Figure 1.--This photograph appeared in American newspapers on April 8, 1946. The caption read, "These are Formosan col miners. Barely 8 years old, the boys toil underground to extract coal that never reaches the Formosan people, except through the black market whose prices are far beyond the nudgets of miners' families. This exclusive Acme photo was made by Harlow M. Church, first Occidental photographer to visit Formosa since 1936, when the Japs banned all Occidentals from the island." What is unclear from this rather agenda driven caption as to whether child labor was common during the Japanese era or became prevalent with the arrival of the Nationalists.

Taiwan is one of the great sucess stories of Asia. It is a country with limited national resources that has constructed not only a successful industrial economy, but a vibrant democracy as well. It is one of two large islands located off the coast of China. The other is Hainan located further south. Despite the close location, China until the modern era took virtually no interest in the island and the populatiion was not Chinese, but Austronesian aborigines. There is virtually no mention of Taiwan in Chinese sources. Thus we know virtually nothing about the economy until the Dutch arrived (1622). The Dutch reported a population of about 70,000 aborigines, about 1,000 Chinese, and a few Japanese. The Chinese and Japanese were mostly merchants, male transients. The aborigines had a agricultural economy supplemented by the export of dear hodes. The Dutch conducted an extended campaign to seize seized control (1630s-40s), but made no real attempt to change the economy. Chinese emigration go Taiwan developed. Koxinga, a Chinese-Japanese war lord with a fleet, expelled the Dutch (1661). Chinese emigration to Taiwan continued. The Qing dynasty defeated Koxinga's grandson and seized control (1683). The Qing government originally saw control of Taiwan as financial burden, but necessary to control piracy. The principal Qing policy was to restrict the Chinese emigration to Taiwan. The reason for this was to limit conflict with the aboriginees. Much more information on the Taiwan economy before the First Sino-Japanese War (1895-95) during which the modernizing Japanese Empire stunned China with its new power. Part of the settlement was transferring Taiwan to Japan. The Japanese called it Formosa. Japanese rule was brutal, but it also brought a measure of economic development, particularly basic infrastyructure. Thus at the onset of the Pacific War, Taiwan was more prosperous than China. Taiwan remained agricultural and unlike Korea, there was little Japanese effort to industrialize. The Japanese after the Pacific War were rquired to return Taiwan to China an repatriate Japanese nationals. The Taiwan popiulation was not consulted. After losing the Chinese Civil War, Chiang Kai-check and the Nationalists retreated to Taiwan. The Chinese Communists did not have the naval and air capability to briudge the Taiwan Straits. After the outbreak of the Korean War, the United states extended its security zone to include Taiwan. This also brought increased economic commerce with America. And this led to both South Korea and Taiwan along with Singapore emergging as the economic Asian Tigers. Taiwan prospered under a capitalist system while Mainland China agressivly pursuing socialism languished in poverty and economic stagmation. It is interesting that the to most successful Asian Tigers came from the former Japanese Empire.

Geography

Tiwan It is one of two large islands located off the coast of China. The other is Hainan located further south. The climte is sub-tropical. It is about 180 miles long. It is separated from the Mainland by the Taiwan Straits, less than 100 miles wide. Taiwan lies off Fujian province. Much of Taiwan is mountaneous, in many cases quite rugged. Peaks rise over 13,000 feet. This serious limits the area of arable land that cabn be devoted to agriculture. The mountains rise abruptlty at the shore along the eastern or Pacific coast. As a result, the eastern coast and central area parts of the island are lightly populated. Most of the populastion lived along the western coast where there is a wider coastal plain. The plain is crossed by east-west rivers and thus well watered. The reivers through much of the island's history have presented barriers to north south travel asnd commerce and have been a force for regionlization. Only during the Japanese occupation were major efforts begun to provide basic infrastructure like roads and bridges which helped to promote intra-islnd commerce. The largest river is the Chuo Shuei-Hsi which even in the early-20th century was an important economic and cultural divide.

Traditional Economy

Despite the close location, China until the modern era took virtually no interest in the island. Chinese record keeping provides all sorts of historical and economic infornmation about the Mainland. This is not the case of Taiwan. The islnd is scarely mentioned in Chinese asccounts. And the populatiion was not etnic Chinese, but Austronesian aborigines. Thus we know virtually nothing about the economy. This only changes with the arrival of the Dutch (eArly-17th century). The Dutch ddescribed what they found. It is likely that the condituions the Dutch found had exusted fir centuruies on Taiwan. The dutch reported about 70,000 Austronesian aborigines and only about 1,000 Chinese in addition to a handfull of Japanese. The Dutch arrived in Taiwan (1622). The Dutch reported a population of about 70,000 aborigines, about 1,000 Chinese, and a few Japanese. The Chinese and Japanese were mostly merchants, male transients. The aborigines had a agricultural economy supplemented by the export of dear hides. It seems likely that this was the economic pattern that dominated in Taiwan for centuries before the Dutch reached Taiwan. The swomen on the island worked as subsistence farmers. The men hunted deer in the mountains and sold the hides. The Chinese and Japanese population was almost entirely male. They were lrgely merchants, involved with exporting the dear hides. and involved in the Some Chinnese were fishermen who operated at the mouths of the uislnd's rivers. The Chinese and Japanese merchants lived in the villages where thry bought the dear hides and sold items imported from China and Japan, including salt. Most of the dear hides were exported to Japan. The main harbor used for the export trade was located at what is now Tainan City. .

Dutch Era (1622-61)

The Dutch conducted an extended campaign to seize seized control (1630s-40s), but made no real attempt to change the economy. The Dutch built their first fort at the already established major port--Tainan City. It was here that Chinese and Japanese traders brought deer skins for export. Chinese emigration to Taiwan developed for the first time.

Koxinga (1661-83)

Koxinga, a Chinese-Japanese war lord with a fleet, expelled the Dutch (1661). Chinese emigration to Taiwan continued.

Qing Control (1683-1896)

The Qing dynasty defeated Koxinga's grandson and seized control (1683). The Qing government originally saw control of Taiwan as financial burden, but necessary to control piracy. The principal Qing policy was to restrict the Chinese emigration to Taiwan. The reason for this was to limit conflict with the aboriginees.

Japanese Control (1895-1945)

Much more information on the Taiwan economy is available after the First Sino-Japanese War (1895-95). The modernizing Japanese Empire stunned China with its new power of its Westernized military. Part of the settlement was transferring Taiwan to Japan. The Japanese called it Formosa. Japanese rule was brutal. The colonizers set out to imprint Japanese culture, including the Japanese language. They established the first public schools on the island which were taught in the Japanese language. The Japanese brought a measure of economic development, particularly basic infrastructure. Taiwan under the Japanese remained agricultural and unlike Korea, there was little Japanese effort to industrialize. The economy grew under tghe Japanese, more or less at the rate of economic growth in the Home Islands. The population also grew, in large measure because of the public health improvemebnts sharply reduced death rates. Per-capita consumption expanded at about 1 percent annually. This was less than consumption increases in Japan, but more than in China. The Japanese made major changes in the economy. They inforced property rights which were previously not well established because of the lack of any central authority. The Japanese also moved to protect agricultural markets, These steps along with population growth resulted in increased land prices. Some Taiwanese owned land and bvenefitted. Most did not and thus income inequality increased as wage rates grew more slowly. The Japanese Governmernt brought soldiers and officials to administer the island. They also encouraged Japanese civilians to migrate, but with limited success. The Japanese population increased tyo only about 5 percent of the overall island popilstion. The Japanese settlecmostly in the cities and thus did become a substantial part of the yrban population. At the onset of the Pacific War, Taiwan after four decades of Jspanese occupation was in the process of becoming culturally Japanese. Unlike Korea, there was no natiionalist resistance. The island was also more prosperous than China. It did not experice the privations of the Chinese Civil War or the Japanese invasion (1937).

Pacific War (1941-45)

Taiwan was little affected by Second Sino-Japanese War (1937-45). The islanders were not ethnic Chinese had felt no afinity for the Chinese struggle with Japan. The OPacific War launched by Japan with a stunning carrier attack on Pear Harbor was a different matter (1941). Taiwan was well within the expanded Japanese Empire during the first year of the War. The American submarine campaign began to significantly reduce the Japanerse mderchasnt fleet (1943). This affected trade with the Home Islands. The mericans considered invading Taiwan rather than the Philippines. The U.S. Navy preferred Taiwan as a target, but General MacArthur was adament that the United States should liberate the Philippines and wkn his case with the President. The greatly expanded American air power, including carriers conducted strikes on Japanese bases on Taiwan. Thus while Taiwan was not invaded, the Japanese on the island were isolted abd redendered impotent to impede the American drive on the Home Island, including the invasion of Okinawa to the north of Taiwan.

Nationalist Control and Refuge (1945-49)

The Japanese after the Pacific War were rquired to return Taiwan to China an repatriate Japanese nationals. The Taiwan population was not consulted. The Japanese turned over control to Nationalist troops. Damafe to Taiwan's infrastructure was limited during the War. American air strikes had focused on military targets. And there was very limited industry on the island. The island was, however, affected by the war. The economy was tied into the Japanese economy and thus had to reajust. The Nationalists gave little attention to the island after taking control. The major action was to confiscate the property of the Japanese natiinals who were expelled and shipped basck to the Home Islands. The Nationalists formed Several large public corporations. At first, only limited numbers of Chinese moved to the island. Taiwan uunder Natiionalist control experienced some violence and hyperinflation. The situation on Taiwan changed with the Communist victory on the Mainland (1948-49). Aftr losing the Chinese Civil War, Chiang Kai-check and the Nationalists retreated to Taiwan. Nationlist soldiers and refugees flooded onto the island. In ainle year, the popuilation increased an estimated 20 percent. The Chinese Communists did not have the naval and air capability to bridge the Taiwan Straits with awell armed force defending the island. Most of the ethnic Chinese from the Mainland settle in the cities. It was from this group that the Nationalist Government and public sector was formed. Most of the economy was still agricultural and dominated by the indigernous Taiwan population, but was still recovering from the loss of Japanese markets and now trade with China was no longer possible.

Tiger Economy

After the outbreak of the Korean War, the United States extended its security zone to include Taiwan. This also brought increased economic commerce with America. And this led to both South Korea and Taiwan along with Singapore emerging as the economic Asian Tigers. Unlike the Mainland, Taiwan did not adopt socialist policies. The result was taht the Taiwanese economy like the other Yiger ecoinomies adopting market mechanisms (i.e. capitalism) began to grow anf grow spectacuklarly while Mainland China languished in abject poverty. Taiwan prospered under a capitalist system while Mainland China agressivly pursuing socialism languished in poverty and economic stagmation. It is interesting that the to most successful Asian Tigers (Taiwan and Korea) came from the former Japanese Empire.

Navigate the Boys' Historical Clothing national pages:
[Return to the Main Taiwan page]
[Return to the Main Asian page]
[Afghanistan] [Bangladash] [Bhutan] [China] [India] [Pakistan] [Sri Lanka] [Tajikistan] [Turkmenistan] [Uzbeckistan]

Created: 6:28 AM 7/19/2011
Last updated: 6:28 AM 7/19/2011