Coffee and Rice

For the past couple of days, I was reading about how coffee plantation arrived in Latin America and how it became such an important export for the region, especially for Brazil, since the mid-19th century onwards. It is said that coffee makes modern Brazil. 

It reminds me of how rice played the same role for countries in mainland Southeast Asia during the same period. 

Coffee was widely planted in Brazil from the beginning of the 19th century, when European capitalists (especially the British) poured into Rio de Janeiro, and later in Sao Paulo to invest in coffee farming. From the 1850s onwards, Brazil flooded the world with coffee. 

After the second Anglo-Burmese War in 1852, Burma's rice production increased rapidly. Foreign investments reinforced this expansion. European merchants, shippers, and financiers invloved deeply in economic activities ranging from milling to money-lending. As a result, Burma became the world's no.1 rice producer only a few decades later. 

I have some comments:

1) The situation occured in two regions around the same time demonstrats how Pax Britannica expanded its capital all over the world.     

2) But there are many differences in detail. The most obvious is in terms of labour. Brazil imported millions of slave to work in coffee plantation whereas Burmese cultivator moved from the upper Burma to the Irawaddy-Sittang Delta to seek a better opportunity.  However, the situation in Siam was a bit different; Because Siam's Sakdina system was still dominating the society, Tad were forced to work for their Nai. The emancipation of Tad by King Chula shows how the need for labour in the expansion of Siam's rice frontier (Though this is debatable). 

3) Environmental impact from coffee plantation in Brazil is devastating. This is because a large area of land was cleared and burned. Also, coffee tired the land. Although lands were cleared in Burma as well, but the delta area in mainland Southeast Asia is perfect for planting rice. 

4) Both regions were exploited. Even though an increase in agricultural export generated income for the native people, those who became prospered were the British capitalists. Except in the case of Siam, where most profit ran into the royal and elites' purses (and later on, +Chinese capitalists'). 

Just some shallow observations. 

P.S. An ANN's list of must-go temples is interesting, not only for the Buddhists. 

   

Was it just a dream?

Will ASEAN countries be like they were in the 1980s?

Robert McMahon observes that ASEAN was one of the "most dynamic area" in world economy back in the eighties.

Of course, there are many factors that made ASEAN become a gold pot; Cold War, the U.S. involvement, industrialization, and so forth.

Was it just a dream?

What do we do?

The world is facing an economic stagnation and Southeast Asia is no exception. Oil and commodity price are roaring.

What do Southeast Asian governments do?

Thailand and Indonesia are having quite a similar policy to help poor people by reserving some goods i.e. rice to sell to the poor cheaply. Indonesia is going to have rice-for-poor packages to sell and Thailand is having "blue-flag" project by reserving some goods to sell at the price lower than the market rate.

My first question is: who are the poors?

and my second question concerns economic perspective: Does this distort the market machanism?

Ps. Malaysia's PM announced that the oil price in Malaysia will not increase again for the rest of the year. I don't think it is possible.

Military Rules in Southeast Asia

Whilst I am studying for the exam, a question emerged on the topic about the military rule in Southeast Asia.

In 1960s many countries in the region were ruled by military cliques; Burma under Ne Win; Thailand under Thanom; Indonesia under Suharto. It looks like these countries were moving into an "effective body of administration" after the chaotic period that preceded it.

Basically, because the army had arms, it then pocessed coercive power which by that time was the most effective way to control the restless situation under the shortest time being. However, more importantly, some groups gained interest from being involved in the politics; military regimes were main investors in Burma and Indonesia during the time. In Thailand, the leaders seemed to enjoy a personal interest from US aid programme especially the Military Assistant Programme. That is why they still wanted to cling onto power.

What about the west? or What about those countries that mil. has divorced from the government already?

Roaring rice price

Are we really going to say goodbye to a cheap foodstuffs? It's worrying that foods are getting more and more expensive these days.

Rice price makes the record. I don't want to be too pessimistic by saying that, no too far in the future we will witness the food-war.

We are having an oil-war, aren't we?

It is possible.

Do Southeast Asians have entrepreneurial mind?

While I am working on my assignment about the connection of Southeast Asia to the world economy in the ninteenth century. A question came up; Do Southeast Asians have an entrepreneurial mind?

World capitalist system arrived in the region in many ways; An expansion of colonial empires from Britain, Dutch, Spain, France, and the U.S. Also, the Chinese and Indians came to the region for their economic activities.

Colonial powers as well as the Chinese and Indians were major forces in transforming the region to become a part of world's market.

Had natives initiated their own businesses?

One theory suggests that Southeast Asian farmers were formally self-sufficient. Then, after an arrival of colonial powers, they were drawn into the market economy.

Another theory shows that Southeast Asia was already part of World market (like Tony Reid's SEA in the Age of Commerce) but not in the perfect form, not consistence.

I argue that SEAsians do have entrepreneurial mind.

King Rama III of Siam had de-monopolized some economic activities even before the arrival of Sir. John Bowring. Furthermore, Burmese smallholders themselves were the intermidiaries for the selling/buying of goods to the British. In Java, after communal land system was demolished, Javanese competed to own land for cultivation.

Let's discuss.

Ps. Irawaddi's slide show on Burma's road to independence. Nice pictures.