FINANCIALIZING THE "GRAIN OF JADE": THE ROLE OF THE BANQUE DE L’INDOCHINE IN THE MEKONG DELTA’S RICE EXPORT VALUE CHAIN (1875–1954)

Abstract

Objective: This study aims to deconstruct the mechanisms of "financializing" rice in the Mekong Delta under the dominance of the Banque de l’Indochine (BIC). The article elucidates how a colonial financial institution transformed rice from a purely agricultural commodity into a tool for exchange speculation and capital accumulation. Methods: The author employs comparative historical methods, combined with qualitative analysis of archival sources from the BIC’s financial reports and export data from the Governor-General of Indochina. A political economy approach is utilized to analyze the interrelationships between credit, exchange rates, and intermediary networks. Results: The research reveals that the BIC established a "dual monopoly" system by controlling both the credit flows to rice mills and the coordination of foreign exchange. This financialization process created a structural "debt trap," forcing indigenous farmers and small traders to bear all risks from international silver price volatility, while surplus profits were concentrated and remitted to Paris. Conclusions: The presence of the BIC distorted the rice value chain, transforming the Mekong Delta into a dependent link within the global financial system. This historical lesson provides profound insights into the risks of losing financial autonomy within strategic agricultural supply chains in the contemporary era.