Discuss the factors that led to Taiwan’s economic success.

Candidates are required to offer a considered and balanced review of the social, political and economic factors that led to Taiwan’s economic success in the second half of the 20th century.

Indicative content

• The Chinese Nationalists who fled to Taiwan took China’s gold reserves with them.
• Taiwan benefited from American protection from Communist China, economic aid from the US and support from overseas Chinese. In the years 1951 to 1962, US aid made up 30 per cent of all investment in Taiwan.
• Land was distributed to the people and by 1968, some 90 per cent of agricultural land was owned by those who worked on it, establishing a stable rural economy.
• Government planning also aided Taiwan’s development. The Four Year Plans for industry were initiated in 1963, which resulted in an annual growth rate of nearly 10 per cent for the following decade. By the 1980s, the government was less involved in economic planning and many industries were privatized.
• The economy was transformed from an agriculture-based economy in the 1950s to an industrial one by the 1980s.
• Universal education also helped to create a highly skilled workforce.
• By the 1980s, Taiwan’s industry was focused on electronic goods, which were highly desirable around the world.
• In the 1980s, a thaw in relations with China allowed access to Chinese markets.

The above material is an indication of what candidates may elect to write about in their responses. However, the list is not exhaustive and no set answer is required.

Examiners and moderators are reminded of the need to apply the markbands that provide the “best fit” to the responses given by candidates and to award credit wherever it is possible to do so.

[20 marks]