The drivers of Taiwan's economic growth between 1949-1990 Thesis

The drivers of Taiwan's economic growth between 1949-1990 - Thesis Example There was nothing supernatural about them. These include the reason for the US aid, the training of the workers for the German optical lens factory and the infrastructure development by Japan to support its war efforts. In addition to these existing benefits, the decisions and actions of the policy makers fetched the unexpected results. While they formulated the policies they themselves were unsure of the consequences. Reforms were made in every sector and most importantly the policies were reviewed with changes in the business environment. Government intervention was gradually reduced as the economy matured. However, two factors that developing nations should be cautious of, include environmental degradation that comes with economic growth and unhealthy nationalism. Besides, it is not possible to replicate the strategy that Taiwan followed as not every country has the same endowments such as natural resources and human capital. Taiwan could experience growth because of the endogenou s factors. Local factors have tremendous influence on growth and progress and this is evident from the case of Taiwan. The study concludes that the economic growth in Taiwan was the unintended result of innumerable efforts. Table of Contents CHAPTER I INTRODUCTION 1.1 Background 1 1.2 Motivation for the study 2 1.3 Research aims and Objectives 3 1.4 Organization of the study 3 CHAPTER II LITERATURE REVIEW 5 2.1 Introduction 5 2.2 Economic Growth Theories and models 5 2.3 Economic and Social Growth relationship 8 2.4 Social Capital 8 2.5 Measures of Progress 9 CHAPTER III RESEARCH METHODOLOGY 11 3.1 Research Philosophy 11 3.2 Research Phenomenon 11 3.3 Research Design 11 3.4 Research Strategy 12 3.5 Justification for use of Secondary Data 13 CHAPTER IV FINDINGS 15 4.1 Role of Chiang Kai-shek and KMT 15 4.2 Factors of Growth 15 4.3 Stages of development 16 4.4 Land reforms 17 4.5 Export-led growth 18 4.6 Government intervention 19 4.7 Financial reforms 20 4.8 Existing technology 20 4. 9 Supporting the Private Sector 21 4.10 Educational reforms 22 4.11 Foreign aid 23 4.12 Infra structure development 23 4.13 Miracle or unintended results of human efforts 25 4.14 Lessons for Developing Nations 26 CHAPTER V CONCLUSION & RECOMMENDATIONS 29 5.1 Conclusion 29 5.2 Recommendations 31 References 32 Tables and Figures Figure: 2.1 Stages of Modernization 7 Table 4.1 Measurement of Economic Performance 25 CHAPTER I INTRODUCTION 1.1 Background Economy and society are interlinked; the growth of a nation or its economy depends upon the political factors but more importantly the social factors. This is because the society or the people of the society form the regulations and the strategies, which are again based on the demands of the common people, on the needs of the society and on the growth prospects of the nation. In other words, economic growth impacts the society in every respect. This has been endorsed by Blair and Carroll (2008) that social relationships networks can shap e local economies. The societal factors can be held responsible for the closure of plants and manufacturing units in one region and opening of some units in another region. Again, if the economy is not doing well, unemployment rises which forces people to migrate to other regions. The regions where these people migrate need manpower because they have shortage of unskilled labor or they prefer to employ cheap migrant labor. Hence, in all