The Politics of National Development and Education in Taiwan

Abstract

The Republic of China (ROC) on Taiwan is often cited as a major success story among developing countries.' Today it approaches a level of national development surpassed among Asian states only by Japan. With a growth rate and standard of living ranked among the highest in Asia, Taiwan commands the respect and envy of less affluent emergent nations the world over. The island's record of economic performance has been spectacular by almost any standard. Between 1952 and 1973, the average annual increase in real gross national product (GNP) exceeded 8.74 percent, reaching highs of 11.96 percent in 1952 and 11.92 percent in 1973. Again in 1976, Taiwan's GNP rose 11.76 percent. Despite world inflation, recession, and ever increasing energy costs, the nation's GNP in 1979 still grew by 10.7 percent, easily overtaking the more modest target figure of 8.5 percent set by economic planners. For these and other reasons, Taiwan is widely recognized as an attractive investment area. Foreign capital inputs continue to rise, up 32.7 percent in 1979 over the year preceding. Foreign trade likewise has shown a 36.9 percent gain since 1978. Taiwan's export-led economy (exports currently equal 58 percent of its GNP) generate a healthy trade surplus now amounting to almost $1.5 billion. Together with accumulated foreign reserves the total runs to $6.5 billion.2 Taiwan's impressive economic growth has spelled an equally dramatic rise in its citizens' standard of living. In 1968, per capita income stood at $719. Within a little more than a decade it has almost doubled, reaching $1,370 as of late 1979. Significantly, increasing affluence has been accompanied by a more equitable redistribution of income. Whereas in 1952 family wealth in the top 20 percent of the income structure was fifteen times that of the bottom 20 percent, by 1964 the ratio had shrunk to 5.33 to 1. It had narrowed down to 4.21 to 1 by 1977. The ROC government's current six-year economic development plan aims at even further reduction in the disparity between haves and