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JC History Tuition Online - What does FELDA stand for - Economic Development Notes

What does FELDA stand for?

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Topic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development

Historical context
FELDA stands for ‘Federal Land Development Authority’. Under the Land Development Ordinance, FELDA was established on 1 July 1956. Its main function was oriented towards the development and relocation of land, striving to achieve poverty eradication. Land development projects were focused on the cultivation of oil palm and rubber.

In its initial stage of development from 1956 to 1970 its main function was to act as a lending body, providing funds to the state governments for land development. However, with the growing political importance of the overall rural programme (and thus land development which was a major component of this policy), FELDA was given in 1960 direct authority to open up and develop land throughout Malaysia.

An excerpt from “Group Farming in Asia: Experiences and Potentials” by John Wong.

Application of FELDA
FELDA was first put into practice in March 1957, relocating about 400 settlers over 1,680 hectares of land in Air Lanas, Kelantan. These settlers were picked from rural areas and assigned about 4 to 6 hectares of land to cultivate either rubber or oil palm. They were paid wages until their crops matured. In 1960, FELDA expanded its function to include the management of all land schemes and land development at the national level.

From that date its activities of land development and settlement rapidly increased until the present day when it has some 200 schemes throughout Peninsular Malaysia, with 40,000 settlers and their families, and sales in 1976 of M$357 million (US$145 million). In the twenty-year period from 1956 to 1976 FELDA has also opened up 967,000 acres of land and built up and an extensive processing and marketing apparatus for its products including 25 palm oil and rubber factories and bulk storage installations at Malaysia’s main ports.

An excerpt from “Group Farming in Asia: Experiences and Potentials” by John Wong.

In the 1990s, FELDA became a statutory board that generates its own income through diverse businesses. In particular, FELDA has formed private corporate entities to support its value chain of activities, such as FELDA Holding Berhad and FELDA Global Ventures.

What can we learn from this article?
Consider the following question:
– How far do you agree that agricultural policies were most significant in promoting economic development?

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

We have other JC tuition classes, such as JC Math Tuition 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 Online - What was the Six-Day War - United Nations Notes

What was the Six-Day War?

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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

Historical context
After the 1948 War of Independence and the 1956 Suez Canal Crisis, tensions between Israel and the Arab nations in the Middle East remained high. Although the United Nations Emergency Force (UNEF I) was deployed as a peacekeeping force to monitor ceasefire and prevent a resurgence of conflict at the Egypt-Israel border from the 1957 to 1967, their contributions were short-lived.

On 16 May 1967, the Egyptian government requested the withdrawal of the UNEF I from Sinai. Although UN Secretary-General U Thant offered to re-deploy the peacekeepers to the Israeli side of the border, Israel rejected the request. By 31 May 1967, most contingents have departed by air.

In the same month, Egyptian President Gamal Abdel Nasser declared the closure of the Straits of Tiran, blocking access for Israeli vessels. The military was mobilised to gather along the border with Israel, setting the stage for the war.

Fearing an Arab backlash—their UNEF contingent, accused of pro-Israeli bias, was given forty-eight hours to leave Sinai—the Canadians abandoned the convoy idea in favor of reviving the Armistice Agreement and transplanting UNEF in Israel.

“The Canadians and the Europeans will not accept responsibility,” the president recorded in his diary, “They say it’s not their trouble, and they shouldn’t get into the Middle East right now.” Particularly intimidating was Nasser’s threat to fire on any ship attempting to break the blockade, and to suspend the flow of Arab oil to its owners.

An excerpt from “Six Days of War: June 1967 and the Making of the Modern Middle East” by Michael B. Oren.

The War: Operation Focus
On 5 June 1967, the Israeli Defense Forces (IDF) launched a coordinated aerial assault on Egypt. By the end of the day, the IDF laid waste to Egypt, Jordan, Syria and Iraq. Israel had achieved air superiority over the Middle East.

On the ground, Israeli forces invaded the Sinai Peninsula and the Gaza Strip. In a few days, Israelis had forced the Egyptians to retreat. On 7 June 1967, Israel re-captured Jerusalem after putting up a fierce resistance against Jordan. Two days later, Israeli tanks and soldiers retook Golan Heights from Syria.

It was 7:10 AM on June 5, 1967. One hundred eight-three sleek Israeli fighter jets glided smoothly through the dusty morning air. They passed over Tel Aviv, Israel, heading out over the Mediterranean Sea.

[…] What happened next surprised everyone watching and, later, the world. The Israeli fighter jets swept into Egypt from the sea and bombed Egyptian military positions.

That day, and the five days later that followed, would become known as the Six-Day War.

An excerpt from “The Six-Day War (War and Conflict in the Middle East)” by Matthew Broyles.

Resolution
On 10 June 1967, the United Nations brokered a ceasefire, putting an end to the violent confrontation. Although the Israelis celebrated their triumph against their Arab neighbours, the Arab leaders signed a resolution in August (known as The Khartoum Resolutions). The Arab states were resolved not to make peace with Israel, setting the stage for the Yom Kippur War six years later.

3. The Arab Heads of State have agreed to unite their political efforts at the international and diplomatic level to eliminate the effects of the aggression and to ensure the withdrawal of the aggressive Israeli forces from the Arab lands which have been occupied since the aggression of June 5. This will be done within the framework of the main principles by which the Arab States abide, namely, no peace with Israel, no recognition of Israel, no negotiations with it, and insistence on the rights of the Palestinian people in their own country.

An excerpt from The Khartoum Resolutions, 1 September 1967.

What can we learn from this article?
Consider the following question:
– How far do you that the United Nations should not be blamed for the outbreak of the Six-Day War?

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

We have other JC tuition classes, such as JC Math Tuition 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 Online - How did Singapore respond to the Cambodian Crisis - ASEAN Notes

How did Singapore respond to the Cambodian Crisis of 1979?

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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)

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)

Prelude to the CGDK: An enervating meeting
In view of the Vietnamese invasion and subsequent occupation of Cambodia in the late 1970s, ASEAN and its member nations including Singapore became increasingly concerned with this challenge posed to regional security.

In 1979, the Thai Foreign Minister Upadit Pachariyangkun and the Singapore Foreign Minister S Rajaratnam met the members of the outsted Pol Pot regime, such as Kheiu Samphan and Ieng Sary. During the meeting, Thailand and Singapore deliberated on the inclusion of other Cambodian factions to oppose the pro-Vietnamese puppet regime under Heng Samrin.

Notably, this meeting had set the stage for the creation of the Coalition Government of Democratic Kampuchea (CGDK) in June 1982. Rajaratnam made it clear to the Pol Pot leaders that they had to take a backseat, while the other two groups, namely Sihanouk’s royalist faction and anti-communists under Son Sann, led the coalition. This was because of the controversial atrocities committed Pol Pot regime in the 1970s that would have hindered efforts to garner international support.

Minister Rajaratnam reminded them of the horrors [the Pol Pot regime] had perpetrated and that they had no chance of getting international support without forming a coalition with other nationalist groups. […] While this discussion was going on, I observed that Ieng Sary’s wife, Ieng Thirith, was giving fierce looks at our Minister, boiling with anger, breathing heavily with chest heaving and subsiding as she listened to her husband’s requests being rejected. [..] We prevailed because they had no choice. We thus cobbled together a coalition under Prince Sihanouk.

An excerpt from a chapter entitled “Scenes from the Cambodian Drama” by Mr. S. Dhanabalan in “The Little Red Dot: Reflections by Singapore’s Diplomats” by Tommy Koh and Chang Li Lin.

Interactions with China
During a special International Conference on Cambodia in 1980, ASEAN had lobbied for a United Nations resolution to demand the immediate withdrawal of Vietnamese forces from Cambodia. During the Conference, a delegation that represented the People’s Republic of China (PRC) asserted that the Pol Pot regime should be reinstated, which drew criticisms due to moral and pragmatic reasons.

The Chinese Deputy Foreign Minister Han Nian Long alleged that Singapore was involved in a conspiracy to influence the attendees of the Conference to oppose the return of the Pol Pot regime. In response, Dhanabalan disagreed, stating that there was an overwhelming majority that was against this move.

I was surprised to note how keen the U.S. was to accommodate the PRC’s request. I explained to the U.S. Assistant Secretary of State that it was not possible to accede to the PRC’s request as it was wrong and would not get any support from the conference. He ended the meeting by threatening that he would go over my head and take the matter up with Prime Minister Lee Kuan Yew in Singapore.

[…] PM Lee sent a note to the effect that the Foreign Minister represented the Singapore’s government’s position at the conference. It was a real life experience for me that interests and not principles determine the actions of big powers. The International Conference on Cambodia adopted a resolution that reflected ASEAN’s position.

An excerpt from a chapter entitled “Scenes from the Cambodian Drama” by Mr. S. Dhanabalan in “The Little Red Dot: Reflections by Singapore’s Diplomats” by Tommy Koh and Chang Li Lin.

What can we learn from this article?
Consider the following question:
– Assess the political effectiveness of Singapore’s efforts in response to the Third Indochina War.

Join our JC History Tuition to learn more about the Regional Conflicts and Cooperation. 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 Online - What is the purpose of Tripoli Agreement - National Unity Notes

What is the purpose of Tripoli Agreement?

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Topic of Study [For H2 History Students]:
Paper 2: Search for Political Stability
Section B: Essay Writing
Theme I Chapter 2: Approaches to National Unity

Historical Background: Moro Muslim separatism
In May 1968, the Muslim Independence Movement (MIM) was formed in the wake of the ‘Corregidor Affair‘, in which the Philippine armed forces was being criticised for causing the killing of Moro Muslim soldiers for a secret operation to take over Sabah. The MIM aimed to lead political activities to create a separate Moro state in southern Philippines.

In October 1972, younger leaders of the MIM formed a splinter group known as the Moro National Liberation Front (MNLF) in Pulau Pangkor, Malaysia. They viewed the older Moro elites in the MIM as ineffective.

Conflagration: Martial Law of 1972
On 23 September 1972, President Ferdinand Marcos declared martial law, claiming that the growing violence between Christians and Muslims and the rise of an illegal separatist movement necessitated the use of authoritarian measures. In response, the Armed Forces of the Philippines (AFP) were deployed to suppress the Moro Muslim rebellions.

Within two months after the declaration of martial rule, in November 1972, the Moro National Liberation Front-Bangsa Moro Army (MNLF-BMA) launched a series of coordinated attacks on military outposts and announced to the world the struggle for independence of the Bangsa Moro. It declared the entirety of Mindanao, the Sulu archipelago and Palawan as the ancestral homeland of the Bangsa Moro. Its battlecry: “Victory or to the graveyard!”

An excerpt from “The Minoritization of Indigenous Communities of Mindanao and the Sulu Archipelago” by Rudy Buhay Rodil.

The MNLF operated from Malaysia and received military aid from abroad, notably Libya and Malaysia. One key figure of the MNLF, Hashim Salamat, made a personal visit to Libya and convinced the government to switch support from the MIM to the MNLF. Over time, more Moro rebels joined the MNLF, leading to the expansion of the separatist movement.

In 1974, the AFP led a major military operation to defeat the MNLF separatists. On the other hand, the MNLF stood their ground, receiving help from its external supporters. For instance, military advisors from Libya helped the MNLF to utilise guerilla tactics to oppose the AFP.

The Tripoli Agreement: An illusory peace?
In July 1975, the Organisation of the Islamic Conference (OIC) urged the Marcos government to reach a political settlement with the MNLF. The OIC is an inter-governmental organisation founded in 1969 to safeguard Muslim interests around the world and achieve peace and harmony.

On 23 December 1976, the Philippine government and the MNLF signed the Tripoli Agreement. It created the first autonomous region in the southern Philippines, including areas like Basilan, Palawan and Sulu. The Agreement meant to grant the autonomous government to have an executive council, legislative assembly, financial system and special regional security forces.

The Tripoli Agreement also benefited Marcos. The Philippine Armed Forces also badly needed a ceasefire. By approving an agreement which at first appeared to contain substantive concessions on his part, Marcos managed to reduce Islamic Conference pressure and even neutralize the Libyans, the MNLF’s strongest supporters. Moreover, Marcos held the power to implement the agreement as he saw fit.

An excerpt from “The Philippines Reader: A History of Colonialism, Neocolonialism, Dictatorship, and Resistance” by Daniel B. Schirmer and Stephen Rosskamm Shalom.

When the MNLF requested Marcos to implement the Tripoli Agreement by executive order, he submitted it to a referendum within the provinces that would be part of the newly-proposed autonomous region instead. On 17 April 1977, a majority of voters objected the Agreement.

Given that the Agreement failed to create a unified autonomous region led by the MNLF, the leaders ended talks with the Marcos government and rallied its members to resume guerilla attacks and demand complete independence. Notably, MNLF leaders Hashim Salamat and Nur Misuari left the group and established the Moro Islamic Liberation Front (MILF). Salamat asserted that the MNLF should have pursued the goal of creating an Islamic nation.

However, on 4 January the Philippine government announced that a referendum would be held in the southern provinces to ascertain which wanted to be autonomous; other areas could have their own referenda, so diluting the Muslim character of the south. Gaddafi did not like the sound of this, and the MNLF flatly rejected the idea of a referendum. To sweeten the pill Marcos promised a conditional amnesty for Muslim rebels in the south and then promulgated new laws for a Muslim court system. The fresh talks in Tripoli collapse, the Marcos envoy returned to Manila, and the MNLF threatened to resume hostilities; by now the Moros were demanding their own flag, their own army, and the incorporation of three Christian provinces (offering offshore oil and good farmland) into the Muslim area.

An excerpt from “Libya: The Struggle for Survival ” by G L Simons and Isaline Bergamaschi.

What can we learn from this article?
Consider the following question:
– Assess the political reasons that explain the rise of separatism in independent Southeast Asian states.

Join our JC History Tuition to learn more about the Approaches to National Unity. 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 Online - What is the Chiang Mai Initiative - Asian Financial Crisis Notes

What is the Chiang Mai Initiative?

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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

The Asian Financial Crisis: A regional solution
In view of the disastrous impacts caused by the Asian Financial Crisis, member states of the regional organisation ASEAN gathered to discuss the possible responses to mitigate the adverse impacts.

On 6 May 2022, ASEAN, China, Japan and South Korea gathered in Chiang Mai, Thailand, to discuss the creation of a network of bilateral currency swap agreements. The meeting took place as part of the 33rd Annual Meeting of the Board of Governors of the Asian Development Bank (ADB). Participants were described as “ASEAN+3” (APT).

But very soon, particularly in the wake of the Asian financial crisis, the APT evolved into an institutionalized forum of consultation and cooperation between ASEAN and three Northeast Asian powers over a growing range of regional issues, including economic cooperation, financial and monetary cooperation, social and human resource development, scientific and technical development, culture, information, development, political and security areas, and various transnational issues.

An excerpt from “The Politics of Economic Regionalism: Explaining Regional Economic Integration in East Asia” by Kevin G. Cai.

The Chiang Mai Initiative (CMI)
The Initiative was introduced to avert a similar disaster. The ASEAN+3 members also proposed the creation of a pool of foreign exchange reserves, which will be accessible by participating central banks to stave off currency speculation.

A most important achievement of the APT in the wake of the Asian financial crisis seemed to be the introduction of the Chiang Mai initiative (CMI) in 2000, which led to the establishment of a system of 15 bilateral currency swap arrangements among APT member states plus ASEAN swap arrangement that was designed to improve regional financial stability. Efforts were then made to multilateralize the CMI by converting bilateral swap arrangements into a common funding pool of foreign exchange reserves.

An excerpt from “The Politics of Economic Regionalism: Explaining Regional Economic Integration in East Asia” by Kevin G. Cai.

The APT conference had officiated the “Asian Currency Cooperation Plan”, which functioned on two paths. First, a currency exchange agreement was developed to allow the exchange of financial information. Second, a supervising institution was set up to prevent possible currency crises through close coordination between central banks of partner nations.

The present exchange agreement implies, in fact, that Japan works as the supplier of currency in international exchange. Japan and Korea can mutually exchange $7 billion in dollar-Korean won; Japan and Thailand signed a U.S. dollar-baht exchange agreement worth $3 billion; Japan and the Philippines reached an agreement worth $3 billion; Japan and Malaysia reached agreement to exchange $3.5 billion;

An excerpt from “Co-design for a New East Asia After the Crisis” by Hitoshi Hirakawa and Young-Ho Kim.

What can we learn from this article?
Consider the following question:
– Assess the view that Southeast Asian governments were effective in their responses to the 1997 Asian Financial Crisis.

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

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

JC History Tuition Online - What is the Look East policy - Economic Development Notes

What is the Look East Policy of Malaysia?

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Topic of Study [For H2 History Students]:
Paper 2: Economic Development after Independence
Section B: Essay Writing
Theme II Chapter 1: Paths to Economic Development

Historical context: Learning from the best
Six months after Dr. Mahathir assumed the role as the Prime Minister of Malaysia, his administration launched the ‘Look East Policy‘ in February 1982, which called upon Malaysians to emulate the Japanese work ethic and business management techniques. By doing so, the government aims to acquire Japanese expertise and capital through bilateral trade and investment.

To Mahathir, the definition of ‘East’ consisted of Japan and South Korea. Interesting, Taiwan and Singapore were not being raised as case study references.

Mahathir also mentioned two features which Malaysia proposed to adopt from the Japanese model. One was the concept of Malaysia Incorporated, intended to encourage business owners and workers in the public and private sectors to work together. Another was to create large companies based on the Japanese sogo shoshas (the large trading companies), although in Malaysia these were not developed as rapidly as the Prime Minister would have wished.

An excerpt from “Malaysian Politics Under Mahathir” by Diane K. Mauzy and R. S. Milne.

Two-pronged approach
The ‘Look East Policy’ had two parts. First, Malaysians studied at the Japanese universities. Second, trainees worked at Japanese industries. The program was mainly financed by the Malaysian government, while the Japanese counterpart deployed Japanese trainers and covered part of the expenditure.

No one can dispute that Japan achieved a miracle when it rebuilt itself after the war. How did it do it? It did it by not being advised by other people. It did it in its own way. The only advice it accepted was to produce high quality goods, goods of world standards, so as to be accepted by the world markets. The rest was entirely Japanese.

[…] Japan has been censured for the close cooperation between the government and the corporations. Japan incorporated was regarded as some kind of cronyism involving the government and the private sector. Malaysia sees nothing wrong in the close collaboration between government and the private sector. The government should help the private sector to succeed because a large chunk of the profits made by the private sector belongs to the government. In helping the private sector the government is actually helping itself.

An excerpt from a speech by Dato’ Seri Dr. Mahathir bin Mohamad, Prime Minister of Malaysia, on “Look East Policy – The Challenges for Japan in a Globalized World“, in 2002, marking the 20th anniversary of the ‘Look East Policy’.

Dr. Mahathir held a firm belief that the ‘Look East Policy’ was vital in realising his Vision 2020, an aim to transform Malaysia into fully developed nation by doubling the Gross Domestic Product (GDP) every decade between 1990 and 2020. Japan was identified as a integral role to fulfil this national aim.

A pipedream in the making?
However, government efforts to emulate the successful Japanese model were obstructed by several factors. One such problem was the cultural differences. For instance, the Japanese employees have adapted to long working hours, but there was resistance from the Malaysians.

Another issue was related to the differences in economic development. While Japan was a pro-Capitalist developed nation, Malaysia was still in the process of transforming from a developing nation to a newly-industrialised economy.

The application of the ‘Look East Policy’ can be traced to the establishment of the Heavy Industry Corporation of Malaysia (HICOM) in 1980, which was also key feature in Mahathir’s policymaking in the 1980s. With the help of a team of United Nations development experts, HICOM formed companies, such as the Proton Saga national car project (Perusahaan Otomobil Nasional) and the Perwaja Terengganu steel mill.

While still Minister of Trade and Industry, Mahathir contacted Mitsubishi, apparently without sounding out any other possible Japanese partners, and reached agreement with Mitsubishi.

[…] There seems to have been reluctance to make use of knowledgeable Chinese in the Proton project. However, on marketing and selling, the government relied on existing Chinese firms. There was some truth in comments that the Proton was not really a Malaysian car, but a Japanese car with a Malaysian “chop” (name). In 1994 Mahathir accepted this, admitting that Malaysia would not have the know-how to produce a fully fledged car for ten to fifteen years.

An excerpt from “Malaysian Politics Under Mahathir” by Diane K. Mauzy and R. S. Milne.

What can we learn from this article?
Consider the following question:
– How far do you agree that external actors were more important than domestic actors in promoting economic development of Southeast Asian states?

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

We have other JC tuition classes, such as JC Math Tuition 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 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

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 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 Online - What affected the economic development of Indonesia under Suharto

What affected the economic development of Indonesia under Suharto?

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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

Challenges that surfaced during the ‘New Order
After Suharto took over Sukarno as the Indonesian President in the late 1960s, the new leader had begun efforts to recover the Indonesian economy. Agendas were set in the new Five-Year Plan, also known as Repelita I (Rencana Pembagunan Lima Tahun I).

A crisis in the agricultural sector: Rice
In the early 1970s, a serious drought had hit Indonesia. It adversely affected rice producers, leading to a fall in production. As a result, the price of rice surged, impacting the poor. If left unchecked, this economic problem may spill over to the political sphere.

In 1973, Suharto formed the Badan Urusan Logistik (BULOG), a national rice agency. It was established to build and maintain a buffer stock of rice, managing distribution of rice across Indonesia. Also, it helped to maintain rice price stability to protect the welfare of rice farmers.

In addition, the Indonesian government aimed to create a national buffer stock of rice to pre-empt shortages, should there be unforeseen circumstances like a serious drought. By 1979, an integrated network of modern warehouses was built. This network had the capacity to store one million tons of rice across the nation.

From 1975 to 1983 BULOG implemented the government’s floor and ceiling price policy and delivered monthly rations to the Budget Groups without a hitch. […] Supporting the floor price received top priority as a way of stimulating domestic rice production, a crucial task because of the perceived unreliability of the world rice market. From 1974 to 1978, persistent problems with disease and pests associated with the new rice varieties kept upward pressure on rural prices, so maintaining the floor price was relatively easy at the prices actually set, which merely kept pace with inflation.

An excerpt from “Indonesia’s Sustainable Development in a Decentralization Era” by Budy P. Resosudarmo, Armida S. Alisjahbana and Bambang P.S. Brodjonegoro.

Public demonstrations: Malari
In the same decade as the ‘rice crisis’, Indonesia grappled with protests in Jakarta and other parts of Indonesia, known as the Malari riots in short (Malapetaka Lima belas Januari). The origins of the riots can be traced to a visit by the Japanese Prime Minister Kakuei Tanaka. There were fears of growing Japanese influence in the commercial sectors of Indonesia.

In response to the demonstrations led by students, the New Order government mobilised the military to quell the unrest and restore order. Furthermore, public discussion of the Malari and its impacts was prohibited.

From the economic standpoint, Suharto revised the policies on attracting foreign investment, especially from Japan, to minimise the resurgence of socio-political instability.

The first was the so-called “Malari Affair” of January 1974, during which public anger about the rising tide of Japanese investment boiled over and called into question the continued dominance of energy extraction in Japanese-Indonesian relations. […] Malari forced a toning down of Japan’s conspicuous presence in Indonesia, as many analysts at the time identified it with Japan’s poor public image abroad.

An excerpt from “Engineering Asia: Technology, Colonial Development, and the Cold War Order” by Hiromi Mizuno, Aaron S. Moore and John DiMoia.

What can we learn from this article?
Consider the following question:
– How successful were governments in managing economic challenges 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 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 Online - How did Giant become the biggest bicycle manufacturer in the world

How did Giant become the biggest bicycle manufacturer in the world?

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

Humble beginnings: A SME run by family and friends
In 1972, a 36 year-old engineer King Liu founded Giant with a group of associates, including Tony Lo, in Taichung (臺中). Lo was a business graduate from the National Taiwan University. Interestingly, Liu cycled to work at first to understand his product better.

In 1977, Liu secured a contract to produce bicycles for an overseas American company Schwinn, which was known for its 10-speed steel machines. Giant then functioned as an Original Equipment Manufacturer (OEM). Liu, who was fluent in Japanese, visited Japan to study the bicycle production process, replicating suitable work practices at Giant.

An unexpected turn of events: Turning setbacks into opportunities for success
In 1981, Giant set up its own bicycle brand as an Original Brand Manufacturer (OBM). It was a bold and unusual move as products that were manufactured in Taiwan were still viewed as low-quality and cheap.

Five years later, Giant brought its bicycles to the global market, starting with the Netherlands. Lo had identified Netherlands as a suitable European headquarters due to its geographical location, comprehensive infrastructure and integrated transport network. From there, Giant exported to other European markets. By the mid-1980s, Giant exported nearly 10 million bicycles a year.

The own-branding strategy was intensified when Schwinn shifted its OEM orders to its joint China’s company (China Bicycle Company) in 1985. Under this adverse condition, Liu steered the company into a new direction, through rapidly expanding its overseas branches around the world, in order to fill up the excess capacity generated by Schwinn’s withdrawal. The overseas branches were all targeted on pursuing entrepreneurial profit by promoting its own-brand Giant bicycles. Its overseas branch was established in Netherlands in 1986, the Us in 1987, Japan in 1989, Canada and Australia in 1991, and mainland China in 1992.

An excerpt from “Entrepreneurship and Taiwan’s Economic Dynamics” by Fu-Lai Tony Yu.

In the 1985, the US-based Schwinn switched to a Chinese supplier to keep production costs low. As a result, nearly three-quarters of Giant’s revenue had been affected. Yet, Giant did not relent. Instead, the company capitalised on the low production base in China, setting up two production plants in China, namely in Shanghai (上海) and Jiangsu (江苏).

Close collaboration with the government
In 1986, Giant launched a joint project with the government-funding Industrial Technology Research Institute (ITRI). They explored use of advanced materials to create carbon fiber bicycle frames. Giant also worked on other technology diffusion projects for aluminum welding with Chun Shan Institute of Science and Technology (CSIST).

Giant’s R&D efforts had paid off as tts revenue rose to over NT$ one billion.

In 1987, Giant pioneered the mass production of carbon bicycles, particularly the model called Cadex 980C. Lo dubbed it ‘Project 88’. Giant had applied computer-aided design and volume production techniques to manufacture these carbon fiber road bicycles. By 1991, Giant manufactured 20 thousand units of carbon bicycles.

Now, Giant one of the top bicycle manufacturers in the world.

Giant thinks of itself as an innovator in the fields of production and design, as well as competitive strategy. Giant was one of the first to upgrade parts and begin exporting them when Taiwan’s market became too costly. Giant was also the first Taiwanese company to use chrome alloy steel in their frames and to produce single-piece graphite bicycle frames.

An excerpt from “Strategy, Structure, and Performance of MNCs in China” by Yadong Luo.

What can we learn from this article?
Consider the following question:
– How far do you agree that Giant’s successes in export promotion were the result of Confucian culture?

Join our JC History Tuition to learn more about the rise of Asian Tiger economies and 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 Online - What are chaebols in South Korear - Asian Tigers Notes

What are chaebols in South Korea?

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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 3: Rise of Asian Tigers from 1970s to 1990s [South Korea and Taiwan] 

Origins of Chaebols
Chaebols (재벌) are large family conglomerates that played a crucial role in the economic miracle of South Korea. The word “chaebols” refers to “financial clique”. After the Korean War (1950-1953), some entrepreneurs took advantage of the available opportunities, particularly the purchase of former Japanese-owned companies that were nationalised by the Rhee government. During Japanese colonial rule, these businesses dominated the manufacturing, trading and finance sectors.

The chaebols began to emerge under the patronage of the Rhee regime, and they paid the regime back through illicit political contributions. The major sources of chaebol accumulation during the Rhee period were selective allocation of import licenses and quotas, bargain price acquisition of former Japanese properties, aid funds and materials, cheap bank loans, and government and U.S. military contracts for reconstruction activities.

[…] Vested properties provided the initial base for many chaebols.

An excerpt from “In the Shadow of Violence: Politics, Economics, and the Problems of Development” by Douglass C. North, John Joseph Wallis, Steven B. Webb and Barry R. Weingast.

Additionally, these Korean entrepreneurs were aided by the Rhee government through the latter’s use of import-substitution policies. The local market was insulated from foreign competition in targeted sectors, biding time for these companies to flourish. In other words, close networks between the entrepreneurs and government were vital in enabling the rise of private businesses.

Following the military coup led by General Park Chung-hee in 1961, the military government switched gears, transitioning towards an export-driven economy. The Park regime had identified local businesses to support its industrialisation plans. Through continued support in the form of incentives like preferential tariffs and low interest loans, these Korean businesses thrived.

Enter Byung-chul: Founder of Samsung
Pragmatic and competent Korean entrepreneurs like Lee Byung-chul and Chung Ju-yung had surmounted obstacles and leveraged on available opportunities to dominate local and world markets. In 1938, Lee formed Samsung Trading (삼성물산). Although the Korean War had disrupted his plans, Lee remained determined to expand his business globally. After the end of the war, he set up Samsung Trading’s branch office in Tokyo, Japan.

Whilst under the Rhee government, Lee capitalised on the business opportunities granted by the former’s import-substitution policies. He established a sugar and flour manufacturing company known as Cheil Jedang (씨제이제일제당 주식회사) in 1953 and a textile company called Cheil Mojik (제일모직) in 1954.

Lacking know-how in textile production during its early days, [Cheil Mojik] engaged in technology transfers with European and Australian firms to learn spinning, grinding, shearing, raising, and milling technologies. With the rise of export-orientation industrialization strategies during the 1960s, Cheil engaged in exports, starting with 8000 lbs. of worsted yarn, exported to Hong Kong in 1961.

An excerpt from “The Routledge Companion to Asian Family Business: Governance, Succession, and Challenges in the Age of Digital Disruption” by Ho-Don Yan and Fu-Lai Tony Yu.

After the rise of Park’s military government, Lee re-positioned Samsung Trading and Cheil Mojik as key Korean exporting companies. In 1969, Samsung was given a chance to venture into the electronics industry. Lee sought help from Japanese electronics firms Sanyo and NEC (Nippon Electric Company) to access foreign technology.

Lee Byung-chul also sought to identify and leverage other new business opportunities for Samsung, taking advantage of strong economic growth and the rapidly advancing skills of Korean engineers. The group expanded into shipbuilding through a combination of acquisitions and new shipyard constructions.

[…] In the 1980s, as Lee Byung-chul sensed global business opportunities earlier than others, Samsung took the lead among Korean manufacturers in setting up overseas factories in order to strengthen its global market presence. This new direction was particularly visible in the electronics industry, where Samsung had become a major global competitor. It invested into production sites in Portugal, the UK, and the USA.

An excerpt from “Entrepreneurship in Korea: From Chaebols to Start-ups” by Martin Hemmert and Jae-Jin Kim.

What can we learn from this article?
Consider the following question:
– Assess the significance of private businesses in contributing to the economic miracle of South Korea.

Join our JC History Tuition to learn more about the rise of Asian Tiger economies. 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.