In Southeast Asia, economic profit was the immediate
and primary aim of the colonial enterprise. For that purpose,
colonial powers tried wherever possible to work
with local elites to facilitate the exploitation of natural
resources. Indirect rule reduced the cost of training European
administrators and had a less corrosive impact on
the local culture. In the Dutch East Indies, for example,
officials of the Dutch East India Company (VOC) entrusted
local administration to the indigenous landed
aristocracy, known as the priyayi. The priyayi maintained
law and order and collected taxes in return for a payment
from the VOC (see the box on p. 38). The British followed
a similar practice in Malaya. While establishing direct
rule over areas of crucial importance, such as the
commercial centers of Singapore and Malacca and the island
of Penang, the British signed agreements with local
Muslim rulers to maintain princely power in the interior
of the peninsula.
In some instances, however, local resistance to the
colonial conquest made such a policy impossible. In
Burma, faced with staunch opposition from the monarchy
and other traditionalist forces, the British abolished
the monarchy and administered the country directly
through their colonial government in India. In Indochina,
the French used both direct and indirect means.
They imposed direct rule on the southern provinces in
the Mekong delta, which had been ceded to France as a
colony after the first war in 1858–1860. The northern
parts of the country, seized in the 1880s, were governed as
a protectorate, with the emperor retaining titular authority
from his palace in Hue. The French adopted a similar
policy in Cambodia and Laos, where local rulers were left
in charge with French advisers to counsel them. Even the
Dutch were eventually forced into a more direct approach.
When the development of plantation agriculture
and the extraction of oil in Sumatra made effective exploitation
of local resources more complicated, they dispensed
with indirect rule and tightened their administrative
control over the archipelago.
Whatever method was used, colonial regimes in
Southeast Asia, as elsewhere, were slow to create democratic
institutions. The first legislative councils and assemblies
were composed almost exclusively of European
residents in the colonies. The first representatives from
the indigenous population were wealthy and conservative
in their political views. When Southeast Asians began
to complain, colonial officials gradually and reluctantly
began to broaden the franchise, but even such
liberal thinkers as Albert Sarraut advised patience in
awaiting the full benefits of colonial policy. “I will treat
you like my younger brothers,” he promised, “but do not
forget that I am the older brother. I will slowly give you
the dignity of humanity.”3
Colonial powers were equally reluctant to shoulder the
“white man’s burden” in the area of economic development.
As we have seen, their primary goals were to secure
a source of cheap raw materials and to maintain markets
for manufactured goods. So colonial policy concentrated
on the export of raw materials—teakwood from Burma;
rubber and tin from Malaya; spices, tea, coffee, and palm
oil from the East Indies; and sugar and copra from the
Philippines.
In some Southeast Asian colonial societies, a measure
of industrial development did take place to meet
the needs of the European population and local elites.
Major manufacturing cities, including Rangoon in lower
Burma, Batavia on the island of Java, and Saigon in
French Indochina, grew rapidly. Although the local
middle class benefited in various ways from the Western
presence, most industrial and commercial establishments
were owned and managed by Europeans or, in some cases,
by Indian or Chinese merchants. In Saigon, for example,
even the manufacture of nuoc mam, the traditional Vietnamese
fish sauce, was under Chinese ownership. Most
urban residents were coolies (laborers), factory workers,
or rickshaw drivers or eked out a living in family shops as
they had during the traditional era.
Despite the growth of an urban economy, the vast majority
of people in the colonial societies continued to
farm the land. Many continued to live by subsistence
agriculture, but the colonial policy of emphasizing cash
crops for export also led to the creation of a form of
plantation agriculture in which peasants were recruited
to work as wage laborers on rubber and tea plantations
owned by Europeans. To maintain a competitive edge,
the plantation owners kept the wages of their workers at
the poverty level. Many plantation workers were “shanghaied”
(the English term originated from the practice of
recruiting laborers, often from the docks and streets of
Shanghai, by unscrupulous means such as the use of force,
alcohol, or drugs) to work on plantations, where conditions
were often so inhumane that thousands died. High
taxes, enacted by colonial governments to pay for administrative
costs or improvements in the local infrastructure,
were a heavy burden for poor peasants.
The situation was made even more difficult by the
steady growth of the population. Peasants in Asia had always
had large families on the assumption that a high
proportion of their children would die in infancy. But improved
sanitation and medical treatment resulted in
lower rates of infant mortality and a staggering increase
in population. The population of the island of Java, for
example, increased from about a million in the precolonial
era to about forty million at the end of the nineteenth
century. Under these conditions, the rural areas
could no longer support the growing populations, and
many young people fled to the cities to seek jobs in factories
or shops. The migratory pattern gave rise to the
squatter settlements in the suburbs of the major cities.
As in India, colonial rule did bring some benefits to
Southeast Asia. It led to the beginnings of a modern economic
infrastructure and what is sometimes called a
“modernizing elite” dedicated to the creation of an advanced
industrialized society. The development of an export
market helped create an entrepreneurial class in rural
areas. On the outer islands of the Dutch East Indies
(such as Borneo and Sumatra), for example, small growers
of rubber, palm oil, coffee, tea, and spices began to
share in the profits of the colonial enterprise.
A balanced assessment of the colonial legacy in Southeast
Asia must take into account that the early stages
of industrialization are difficult in any society. Even in
western Europe, industrialization led to the creation of
an impoverished and powerless proletariat, urban slums,
and displaced peasants driven from the land. In much
of Europe and Japan, however, the bulk of the population
eventually enjoyed better material conditions as the
profits from manufacturing and plantation agriculture
were reinvested in the national economy and gave rise
to increased consumer demand. In contrast, in Southeast
Asia, most of the profits were repatriated to the colonial
mother country, while displaced peasants fleeing to cities
such as Rangoon, Batavia, and Saigon found little opportunity
for employment. Many were left with seasonal employment,
with one foot on the farm and one in the factory.
The old world was being destroyed, while the new
had yet to be born.