The London School of Economics and Political Science Vietnam's North-South Gap in Historical Perspective: the Economies of Co

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The London School of Economics and Political Science Vietnam's North-South Gap in Historical Perspective: the Economies of Co The London School of Economics and Political Science Vietnam’s North-South Gap in Historical Perspective: The Economies of Cochinchina and Tonkin, 1900-1940. Sarah Merette A thesis submitted to the Department of Economic History of the London School of Economics and Political Science for the degree of Doctor of Philosophy, London, February 2013. 1 Declaration I certify that the thesis I have presented for examination for the PhD degree of the London School of Economics and Political Science is solely my own work other than where I have clearly indicated that it is the work of others (in which case the extent of any work carried out jointly by me and any other person is clearly identified in it). The copyright of this thesis rests with the author. Quotation from it is permitted, provided that full acknowledgement is made. This thesis may not be reproduced without my prior written consent. I warrant that this authorisation does not, to the best of my belief, infringe the rights of any third party. I declare that my thesis consists of 94 519 words including footnotes, but excluding the bibliography and appendices. 2 Abstract Recent estimates of Vietnamese GDP during the colonial era show a large gap between Tonkin and Cochinchina: per capita GDP in Tonkin was less than half the per capita GDP in Cochinchina from 1900 to 1940. The aim of this thesis is to understand this gap: its origins, nature and impact. Although most scholars of Vietnamese economic history acknowledged this gap, it has never been studied and only a few suggestions for its origin exist. In this thesis, we revisit these suggestions. Firstly, we establish that demographic differences certainly had an impact on the economic performance of the country, not only through an impact on potential yields but also through an impact on land and labour utilisation. Secondly, we show that the colonial policy did not explain the origin of the economic gap, but that it may have perpetuated circumstances that led to it. Next, we evaluate the nature of this gap: how did the productive sectors (agrarian, industrial and commercial) of the economies of Tonkin and Cochinchina differ? We find that production patterns differed markedly between Tonkin and Cochinchina. In Tonkin, diversification and production for the home market defined its production possibilities and its economic performance. In Cochinchina, specialisation and engagement with the international economy defined its production possibilities and economic performance. The regions' different production patterns were responsible for their different engagement with the international economy. Finally, we investigate the way in which the economic gap between the two regions affected the living standards of their populations. We find that despite a large GDP per capita gap, the living standards of the rural populations of Tonkin and Cochinchina differed only marginally. Even in the urban sectors where there was a significant gap between the two regions, it was only a fraction of the one suggested by GDP estimates. 3 Table of Contents Declaration 2 Abstract 3 Table of Contents 4 List of Tables & Illustrations 9 Symbols & Abbreviations 15 Maps 16 Chapter 1: Introduction 21 Sources 26 Structure 30 Chapter 2: Literature Review 33 2.1) Official French colonial publications 34 2.2) Analytical studies by French scholars on Indochina during colonial rule 36 French colonialism in Indochina 36 Specific aspects of French colonialism 41 2.3) Works on Indochina by foreign scholars during colonial rule 44 French colonialism 44 Southeast Asian comparative studies 46 2.4) Post-1950 studies on various aspects of French Indochina by French and Vietnamese scholars 47 Re-orientation of the research agenda: Welfare concerns 51 2.5) Post-1950 studies on various aspects of French Indochina by other scholars 53 Evaluations of French colonialism 53 4 The study of nationalism 60 New quantitative work 61 2.6) Studies on colonial Southeast Asia 64 Southeast Asia histories 64 Country specific analyses 69 2.7) Studies on post-colonial Vietnam 72 2.8) Bringing it all together: Highlighting the contribution 74 PART 1: RE-EVALUTATING THE ORIGINS OF THE NORTH-SOUTH GAP Chapter 3: Demography 77 3.1) Introduction 77 3.2) Population growth & densities 78 3.3) Labour utilisation & landholding patterns 84 3.4) Population movements 92 Migration between regions 92 Urbanisation 99 3.5) Conclusion 103 Chapter 4: Colonial Policy 106 4.1) Introduction 106 4.2) Evolution of colonial thought 106 Designing Indochina 109 Significant circumstances 115 4.3) Government finances 119 a. Tax system 119 Taxes common to both regions 120 5 Taxes that varied between regions 121 b. Revenue 127 General budget 127 Local budgets 128 c. Expenditure 132 General budget 132 Local budgets 133 4.4) Conclusion 141 PART 2: UNDERSTANDING THE NATURE OF THE GAP Chapter 5: Agriculture 145 5.1) Introduction 145 5.2) Rice 146 Land productivity 148 Labour productivity 151 Output 152 5.3) Crop diversification 156 5.4) Industrial crops 162 5.5) Conclusion 166 Chapter 6: Industry 170 6.1) Introduction 170 6.2) Handicraft industries 171 6.3) Modern industries 177 a. Mining sector 178 b. Other modern industries 185 6 Processing industries 187 Cement 192 Textile 194 Energy 197 6.4) Conclusion 199 Chapter 7: Commerce 202 7.1) Introduction 202 7.2) Trade regulation 203 7.3) Commercial organisation 206 7.4) Balance of trade 210 7.5) Trade partners 214 7.6) Specific trade data 221 Exports 221 Imports 226 7.7) Conclusion 233 PART 3: EVALUATING THE IMPACT OF THE GAP Chapter 8: Standards of Living 238 8.1) Introduction 238 8.2) Health & education 239 Health 240 Education 244 8.3) Urban standard of living 247 Wages 249 Rice prices 255 7 Cost of living 257 8.4) Rural standard of living 264 8.5) Conclusion 273 Chapter 9: Conclusion 276 Main conclusions 277 Implications for further research 286 Bibliography 292 Appendices 333 8 List of Tables and Illustrations Illustrations: Map 1: French Indochina: Borders & Main Cities 16 Map 2a: Tonkin: Transport 17 Map 2b: Cochinchina: Transport 18 Map 3a: Tonkin: Principal Output 19 Map3b: Cochinchina: Principal Output 20 Figure 1.1: GDP per Capita Estimates for Tonkin and Cochinchina, Current Piastre, (1900-1940) 21 Figure 3.1: Population Estimates of Tonkin and Cochinchina (1909-1939) 79 Figure 4.1: Structure of the Indochinese Colonial Government 109 Figure 5.1: Estimates of Rice Output in Tonnes, (1900-1940) 153 Figure 5.2: Retail Price of 100 kg of Rice No.2 in Hanoi and Saigon in Piastres, (1910-1937) 154 Figure 6.1: Output of Mined Combustible Material, (1913-1936) 181 Figure 6.2: Salt Output by Region, in 1000 tonnes, (1913-1936) 190 Figure 6.3: Cement Output, in 1000 tonnes, (1913-1936) 193 Figure 7.1: Balance of Trade, (1906-1938) 211 Figure 7.2: Tonnage of Merchandise Exiting the Ports, (1912-1935) 221 Figure 7.3: Value of Exports, by Region of Origin, (1913-1938) 225 Figure 7.4: Tonnage of Merchandise Entering the Ports, (1912-1935) 227 Figure 7.5: Value of Imports, by Region of Destination, (1913-1938) 233 Figure 8.1: Relative Index of Daily Wages for Hanoi Workers, Saigon set to 100, (1925-1940) 252 Figure 8.2: Daily Wages of Unskilled Labour in Asia, in Grams of Silver, (1905- 1935) 253 9 Figure 8.3: Rice Wages of Unskilled Workers, kg of rice per day, (1905-1935) 257 Figure 8.4: Movement of Prices and Wages in Hanoi Relative to Saigon, Saigon set to 100, (1910-1940) 262 Tables: Table 3.1: Estimates of the Evolution of Tonkin's Population Density, 1909-1939 81 Table 3.2: Gourou’s Estimates of Cochinchinese Cultivated Land, 1900-1936, (Km2) 82 Table 3.3: Estimates of the Evolution of Cochinchina's Population Density, 1910- 1936 82 Table 3.4: Wage Earners in the Indochinese Economy, by Sector and Region, 1929 85 Table 3.5: Share of Total Regional Population, by Size of Landholding Worked, 1933, (%) 86 Table 3.6: Estimates of Population from Tonkin Migrating to Cochinchinese Plantations, 1926-1938 94 Table 3.7: Population, per Ethnicity, 1921-1936, (1000s) 97 Table 3.8: Migration of Chinese Population, 1923-1937 98 Table 3.9: Estimates of Population in the Main Cities, Using Census Data, 1921- 1936 100 Table 4.1: The Governors General of French Indochina and the Orientation of their Administration, 1900-1940 113 Table 4.2: Invested Capital from Individuals, Civil & Commercial Societies, 1924-1928, (Million of Francs) 118 Table 4.3: Cultivable Land Tax Rates, 1900-1940, ($ per hectare) 122 Table 4.4: Some Rates of Direct Taxes, 1900-1940 122 Table 4.5: General Budget Revenue, 1923-1936 127 Table 4.6: Annual per Capita Tax Burden, 1920-1936, (US$ per inhabitant) 128 Table 4.7: Comparing Local Budget Revenue, 1913-1936, (Annual Averages) 129 Table 4.8: General Budget Expenditures, 1929-1936 132 Table 4.9: Per Capita Government Expenditure, 1920-1936, (US$ per inhabitant) 133 Table 4.10: Comparing Local Budget Expenditure, 1913-1936, (Annual Averages) 134 10 Table 4.11: Length of Colonial and Local Roads, by Region, 1922-1936, (Km) 137 Table 4.12: Railway Network Information, 1913-1935 138 Table 4.13: Railway Usage, Passenger and Freight, 1932-1937 139 Table 5.1: Average Yearly Statistics on Rice Cultivation in Tonkin and Cochinchina, 1919-1930 147 Table 5.2: Plough Animals by Region, 1922-1938, (Annual Average) 150 Table 5.3: Estimates of Yearly Output of Secondary Crops, 1900 & 1940, (Tonnes) 157 Table 5.4: Annual Average Number of Domesticated Animals, 1922-1928, (1000s) 158 Table 5.5: Agrarian Credit Information, 1923-1937 161 Table 5.6: Investment in Agriculture
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