8.4: Paradigm Shifts, Industries, Governance, Imperialism

Learning Objectives

• Explain how paradigm shifts in societal livelihood has transformed the region in recent times
• Describe how manufacturing and industrial efforts has primed the region for global placement

Paradigm Shifts in East and Southeast Asia

The collective of 11 southeast Asian nations is a landscape that highlights a region of remarkable and distinguishable environmental attributes within a tropical setting. The subregion and the emergence of one's own distinctive geopolitical landmass is wedged between two “Goliath” like nations with India to the west and China to the east. Peninsulas and island nations like the 17,000 collective chain archipelago of Indonesia, Timor-Leste, Malaysia, 7,100 island chains of the Philippines, Singapore, and Brunei help makeup the region. Countries like Myanmar (Burma), Thailand, Laos, Vietnam, and Cambodia are positioned on the mainland Eurasian continent. The region in its entirety shares similarities in plant and animal species, in addition to having a warmer climate with historical development connections based in its tropical setting. Regional nations have collective proximity to maritime seafaring industries, with the nearby or surrounding seas that has historically and continues to play a major role in the development of the region. The region in its entirety is surrounded by the Indian and Pacific Ocean, with an abundance of seas, bays, and straits that creates collective political borders of Southeast Asia. The Gulf of Thailand, South China Sea, Philippine Sea, and the Java Sea are a few of several water bodies that aid the natural development of the region’s landscape while also continuing to influence regional human settlement.

The political borders set for the region were influenced by historical factors including its distinguished tropical climate, territorial claims over water bodies, and fertile soils.  Long lasting tribal roots, the legacy of western colonialism, and the role of regional conquests are key factors in the development of the region's current state.  The Hoabinhian culture of Southeast Asia was an early human development timeframe of the region that dated back from 13,000 years ago to around 4000 BCE. During the Hoabinhian era, the construction of complex stone tools for agriculture, hunting, and settlement established the earliest known foundation of cultural inhabitants of the region. Migration from the west ensued, then inter-regional migration began to circulate more commonly as various early tribes established lasting roots within the region. As the region continues to evolve and work diligently toward economic stability, a common goal of future sovereignty, partnerships, and prosperity is on the horizon for the region. Creative efforts like the 21st century regional governmental collective (excluding Timor-Leste) known as the Association of Southeast Asian Nations (ASEAN), have set an ambitious goal to "bring together desperate neighbors to address economic and security issues" according to the Council on Foreign Relations.

The second half of the 20th century was a time of significant political change for East and Southeast Asia. The former colonies of Japan were able to break away from their colonial past and become independent, but as in many other parts of the world, that independence often coincided with political conflict. For Japan, the end of World War II brought a period of Westernization and rapid economic growth. Westernization refers to the process of adopting Western, particularly European and American, culture and values. Japan adopted a new constitution and embraced democratic principles. It continued to industrialize and would become a global leader in electronics and automotive production. Today, Japan has the fourth largest GDP behind only the United States, the European Union, and China.

New Age East Asia

In other parts of East and Southeast Asia, the political changes to the region following World War II tended toward communism, a social, political, and economic system that seeks communal ownership of the means of production. Communism is associated with Marxism, an analysis of social class and conflict based on the work of Karl Marx (1818-1883 CE). In a typical society, factories are owned by a wealthy few who then pay workers a lower wage to ensure that they make a profit. In a communist society, however, the goal of Marxism would be a classless society where everyone shares the ownership and thus receives equal profits. Marxist ideas spread to China by the early 20th century and found particular support among Chinese intellectuals. The Communist Revolution in Russia inspired Marxists in China who founded a communist political party that would eventually be led by Mao Zedong. The communist party continued to gain traction in China and following a civil war, Mao Zedong established the communist People’s Republic of China in 1949. The previous Chinese government fled to the island of Taiwan, which is officially known as the Republic of China and claims control of the entire mainland. China, however, maintains that Taiwan is part of China. After securing political control of China, Mao Zedong sought to transform China’s culture by reorienting it around the ideology of communism. One of the first steps in this transformation was the Great Leap Forward from 1958 to 1961 which sought to reshape China’s agrarian society into an industrial power. Unfortunately, the changes led to widespread famine and the deaths of tens of millions of Chinese as a direct result. Following the failure of the Great Leap Forward, Mao aimed to eliminate any remaining traditional elements of Chinese culture or capitalist thinking through the Cultural Revolution. Millions were imprisoned, forcibly relocated, or tortured, and historical relics and cultural sites were destroyed. After Mao’s death, several leaders responsible for the abuses committed during the Cultural Revolution were arrested and China began a period of modernization and economic reform.

In the Korean peninsula, allied forces divided the former Japanese colony along the 38th parallel. Russia would control the northern portion, where it helped install a communist government and economic system. The United States occupied the southern portion, where it assisted a pro-Western government in its political and economic development. Tensions between the two territories led to the Korean War in the early 1950s. Technically, the two sides are still at war having never signed a peace agreement and simply agreeing to a cease-fire. Today, North Korea, officially the Democratic People’s Republic of Korea (DPRK), follows a Marxist model of development with state owned enterprises and agriculture. The government has been accused of numerous human rights violations and the people of North Korea are severely restricted in terms of their economic, political, and personal freedom. In South Korea, on the other hand, officially known as the Republic of Korea, a democratic government replaced a series of military dictatorships and the country is considered one of the most developed in the region according to the Human Development Index.

Communist ideals spread to Southeast Asia, as well, where Marxism influenced the governments of newly independent countries. In Vietnam, for example, a communist movement was begun by Ho Chi Minh to try to gain independence from France following the end of Japanese occupation in World War II. The communist forces were able to defeat the French in a key battle in 1954 and established a government in the northern territory. The country was then divided into a communist north and anti-communist and majority Catholic south. This was a time of high tension between the United States and the Soviet Union, and the US feared that the entire region would eventually come under communist control, essentially creating a Western capitalist hemisphere and an Eastern communist hemisphere. The fear that the fall of one country to communism would lead to the fall of other surrounding countries to communism was known as domino theory, and was originally meant as an anecdote but became the basis for US foreign policy in the region.

Figure \(\PageIndex{1}\): Image of Marxist and Communist propaganda from 1968 showing Chinese former leader Mao at the forefront of the movement, allied with western leaders in Marxism. (Public Domain; Zhuyi via Wikimedia Commons).

New Age Southeast Asia

The United States aimed to support South Vietnam’s resistance to the communist north’s goal of unification and began sending military advisors to the region. Military combat units followed and bombing campaigns began in 1965. The terrain of Vietnam was quite different than the geography of other areas where the US had previously fought. Much of Southeast Asia was tropical rainforest, and was ill-suited for the types of tanks and heavy artillery that had been so successful in World War II. The Viet Cong, referring to the Vietnamese communists, engaged in guerrilla warfare, using the terrain to support small, mobile military units. To try to combat these tactics, the US military sprayed chemical defoliants and herbicides, like Agent Orange, over Vietnam’s forests. In the end, waning support for the Vietnam War led the US to withdraw and in 1975, Vietnam was unified under communist rule. Over 1 million Vietnamese and 58,000 Americans died in the fighting. Millions others were exposed to Agent Orange causing health problems and disabilities, and the chemical had devastating effects on Vietnam’s ecosystem where it has lingered in the soil.

During the same time period, a communist organization known as the Khmer Rouge, which is French for “Red Khmers,” came to power in Cambodia. Khmer refers to the dominant ethnic group in Cambodia. The Khmer Rouge opposed Westernization and US involvement in the newly independent country and believed in a return to an agrarian society. Pol Pot (1925-1998 CE), the leader of the Khmer Rouge, led a campaign to eliminate the country’s schools, hospitals, and other institutions and make the entire society work on collective farms. Urban cities would no longer be the economic and political focus, but rather wealth would be spread out around the countryside. Most of the country’s intellectuals, including teachers and even people with glasses who were simply perceived as academic, were killed. Large prison camps were set up to house those who were believed to be a threat to communism. Cambodians of other ethnicities or who practiced religion were also executed. In total, more than one million people were killed, often buried in mass graves known as the Killing Fields. Cambodia’s attempt to transform into an agrarian society ultimately led to widespread famine and starvation. In 1978, Vietnamese forces invaded Cambodia and defeated the Khmer Rouge, but human rights continue to be severely restricted in the country.

Much of East and Southeast Asia exhibits characteristics of a shatter belt, an area of political instability that is caught between the interests of competing states. Beginning in the colonial era and continuing today, Western involvement in this region has at times led to industrialization and economic growth and at other times economic depression and a drive to return to traditional values. Today, political instability continues to plague several countries in the region.

Industries and Development in East and Southeast Asia

Despite the political changes and conflicts that marked the 20th century, the 21st century has largely been marked by economic development across East and Southeast Asia. Economic geography is a branch of geography that explores the spatial aspect of economic development. Economic geographers don’t just ask “Where is economic development occurring?” but also “Why is economic development occurring in some areas and not others?” In East and Southeast Asia, economic growth has largely resulted from regional and global trade. However, development is not spread evenly across the region and economic inequalities still persist.

Collective and Distinguished Economics

Global connections have been the principle driver of economic success in East and Southeast Asia. Much of the trade connections have emerged between the countries in this region and the larger Pacific Rim, referring to the countries that border the Pacific Ocean. Many of these countries are members of the Asia-Pacific Economic Cooperation (APEC) which promotes free trade across Asia and the Pacific. In Southeast Asia, the countries of the region formed the Association of Southeast Asian Nations, or ASEAN. The organization aimed to promote political security, economic growth, and social development among member countries.

In China and Japan, histories of relative isolation gave way to an embrace of globalization and global trade. Although China’s government is communist, it has allowed more free-market oriented economics in areas known as Special Economics, or SEZs. These SEZs are located in coastal China and have special incentives to attract foreign investment. Other capitalist shifts have occurred in China even allowing for US supermarkets and restaurants to open locations in the country. These SEZs, as well as other special development areas in China, have functioned as growth poles, which are areas that have attracted economic development in the region. In 2010, China displaced the United States as the global leader in manufacturing. Broadly, foreign direct investment (also called FDI), the control of a business in one country by a company based in another country, has been a key driver of China’s economic success. In 2017, China was the second most attractive company for foreign investors, behind the United States, with over $136 billion in foreign direct investment flowing into the country according to the 2018 World Investment Report. China has done its own foreign direct investing as well, increasing outward flows of FDI from $5.5 billion in 2004 to over $125 billion in 2017, according to the same report. Hong Kong is the primary destination for Chinese foreign direct investment, but substantial sums also flow to countries in Africa as well as Australia, where China is the largest trading partner. Within Southeast Asia, China is now the top investor in Myanmar and has increased foreign direct investment in Singapore.

Asian Tigers

While China and Japan remain the largest economies in the region, other areas have experienced high rates of economic growth. The Four Asian Tigers, in particular, referring to Hong Kong, Singapore, South Korea, and Taiwan, experienced rapid industrialization and economic development led by export-driven economies, low taxes, and free trade. Some have also theorized that the Confucian work ethic present in these countries complemented the process of industrialization. Each country also developed a distinct specialty and maintains a competitive advantage in that area. South Korea, for example, is known for its manufacturing of information technology while Hong Kong is a leading financial center. Much of the economic growth of the Asian Tigers as well as Japan has come from the export of value added goods. When countries export raw materials, their economic benefit is limited since those raw materials are often not inherently valuable. When these raw materials are made into something useful, however, value is added and the product can be sold for a higher profit. Lumber is quite cheap, for example. When the lumber is made into a dining table, it has a much higher value. Many companies located in these countries have become household names in electronics, computing, and the auto industry. China has traditionally exported relatively low value added goods, but in 2016, the Chinese government announced a shift to higher value added products like transportation technology and telecommunications.

Southeast Asia's Geographical Position Advantage

Southeast Asia has benefited from its key geographical position as the entrepôt, a French term meaning a commercial center of trade, for the rest of Asia. The Strait of Malacca in particular is the main shipping channel between the Pacific Ocean and the Indian Ocean and a key transportation gateway. Around one quarter of all the world’s exported goods travels through the strait each year. Malaysia’s economic success as an entrepôt is exemplified by its Petronas Towers in Kuala Lumpur, which were the tallest buildings in the world from 1998 to 2004. Indonesia has the largest economy of Southeast Asia, exporting primarily to Japan, Singapore, the United States, and China. Singapore has the highest GDP per capita in the region, again owing to its key geographical position.

One lingering issue in many of these countries has been crony capitalism, the notion that the success of a business depends on its relationship to other businesses and the state. A politician might have an old friend in the manufacturing industry, for example, and give the friend a government contract with beneficial terms. In 1997, a financial crisis that started in Thailand spread throughout the Southeast Asia region and to South Korea was, in part, blamed on the business dealings of corrupt politicians. Several countries in this region rank high on an index of corruption perception, as shown in, and some have expressed concern that the communist countries of this region will continue to embrace capitalism when it is politically beneficial rather than as part of a broader and more transparent economic system.

Uneven Development in Southeast Asia and Outlier North Korea

Economic development is not spread evenly throughout the region. By most estimates, North Korea remains the poorest country in the region with an estimated GDP per capita of just $1,300 in 2016. Mainland Southeast Asia, with the exception of Thailand, remains relatively poor. Cambodia, Laos, Myanmar, and Vietnam all have GDP per capitas of less than $8,000 as of 2018 and remain far less well off than their more developed neighbors in the region. Where economic growth has occurred, it is often confined to an urban area which can drive up population densities as people move to the city in search of work. In Indonesia, the island of Java is very densely populated while other surrounding islands are relatively sparse. The Dutch colonizers and later the Indonesian government, in a stated effort to reduce poverty and overcrowding, created a policy of transmigration seeking to relocate people to the less densely populated islands. This program has been controversial, however, and the indigenous people who inhabit the surrounding islands see the program as a threat to their way of life.

Vietnam

The elongated state of Vietnam is slightly larger than Italy and about three times the size of the US state of Kentucky. In 2010 it was estimated to have a population of about ninety million people. Sixty percent of the population is under age twenty-one. This indicates that the population was only about half its current size at the end of the Vietnam War. Vietnam has two main urban core areas: Ho Chi Minh City (Saigon) in the south and the capital, Hanoi, in the north. The middle region of Vietnam is narrow, with higher elevation. Each core area is located along a major river delta. The Red River delta is located east of Hanoi in the north, and the mighty Mekong River delta is located next to Saigon in the south. These river deltas deposit silt from upstream and provide excellent farmland for growing multiple crops of rice and food grains per year. ishing provides protein to balance out nutritional needs. More than 55 percent of the population works in agriculture. Family size has dropped dramatically because of population growth and a trend toward urbanization. Rural-to-urban shift has caused the two main urban core cities to grow rapidly. Saigon is the largest city in Vietnam and has a port that can accommodate oceangoing vessels. Hanoi, the capital, is not a port city and is located inland from the nearest port of Haiphong on the coast of the Gulf of Tonkin.

An understanding of Vietnam is not complete without understanding the changes in political control the country of Vietnam has experienced. Different Chinese dynasties controlled Vietnam at different times. When France colonized Vietnam, it imposed the French language as the lingua franca and Christianity as the main religion. Both changes met resistance, but the religious persecution of Buddhism by the French colonizers created harsh adversarial conditions within the culture. The French domination started in 1858. The Japanese replaced it in 1940; this lasted until the end of World War II. With the defeat of Japan in 1945, the French desired to regain control of Vietnam. The French aggressively pushed into the country, but met serious resistance and were finally defeated in 1954 with their loss at the battle of Dien Bien Phu.

In the mid-1950s, the Vietnamese began asserting their request for an independent country. The dynamics were similar to that of Korea. After 1954, Vietnam needed to establish a government for their independent country. They were not unified. The northern section rallied around Hanoi and was aligned with a Communist ideology. The southern region organized around Saigon and aligned itself with capitalism and democratic reforms. During the Cold War, the United States opposed Communism wherever it emerged. Vietnam was one such case. Supporting South Vietnam against the Communists in the north started not long after the defeat of France. By 1960, US advisors were working to bolster South Vietnam’s military power. After the assassination of John F. Kennedy, President Lyndon Johnson had to make a choice to either pull out of Vietnam or push the US military to fully engage the Communists in North Vietnam.

Chinese Diaspora and Regional Future Outlook

In some cases, uneven distribution of economic development has led to both interregional and intraregional migration as people move in search of economic advancement. China in particular has seen a significant amount of rural to urban migration. Around 11 percent of the entire country’s population migrated from rural to urban areas in 2009 and most of them are young adults. Many of China’s migrants are part of a floating population, which refers to members of a population who reside in an area for a period of time but do not live there permanently. Around 50 million Chinese reside overseas, mostly in Southeast Asia. Thailand has the largest population of overseas Chinese, and Chinese also represent the majority ethnic group in Singapore. Long before colonization, East and Southeast Asia was a realm of global economic influence, from the Chinese empire to the trade routes of Southeast Asia. As some countries of the realm have moved toward political stability and economic growth, others have remained in a state of political and economic turmoil. Tourism could bring some of these countries an economic boost, but the prospect of tourism in countries with government instability is limited. Still, although countries like Laos, Myanmar, and Cambodia currently have some of the world’s smallest economies, they are some of the fastest growing in the world and improvements in agricultural and natural resource development combined with a stable political infrastructure could expand the economic strength of the region.

 

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Attributions:

“Paradigm Shifts & Industries” is adapted from East and Southeast Asia by Caitlin Finlayson, CC BY-NC-SA 4.0.