Chapter 10 : ROC on Taiwan—
Economy, Culture, Education, and Society

 

Outline

To enhance economic development, the ROC government has carried out land reform and economic development projects, including the Ten Major Construction Projects. In general, the government has promoted a free economy as well as economic globalization.

In terms of education and culture, the government has extended compulsory education and improved access to education. Secondary and higher education planning has supported economic development. The government has also sought to uphold Chinese culture and promote various forms of cultural development.

As for society, the ROC has experienced rapid population growth since the Second World War. Rapid population growth creates challenges for the government to face. In order to create a harmonious and diverse society, the government has established a social security system and promoted community development.

 

10-1 Economic Development

Land Reform

When Taiwan was first freed from Japanese colonization, tenant farmers, who accounted for a majority of farmers, were paying high rents and their tenancies were not protected; landlords could force them to leave. To protect the tenant farmers and achieve “farmland owned by farmers, cultivated by farmers, harvested by farmers,” the government initiated land reform. The first program, initiated in 1949, was the 37.5% rent limitation program (rent could not exceed 37.5% of the total yield). Later there were other programs, like the Public Land Redistribution Program, Land to the Tiller, and Field Consolidation. Land reform increased agricultural productivity, improved farmers’ living standards, brought prosperity to farming villages, and boosted industry and business.

The government also made progress with land right equalization. Land right equalization was one of the theories of founding father Sun Yat-sen. The purpose of land right equalization is to prevent landowners from hoarding land. In 1977, the government passed the Land Right Equalization Act, but the land reform programs discussed in the previous program are related to land right equalization.

As for urban development, cities were rezoned to free up land for public facilities and new communities and to stimulate healthy urban development.

 

Economic development projects

Starting in 1953, the government implemented six four-year economic construction plans. During the first three, Taiwan pursued a policy of import substitution, increasing agricultural productivity while helping domestic industries to grow under the protection of import controls. In 1963, the value of industrial output exceeded that of agriculture. One might say that agriculture was the runway that helped the economy take off.

In the final three four-year plans, the government changed to an export-oriented policy: small and medium-size enterprises were subsidized to encourage exports; export processing zones were established. Small and medium-size enterprises thrived; exports increased and generated a trade surplus. The economy boomed without inflation, without an increase in commodity prices. This successful development has been praised as an “economic miracle.” The ROC became one of the “Four East Asian Tigers” and a model for developing countries.

In 1975, because of a slump in the world economy due to the oil crisis, the government was forced to cut short the sixth four-year economic construction plan. However, a six-year economy construction plan was initiated to take its place in 1976. This plan focused on heavy and chemical industries, as well as on enhancing agricultural infrastructure.

 

The Ten Major Construction Projects

In 1973, Premier Chiang Ching-kuo announced the commencement Ten Major Construction Projects. In addition to establishing nuclear power plants, the government set a deadline of five years to complete nine other major construction projects, namely: the North-South (Sun Yat-sen) Freeway, Taichung Port, the North Link Railway, Su-ao Port, petrochemical industry development, steel mills, shipyards in Kaoshiung, the electrification of the railway system, and the Chiang Kai-shek International Airport. All were completed.

In 1979, the government added another Twelve Construction Projects, covering traffic, industry, agriculture, and culture. In 1984, there were another Fourteen Construction Projects. A new six-year plan got underway in 1990, aiming to reconstruct the socio-economic order, pursue balanced development, and transform Taiwan into an important finance, shipping and technology center in the western Pacific. These visionary projects helped propel Taiwan’s economy to repeated breakthroughs.

 

Economic deregulation and globalization

In 1984, the government announced a policy of economic deregulation and globalization. Controls on trade, finance and industry were lifted. The government lifted import controls, lowered import tariffs, abolished bank rate restrictions, eased foreign exchange controls considerably,[1] permitted private banks to form, and privatized certain state-owned industries.

As for globalization, the government enacted less rigid regulations to encourage foreign investors. The government has tried to establish Taiwan as an offshore banking haven and has made the NTD more exchangeable internationally. The latest plan is to turn Taiwan into an Asia-Pacific Regional Operations Center for transportation, finance, and information technology.

 

10-2 Education and Culture

Nine-year compulsory education

According to the Three Principles of People of founding father Sun Yat-sen, the government must endeavor to provide and develop education at all levels, so that everyone enjoys equal access to education. The Constitution entitles all children to receive at least six years of free elementary education. People in Taiwan had experienced mandatory education late in the Japanese period. School-age children and their families were attended school enthusiastically from the very beginning. From 1950 to 1966, enrollment increased from 80% to 97%. Starting from 1968, compulsory education was extended from six to nine years.[2] Continuous methods have been made to enhance the educational environment. Facilities are kept up to date. New teaching methods and curricula are introduced regularly. The government has also worked on narrowing down the educational gap between rural and urban areas.

In recent years, in light of the success of nine-year compulsory education in improving people’s knowledge and quality of life, some members of the public have called for twelve years of compulsory education. The government is looking at the issue.

 

Reform and extension of middle education

Postwar Taiwan offered its people many more chances to go to middle school. Initially, most schools were regular middle schools. After nine-year compulsory education was implemented, the government actively promoted vocational education to provide skilled manpower for economic development. In 1967, the ratio of the number of students in high school and the number in vocational school was six to four; in 1981 the ratio was three to seven. In recent years, the government, in preparation for the extension of compulsory education, has progressively relaxed the restriction on number of high schools and classes. More students can now go to regular high school.

As for vocational education, in the 1950s most students studied agriculture; in the 1960s, schools of commerce attracted the most students; since the mid-1970s, industrial schools have been most popular. Thus, vocational education has responded to the needs of economic development over the decades.

 

Rapid development of higher education

In terms of higher education, the government transformed all Japanese institutes into Chinese ones, and increased student enrollment. When the central government relocated to Taiwan, it aimed to promote primary and junior middle school education first. But since the 1960s, for the sake of economic development, higher education has become a priority. Public and private universities and colleges have kept increasing in number. In 1950, there were only seven universities and colleges, with 6,500 students. In 1994, there were more than 120 universities and colleges, with more than 500,000 students.

To improve the quality of teaching and research, graduate institutes were widely established to cultivate more high-level specialists and college teachers. Therefore, both the quality and quantity of higher education has improved.

 

Cultural Renaissance and Cultural Development

In 1967, President Chiang Kai-shek, in response to the Cultural Revolution launched by Chairman Mao Zedong in China, established the Chinese Cultural Renaissance Committee to promote Chinese culture and cultural activities. In 1991, this body changed in name to the National Cultural Association. The orientation of the National Cultural Association was different: in addition to supporting Chinese culture, this body researched and promoted local culture on Taiwan, Penghu, Kinmen, and Matzu.

In 1979, cultural development was listed as one of the twelve construction projects. The Executive Yuan established the Council for Cultural Affairs in 1981. Cultural centers were established in counties and cities. The government endeavored to preserve cultural assets like historic relics, artifacts, and folk arts. Museums and theaters were built, like the National Theater, the National Concert Hall, the National Museum of Natural Science, and the National Museum of Prehistory. Counties and cities have started to compose local history. Cultural centers have opened galleries with local themes, and have held various artistic and cultural activities in order to raise the cultural level of the people.

 

10-3       Social Change

Population change

In 1946, Taiwan had a population of about 6.1 million. Later on, due to the civil war on Mainland China, many Chinese from different provinces took refuge on Taiwan. The population swelled, reaching 7.5 million in 1950.

Owing to socio-economic development and the family planning program implemented by the government, the population growth rate has dropped significantly since the mid-1970s. Now the population of the territory of Taiwan, Penghu, Kinmen, and Matsu is 23 million. Despite initial animosity, ethnic groups in Taiwan have gradually blended through intermarriage and shared historical experience. However, there are some problems yet to be solved, such as the questions of national identity and unification.

 

Social welfare and social security

Building a welfare state has been one of the government’s goals. However, initial policies were mainly designed to spur economic development and so social welfare legislation did not keep pace with rapid social changes. From the 1970s, the government has paid more attention to social welfare and established related organizations. Welfare laws and legislation protecting children, teenagers, senior citizens and the disabled have been passed. Other legislation provides for employment services, vocational training, and social assistance. Social welfare now sits on a sound foundation.

Also, insurance has been made available since 1950, first to military personnel, civil servants and teachers and later to workers and farmers. Further, National Health Insurance was implemented starting in 1995. Thus, every individual is now under the umbrella of the social security system.

 

Social diversity

Over six decades, as Taiwan has experienced accelerating industrialization and urbanization due to high economic growth, social transformation has been drastic. Taiwan has transformed from a semi-rural society to an industrial one. (Some people say Taiwan is now in some ways post-industrial.) Education is now available to almost everyone. Politics and society are now more open. As a result, Taiwan, like many developed countries, has become a diverse and democratic society, in which ethnic groups are effectively integrated.

In 1968, the government also started working on community development. Residents were mobilized to participate in their communities to improve the quality of life. In recent years, the government has started community reconstruction programs to create a sense of community among residents and integrate different groups into a vibrant and diverse society.