Economic history of Taiwan

In the 1950s, the ROC government, retreated to Taiwan after losing the Chinese Civil War, carried out land reform policies such as the 37.5% Arable Rent Reduction Act.

From 1966 to 1980, Taiwan's economy was gradually stabilized as the Ten Major Construction Projects laid a foundation in further economic developments.

However, Philippine craftsmen continued to work jade from Taiwan until around 1000 AD, producing lingling-o pendants and other ornaments, which have been found throughout southeast Asia.

At first these were trade goods, but by around 400 AD wrought iron was being produced locally using bloomeries, a technology possibly introduced from the Philippines.

The Dutch recognized the significance of cane sugar as an export product and extensively developed the industry in the areas under their control.

The main Taiwanese resources that they exported were sugar, sika deerskin, deer meat, antlers, rattan, and rice.

Amid the conquest of the Qing dynasty, the Ming partisan Koxinga invaded Dutch Formosa to use as a base for assaults along China's coast.

After his successful siege of Ft Zeelandia, he had accomplished this but his rule caused the Qing to revive the sea bans and cut off maritime trade in a bid to weaken him.

His dynasty ruled Taiwan as the independent Kingdom of Tungning, establishing land distribution systems in order to efficiently supply food for their army.

After defeating Koxinga's private army, the Qing dynasty had no interest in improving the economy of Taiwan, calling it an uncivilized land (huawai zhi di).

In 1858, four ports were opened in Anping, Ta-kau, Keelung, and Tamsui as a result of pressures from the British and French Empires after the Second Opium War.

[9] Under Governor Akashi Motojiro, a vast swamp in central Taiwan was transformed into a huge dam in order to build a hydraulic power plant for industrialization.

The dam and its surrounding area, known today as Sun Moon Lake, has become a must-see for foreign tourists visiting Taiwan.

The government raised tariffs, controlled foreign exchange and restricted imports in order to protect domestic industry.

By slow steps, the economic policy of Taiwan changed to pursue export expansion under advice of academic economists such as Ta-Chung Liu and Sho-Chieh Tsiang of Cornell University.

They also promoted allowing interest rates to rise, to encourage domestic savings and expand the amount of resources available to fund new businesses.

But executive premier Chiang Ching-kuo's Ten Major Construction Projects served as the basis for heavy industrial development in Taiwan.