The historical dynamics of the economy, as demonstrated by the two fluctuating prices of rubber in the world market

Abstract

The economic history development since the end of 19^th Century has been marked by a trend of increasing agricultural production. This transformation has led to the conversion of vast areas of rainforest in Southeast Asia into farmland for growing rubber, with the objective to make it a key raw material for the automotive industries in Europe and the United States. The use of land in the British Malayan Colony, the Dutch Colony of Indonesia, and the French colony of Indochina in South Vietnam and Cambodia was instrumental in cultivating rubber as a raw material for the automobile industry. From the late 19^th century to the early 20^th century, millions of rai of rubber were grown to meet the industry's demand for large quantities of rubber raw materials. The peak price of rubber occurred in 1910, prior to the commencement of World War I. As a result, there was a significant expansion in rubber plantations and the supply of rubber. Agriculture, particularly the cultivation of commercial crops, became the most significant economic commodity in the history of Southeast Asia. From 1910 to 2011, the period of economic development in history spanned for 101 years. During this time, the price of rubber reached its highest level once again in 2011. This rise in the price of rubber can be attributed to the China Economic Miracle, which led to the country's economic growth and subsequently impacted the world market. The rise in rubber prices in 2011 resulted in another major expansion of rubber supply in Asia in the 21st century. Land is being used for growing rubber in new areas in the northern and northeastern regions of Thailand, southern China, Laos, Cambodia, Myanmar and Vietnam. Approximately 7 million rai of rubber plantations are available as a raw rubber supply source. Providing for the needs of the automobile industry in the 21st century with China being the world's largest consumer.