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Can Taiwan's Economic Miracle Persevere?

4) Cultural & Family Virtues-People of Chinese stock everywhere all seem to have the thrifty and hard-working habits, family tradition and the right culture to pursue economic interest and be good at it. They have succeeded no matter where they settle down and become influential citizens throughout Southeastern Asian countries. Taiwan is no exception. But by the same token, the requirement for transparency in business practices is oftentimes neglected and not adhered to by ethnic Chinese, a flaw that can hinder their potential for greatness. What makes them could end up breaking them, as they say. From the above analysis we know Taiwan's private sectors definitely have what it takes to move into the 21st century and create even more miracles, provided that the missing player so far, the government, can fulfill its proper role in formulating good policies, and furnish the necessary infrastructure to guide and help business, instead of just being a passive bystander, insofar as economic planning and development is concerned.

     From the above analysis we know Taiwan's private sectors definitely have what it takes to move into the 21st century and create even more miracles, provided that the missing player so far, the government, can fulfill its proper role in formulating good policies, and furnish the necessary infrastructure to guide and help business, instead of just being a passive bystander, insofar as economic planning and development is concerned.

III. CURRENT PROBLEMS

     Taiwan's economy peaked around 1995. In the last three years, some symptoms have surfaced, such as slowed GDP growth rate, higher unemployment rate, declined international competitiveness, reduced foreign exchange reserve and trade surplus, higher bankruptcy rate. During this past year, the situation got worse as many problem loans came to the fore and some financial institutions and significant businesses went under. Like Japan, Taiwan may still be rich with substantial reserve, but businesses and consumers at large have suffered from these ailments. Both were rapid-firing models for quite some time, creating dislocations between their businesses and the accounting/regulatory/banking systems that were needed to facilitate them. Both also were under expedient one-party domination. So it is pertinent to ask three questions right now:



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