Control and Prosperity: The Teak Business in Siam 1880s–1932

Dissertation zur Erlangung des Grades des Doktors der Philosophie an der Fakultät Geisteswissenschaften der Universität Hamburg im Promotionsfach Geschichte Südostasiens (Southeast Asian History) The increasing global demand for teak in the late nineteenth century led to the expansion of business operations by European companies and foreign subjects in Siamese’s vassal state, the Lan Na Kingdom (situated in modern day northern Thailand) where teak flourished. The efforts of the Siamese state to control this area was a reaction to the chaotic situation in northern Siam and the increasing amount of foreign investment in the teak business. During the 1890s, the Siamese government was unable to cope with the expansion of the teak trade, thus it founded the Royal Forest Department in 1897. Pertinently, teak was not subject to the trade conditions stipulated by the Bowring Treaty. As such, the Siamese government maintained autonomy regarding its decision-making and policy on teak. By doing so, Siam was able to control and nationalise the teak forests. As a result, income from teak immensely contributed to the governmental coffers. This dissertation, moreover, unveils the role of private companies and documents the multi-ethnic work structures which were so significant to the development of the teak industry. Another discovery of the dissertation details the indispensable role played by private companies in terms of setting up this system of production, extracting teak from the forest, and delivering it to foreign markets. After the establishment of the Royal Forest Department, European companies dominated the teak business because they were able to conform to governmental regulations. In particular, these companies wielded a competitive advantage because they had access to global financial and shipping services, both of which were necessary to compete in the global economy. As a result, in brief, European companies were able to control and prosper from the teak trade. Teak exports, however, declined after the First World War and eventually became less important in both the global and Siamese economies. Indeed, teak ceased to be a major export item for Siam in the 1930s.