Early Challenges

Question 1

Clustering early challenges to economic development

Answer 1

A. Challenges from colonial legacy
B. Challenges from WWII/Decol
C. Challenges from inherent SEA conditions
D. Challenges from external conditions

Question 2

What were the early challenges to econ devt?

Answer 2

A
1. Absence of industrial base
2. Absence of domestic capital
3. Absence of skilled labour
4. Absence of experienced leaders
5. Absence of autonomous business class
B
6. Economic destruction and reconstruction
7. Political unrest and insurgencies
8. Colonial economic policies
9. Foreign/colonial ownership of strategic industries
C
10. Domestic patronage (govts lacked transparency)
11. Resource-curse
D
12. Difficulty of accessing international markets, international protectionism
13. CW + difficulty for socialist economies

Question 3

Examples for absence of industrial base?

Answer 3

SG: British had developed SG as an entrepot - not an industrial centre - annual growth rate under 2% in 1950s. No agrarian sector, inconsequential domestic market - not self-sufficient

V: Lack of transport infrastructure - overseas shipments held up at docks, national highway filled with potholes, at one time, estimated ⅓ of all trucks idle due to a lack of spare parts

Question 4

Examples for absence of domestic capital?

Answer 4

P: Heavy foreign loaning, reliance on foreign aid, by 1972, total foreign debt was US$2.2b

I: 1967 Intergovernmental Group on Indonesia (IGGI) comprised of 14 nations - major funnel for foreign aid - $2.5B for 1985/86

Question 5

Examples for absence of autonomous business class?

Answer 5

I: Absence of domestic bourgeoise capable of replacing Dutch influence in the economy (e.g. banking, trading, estate houses, etc)
Link to colonialism - less econ space

Contrast: T - more economic space due to independence, thus growth of an autonomous business class

Question 6

Examples for economic destruction and reconstruction?

Answer 6

B: Lost all its oil refineries, 90% of its boats, 85% of locomotives, 70% of its roads. Docks and factories severely damaged

P: By end of war, 80% of Manila had been destroyed, including industrial and modern services sectors - factories, warehouses, power plants, hospitals, universities, etc

Question 7

Examples for political unrest and insurgencies?

Answer 7

B: Domestic political instability, civil war among the minorities presented unfavourable conditions for economic development

V: Prolonged experience of war (2 indochina wars)

Question 8

Examples for colonial economic policies?

Answer 8

SG: British had developed SG as an entrepot - not an industrial centre - annual growth rate under 2% in 1950s

M: British policies for admin convenience compounded ethnic differences - different admin frameworks established for each ethnic grp - e.g. Chinese Protectorate 1877, protection of Malay rice cultivation - inevitable effects on economic activity

B: Post-war Britain unable to provide substantial economic assistance