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How do we cluster the various countries? What are the clusters?

1. Capitalist vs Socialist Economies [SG,M,I,P,T] vs [V,B]

2. 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)

0. Central planning
1. Focus on comparative advantage
2. Infrastructural development
3. Nationalisation of strategic industries
4. Anti-foreign policies
5. Expansion of agricultural production
6. Protectionsim/ISI strategies
7. Development of Secondary Industries
8. Development of human capital (SG)
9. Foreign investment
10. Foreign aid and loans
11. Privatisation
12. Financial liberalisation
13. Export-oriented policies
14. 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