Social and Political Data Science: Introduction

State and Society in Taiwan

Karl Ho

School of Economic, Political and Policy Sciences

University of Texas at Dallas

The Economy

The economy of Taiwan

Why is it important?

What we can learn from the "Taiwan Miracle"?

Overview

  • Brief overview of Taiwan's economic history, highlighting periods of boom and decline.

  • Taiwan's economic transformation post-WWII and its status as a global economic powerhouse by engaging in global trade and adopting free-market capitalism. 

In the beginning

  • Taiwan's economic transformation.

    • Early trade center to a global economic powerhouse.

    • Taiwan's journey from being a peripheral trade center centuries ago to achieving rapid economic growth and becoming a significant player in the global economy.

    • 1895-1945 Impact of Japanese governance and the post-WWII era.

Key Events in Taiwan's History (1624-1943)  

  • European colonization  
  • 1624  Dutch East India Company occupies Tainan region.  
  • 1626  Spanish adventurers set up bases in northern Taiwan.  
  • 1642  The Dutch drive out the Spanish.  
  • Reign of the Jheng family  
  • 1661-1662 Ming Dynasty loyalist Jheng Cheng-gong (Koxinga) drives out the Dutch East India Company and establishes Taiwan's first independent state.  

Key Events in Taiwan's History (1624-1943)  

  • Qing rule 
  • 1683 Manchu Empire takes control. 
  • 1885 Taiwan is declared a province. 
  • Japanese colonization 
  • 1895 By the Treaty of Shimonoseki, the Manchu Empire cedes Taiwan to the Japanese Empire, which rules the island for the next 50 years. 
  • 1930 Seediq warriors under chieftain Mona Rudao stage the Wushe Uprising.  
  • 1943 The Cairo Declaration is issued, stating the Allied Powers'  intention to "restore" Taiwan to China 

Key Events in Taiwan's History (1943-2002)  

  • The ROC on Taiwan 
  • 1945 The Republic of China (ROC) takes control of Taiwan. 
  • 1947 The February 28 Incident sparks an islandwide uprising.  
  • 1949 The Kuomintang (KMT) government relocates to Taiwan and the People's Republic of China (PRC) is established on the mainland. 
  • 1951 By the San Francisco Peace Treaty Japan renounces sovereignty over Taiwan, but the treaty does not designate a receiver. 
  • 1971 Taiwan-based KMT government withdraws from the United Nations in anticipation of a General Assembly vote to give its seat to the PRC. 

Key Events in Taiwan's History (1943-2002)  

  • 1979 Diplomatic ties between Taiwan and the United States are severed.
  • A democracy rally in Kaohsiung City turns violent, an event known as the Kaohsiung Incident.  
  • 1986 The Democratic Progressive Party (DPP) is established in defiance of a prohibition on the formation of new political parties.
  • 1987 Martial law, in effect since 1949, is lifted, and a ban on private visits to China is repealed.  
  • 1996 Taiwan's first direct presidential election is held.
  • 2000 The second direct presidential election results in Taiwan's first transfer of political power, from the KMT to the DPP.
  • 2002 Taiwan becomes a member of the World Trade Organization. 

In a nutshell

  • Japanese rule

  • Return to ROC

  • Post-WWII decline

  • Korean war and Vietnam war period

  • American trade and technology transfer 

  • China and global markets

  • Democratization

Japanese colonial time

Early KMT take over

  • Contrast under Japanese rule vs. post-WWII decline.
    • Economic prosperity under Japanese rule and the subsequent deterioration post-WWII.
    • 1949, 1.5 million mainlanders influx
    • Pessimism on Taiwan's economy given all limitations and lack of resources
    • Mid-1960s economic takeoff
      • Economic revival, privatization and global trade.

The Economy up to 1950

  • Trade and colonial influences.
    • Modernization under Chinese rule.
    • Economic activities and trade relations in its early history
      • Dutch colonization
      • Chinese governance.
        • modernization and economic development
        • Infrastructure projects
          • Ten Major Construction Projects (十大建设)

The Economy up to 1950

  • Trade and colonial influences. 
    • Modernization under Chinese rule.
    • Economic activities and trade relations in its early history
      • Dutch colonization
      • Chinese governance.
        • modernization and economic development 
        • Infrastructure projects
          • Ten Major Construction Projects (十大建设)

The Economy up to 1950

  • Trade and colonial influences. 
    • Modernization under Chinese rule.
    • Economic activities and trade relations in its early history
      • Dutch colonization
      • Chinese governance.
        • modernization and economic development 
        • Infrastructure projects
          • Ten Major Construction Projects (十大建设)

Post-War Economic Recovery and Boom (1950–2000)

  • U.S. aid and economic recovery.
    • Transformation into an industrial economy
    • Technology Transfer
    • from agriculture to industry,  land reform to export-led growth strategy

Economic Miracles and Challenges

  • "Miracle" economic growth
  • Asian Financial crisis 1997
  • Recessions in 2001 and 2008.
    • 2000 Chen administration
    • 2008 Global recession crisis

Taiwan-China Economic Ties

  • Expansion of trade with China
    • Trade expansion and investment flows.
  • Economic ties as a double-edged sword.
    • Can Taiwan survive without trading with China?

Shift Towards Industrialization and Global Trade

  • Export-led growth and foreign investment.
    • Evolution of key industries.
      • Policies and strategies that drove Taiwan towards industrialization and positioned it as a key player in global trade.
      • Shift to high-tech and capital-intensive production.

Labor Force Development

  • Workforce expansion and education.
    • Union activities and labor laws.
    • Growth and development of the labor force, including education levels and skill development.
    • Evolution of labor laws, union activities, and their impact on the economy.

Trade, Investments, and Energy

  • Growth in foreign trade.
    • Foreign investments and energy dependency.
      • Expansion of Taiwan's trade, its importance to the economy, and the main trading partners.
      • Taiwan's foreign investment trends and the challenges of energy dependency.

Trade, Investments, and Energy

  • Growth in foreign trade.
    • Foreign investments and energy dependency.
      • Expansion of Taiwan's trade, its importance to the economy, and the main trading partners.
      • Taiwan's foreign investment trends and the challenges of energy dependency.

Challenges and Future Directions

  • Economic ties with China and independence debates.
  • Environmental concerns and green energy transition.
    • Energy relies on import
  • High technology industry
    • Stay ahead: semiconductor, AI

SST: The Economy

By Karl Ho

SST: The Economy

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