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Can Taiwan's Economic Miracle Persevere?

2) Land Reform Program-What started out as the government's means to eliminate the power base of the native Taiwanese elite-part of a well-orchestrated and ruthlessly executed scheme to severely weaken the native's potential for resistance-accidentally and luckily had the unexpected consequence of forcing these landlords into eventually transforming themselves into small and medium-sized entrepreneurs and the best contributors to the economic success story. Similar reforms were done in different parts of China but never could have succeeded due to strong resistance from vested interest groups and sometimes resulted in disturbances. Taiwan's economic structure, composed of these efficient, flexible, and hardworking small and medium businessmen, is a far cry from Korea and Japan's large business and conglomerate structure. Lack of strong union movement also was very beneficial to these businesses. They are solid and financially conservative operators and not susceptible to any financial or economic storms at all.
3) Economic Free Rein-While the government was intent on controlling and dominating the political, military, and judicial aspects, it allowed the public to have a pretty free hand to exploit economic and business opportunities on their own. No worry for Big Government, but at the same time, businesses simply didn't have the benefit of reasonable and normal assistance from their government, considered indispensable in modern-day global commerce. Much as in any colonial rule, studying and picking a career in politics, law, or the military is frowned upon and discouraged. Science, medicine, engineering, and business are safe and potentially profitable, and these few areas became where Taiwan's best talents devoted their careers. This freedom of business pursuits also fostered an environment conducive to small and medium-size entrepreneurs who did flourish and become the locomotive of the phenomenal progress, effectively eliminating the need or possibility to form big businesses like what happened in Korea and Japan.


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