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The Taiwanese Development Model Since 1960

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According to Thomas Gold Taiwan offers a text book case of an elite-led
revolution leading to social transformation. The stability of hard
authoritarianism of the Taiwanese government laid the groundwork for Taiwanese
development. The KMT's cohesiveness and political domination plus the economic
development aid supplied by the United States also helped to provide good
conditions for Taiwanese growth in the beginning. Once the KMT gained control of
Taiwan they redistributed the land and launched a program of rehabilitation and
industrialization. This period was responsible for the nationalization of many
businesses formerly owned by the Japanese and the start of industrial production
in Taiwan marked by a shift away from agriculture to industry. During the early
period of industrialization Taiwan tried to create domestic markets for its
goods. During the period from 1960 to 1973 Taiwan pursued export expansion in
the area of industrial goods. During this period U.S. aid directed at Taiwan
declined as did the islands geopolitical significance. To make up for this
decline Taiwan focused on increasing its exports. The growth of the Taiwanese
economy during this period according to Gold laid the ground work for the growth
of opposition movements and loosening of the KMT"S grip on power. According to
Gold this was because the changes in the Taiwanese economy brought about a
middle class, a better educated populace, and a dispersion of industry through
out the country. The Period from 1973 to 1984 Gold calls the time of industrial
upgrading and the emergence of a political opposition. During this period Taiwan
faced the oil shock, and increase in export prices due to a labor shortage that
doubled workers salaries, a further loss of geopolitical prestige, and the
growth of dissent and political opposition. Taiwan ...

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Keywords: taiwan developmental state, taiwan modernization

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