At independence most Southeast Asian economies exported a few raw materials, were largely owned by foreigners, and employed most people in farming.
Colonial rulers built economies to export raw materials. Malaya exported rubber and tin, Burma and Thailand exported rice, the Philippines exported sugar and coconut products, and Indonesia exported oil, rubber and other crops. Singapore lived on entrepot trade, buying and reselling goods.
Most people worked on small farms, often growing rice. Industry was small and mostly processed raw materials.
Ownership was largely foreign. European firms owned plantations, mines, banks and trading houses. Chinese businesses dominated shops and money-lending in many countries.
Depending on a few exports made economies vulnerable. When world prices for rubber, tin or sugar fell, incomes and government revenue fell with them.
These conditions explain the aims of the new governments: to grow, to spread the benefits, and to take control of their own economies.
- Malaya
- Rubber and tin.
- Thailand and Burma
- Rice.
- Singapore
- Entrepot trade.
Worked example: Using the colonial legacy
Why does the starting point matter for judging change?
- Measure change against it: sectors, exports, ownership.
- It explains the aims: growth, equity and nationalism.
- It explains the limits: few skills and little capital.
- It shows continuities, such as commodity exports in some countries.
Watch out for this
Southeast Asian economies started from nothing at independence.
They had large export sectors, ports, railways and plantations. The problem was that these served colonial needs and were owned largely by outsiders.
Check your understanding
Why did depending on a few exports make economies vulnerable?
- Falling world prices for those goods cut incomes and government revenue.
- Exports were banned after independence.
- Colonial powers stopped buying all goods.