Investment Law of 1967, which guaranteed no corporate tax for specific projects.

Additionally, financial liberalization was pursued in the 1980s. For example, the government allowed the deregulation of money markets, as evidenced by the increase in number of private local banks from 63 in 1988 to 165 in 1995. By 1990, the privatization of the Jakarta Stock Exchange promoted investment activities. These changes can be explained by the easing of licensing regulations for foreign banks.

Hence, we can observe that the 1980s and 1990s were a notable period in which the government played a secondary role, thus allowing the private sectors to guide the economic development of Indonesia.

Furthermore, the government tapped on the economic expertise and domestic capital of its Chinese-dominated private businesses to flourish the economy. By 1996, a group of domestic conglomerates became the key pillar of the economy, such as the Salim Group (e.g. Indomie!) and Astra Group.

What can we learn from this case study?
Consider the following questions to understand this country-specific case study:
– How important was the government in shaping the economic development on Indonesia after independence? [to be discussed in class]

After analyzing this case study, review your knowledge comprehension by answering JC History essay questions. Alternatively, you can sign up for our JC History Tuition and find out how you can organise your answers effectively.

On a similar note, we encourage you to join other JC tuition programmes, such as GP TuitionEconomics TuitionJC Chemistry TuitionJC Math Tuition and China Studies in English Tuition. For Secondary Tuitionclasses, we offer Secondary English TuitionSecondary Math tuitionSecondary Chemistry Tuition and Secondary Economics Tuition. Call 9689 0510 to find out more!