Capitalism and the Development of the Tin Industry in Burma

Abstract

Although Burma played an important role in the Asian tin industry during the era of mercantile capital, it faded into insignificance during the nineteenth century, the era of finance capital, but recovered in the first part of the twentieth as its deposits were exploited by western industrial capital. The first phase rested on the strategic location of Tenasserim astride the trade routes across the isthmus of Kra and outside the control of Western mercantile trading companies. However, that same location made it a site of the Burmese- Siamese wars which brought this era to end in devastation. Although the East India Company promoted exploitation of the mineral resources of Tenasserim following the first Anglo-Burma war, it was unable to establish the institutional infrastructure that allowed Chinese capitalists to finance the tin industry elsewhere. As tin prices rose in the twentieth century, British, South African and Australian capital reinvigorated the industry not only in Tenasserim but also in the Shan States. One of these ventures proved to be so profitable that became the basis of the first tin conglomerate to operate on a global basis. The new role for Burma is explored during the depression of the 1930s, both in the negotiations with the International Tin Committee which regulated the global industry and in the continued expansion of production. Although western capital remained dominant it rested on an uneven financial base, but it provided the framework which allowed small scale primitive workings by both Chinese and Burmese to flourish.