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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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