Strategies and Policies for Economic Development

Abstract

During the last two decades, one of the most impressive achievements in Taiwan has been that her rapid economic growth has been accompanied by an increasingly equalitarian income distribution. In the process of Taiwan's economic development, the government has played a key role. To raise the standard of living, two main strategies have been effectively carried out, that is, to accelerate economic growth through industrialization and to maintain price stability by pricing policies for public enterprises. During the first phase (1953-1961), the strategy was to foster industry with the aid of agriculture and to develop agriculture with the aid of industry while during the second phase (1962-present), the strategy is to develop agriculture with the aid of industry and to expand industry with the aid of foreign trade. In reviewing the implementation of the policy measures, the land reform program, the promulgation of the statute for the encouragement of investment, the establishment of export processing zones and low pricing policies for public enterprises have been examined. It should be noted that for a labor-abundant society the best way to achieve the equalization of income distribution is to create more job opportunities for the people through industrialization.