||Small and medium enterprise structure-this
structure was the main backbone of the miracle
but its formation and functions were more the
result of private sector efforts rather than government
policy, which accidentally sowed the seed through
the land reform program in the '50s.
|| Land reform program-it forced
the native elite landowners to engage in business
activities and became the main driving force of
the economic machine later, but purely as an accidental
consequence which I will explain.
||High tech upgrades-when the economy
hit the bottleneck in late '80s, early 90's, some
low-tech downstream items were developed in the
computer industry but were mainly due to the business
sector's own ventures rather than policy-induced
as claimed. The jury is still out as to how this
area will eventually work out.
The Real Reasons-The External Forces
||Japanese Heritage-over fifty
years of its occupation Japan constructed an excellent
network of transportation and communication facilities,
a population 90% literate and extremely law-abiding,
and all the other infrastructure needed as its
forward base for its WWII efforts. Taiwan was
more advanced than any Asian country except Japan.
million Chinese followed Chian Kai-Shek to Taiwan,
many of whom were intellectuals and professionals
who became the movers and shakers in many sectors.
||The Korean War-the war was a
real savior for Taiwan as it reversed U.S. policy
on Taiwan from one of abandoning Chiang's regime
as not worthy of support to one of the most staunch
ally. The Seventh Fleet was dispatched to defend
Taiwan. Taiwan was regarded as an "unsinkable
aircraft-carrier" and military and economic aid
started to flow in. The economy got a big boost
from the war effort.