Govt approaches (+policies) Flashcards
How do we cluster the various countries? What are the clusters?
- Capitalist vs Socialist Economies [SG,M,I,P,T] vs [V,B]
- Within capitalist economies
[SG,M] vs [I,P,T]
What were the policies SEA govts undertook? i.e. Examples of GI (0 - 14 i.e. 15)
- Central planning
- Focus on comparative advantage
- Infrastructural development
- Nationalisation of strategic industries
- Anti-foreign policies
- Expansion of agricultural production
- Protectionsim/ISI strategies
- Development of Secondary Industries
- Development of human capital (SG)
- Foreign investment
- Foreign aid and loans
- Privatisation
- Financial liberalisation
- Export-oriented policies
- Diversification
Examples of central planning
B: 1972 Twenty Year Plan
M: 1969 First Malaysia Plan
I: 1969 Repelita I, Repelita I-V
P: Macapagal - Program Implementation Agency (PIA), intensified under Marcos - Planning, Programming, Budgeting System and the Development Budget Coordinating Committee
Examples of focus on CA
T: Focused on agricultural devt from 1947, expanding irrigation land from 600k to 2.2m hectares by 1969 before turning to investment and exports in the 1980s
SG: Given importance of entrepot trade, focused on investments and human capital development as early as the Development Plan of 1960 - 1964 before independence, and continued under Goh Keng Swee
Examples of infrastructural development
M: NTC/Pernas (1970s): Bumiputera Industrial Growth, 1990 Action Plan for Industrial Tech Development and Multimedia Super Corridor Project to provide infrastructure for high tech industries
SG: Adopted International Bank for Reconstruction Report. Suggestions for govt to play an infrastructural role in providing basic services, transport and communications, financial facilities etcc - Joint Industrial Estate, EDB?
I: Hitherto neglected infrastructure and services installed e.g. housing, health and education facilities, food-production programme
T: Industrial Finance Corporation of Thailand (IFCT) established to encourage and provide loans for the expansion of private industrial enterprises
Examples of nationalisation of strategic industries
I: 1957 Pertamina for oil
T: 1932 Creation of Thai Rice Company
SG: 1961 National Iron and Steel Mills Ltd (NISM)
B: Five Star Line, Burma National Housing and Construction Company, Steel Brothers
Examples of anti-foreign policies
I: Sukarno’s expropriation, nationalisation of Dutch property (1947)
P: Anti-chinese Retail Trade nationalisation Act (1954)
Examples of expansion of agricultural production
B: Technology in agricultural sector to raise productivity
V: Agri expansion to create employment for 1M people. Mechanized agriculture in the Mekong Delta, agricultural output overall increased
T: Govt focussed on comparative advantage - agriculture - expansion of irrigation land from 600k hectares in 1947 to 2.2 million hectares in 1969
I: Aims and subsidies to industries granted for activities which supported agricultural devt - Bimas: state agricultural programme which provided credit and physical inputs such as varieties of seeds to promote rice production - rice production increased by 50% between 1960-80
Examples of protectionism/ISI strategies
I: “Guided Economy” policies from 1957 - 1965. State-led development of capital industries (provided state credit and import protection to help infant industries such as steel and cement
P: State implemented measures towards ISI as early as 1950s - import controls, foreign exchange controls and tax incentive laws extended to new industries
M: Pioneer industries programme focused on processing and other consumables
B: State ownership of all sectors, priority given to the development of an ISI base - esp heavy industry
Examples of development of human capital in SG
Industrial training centers set up; education system restructured in 1968 with emphasis on technical and vocational education. E.g. Ngee Ann College and Singapore Polytechnic reorganised into purely technical institutions 1968 and 1969 - enrolment in technical and vocational institutions rose 8 times between 1966-76
Examples of increasing equity (devt of HC?) in Malaysia
1970s Systemic restructuring to boost bumiputera employment in formal sectors - preferential treatment in higher education opportunities, scholarship opportunities, government employment
Examples of foreign investment
SG: 1978 restrictions on capital flows abolished, companies in SG allowed 100% foreign ownership
P: 1967 Investment Incentives Act - encouraged foreign investment in industrial development
M: Free Trade Zone Act in 1971 led to 20% surge in foreign investments in both textile and electronics exports by 1975.
V: Foreign investment law 1987 - guarantees against nationalisation for 20 years
Examples of privatisation
M: Early 80s - govt took steps to eliminate inefficiencies of public sector: sale of state-owned companies, private financing of state projects, etc… by 1992, 13 state enterprises privatised
P: Privatisation under Ramos 90s - however, not always effective: e.g. introduction of competition into telephone service industry in 1993 - 13 companies competing, but Cojuangco’s Philippine Long Distance Telephone remained far ahead
V: 1999 Enterprise Law - Simplify procedures for the establishment of private companies - attempt to privatise
Examples of EOI
SG: Concessionary tax rates for export enterprises, Small Industries Finance Scheme (1976), Export Credit Insurance Scheme (1976) - as a result, exports: 4.2% (1970) - 17.6% (1993)
T: Promoted investments in export-oriented sectors through joint ventures with domestic capital (Automobile: Siam Motors, Textiles: Saha Union) - as a result, exports 10.3% (1970) - 18.6% (1993)
Examples of diversification
SG: End 1970s: 2nd Industrial Revolution - labour shortage led to drive to increase technological sophistication. Shift in direction of economic development towards tech and services
M: 1986 onwards shift from heavy industry to state plans and sponsorship to deepen technology and human resources - HICOM
