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Taiwan's quick industrialization and rapid growth during the latter half of the twentieth century, has been called the "Taiwan Miracle" (台灣奇蹟 or 臺灣奇蹟, Tongyong Pinyin: ,Hanyu Pinyin: táiwān qíjì) or "Taiwan Economic Miracle". As it has developed alongside Singapore, South Korea and Hong Kong, the ROC became known as one of the "Four Asian Tigers". Tongyong Pinyin (Chinese: ; pinyin: Tōngyòng pÄ«nyÄ«n; literally Universal/General Usage Sound-combining) is the current official romanization of the Chinese language adopted by the national government (although not all local governments) of the Republic of China (Taiwan) since 2002. ... Pinyin (拼音, Pīnyīn) literally means join (together) sounds (a less literal translation being phoneticize, spell or transcription) in Chinese and usually refers to Hànyǔ Pīnyīn (汉语拼音, literal meaning: Han language pinyin), which is a system of romanization (phonetic notation and transliteration to roman script) for Standard Mandarin used in the... Korean name Hangul: Skyline of Central, Hong Kongs financial centre (viewed from Victoria Peak, Hong Kong) Seoul, the capital of South Korea The skyline of Singapores town area at dusk. ...

Background

After a period of hyperinflation in the late 1940s when the KMT military regime of Chen Yi overprinted the new Taiwan Yuan against the previous Japan Taiwan Yen, it became clear that a new and stable currency was needed. When the Kuomintang (KMT) government fled to Taiwan following the Chinese Civil War, it brought the entire precious metal and foreign currency reserve of mainland China to the island. Although war-ravaged China had held only a very small reserve - some $170 million in all^[1], those reserves helped to establish a gold-standard reserve currency in Taiwan, which in turn helped to stabilize prices and reduce hyperinflation. More importantly, as part of its retreat to Taiwan, the KMT brought with them many of the Chinese intellectual and business elites from the China.^{[citation needed]} The Japanese had built up the agricultural and industrial infrastructure as well as chemical, material, and food reserves on the island that allowed the elite of the KMT supporters to jumpstart their own economic endeavors. Along with the $4 billion in financial aid and soft credit provided by the US (as well as the indirect economic stimulus of US food and military aid)over the 1945-1965 period [1], Taiwan had the necessary capital to restart its economy. Further, the KMT government instituted many laws and land reforms that it had never effectively enacted on mainland China. Chen Yi (陳儀 pinyin: Ch ; Wade-Giles: Chen I; 1883 - June 18, 1950) was the Chief Executive and Garrison Commander (警備總司令) of Taiwan Province after it was handed over to the Republic of China in 1945 from Japan. ... The Kuomintang of China (abbreviation KMT) [1], also often translated as the Chinese Nationalist Party, is a political party in the Republic of China (ROC), now on Taiwan, and is currently the largest political party in terms of seats in the Legislative Yuan, and the oldest political party in the... Belligerents Nationalist Party of China Communist Party of China Commanders Chiang Kai-shek Mao Zedong Strength 4,300,000 (July 1946) 3,650,000 (June 1948) 1,490,000 (June 1949) 1,200,000 (July 1946) 2,800,000 (June 1948) 4,000,000 (June 1949) The Chinese Civil War... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... ...

Immediately after losing the civil war and retreating to Taiwan, the KMT, under the leadership of Chiang Kai-shek had a policy towards the Taiwanese that lead to mistrust between the Taiwanese population and the new Chinese rulers. For instance, the new rulers confiscated the sugar production of the whole island to send it to the still KMT controlled areas on the mainland. Also, the fear of having to deal with a Japanese educated society (Taiwan had been a governed by Japanese for 50 years) when the second world war was just over lead to the 228 Incident in which between 10,000 and 20,000 Taiwanese died. The subsequent repression of any anti KMT sentiment which lasted, in the form of white terror, through the '50s. This article is about the definition of the specific type of war. ... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... Chiang Kai-shek (October 31, 1887 – April 5, 1975) was the Chinese military and political leader who assumed the leadership of the Kuomintang (KMT) after the death of Sun Yat-sen in 1925. ... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... This article is about the geomorphological/geopolitical term; MAINLAND is also a cheese brand owned by Fonterra, a New Zealand dairy company. ... Mushroom cloud from the nuclear explosion over Nagasaki rising 18 km into the air. ... The 228 Monument located near the Presidential Office in Taipei The 228 Incident (Chinese: ; Pinyin: ; Peh-ōe-jī: Jī-jī-pat sū-kiāⁿ) also known as the 228 Massacre (Traditional Chinese: ; Simplified Chinese: ; Pinyin: ) was an uprising in Taiwan that began on February 28, 1947 and was suppressed by the... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... It has been suggested that The White Terror (France) be merged into this article or section. ...

A land reform law, inspired by the same one that the Americans were enacting in occupied Japan, destroyed the landlord class (which also happened in Japan), and created a higher number of small peasants whom, with the help of the state, increased the agricultural output dramatically. This was the first excedent accumulation source.^[2] It inverted capital creation, and liberated the agricultural workforce to work in the urban sectors. However, the government imposed to the peasants an unequal exchange with the industrial economy, with credit and fertilizer controls and a non monetary exchange to trade agrarian products (machinery) for rice. With the control of the banks (at the time, being the property of the Government), and import licenses, the State oriented the Taiwanese economy to import substitutive industrialization, creating initial capitalism in a fully protected market.-1... For other uses, see State (disambiguation). ... For other uses, see State (disambiguation). ... Look up Market in Wiktionary, the free dictionary. ...

It also, with the help of USAID, created a massive industrial infrastructure, communications, and developed the educational system. Several government bodies were created and 4-year plans were also enacted. Between 1952 and 1982, economic growth was on average 8.7%, and between 1953 and 1986 at 6.9%. The Gross national product grew by 360% between 1965 and 1986. The percentage of global exports was over 2% in 1986, over other recently industrialized countries, (like South Korea), and the global industrial production output grew a further 680% between 1965 and 1986. The social gap between the rich and the poor fell (Gini: 0.558 in 1953, 0.303 in 1980), even lower than some Western European countries, but it grew a little in the 80's. Health care, education, and quality of life also improved.^[3] The United States Agency for International Development (or USAID) is the US government organization responsible for most non-military foreign aid. ... Measures of national income and output are used in economics to estimate the value of goods and services produced in an economy. ...

Much of this was made possible through US economic aid, subsidizing the higher cost of domestic production. The flexibility of the productive system and the industrial structure meant that Taiwanese companies had more chances to adapt themselves to the changing international situation and the global economy. The support of the authoritarian government, which was helped by the American USAID. The import-substitution policy was now changed (we are now in the 1960s), and the Taiwanese economy became, and still is, an exports oriented one. This occurred because the national market was now incapable of continual growth. Following, again, the advice of the American experts, the KMT dictatorship created an ambitious program to restructure the whole economy of Taiwan, now exports oriented. The United States Agency for International Development (or USAID) is the US government organization responsible for most non-military foreign aid. ... Import substitution industrialization (also called ISI) is a trade and economic policy based on the premise that a developing country should attempt to substitute products which it imports, mostly finished goods, with locally produced substitutes. ... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... Forms of government Part of the Politics series Politics Portal This box:      A dictatorship is an autocratic form of government in which the government is ruled by a dictator. ...

In 1960, a 19 points program of Economic and Financial Reform, liberalized market controls, stimulated exports and designed a strategy to attract foreign companies and foreign capitals. An exports processing area was created in Kaohsiung and in 1964, General Instruments pioneered in externalizing electronic assembly in Taiwan. Japanese companies moved in to benefit of low salaries, the lack of environmental laws and controls, a well educated and capable workforce, and the support of the Government. But the nucleus of the industrial structure was national, and it was composed by a large number of small and medium sized enterprises, created within families with the family savings, and savings cooperatives nets (會 Pinyin: Huì). They had the support of the government in the form of subsidies and credits loaned by the banks. Nickname: Coordinates: , Country Region City seat Lingya District (苓雅區) Government  - Mayor Chen Chu (陳菊) Area  - Total 154 km² (59. ... General Instruments Microelectronics was a division of General Instruments Corporation. ... Pinyin, more formally called Hanyu Pinyin (Simplified Chinese: ; Traditional Chinese: ; Pinyin: ), is the most common variant of Standard Mandarin romanization system in use. ... Hui (会) is a Chinese term referring to a secret society, derived from its original use as a reference to a meeting. ... A subsidy is generally a monetary grant given by government in support of an activity regarded as being in the public interest. ... Credit as a financial term, used in such terms as credit card, refers to the granting of a loan and the creation of debt. ...

Most of this Huì appeared for the first time in rural zones near metropolitan areas, were families shared work (in the parcels they owned and in the industrial workshops at the same time). For instance, in 1989 in Changhua, small enterprises produced almost 50% of the world's umbrellas. The State attracted foreign companies in order to obtain more capital and to get access to foreign markets, but the big foreign companies got contracts with this huge net of small sized, familiar and national companies, which were a very important percentage of the industrial output. Changhua County (彰化縣, pinyin: Zhānghuà Xiàn) is a county in western Taiwan administered as part of Taiwan Province of the Republic of China. ... For other uses, see State (disambiguation). ... Not to be confused with capitol. ...

Neither then, nor now, the foreign investment represents an important component in the Taiwanese economy, with the notably exception of the electronic market. For instance, in 1981, direct foreign investment was a mere 2% of the GNP, foreign companies employed a 4.8% of the total workforce, their production was 13.9% of the total production and their exports were the 25.6% of the nationwide exports. Access to the global markets was facilitated by the Japanese companies and by the American importers, who wanted a direct relationship with the Taiwanese brands. No big multinational corporations were created (like in Singapore, or huge national conglomerates (like the South Korean chaebols), but some industrial groups, with the support of the government, grew, and became in the 90's huge companies totally internationalized. Measures of national income and output are used in economics to estimate the value of goods and services produced in an economy. ... multinational corporation (or transnational corporation) (MNC/TNC) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. ... For Korea as a whole, see Korea. ... Chaebol (alternatively Jaebol) refers to a South Korean form of business conglomerate. ...

Most of the development was thanks to the flexibility of familiar companies which produced for foreign traders established in Taiwan and for international trade nets with the help of intermediaries. But the importance of the State must not be forgotten. It was the central organism which coordinated the industrialization process, it created the infrastructures, it attracted foreign investment, it decided the strategic priorities and, when necessary, recurred to impose its conditions. For other uses, see State (disambiguation). ...

Era of globalization

In the 70's protectionism was on the rise, and the United Nations switched recognition from the Republic of China to the People's Republic of China as the sole legitimate representative of all China. It was expelled by General Assembly Resolution 2758 and replaced in all UN organs with the PRC. The KMT began a process of enhancement and modernization of the industry, mainly in high technology (such as microelectronics, personal computers and peripherals). One of the biggest and most successful Technology Parks was built in Hsinchu, near Taipei. UN redirects here. ... For the Chinese civilization, see China. ... United Nations General Assembly Resolution 2758, adopted October 25, 1971, replaced the UN seat of the Republic of China with that of the Peoples Republic of China. ... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... Microelectronics is a subfield of electronics. ... The tower of a personal computer. ... For an account of the words periphery and peripheral as they are used in biology, sociology, politics, computer hardware, and other fields, see the periphery disambiguation page. ... The main landmark of Hsinchu is its East Gate. ... This article is about the city. ...

Many Taiwanese brands became important suppliers of worldwide known firms such as DEC or IBM, while other established branches in Silicon Valley and other places inside the United States and became known. The government also recommended the textile and clothing industries to enhance the quality and value of their products to avoid restrictive import quotas, usually measured in volume. The decade also saw the beginnings of a genuinely independent union movement after decades of repression. Some significant events occurred in 1977, which gave the new unions a boost. DEC, dec or Dec may refer to: December - a month of the year in the Gregorian Calendar Department of Environment and Conservation Digital Equipment Corporation - a computer and technology company, now part of HP Declination - a term from astronomy Diethylcarbamazine - a drug commonly used to treat infections by filarial parasites... For other uses, see IBM (disambiguation) and Big Blue. ... For the Nintendo 64 game, see Space Station Silicon Valley. ... The flag of the Union Movement showing the Flash and Circle symbolic of action within unity, carried on from the British Union of Fascists The Union Movement was a political party founded in Britain by Oswald Mosley. ... The Lawrence textile strike (1912), with soldiers surrounding peaceful demonstrators A trade union or labor union is an organization of workers who have banded together to achieve common goals in key areas such as wages, hours, and working conditions, forming a cartel of labour. ...

One was the formation of an independent union at the Far East Textile Company after a two-year effort discredited the former management-controlled union. This was the first union existing independently of the KMT in Taiwan's post-war history (although the KMT retained a minority membership on its Committee). Rather than prevailing upon the state to use martial law to smash the union, the management adopted the more cautious approach of buying workers' votes at election times. However such attempts repeatedly failed and by 1986, all of the elected leaders were genuine unionists.^[4] Another, and, historically, the most important, was the now called "Chung-li incident". KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... Battlespace Weapons Tactics Strategy Organization Logistics Lists War Portal         For other uses, see Martial law (disambiguation). ... (Traditional Chinese: 中壢事件, Tongyong Pinyin: HELP, Hanyu Pinyin: Zhōnglì Shìjiàn). ...

In the 80's, Taiwan had become an economic power, with a mature and diversified economy, solid presence in international markets and huge Foreign exchange reserves.^[5] It's companies were able to go abroad, internationalize their production, investing massively in Asia (mainly in China and in another OECD countries, mainly in the United States. Higher salaries and better organized trade unions in Taiwan, together with the reduction of the Taiwanese exports quotas meant that the bigger Taiwanese companies moved their production to China and Southeast Asia. The civil society in a now developed country, wanted democracy, and the rejection of the KMT dictatorship was bigger day by day.^[6] A major step occurred when Lee Teng-hui, a native from Taiwan, became President, and the KMT started a new path searching for democratic legitimacy. Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. ... The Organisation for Economic Co-operation and Development (OECD), (in French: Organisation de coopération et de développement économiques; OCDE) is an international organisation of thirty countries that accept the principles of representative democracy and a free market economy. ... A union (labor union in American English; trade union, sometimes trades union, in British English; either labour union or trade union in Canadian English) is a legal entity consisting of employees or workers having a common interest, such as all the assembly workers for one employer, or all the workers... A quota is a prescribed number or share of something. ... Location of Southeast Asia Southeast Asia is a subregion of Asia. ... The Politics series Politics Portal This box:      Civil society is composed of the totality of voluntary civic and social organizations and institutions that form the basis of a functioning society as opposed to the force-backed structures of a state (regardless of that states political system) and commercial institutions. ... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... Forms of government Part of the Politics series Politics Portal This box:      A dictatorship is an autocratic form of government in which the government is ruled by a dictator. ... Lee Teng-hui (Traditional Chinese: ; Simplified Chinese: ; Pinyin: ) born January 15, 1923) is a politician of Taiwan. ... For other uses, see President (disambiguation). ... KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ...

Two aspects must be remembered: the KMT was on the center of the structure and controlled the process, and that the structure was a net made of relations between the enterprises, between the enterprises and the State, between the enterprises and the global market thanks to trade companies and the international economic exchanges.^[7] Native Taiwanese were largely excluded from the mainlanders dominated government, so many went into the business world.^{[citation needed]} KMT might stand for: Kuomintang, is a centre-right political party in the Republic of China on Taiwan. ... For other uses, see State (disambiguation). ...

In 1962, Taiwan had a per capita gross national product (GNP) of $170, placing the island's economy squarely between Zaire and Congo. But, by 2005 Taiwan's per capita GNP, adjusted for purchasing power parity (PPP), had soared to $27,600, contributing to a Human Development Index similar to that of European countries such as Greece.

According to economist Paul Krugman, the rapid growth was made possible by increases in capital and labor, but not an increase in efficiency. In other words, the savings rate increased, and work hours were both lengthened and many more people, such as women, entered the work force.^[8] Paul Krugman Paul Robin Krugman (born February 28, 1953) is an American economist. ...

Dwight Perkins and others cite certain methodological flaws in Krugman's (and Alwyn Young's) research, and suggest that much of Taiwan's growth can be attributed to increases in productivity. These productivity boosts were achieved through land reform, structural change (urbanization and industrialization), and an economic policy of export promotion rather than import substitution.

Future growth

Economic growth has become much more modest since the late 1990s. A key factor to understand this new environment is the rise of China, offering the same conditions that made possible, 40 years ago, the Taiwan Miracle (a quiet political and social environment, cheap and educated workers, absence of independent trade unions). To keep growing, the Taiwanese economy must abandon its workforce intensive industries, which cannot compete with China, Vietnam or other sub-developed countries, and keep innovating and investing in IT. Since the 90's, Taiwanese companies have been permitted to invest in China, and a growing number of Taiwanese businessmen are demanding easier communicationes between the two sides of the Taiwan Strait. For the band, see 1990s (band). ... Look up It in Wiktionary, the free dictionary. ... Taiwan Strait Area The Taiwan Strait or Formosa Strait is a 180km-wide Strait between mainland China and the island of Taiwan. ...

One major difference with Ireland, of course, is the native English fluency of the Irish, which many economists believe has contributed to the Irish economic miracle. Mirroring Hong Kong and Singapore, the ultimate goal is to become a country fluent in three languages--Taiwanese, Mandarin (the national language of both the People's Republic of China (PRC) and the ROC), and English, becoming a bridge between East and West. The English language is a West Germanic language that originates in England. ... The Irish pound (punt) served as the Republics currency from 1928 until 2002. ... For other uses, see Country (disambiguation). ... For other uses, see Formosan languages, Taiwanese Mandarin, and Languages of Taiwan. ... This article is on all of the Northern and Southwestern Chinese dialects. ... For the Chinese civilization, see China. ... The English language is a West Germanic language that originates in England. ...

According to western financial markets, consolidation of the financial sector remains a concern as it continues at a slow pace, with the market split so small that no bank controls more than 10% of the market, and the Taiwanese government is obligated, by the WTO accession treaty, to open this sector between 2005 and 2008.^[9] However, many financial analysts estimate such concerns are based upon mirror-imaging of the Western model and do not take into account the already proven Asian Tiger model. Yet, recently, credit card debt has become a major problem, as the ROC does not have an individual bankruptcy law. Taiwan also remains undeveloped in some sectors, such as the lack of a bond market, a role that has been filled by small entrepreneur-oriented investment or direct investment by foreign persons. Consolidation is the act of merging many things into one. ... This article does not cite any references or sources. ... For other uses, see Bank (disambiguation). ... For other uses of the initials WTO, see WTO (disambiguation). ... Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards. ... Notice of closure stuck on the door of a computer store the day after its parent company, Granville Technology Group Ltd, declared bankruptcy (strictly, put into administration—see text) in the United Kingdom. ... For alternative meanings, see bond (a disambiguation page). ...

Generally, transportation infrastructure is very good and continues to be improved, mainly in the west side of the island. Many infrastructure improvements are currently being pursued, such as the first rapid transit lines are to open in Kaohsiung by the end of the year; the country's highways are very highly developed and in good maintenance and continue to be expanded, especially on the less developed and less populated east coast, and a controversial electronic toll system has recently been implemented. The completion of theTaiwan High Speed Rail service connecting all major cities on the western coast, from Taipei to Kaohsiung is considered to be a major addition to Taiwan's transportation infrastructure.The ROC government has chosen to raise private financing in the building of these projects, going the Build-Operate-Transfer route, but significant public financing has still been required and several scandals have been uncovered. Nevertheless, it is hoped that the completion of these projects will be a big economic stimulus, just as the subway in Taipei has revived the real estate market there. “Mass Transit” redirects here. ... A highway is a major road within a city, or linking several cities together. ... This article or section does not cite any references or sources. ... The Taiwan High Speed Rail (traditional Chinese: , also known as the THSR) is Taiwans high-speed rail network, running approximately 335. ... TRA train passing over the Kaoping Bridge. ... This article is about the city. ... Nickname: Coordinates: , Country Region City seat Lingya District (苓雅區) Government  - Mayor Chen Chu (陳菊) Area  - Total 154 km² (59. ... A scandal is a widely publicized incident involving allegations of wrong-doing, disgrace, or moral outrage. ...

Taiwan continues to rely heavily on its technology sector, a specialist in manufacturing outsourcing. Recent developments include moving up the food chain in brand building and design. LCD manufacturing and LED lights are two newer sectors in which Taiwanese companies are moving. Taiwan also wants to move into the biotechnology sector, the creation of fluorescent pet fish and a research-useful fluorescent pig being two examples. Taiwan is also a leading grower of orchids. By the mid 20th century humans had achieved a mastery of technology sufficient to leave the surface of the Earth for the first time and explore space. ... Manufacturing (from Latin manu factura, making by hand) is the use of tools and labor to make things for use or sale. ... Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. ... Food chains, food webs and/or food networks describe the feeding relationships between species to another within an ecosystem. ... For other uses, see Brand (disambiguation). ... LCD redirects here. ... External links LEd Category: TeX ... Insulin crystals Biotechnology is technology based on biology, especially when used in agriculture, food science, and medicine. ... Fluorescence induced by exposure to ultraviolet light in vials containing various sized cadmium selenide (CdSe) quantum dots. ... For other uses, see Fish (disambiguation). ... Fluorescent green pigs were first bred by a group of researchers led by Prof. ... Orchid re-directs here; for alternate uses see Orchid (disambiguation) Genera Over 800 See List of Orchidaceae genera. ...

Debate on opening "Three links" with mainland China is also ongoing, with the security risk of economic dependence on mainland China being the biggest barrier. By decreasing transportation costs, it is hoped more money will be repatriated to Taiwan and that businesses will be able to keep operations centers in Taiwan while moving manufacturing and other facilities to mainland China. By law, any firm investing in the People's Republic of China must not invest more than 40% of its total assets on the mainland, a question which is open to political debate. Taiwan hopes to become a major operations center in East Asia. In addition, many businesses and areas in Taiwan hope to make money from mainland Chinese tourists if and when the three links are negotiated. The Three Links or Three Linkages (Chinese: 三通; pinyin: sān tōng) are direct postal (通郵 tōng yóu), transportation (especially airline) (通航 tōng háng), and trade (通商 tōng shāng) links between Mainland China and Taiwan. ... For the Chinese civilization, see China. ...

References

Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ... is the 92nd day of the year (93rd in leap years) in the Gregorian calendar. ...

External links

• Official Website of Taiwan for WTO affairs, Documents
• Official Website of Taiwan for WTO affairs
• Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) and the WTO
• Cross-Strait Relations between China and Taiwan
• A New Era in Cross-Strait Relations? Taiwan and China in the WTO
• China’s Economic Leverage and Taiwan’s Security Concerns with Respect to Cross-Strait Economic Relations