Efffectiveness of GI in addressing inherent domestic conditions

Question 1

GI effective in addressing agrarian endowment and resource curse (P, I)

Answer 1

Philippines (agrarian economy that was largely owned by illustrados)
- New Society emphasised agriculture and participatedly directly
- NDC acquiring land, processing and marketing oil functions
- Mid-1960s: International Rice Research Institute (IRRI) created a high-yielding rice variety named IR8
–> 1972: Filipino economy self-sufficient in rice
1961-81: Rice production doubled to 7.9m tonnes

Indonesia
- Colonial agrarian economy dominated by Dutch and Chinese capital
- Bimas, a state agricultural programme, provided credit and physical inputs (e.g. new seeds) to promote rice production
- 1968-89: Rice production increased 2.5x from 12m to 29m tonnes
Mid-1980s: Indonesia had become self-sufficient in rice

Question 2

GI effective in addressing issues of poverty and lack of domestic capital leading to positive economic change (Thai and Ph)

Answer 2

Thailand
- 1952 Directive; Chinese to establish centralised associations for gold trading, jewellery trading and banking to control Chinese activities
- From 1947: Western companies threatened with closure and competition
E.g. Shell
–> 1964-72: Foreign capital comprised only 12% of total capital
1979: 60% of 500 largest firms were fully Thai owned

Philippine
- Challenge: majority of the wealth were concentrated within the rich Chinese as 90% of them made the upper-middle class
- 1954 Anti-Chinese Retail Trade Nationalisation Act; Forced the Chinese out of corn and rice trading
- 1958 Congress Bill; Mandated that important industries were 60% Filipino-owned

SUCCESS
1948-65: Filipino participation in import trade increased by 3-fold to 70%

Question 3

Cold War and Aid leading to positive economic change
(Thailand)

Answer 3

Thailand
- Aid: more than 900M in aid and loans from the US, Japanese joint ventures in agricultural and industrial development + economic and military aid from the Vietnam War
–> Infrastructural development from early Thai policies benefitted largely from the aid as Jap Investments and Western MNCs transformed the economy to increase manufacturing in the industrial sector
–> Manufactured exports as a % of total exports increased from 1.2% to 32.3% in 1980

Question 3

GI effective in addressing lack of economic expertise and foreign advice leading to positive economic change (Singapore, I)

Answer 3

[S]
- lack of economic expertise with the majority of the populace only involved in early industrialisation due to entrepot trade
- 1955 International Bank for Reconstruction and Development (IBRD) report stressing industrial expansion and attraction of FDI
- 1959 Lyle Report from Canadian specialist advised on industrialisation through governmental organisations and attraction of FDI
- 1961 Winsemius report emphasised the same ideas

–>Led to the development plan of 1961-64 and EDB
–>Led to the establishment of PIO and IEO in 1959 directed at investments

[I]
- 1970s-80s: IMF played a central advisory role in Indonesia’s financial reorganisation
- GDP growth during this period reached: 7.9% in the 70s and 6.4% in the 80s