In the sales of public land to farmers.
In the past, Taiwan was a colony of many different countries, including the Netherlands, Mainland China, and Japan. These external factors halted modernization in Taiwan. They (Kuo Min Tang) first started the Land Reform Program (LRP) in 1949. The first stage was focused on reducing land rent to a maximum of 27.5% crop yields. The second stage was initiated in 1951, where they involved the sales of public land to farmers. The third and last stage, which was launched in 1953, required landlords to sell their excessive land holdings to farmers, hence the name “land ot the tiller” program. The LRP wanted to 1) create incentives for farmers in order to improve agricultural productivity, 2) close down the economic disparities between the rich and poor. And 3) redirect the capital to a more modern city in order to hasten the economic modernization process. The LRP program helped lay down a foundation for the Taiwanese government to build on. With this foundation, Taiwanese government launched 9 EDP’s (Economic Development Plans) from 193 to 1989. The Sixth EDP was not initiated due to global oil crisis, leading to the seventh plan covering a six year period. Apart from the sixth plan, the growth rate of the Gross National Product spanned from a low of 7% at the 2nd EDP, to highest of 11.6% at the 5th EDP. The Taiwanese government was also able to maintain a 9.7% growth rate during the second half of the 1980’s. According to the tables provided in the text the GDP of Taiwan during the 50’s was primarily agricultural products, but that adjusted into more and more industrial products. The industrial share of the GDP surpassed the agricultural share in the 60’s, the ratio being 5:2 by the end of the 1960s. The per capita income increased from $167 in 53 to $343 in 1969. That jumped up to the US$7,000 mark by 1990. Currently, the income per capita is estimated at US$11,000. Taiwan was undoubtedly gaining the status as a NIC (Newly Industrializing Countries) during the end of the 70s.The change of economic policy also helped Taiwan to show improvement. The economic policy adjusted to export expansion from import substitution. Trade liberation, high-interest policies, rising rate of national savings, market-determined exchange rate, relative price stability, and foreign capital aid. History of TaiwanTaiwan as part of the Japanese Empire: During the first Sino-Japanese Wars 1894 Japan won the conflict and gained control of taiwan and other islands due to the Treaty of Shimonoseki. Having no real government, the citizens of Taiwan seeked general improvement of living from Japan’s colonial rule. Japan governed Taiwan with its military power, initiated order, eradicated disease, build infrastructure, and create a modern economy. Due to this help, Taiwan instantaneously became an advanced region in only 3 years of development. Japanese rules put emphasis on agriculture, regarding rice production and farming techniques. Due to their booming agricultural exports (sugar and rice), railroads in the country increased from 30 miles to 300 miles. Soon after, new industries such as textile and chemicals popped up, and WW1 also boosted Taiwan’s economy. However, not all of this was processed in freedom. Japan denied making Taiwan a democracy, and was concerning around the fact whether to make Taiwan a colony or allow some degree of self-governing. The government in Tokyo forced the population to learn Japanese and take in the Japanese culture, much like Korea’s case. There were advantages, as well as disadvantages to this process. The Taiwanese were gained knowledge of science and technology, which led to Taiwan being one of the greatest leaders of the IT industry currently. These advantages were weighed against by the suppression of local culture, including the language. The U.S. forced Taiwan to accept the Japanese surrender and had Chiang Kai Shek have control of the island. Although most of the Taiwanese population was pleased with the Japanese leaving, some were also anxious.