You are on page 1of 9

Essay On:-

“Taiwan being the 17th largest economy in the world,


what experiences can Taiwan offer to India?”

Taiwan:-

Taiwan

Introduction:

In 1895, military defeat forced China to cede Taiwan to Japan. Taiwan reverted to Chinese control
after World War II. Following the Communist victory on the mainland in 1949, 2 million Nationalists
fled to Taiwan and established a government using the 1946 constitution drawn up for all of China.
Over the next five decades, the ruling authorities gradually democratized and incorporated the local
population within the governing structure. In 2000, Taiwan underwent its first peaceful transfer of
power from the Nationalist to the Democratic Progressive Party. Throughout this period, the island
prospered and became one of East Asia's economic 'Tigers.' The dominant political issues continue to
be the relationship between Taiwan and China - specifically the question of eventual unification - as
well as domestic political and economic reform.

• Capital of Taiwan – Taipei


• Geographic coordinates – 25 03 N,121 30 E
• Time difference – UTC+8(13 hrs ahead of Washington DC a standard Time)
• Government type- multiparty democracy
• Population – 22,858,872(July 2007 est)
• Languages- Mandarin Chinese (official), Taiwanese(Min), Hakka dialects
• Official Currency- Taiwan Dollar(TWD)
• Currency code:TWD
• Climate- tropical, marine, rainy season during southwest monsoon, cloudiness is persistent
and extensive all year.
• Area- total:35,980 sqkm
• Water: 3,720 sq km
• Land: 32,260 sq km

Map of Taiwan:-

Taiwan –(Historical Outlook):-

History:

Taiwan's aboriginal peoples, who originated in Austronesia and southern Asia,


have lived on Taiwan for 12,000 to 15,000 years. Significant migration to Taiwan
from the Chinese mainlanbegan as early as A.D. 500. Dutch traders first claimed
the island in 1624 as a base for Dutch commerce with Japan and the China coast.
Two years later, the Spanish established a settlement on the northwest coast of
Taiwan, which they occupied until 1642 when they were driven out by the Dutch.
Dutch colonists administered the island and its predominantly aboriginal
population until 1661. The first major influx of migrants from the Chinese
mainland came during the Dutch period, sparked by the political and economic
chaos on the China coast during the Manchu invasion and the end of the Ming
Dynasty.
During its 50 years (1895-1945) of rule, Japan expended considerable effort in
developing Taiwan's economy. At the same time, Japanese rule led to the
'Japanization' of the island, including compulsory Japanese education and forcing
residents of Taiwan to adopt Japanese names.

At the end of World War II in 1945, Taiwan reverted to Chinese rule. During the
immediate postwar period, the Nationalist Chinese (KMT) administration on
Taiwan was repressive and corrupt, leading to local discontent. Anti-mainlander
violence flared on February 28, 1947, prompted by an incident in which a
cigarette seller was injured and a passerby was shot to death by Nationalist
authorities. The island-wide rioting was brutally put down by Nationalist Chinese
troops, who killed thousands of people. As a result of the February 28 Incident,
the native Taiwanese felt a deep-seated bitterness toward the mainlanders. For 50
years the KMT authorities suppressed accounts of this episode in Taiwan history.
In 1995 a monument was dedicated to the victims of the '2-28 Incident,' and for
the first time, Taiwan's leader, President Lee Teng-hui, publicly apologized for
the Nationalists' brutality.
Taiwan has developed steadily into a major international trading power with
nearly $427 billion in two-way trade (2006) and the world's 17th largest economy.
Taiwan's accession to the World Trade Organization in 2002 has expanded its

Overview of Taiwan:-

Welcome To Taiwan
Taiwan is an island in East Asia. "Taiwan" is also
commonly
ommonly used to refer to the territories governed
by the Republic of China (ROC) and to ROC
itself, which governs the island of Taiwan, Orchid
Island and Green Island in the Pacific off the
Taiwan coast, the Penghu islands in the Taiwan
Strait, and Kinmen and the Matsu Islands off the
coast of mainland Fujian Province. The
Kuomintang (KMT) party lost its control of
mainland China to Chinese Communist Party in
the Chinese Civil war and moved its government
to the island of Taiwan in 1949 which it had
acquired d control of from Japan in 1945. The
island groups of Taiwan and Penghu (except the
municipalities of Taipei and Kaohsiung) are
officially administered as Taiwan Province of the
ROC. However, in practice, almost all government
power is exercised at the national
nat and local
(city/county) levels.

The People's Republic of China (PRC) claims


Taiwan as its province although the PRC has
never controlled Taiwan or any of the current
ROC territory commonly referred to as
"Taiwan". The PRC claims that Taiwan has been
a part of China for hundreds of years. In 1895,
Japan took over

Global Economic
mic Presence of Taiwan:-
Taiwan:

Electronics Market:
To many people around the world, the name
“Taiwan” is not—though it ought to be—
familiar. They use notebook computers every
day without knowing that nearly 90 percent
of the world’s laptops are manufactured by
Taiwanese companies. Though considering
electronic devices such as mobile phones and
digital cameras as essential in their daily
lives, they do not realize that Taiwan is a
major producer of their key components—
integrated circuit (IC) s yet not know that
Taiwan commanded 17 percent of the
this world-famous brand was born in
global optoelectronics market in 2008,
worth over US$60 billion. (GA Photos Taiwan.
Group)
Today’s Taiwan is the world’s second-largest
producer of information-technology goods, with many of its semiconductor, optoelectronics
and communications products commanding a large share of the global market. It accounts
for nearly 70 percent of the world’s contract IC chip output while also ranking first in IC
packaging and testing. It places second in the world in IC design services, accounting for a
quarter of the global market. Taiwan is also the world’s biggest manufacturer of large
thin-film transistor liquid crystal display (TFT-LCD) panels.

Textile design:

Third largest maker of


synthetic fibers.Taiwan is
renowned for the quality of its
textile products.
Economic Growth:-

Further, major global manufacturers—including Intel, HP,


Dell, Sony, Microsoft, IBM and Ericsson—have set up around
40 R&D centers in Taiwan, while domestic enterprises operate
an additional 100 such centers.

Taiwan is the world’s top supplier of high-end, high-tech bicycles. (Jimmy Lin)

Taiwan is the world’s top supplier of high-end, high-tech bicycles. (Jimmy Lin)

Taiwan Economic overview:-

Taiwan is the 17th largest economy in the world, the 14th largest exporter, 6th largest
importer, and the third largest holder of foreign exchange reserves, with over US $180
billion. As one of the “Asian Tigers”, Taiwan has had one of the fastest growing economies
for the past five decades, and its development has been praised as an “economic miracle”.
It has gradually high-teched its industries over the past two decades and has the fourth
largest information hardware and semiconductor industries in the world. In 2002, it joined
the World Trade Organization, becoming an official partner in the world trading system.1

Economic Indicators:-

• GDP (exchange rate): $323.4 billion.


• GDP (PPP): $631.2 billion; GDP (PPP) per capita: $27,600
• Official 2005 estimated growth rate: 3.8%
• Imports: $181.6 billion; Exports: $189.4 billion
• Inflation: 2.3%
• Unemployment: 4.1%; Population below poverty line: 0.9%
• Currency Inflation Rate: 1.37%
• Household income or consumption by percentage share - lowest 10% 6.7%, highest
10% 41.1%
• Taiwan’s imports are dominated by raw materials and capital goods. Taiwan
imports most of its energy needs. The US is Taiwan’s second largest trading parent,
taking 20% of Taiwan’s exports and supplying 16% of its imports.

Economic Structure:-

GDP by sector:- agriculture 1.8%, industry 25.9%, services 72.3%

Labor force by sector:-

agriculture 6%,

industry 35.8%,

Services 58.2%

Major Export Partners:-

China 21.6%,

Hong Kong 15.1%,

Japan 7.7%

Major Import Partners:- Japan 25.3%, US 11.6%, China 11%, South Korea 7.3%

• Taiwan has world’s 3rd largest reserves of foreign exchange and gold.
• Taiwan joined the WTO in 2002 as a “Separate Customs Territory of Taiwan,
Penghu, Kinmen, and Matsu”. Taiwan is a member of the Asian Development Bank
as “Taipei, China” and the Asia-Pacific Economic Cooperation (APEC) forum as
“Chinese Taipei”.
• The lack of formal diplomatic relations with all but 25 of its trading partners has
not seriously hindered Taiwan’s rapidly expanding commerce.

• Political Considerations:-

• Political System: Democracy


• During the second half of the 20th century, Taiwan was governed by the
Kuomintang (KMT) party who sought to revitalize the economy by instituting land
reform, import-substitution policy & laws.
• Presently, Taiwan is a dynamic, export-driven economy with gradually decreasing
state involvement in investment and foreign trade, some large government-owned
banks and industrial firms are being privatized.
• The Challenge 2008 National Development Plan was formulated by the ROC
government to expand the number of products and technologies that meet the
world’s high standard up to 15, double the number of foreign visitors to Taiwan,
increase R&D expenditures to 3% of GDP, reduce the average unemployment rate
of the next six years to less than 4%, raise the average economic growth rate of the
next six years to over 5%, boost the number of broadband internet users to over 6
million and crease approximately 700,000 jobs.

Taiwan offers experiences to India:-

Taiwan upgrading the Indian software sector:-

Taiwan, renowned for its computer hardware industry, is seeking India's help in upgrading
its software sector to transform the cash-rich

"We are in the process of finalising some agreements with the Indian side for cooperating in
the field of software in Taiwan," Vice President of Taiwan's Institute for Information
Industry (III), Tai-yang Hwang, said
pplier of high-end, high-tech bicycles. (Jimmy Lin)IT industry sources here said Taiwan welcomed
Indian IT professionals to shift their base to Taipei and there was tremendous scope for Indian
IT education companies who are now focussing on China.
Indian software programmers had a definite edge over other foreign IT professionals in
Taiwan, professor David S Hong, Vice President of Taiwan institute of economic research, a
leading think-tank, said.

According to industry estimates, Taiwan would need some 50,000 IT personnel in the next
decade to help the island's IT Industry maintain the upward growth in face of strong
competition from China.

Sharing information:-

The outstanding transformation of South Korea and Taiwan in these 30 years is often seen
as an example of what export-led growth. But Rodrik (1995) argues that the rapid
economic growth and ‘take off’ in South Korea and Taiwan was a result of an investment
boom rather than an export oriented strategy. This essay will discuss this theory.
Like same as India also getting & using same idea to collect the information.It also sharing
the way of export & import.