Asian Economies, The International Economy And Development In The Interwar Era

Abstract

Controversy over the levels of economic development reached in Asia before the First World War and over the amount of growth during the interwar period focuses on the experiences of two large countries, China and Indonesia. The analysis of Chinese growth and development has obvious political implications, because the conclusions affect judgements of the degree of success or failure of the Republican and Communist governments in the economic sphere, and hence of the effectiveness of market and planned economies today. The debate over Indonesia is equally significant, for here we confront directly the question of the impact of colonialism on economic development. Again the political stakes in the answer are high, because the conclusions affect judgements as to the true origins of current economic growth and development, and therefore whether the credit should be given to the nationalist governments which emerged after independence, or to their colonial predecessors. And, in addition to their intrinsic interest and importance, both cases are fascinating opportunities to ‘step into the kitchen’ and observe economic and social historians at work as they attempt to overcome problems of incomplete and biased data, or measure the impact of changes in terms of trade on an export economy.