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The beauty of Taiwan
was recognized by the Portuguese in the
mid-16th century, when they called it Ilha Formosa, or "beautiful
island." In less than four hundred years, the island has developed into
one of the most modern countries in the world, with a population of
nearly 23 million. The self-sufficient agrarian economy of Taiwan was
transformed in the second half of the 20th century into a vigorous and
advanced economy, with per capita GNP reaching US$15,876 in 2001.
Despite being ruled by colonial regimes in the 17th and 20th centuries
and martial law for 40 years after World War II, Taiwan's peaceful
democratization has been acclaimed as a "quiet revolution." All these
miracles unique in the history of Taiwan took place in a short period of
time. This chapter briefly summarizes the history of this remarkable
island.
The history of Taiwan is a story of both
frustration and miracles. Taiwan, isolated and poorly developed, had
been a neglected island before the 17th century. But during the age of
exploration and maritime conquest by Europeans, Taiwan attracted world
attention because of its strategic location and natural resources. The
Dutch (1624) and the Spanish (1628) colonized parts of northern and
southern Taiwan. Jheng Cheng-gong 鄭成功, who was loyal to the fallen Ming
dynasty 明朝, defeated the Dutch in 1662 and set up a government on Taiwan
to defy the Manchus, who had established the Cing dynasty 清朝. The
Manchus conquered Taiwan in 1683 and ruled it until 1895, when Taiwan
was ceded to Japan after the First Sino-Japanese War. Eventually, Taiwan
was returned to China at the end of World War II.
Earliest Inhabitants
Taiwan's first inhabitants left no
written records of their origins. Anthropological evidence suggests that
Taiwan's indigenous peoples are from proto-Malayan ancestry. Their
vocabulary and grammar belong to the Malayan-Polynesian family of
modern-day Indonesia, and they once shared many Indonesian customs such
as tattooing, identical names for father and son, gerontocracy,
head-hunting, spirit worship, and indoor burials. Over 500 prehistoric
sites in Taiwan, including many dwelling areas, tombs, and shell mounds,
have provided more and seemingly contradictory clues to the origins of
Taiwan's aborigines. The majority of prehistoric artifacts, such as flat
axes, red unpolished pottery, decorated bronze implements, and glass
beads, suggest an Indonesian connection. However, other items, such as
painted red pottery, red polished pottery, chipped stone knives, black
pottery, stone halberds, pottery tripods, and bone arrowheads, suggest
that Taiwan's earliest settlers might have come from the Chinese
mainland. Many other questions remain unanswered. Were these prehistoric
remains left by the ancestors of today's indigenous peoples? The
question is a complex one, but many anthropologists have suggested that
the remains discovered so far have no proven connection to the present
indigenous cultures in Taiwan.
What is known for certain is that tribes
of indigenous peoples, plus many Han people from the Chinese mainland,
were already living in Taiwan when the Portuguese first visited the
island in 1582 after a shipwreck.
European Colonization
When Portuguese navigators first came
upon Taiwan in the mid-16th century, they were impressed by the beauty
of its green mountains rising steeply out of the blue-green waters of
the Pacific and exclaimed Ilha Formosa, meaning "beautiful
island." The island has thus been known as Formosa in the West for
centuries. Portuguese interest in the island was limited, for survivors
of the shipwreck left Formosa for Macao and never returned after staying
for only six weeks on the southwest coast.
The next groups of Europeans to come to
Taiwan were the Dutch and the Spanish. In 1622, the Dutch East India
Company established a military base on the Pescadores Islands (Penghu
澎湖), but were forced out by the Chinese and moved to the much larger
island of Taiwan in 1624, where they established a colonial capital and
ruled for the next 38 years. Two years later, the Spanish also occupied
northern Taiwan to counter-balance the Dutch expansion, building Keelung
and Danshuei as their bases for trade and Christian missions, but were
ousted by the Dutch in 1642.
The Dutch carried out an economic policy
of mercantilism. Taiwan became a trading and transshipment center for
goods between a number of areas, such as Japan, China, Batavia
(Jakarta), Persia, and Holland. To increase the trade surplus, the Dutch
induced the Chinese to migrate to Taiwan in the 1630s to grow sugarcane
and rice, and thus initiated an agricultural revolution. The amount of
land under cultivation was greatly increased, and sugar and rice were
the principal products grown until recent years.
Taiwan was a Dutch entrepot for trading
among China, Japan, Southeast Asia, and Europe. Taiwan's exports to
China included rattan, deer hides, deer horns, and medical herbs. The
island's imports from China included raw silk, silk textiles, porcelain,
and medicine, but most products were re-exported either to Japan,
Batavia, or Europe. Imports to Taiwan from Batavia included spices,
amber, tin, lead, cotton, and opium, most of which were traded to China
or Japan. Before the Dutch arrived, the Chinese on Taiwan had enjoyed
free trade with the Japanese without taxation, trading mainly silk and
deer hides in exchange for silver. Continuing the same trade, the Dutch
added a new item, sugar. Taiwan turned into one of the most profitable
branches of the Dutch East India Company in the Far East, accounting for
26 percent of the company's world profits in 1649.
In addition to economic development,
Dutch missionaries were also active in converting Taiwan's population to
Christianity. Protestant missionaries established schools where religion
and the Dutch language were taught. By 1659, the Dutch had converted to
Christianity more than 6,078 out of 10,109 inhabitants in their
parishes.
Settlement by Han people in Taiwan dates
back to the 16th century, but large-scale immigration did not begin
until the 1630s, when the Dutch started developing Taiwan's agriculture.
While the Dutch were colonizing Taiwan, China was experiencing civil
wars, followed by the invasion of the Manchus, who eventually
established the Cing dynasty in 1644. There was resistance in the south
until 1661, and pirates repeatedly ravaged coastal towns. The endless
wars, famines, and robberies severely threatened the peaceful life of
average Chinese. Consequently, thousands of people, especially from the
coastal provinces of Fuchien (Fujian) 福建 and Guangdong, migrated across
the Taiwan Strait to Taiwan. About 40,000 Chinese were living in Taiwan
in 1662.
Mass migration to Taiwan changed the
character of the island. Recognizing the urgent need for industrious
farmers, the Dutch employed the new immigrants, providing them with
oxen, seeds, and implements. Because all land in these areas belonged to
the Dutch East India Company, the Dutch were able to profit enormously
from collecting heavy rents from the Chinese tenants. Although settlers
petitioned to be allowed to buy and own the land they were tilling, so
that they could pay taxes instead of rent, the Dutch rulers refused.
Unemployment, mistreatment by the colonial rulers and collection of a
new head tax increased tensions. In September 1652, frustrated Chinese
farmers revolted against the Dutch. The rebellions were violently
suppressed by the Dutch, who slaughtered about 3,000 peasants.
Jheng Cheng-gong and Defeat of the
Dutch
As Manchu troops poured into northern
China, many Ming loyalists escaped to the south, where they resisted the
foreign invasion for over 20 years. One of the most celebrated
resistance fighters was Jheng Cheng-gong, also known as Koxinga 國姓爺. Son
of an international trader and pirate Jheng Jhih-long 鄭芝龍 and his
Japanese wife, Jheng forced the Dutch out in 1662 and made Taiwan his
base for counter-attacking the Manchus on the mainland until 1683.
Jheng Cheng-gong and his son built the
first Confucian temple in Taiwan, set up schools, and followed Chinese
laws and customs. During their rule, a steady stream of Chinese
continued to arrive in Taiwan and settlements sprang up in increasing
numbers along the western coast. Agriculture developed primarily in the
southern part of the island. Industry consisted of refining sugar, tile
manufacturing, and salt production. Trade, which had begun under the
Dutch, continued with China, Japan, and Southeast Asian countries.
Cing Rule Over the Island
Jheng's son and grandson ruled Taiwan
for 22 years before surrendering control of the island to the Manchus in
1683, following military defeat. Taiwan was ruled by the Manchus for 212
years until 1895.
Under Cing rule, agriculture expanded
northward and southward, and increasing numbers of Chinese left the
mainland to settle on the island, despite laws restricting emigration.
Rice and sugar, first developed under the Dutch rule, were cultivated
all over the island and exported to China, Japan, and even Australia for
some time.
Four ports in Taiwan were forcibly
opened to foreign trade following the Treaty of Tianjin in 1858. Tea and
camphor, which had large markets in the world, became major cash crops
for earning foreign exchange. Being the production area for new crops,
as well as coal, northern Taiwan surpassed southern Taiwan as the
island's new economic center, with Taipei superseding Tainan as the new
political capital. However, conflicts between the immigrants and the
aborigines intensified when the Chinese encroached on the mountainous
areas to produce tea and camphor.
Taiwan's resources attracted
international attention, and some countries even attempted to occupy
Taiwan. Japan occupied southern Taiwan for a short period in 1874, and
the French attacked northern Taiwan in 1884-85.
Foreign interest in the island made the
Cing court realize Taiwan's importance as a gateway to the seven
provinces along China's southeastern coast. Consequently, throughout the
1870s and 1880s, a number of progressive and ambitious Cing officials
who were sent to Taiwan succeeded in strengthening defenses, exploiting
coal, and constructing telegraph lines between central and southern
Taiwan and Fujian Province across the Taiwan Strait. In 1885, the Cing
dynasty made Taiwan its 22nd province. During the more than two
centuries of Cing rule, Taiwan was fully integrated into the Chinese
empire, with numerous Taiwanese attending traditional academies and
passing civil service examinations.
Japanese Colonization
Achievements by the Cing administration
were disrupted when Taiwan was ceded to Japan in 1895 under the Treaty
of Shimonoseki. When Japanese troops entered Taipei on June 6 of that
year, armed resistance broke out. By the time resistance was broken in
October, over 7,000 Chinese soldiers had been killed and civilian
casualties numbered in the thousands.
During its 50-year rule of Taiwan, Japan
developed programs designed to supply the Japanese empire with
agricultural products, create demand for Japanese industrial products,
and provide living space for emigrants from an increasingly
overpopulated home country. The colonial government eventually
introduced an industrialization program to build Taiwan as a base for
its "South Forward Policy" of colonial expansion into Southeast Asia.
The period of Japanese colonization can
be roughly divided into three periods. The first, from 1895 to 1918,
involved establishing administrative mechanisms and suppressing armed
resistance by local Chinese and indigenous peoples. One of the largest
revolts, the Tapani Incident 礁吧哖事件 of 1915, resulted in the deaths of
several thousand Taiwanese. During this period, the Japanese introduced
strict police controls, carried out a thorough land survey, standardized
measurements and currencies, monopolized the manufacture and sale of
important products (such as salt, sugar, and pineapple), began
collecting census data, and made an ethnological study of the island's
indigenous peoples.
During the second period from 1918 to
1937, Japan consolidated its hold on Taiwan. Compulsory Japanese
education and cultural assimilation were emphasized, while economic
development was promoted to transform the island into a secure base from
which Japan could launch its southward aggression.
The third period, which started in 1937
and ended in 1945, included the naturalization of Taiwan residents as
Japanese. The Chinese on Taiwan were forced to deny their heritage by
adopting Japanese names, wearing Japanese-style clothing, eating
Japanese food, and observing Japanese religious rites. Chinese dialects
and customs were discouraged and Chinese language schools closed. Heavy
industry and foreign trade was strongly emphasized during this period,
coinciding with the requirements of the Second World War.
Japanese development of Taiwan as a
colony was extensive in areas such as railroads, agricultural research
and development, public health, banking, education and literacy,
cooperatives, and business.
Transportation Infrastructure:
Recognizing the importance of transportation to Taiwan's economy, the
colonial rulers constructed 2,857 miles of railroad lines, modernized
harbors, and built 2,500 miles of highways.
Irrigation and Agriculture: Irrigation
was considered the key to further developing Taiwan's agriculture, which
was plagued by uneven rainfall. Concrete dams, reservoirs, and large
aqueducts formed an extensive irrigation network that brought thousands
of acres of poor farmland into production. Arable land for rice
production increased by more than 74 percent and sugar cane, by 30
percent. The enormous increase in sugarcane production is considered to
be one of the most spectacular achievements of the Japanese colonial
period. From 1905-1935, the area planted in sugar cane increased 500
percent. By 1939, Taiwan was the world's seventh largest sugar producer.
Industry: The Japanese policy of an
agricultural Taiwan and industrial Japan did not require significant
development of Taiwan's industry. Factories built during the period were
small95 percent had fewer than 30 workers. Finally, during World War II,
military necessity led the Japanese to develop strategic industries in
Taiwan, including aluminum, chemicals, oil refining, metals, and
shipbuilding. Around 90 percent of Taiwan's foreign trade was with
Japan, mostly agricultural.
Hydroelectric Power: Heavy rainfall and
swift mountain streams on the island made hydroelectric power attractive
to colonial administrators. In the 1930s, a large-scale project
utilizing Sun Moon Lake 日月潭 and the Jhuoshuei River 濁水溪 greatly
increased electric power, thus boosting aluminum, chemical, and steel
alloy production.
Despite Japanese successes in
transforming Taiwan into a society that was economically more modern
than its neighbors, alien rule came at a heavy cost. Economic
development was primarily for the benefit of Japan, not Taiwan. The
Taiwanese were denied self-government and democracy and kept out of high
positions at all levels of society. People were taught to see themselves
as Japanese instead of Chinese, and in fact, during the Second World
War, tens of thousands joined the Japanese military. Liberation from
colonial rule came only with the defeat of Japan in 1945 and Taiwan's
return to China.
| Taiwan Chronology
(1544-2002) |
| 1544 |
The Portuguese sailing to Japan
spot Taiwan and refer to it as Ilha Formosa (beautiful
island). |
1979 |
The US grants diplomatic
recognition to the People's Republic of China and breaks ties with
the Republic of China.
A demonstration organized by
opposition politicians and Formosa Magazine to commemorate
Human Rights Day turns into the bloody riot known as the "Kaohsiung
Incident" in December. |
| 1662 |
Jheng Cheng-gong, also known as
Koxinga, defeats Dutch forces, ending Dutch rule in Taiwan.
|
1986 |
The Democratic Progressive Party (DPP)
announces its formation. |
| 1684 |
Manchus replace the Jheng family as
the new rulers of Taiwan. Taiwan becomes a dependency of the Fujian
provincial administration. |
1987 |
The Emergency Decree is
lifted.
The government announces that
residents of Taiwan are officially allowed to visit relatives on the
mainland. |
| 1885 |
Taiwan is made a province of China,
and Liou Ming-chuan becomes the first governor. |
1988 |
President Chiang Ching-kuo dies on
January 13, and Vice President Lee Teng-hui is sworn in as president
of the Republic of China. |
| 1895 |
The Treaty of Shimonoseki concludes
Sino-Japanese War; Taiwan is ceded to Japan. |
1990 |
Lee Teng-hui is elected the
eighth-term president of the ROC by the National Assembly.
|
| 1945 |
World War II ends with Japan's
surrender to the Allies. Taiwan is retroceded to China after 50
years of Japanese occupation. |
1991 |
The Period of National Mobilization
for Suppression of the Communist Rebellion is ended in May.
|
| 1947 |
Due to bad administration, ethnic
tension, and other factors, an islandwide uprising, known as the
February 28 Incident, breaks out. |
1992 |
The election for the Second
Legislative Yuan is heldthe first popular election of the
legislature since 1947. |
| 1949 |
The central government of the
Republic of China relocates to Taiwan, after the mainland falls to
the Communists. |
1996 |
The first direct presidential
election is held, and incumbent president and KMT candidate Lee
Teng-hui is elected. |
| 1950 |
In March, Chiang Kai-shek resumes
the presidency of the Republic of China.
In June, with the outbreak of the
Korean War, US President Truman orders the Seventh Fleet to protect
Taiwan from attack by the Chinese Communists. |
1998 |
The Legislative Yuan passes the
statute to downgrade the Taiwan Provincial Government. |
| 1953 |
The Legislative Yuan adopts the
Land-to-the-Tiller Act. |
1999 |
On September 21, Taiwan is hit by
its deadliest earthquake in more than 60 years. The 7.3 magnitude
quake claims more than 2,000 lives and injures over 8,000.
|
| 1967 |
The Executive Yuan extends the
period of compulsory education from six to nine years. |
2000 |
Democratic Progressive Party
candidate Chen Shui-bian is elected president of the Republic of
China, ending the KMT's 50-year hold on the presidency in Taiwan.
|
| 1971 |
The Republic of China withdraws
from the United Nations. |
2001 |
The World Trade Organization
Ministerial Conference formally approves Taiwan's accession to the
WTO on November 11. |
| 1973 |
The Ten Major Construction Projects
begin. |
2002 |
The Executive Yuan
approves the Challenge 2008 National Development Plan to foster the
talent needed to transform Taiwan into a "green silicon island."
|
| 1978 |
Chiang Ching-kuo is elected
president. |
The history of Taiwan after 1949 is one
of rapid and sweeping change over a short period. Following 50 years of
Japanese colonization, an influx of around one and a half million
soldiers and civilians from the Chinese mainland turned the island into
a frontline of the cold war. Over the last five decades, intensive
economic development made the island one of the world's strongest
economies; and rapid industrialization, urbanization, and modernization
over a few decades has dramatically transformed the lives of Taiwan's
residents. The scale of this transformation has seldom been witnessed
anywhere in world history.
Tragic Early Days
Following Japan's defeat and surrender
in August 1945 at the end of World War II, Taiwan was retroceded to the
Republic of China on October 25. After having been occupied by the
Portuguese, Dutch, Spanish, Manchus, and Japanese, Taiwan was Chinese
again.
The first years after the Japanese
surrender were not smooth and resulted in one of Taiwan's greatest
tragedies, the February 28 Incident 二二八事件. The first troops sent to take
over Taiwan were poorly trained and undisciplined, while the major
fighting component of Nationalist troops remained on the Chinese
mainland battling the communist rebellion. Most importantly, high
inflation, shortages of daily necessities, unequal treatment by the
Nationalist troops, unjust appropriation of personal property, and
unchecked profiteering angered Taiwanese natives.
The tension finally exploded on February
28, 1947, following an incident in Taipei where an elderly woman was
beaten while resisting arrest for selling untaxed cigarettes in Taipei,
and a bystander was shot in the commotion. Crowds rioted across the
island, seizing police stations, arms, and radio stations and killing a
number of mainlanders. In the succeeding months, after the arrival of
troop reinforcements from the mainland, Governor Chen Yi 陳儀 proceeded to
arrest and execute thousands of people who had demanded government
reforms. Chen Yi was discharged from his governor post, and later was
tried and executed in 1950 for conspiring with the Communists to
overthrow the ROC government while serving as governor of Zhejiang
Province 浙江省. The February 28 Incident has been a source of tension
between Taiwanese and those who came from the mainland after 1945.
Rapid Development after 1950
With the outbreak of the Korean War in
late June 1950, US President Harry S. Truman ordered the US Seventh
Fleet to protect Taiwan against attack by the Chinese Communists, and
the US began to provide Taiwan with considerable economic and military
assistance. The international community sided with Taiwan and the
internal situation began to stabilize. Taiwan became the focus of world
attention again in August 1958 when the Communists, in an attempt to
take over Taiwan, began shelling the islands of Kinmen (Quemoy) and
Matsu in the Battle of the Taiwan Strait 八二三戰役. The attack eventually
subsided, and on October 23, 1958, the US and ROC governments issued a
joint communique reaffirming solidarity between the two countries. This
invaluable military support continued through the 1960s and 1970s, and
prevented Taiwan from being conquered by the Communists.
Miraculous Economic Transformation
When the ROC government moved to Taipei
in 1949, the economy of Taiwan was still recovering from heavy Allied
bombing during the Second World War. Only a few industries remained,
including sugar refining and some textile manufacturing. In the initial
years, two factors stabilized the situation and laid the foundations for
a future economic takeoff: aid from the US and the land reform program.
From 1951 to 1965, large amounts of
economic and military aid came from the US as part of its cold war
efforts to preserve this valuable ally in Asia. Much of the aid was used
to improve Taiwan's infrastructure and the agricultural sector. Advisors
stationed in Taiwan and Taiwanese sent abroad for education were all
directed to rebuild the economy. The highly successful land reform
program, which was completed in 1953, reduced land rents, distributed
public land, and purchased and resold land from large landlords. Farmers
were supplied with fertilizer, seeds, pesticides, expert advice, and
credit. By 1959, 90 percent of exports were agriculture or food related.
Increased production and higher income resulted in low inflation and
capital accumulation, as importing food was unnecessary.
After land reform policies and economic
assistance had formed a solid foundation for the economy, two policies
of the 1950s and 60s led to the remarkable takeoff of the 1970s. The
first was an "import substitution policy" aimed at making Taiwan
self-sufficient by producing inexpensive consumer goods, processing
imported raw materials, and restricting other imports. When far-sighted
government planners realized that economic development was limited by
Taiwan's small domestic economy, a second policy of "export promotion"
was adopted in the late 1950s and continued throughout the 1960s. Using
Japan as a model and employing US advice, the resource-poor,
labor-abundant island began to expand light industries.
Export-processing zones, free of bureaucratic red-tape, were set up with
special tax incentives to attract overseas investment. Soon, Taiwan had
secured an international reputation as a world exporter.
Between 1962 and 1985, Taiwan's economy
experienced its most rapid growth in history: an average annual growth
rate of nearly 10 percent, or more than twice the average economic
growth rate of industrialized countries during this period. Equitable
distribution of income was a major objective in the government's
economic planning. In 1953, the average income of the top 20 percent of
the population was estimated at 20 times that of the bottom 20 percent.
In the 1980s, this 1:20 ratio was further reduced to a range of between
1:5 and 1:4, indicating a highly equitable distribution of income.
The economic structure of the nation
shifted from reliance on agricultural exports in the 1950s to light
manufacturing in the 1960s and 70s; and to high technology and chemical
product exports in the 1980s and 90s. By 1995, technology-intensive
products constituted 46.7 percent of exports, and by 2001, 54.4 percent.
A new and significant economic trend
beginning in the 1980s was the rise of investments in the Chinese
mainland by Taiwan's business community. After the Emergency Decree
戒嚴令 was lifted in 1987, civilian contacts between Taiwan and China were
allowed; and, by 2001, Taiwan's business sector had invested over
US$19.9 billion on the mainland, according to official ROC statistics
(Beijing's statistics indicated a much higher figure of US$29.1
billion). The sharp increase of Taiwan exports to China beginning in
1990 decreased Taiwan's dependence on the US market, but raised new
concerns of growing economic reliance on the ROC's long-time foe.
Although politically divided, investment and trade by the business
community have brought the two sides closer economically.
Education
Much of the credit for Taiwan's steady
economic growth must go to the spread of universal education throughout
the island. After 1949, the government expanded education and raised
literacy rates. From 1950 to 2001, the number of university students,
including those at private colleges and universities, increased by more
than 100 times to 677,171. Although there were only five M.A. candidates
in 1950 and Taiwan did not have its first Ph.D. student until 1956, by
2001 there were 87,251 students in 3,250 master's degree programs and
15,962 students studying in 960 Ph.D. programs. Thousands of others were
enrolled in graduate programs abroad in the US, Japan, Canada,
Australia, Britain, and other European countries. The number of high
school students also increased from around 34,000 in the early 1950s to
more than 370,980 in 2001. Most noticeable has been the change in the
literacy rate. In 1951, 34.60 percent of the population six years and
older were illiterate. This figure had dropped to 15.30 percent by 1969.
At present, only about 5.34 percent of the population is illiterate,
mostly the elderly.
Politics and Foreign Relations
Despite restrictions under martial law,
the ROC government consistently promoted local self-government.
Beginning in 1950, all the chief executive and representative bodies
below the provincial level were directly elected by the people, and in
1951, 16 county and five city governments and councils were established.
In June 1959, the first Taiwan Provincial Assembly was established,
extending political participation from the county to the provincial
level.
Following the death of Chiang Kai-shek
in 1975, Yan Jia-gan 嚴家淦 briefly served as president until Chiang's son,
Chiang Ching-kuo 蔣經國, was elected in 1978. It was under his rule that
full democratization began, starting with the lifting of martial law in
1987 shortly before his death in 1988. The first major opposition party,
the Democratic Progressive Party 民主進步黨 (DPP), was formally established
on September 28, 1986, marking the beginning of multiparty democracy in
Taiwan. Chiang Ching-kuo's successor, President Lee Teng-hui 李登輝,
continued to reform the rigid political system that had experienced
decades of civil war and martial law. Under his administration, press
freedoms were guaranteed, opposition political parties developed, visits
to the mainland continued, and revisions to the constitution completed.
Representatives of the National
Assembly, the Legislative Yuan, and the Control Yuan, who had been
frozen in office since 1947, were also asked to step down during Lee's
administration. Elections for all seats in the National Assembly and the
Legislative Yuan were first held in 1991 and 1992, respectively. The
Control Yuan was transformed into a semi-judicial institution following
the 1992 constitutional amendment. On March 23, 1996, the
democratization process peaked with the election of the ROC president,
the first direct election of the head-of-state in the history of China.
Provoking considerable debate and controversy, the provincial government
was effectively dissolved in 1998.
On March 18, 2000, the second direct
presidential election was held, with five pairs of candidates contending
for the positions of president and vice president of the Republic of
China. In a tight, three-way campaign, former Taipei City Mayor Chen
Shui-bian 陳水扁 of the DPP narrowly defeated his rivals with 39.3 percent
of the vote, closely followed by former Taiwan Provincial Governor James
Soong 宋楚瑜 (independent) with 36.8 percent. Vice President Lien Chan 連戰
of the KMT received only 23.1 percent of the votes to finish third.
This election not only brought a record
82 percent voter turnout, but also ended the KMT's five-decade hold on
the presidency. President Lee Teng-hui was forced to resign his
chairmanship of the KMT, as a result of street protests by KMT
grassroots members over his role in the defeat. In April, supporters of
James Soong combined with former KMT and New Party 新黨 members to form
the People First Party 親民黨.
These domestic political changes were
closely related to Taiwan's international experiences. The ROC was a
founding member of the UN in 1945. However, after the withdrawal of the
government to Taiwan and the establishment of the PRC, diplomatic
competition increased between the two rivals. In 1971, the PRC succeeded
in gaining admission to the UN General Assembly, forcing the ROC to walk
out. Since then, most of the remaining UN members have switched their
ties from Taipei to Beijing. A low point was reached at the end of the
1970s, when the United States became one of the last major powers to
sever diplomatic ties and the 1954 Mutual Defense Treaty. Since then,
the US has continued economic ties and sold defensive military equipment
to Taiwan in accordance with the Taiwan Relations Act 臺灣關係法 of
1979.
With the beginning of democratization,
the people's dissatisfaction with the state of Taiwan's affairs led to a
new effort to increase international participation. Collectively known
as pragmatic diplomacy, this policy included a revived effort to expand
and consolidate formal diplomatic ties, a new campaign to re-enter
international organizations, and increased emphasis on substantive ties
with the US, Japan, and Europe. During the 1990s, these efforts resulted
in some progress, although the ultimate goal of UN membership still
faced many obstacles.
Until 1987, Taiwan remained under
"martial law." During that forty-year period, opposition political
parties were banned, publishing and the media were restricted, and
relations with China were forbidden. However, religious and business
activities were essentially free, and citizens regularly traveled around
the island and the world. This policy was adopted because of the
continued military threat from China.
As Taiwan prospered economically and the
mainland undertook radical reforms and began to open to the outside
world, reasons for martial law were no longer seen as valid. On November
2, 1987, the ROC officially permitted its citizens to visit relatives on
the mainland. Since then, cross-strait ties have grown: by the late
1990s, Taiwan residents made millions of trips to China, involving
visits to relatives, tourism, and scholarly, cultural, and sports
exchanges, whereas the number of people from China allowed by the Taiwan
government to visit for cultural and educational purposes totaled more
than 69,000.
In February 1991, the semi-private
Straits Exchange Foundation 海峽交流基金會 (SEF) was set up to manage
cross-strait contacts. Its mainland counterpart, the Association for
Relations Across the Taiwan Straits 海峽兩岸關係協會 (ARATS), was established
ten months later. These organizations have met intermittently to discuss
technical or business matters, such as the repatriation of hijackers and
illegal entrants and solutions for fishing disputes.
Two recent developments that will
strongly affect Taiwan's future are its entry into the World Trade
Organization (WTO) and its increasing economic involvement with China.
After more than 12 years of negotiations and waiting, Taiwan signed its
WTO accession accord in November 2001, with official entry on January 1,
2002. Membership in the WTO has enabled Taiwan's industrial and business
sector to fully participate in the world economy on a more equal basis.
However, opening the domestic economy to the world has also exposed the
island to increased competition, which may have a negative impact on
some industries, most notably agriculture.
The second major development has been
the substantial increase of Taiwan investment and business activity in
China. Many businesses have sought cheap labor and potential markets on
the mainland.The government has been working toward normalizing
relations across the Taiwan Strait by establishing a new, expanded
review mechanism for China-bound investments. For instance, in March
2002, the government lifted its ban on investment in 8-inch wafer
fabrication plants in China to raise Taiwan's competitive edge in the
international semiconductor market. The impact of this new development
will probably affect not only Taiwan's economy, but its political
relations with Beijing as well.
Before Taiwan and China were admitted to
the WTO, the Cabinet announced in October 2001 that the previous "no
haste, be patient" policy restricting investments on the mainland was
being replaced with a policy of "proactive liberalization with effective
management." Since then, most limits on individual investment projects
in China have gradually been scrapped, local banks have been permitted
to open representative offices in China, and offshore banking units can
now engage in direct business exchanges with mainland financial
institutions.
Limited transportation links have been
authorized between the ROC's islands of Kinmen and Matsu and the PRC
since January 2001, allowing more imports from the mainland to enter
Kinmen and Matsu. However, establishing direct transportation links
between Taiwan and China is still under discussion.
Present and Future
Although the greatest change in
post-1949 Taiwan has been the island's economic revolution and
spectacular rise in income and living standards, the social
transformation brought about following the lifting of martial law in
1987 cannot be overlooked. The legalization of labor strikes,
demonstrations, and the formation of new political parties have given
more power to the people, while the lifting of restrictions on
newspapers and publishing has produced significant media growth and
broadened the perspectives of an increasingly sophisticated audience.
Taiwan's considerable democratic
experiences, technological capabilities, and economic power enable the
nation to apply these advantages for the benefit of the international
community. Taiwan is thus able to contribute to the peace, prosperity,
and stability of both the Asia-Pacific region and the rest of the world. |
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