Development Policies and Patterns of Agrarian Dominance in the Malaysian Rubber Export Economy

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Abstract
SINCE Malaysian independence over two decades ago, rubber production there has undergone a significant and far-reaching structural transformation, in social as well as economic dimensions. This transformation represented the outcome of policy responses to changing world market conditions for the export of natural rubber, which coincided with a political transition to independence and parliamentary government. In its response, government policy since the mid-1950s released many of the earlier administrative constraints on the spread of new rubber planting. The ensuing entrepreneurial re-awakening led to large-scale re-planting and new planting with high-yielding rubber. This increasingly widespread wave of technological innovation was accompanied by the dissolution of marginal estate enterprises, which was more than offset by a parallel expansion of peasant participation in rubber cultivation. Productivity and therefore producer incomes generally tended to improve, notwithstanding cyclical fluctuations in world rubber prices. Yet, by the middle 1970s this policy trend favouring technological cumentrepreneurial innovation appears to have altered direction. Indeed,recent Malaysian rubber policy indicates that structural transformation has run its course, at least for present intents and purposes. As will be seen, the current policy goal has reverted to protecting the newly established economic and social order in the Malaysian rubber planting against further pressures for developmental change.

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