Economic Frameworks, Policies and the State

Abstract

In the socio-economic transformation of the two territories, provision of bureaucratic and economic frameworks formed the most significant of the services provided by the two administrations. One, as discussed in Chapter 1, was the enforcement of law and order and the assurance of security. Another was an effective legal and administrative system that included the formulation of a western-type land tenure system which replaced traditional systems of landholding. As discussed in Chapter 3, legislation and a licensing system were also introduced to deal with mining, forest resource utilisation and the mobilisation of other resources in the states. A third was a sound financial system. Both governments linked the two territories’ currency to the Straits dollar and ultimately to sterling, which provided the stability needed for currency exchange, and they also facilitated banking and insurance facilities. Two key elements of economic management however, were the provision of infrastructure, especially transport, and the organisation of labour, both of which are the focus of discussion of this chapter.