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The recordkeeping and development of the economic history of Taiwan started in the Age of Discovery. In the 17th century, the Europeans realized that Taiwan is located on the strategic cusp between the Far East and Southeast Asia. Two main European empires that competed to colonize it were the Dutch and Spanish Empires. Taiwan also became an intermediate destination for trade between Western European empires and East Asia states. The history of Taiwan as a colony of the Dutch Empire, Kingdom of Tungning, Qing China, and Empire of Japan between 1630 and 1945 was based heavily on economics.
In the 1950s, the ROC government, retreated to Taiwan after losing the Chinese Civil War, carried out land reform policies such as the 375 Rent Reduction. [1] [2] In the 1960s, the agrarian economy was replaced with light industry as small and medium enterprises started to form. From 1966 to 1980, Taiwan's economy was gradually stabilized as the Ten Major Construction Projects laid a foundation in further economic developments. After the 1980s, the role of government in the economy gradually lessened as many government-owned corporations were privatized.
According to archaeological evidences, Taiwan has been inhabited by human since the late Upper Paleolithic (ca. 50,000 - 10,000 BP). One of the first civilizations developed was the Changpin culture (Chinese :長濱文化) in southern Taiwan. Many archaeological sites of Neolithic civilizations were found in the Taipei basin in northern Taiwan. The economic activities during this period, which cannot be described with detail as there was no written language, were fishing, gathering, and farming.[ citation needed ]
Analysis of spores and pollen grains in sediment of Sun Moon Lake suggests that traces of slash-and-burn agriculture started in the area since 11,000 years ago, and ended 4,200 years ago, when abundant remains of rice cultivation were found in such period. [3]
In the early Neolithic period, jade was used only for tools such are adzes, axes and spear points. From about 2500 BC, jade ornaments began to be produced, peaking in sophistication between 1500 BC and 1 AD, particularly in the Beinan Culture of southern Taiwan. All the jade found on Taiwan came from a deposit of green nephrite at Fengtian, near modern Hualien City. Nephrite from Taiwan began to appear in the northern Philippines between 1850 and 1350 BC, spawning the Philippine jade culture. Around the beginning of the Common Era, artisans in Taiwan switched from jade to metal, glass and carnelian. However, Philippine craftsmen continued to work jade from Taiwan until around 1000 AD, producing lingling-o pendants and other ornaments, which have been found throughout southeast Asia. [4] [5]
Artifacts of iron and other metals appeared on Taiwan around the beginning of the Common Era. At first these were trade goods, but by around 400 AD wrought iron was being produced locally using bloomeries, a technology possibly introduced from the Philippines. Distinct Iron Age cultures have been identified in different parts of the island: the Shihsanhang Culture (十三行文化) in the north, the Fanzaiyuan Culture (番仔園) in the northwest, the Daqiuyuan Culture (大邱園) in the hills of southwest Nantou County, the Kanding Culture in the central west, the Niaosung Culture in the southwest, the Guishan Culture (龜山) at the southern tip of the island, and the Jingpu Culture (靜浦) on the east coast. The earliest trade goods from China found on the island date from the Tang dynasty (618–907 AD). [6] [7]
In the early 17th century, the Dutch East India Company originally only traded along the Pescadores. However, the Ming Dynasty claimed the archipelago to be part of its territory and drove out the Dutch. The Dutch were forced to retreat to the main island of Taiwan, then known as Formosa. They established a trading post in Tayoan (modern-day Tainan City).
The Dutch recognized the significance of cane sugar as an export product and extensively developed the industry in the areas under their control. Dutch exports of sugar rose rapidly throughout their colonial tenure and had reached 1,300 tons by 1660, a tenfold increase from 1636. [8]
The main purpose of the occupation of Taiwan was to trade with mainland China, Japan, Korea, and Southeast Asia, attempting to monopolize on the trade in East Asia. The main Taiwanese resources that they exported were sugar, sika deerskin, deer meat, antlers, rattan, and rice. By 1658, the company exported sugar to Persia, Japan, and Jakarta and had about 35 trading posts in Asia. Tayoan gained 25.6% profit, ranked second out of all of the Dutch trading posts, after Nagasaki, Japan. However, the profit was distributed to shareholders of the company, and not the local Taiwanese.
At the time, the Japanese were also interested in commercial activities in Taiwan. As a result of the economic challenge from the Japanese, the Dutch East India Company levied heavy taxes on the Japanese merchants. In 1628, the Japanese kidnapped governor Pieter Nuyts and closed down the trading post in Nagasaki. It was reopened again in 1632, after Nuyts was extradited to be jailed in Japan.
Amid the conquest of the Qing dynasty, the Ming partisan Koxinga invaded Dutch Formosa to use as a base for assaults along China's coast. After his successful siege of Ft Zeelandia, he had accomplished this but his rule caused the Qing to revive the sea bans and cut off maritime trade in a bid to weaken him. His dynasty ruled Taiwan as the independent Kingdom of Tungning, establishing land distribution systems in order to efficiently supply food for their army. British Empire and Japan continued to trade with Taiwan as an independent state. The English East India Company even established a commercial treaty with the Kingdom of Tungning.
After defeating Koxinga's private army, the Qing dynasty had no interest in improving the economy of Taiwan, calling it an uncivilized land (huawai zhi di). Therefore, the economic activities mostly came from the settlements of migrants. The most significant economic development during this time period was the establishment of irrigation systems and hydraulic engineering projects. The agricultural surplus caused by these improvements led to the export of rice to mainland China. On the other hand, the commercial activities continued throughout major trading ports. Tainan, Lukang, and Banka became the three largest cities in Taiwan.
In 1858, four ports were opened in Anping, Ta-kau, Keelung, and Tamsui as a result of pressures from the British and French Empires after the Second Opium War. These trading ports exported Taiwanese tea and camphor and further boosted the economy of Taiwan.
For the most part, Taiwan's economy during the Japanese rule period was a colonial economy. For example, the human and natural resources of Taiwan were used to aid both the economic and military development of Japan. This policy began under Governor-General Kodama Gentarō and reached its peak in 1943, in the middle of World War II. Before the 1920s, the sugar industry dominated Taiwan's economy, while from 1920 to 1930, rice became the primary export. During these two periods, the primary economic policy of the Office of the Governor-General (OGG) was "industry for Japan, agriculture for Taiwan". After 1930, due to war needs the OGG began to pursue a policy of industrialization. [9]
Under Governor Akashi Motojiro, a vast swamp in central Taiwan was transformed into a huge dam in order to build a hydraulic power plant for industrialization. The dam and its surrounding area, known today as Sun Moon Lake, has become a must-see for foreign tourists visiting Taiwan.
Although the main focus of each of these periods differed, the primary goal throughout the entire time was increasing Taiwan's productivity to satisfy demand within Japan, a goal which was successfully achieved. As part of this process, new ideas, concepts, and values were introduced to the Taiwanese; also, several public works projects, such as railways, public education, and telecommunications, were implemented. As the economy grew, society stabilized, and popular support for the colonial government began to increase. Taiwan thus served as a showcase for Japan's propaganda on the colonial efforts throughout Asia, as displayed during the 1935 Taiwan Exposition. [9]
After the Kuomintang retreat to Taiwan, the Taiwanese society was relatively stable politically in the 1950s. However, it faced some obstacles economically as a result of the mass destruction during World War II and the Chinese hyperinflation in the 1940s. The sudden increase in population caused by the Kuomintang migration from mainland China also affected Taiwan's economy.
Facing the economic pressure, the Kuomintang regime established several economic plans and policies. Of primary importance for the long-run growth of this economy was the commitment to education, beginning with universal elementary education, expanded to upper level schooling as basic levels of literacy were attained. The New Taiwan dollars were issued to replace the Old Taiwan dollars. Successful land reform also took place, enabled by the KMT's interesting role as recent immigrants, and not vested landowners. In addition, the United States aid also helped the reformation of Taiwan's economy.
In the early 1950s, agriculture was the largest economic sector and the vast majority of Taiwanese were farmers. [10]
The government also carried out an import substitution policy, taking what was obtained by agriculture to give support to the industrial sector, trading agricultural product exports for foreign currency to import industrial machinery, thus developing the industrial sector. The government raised tariffs, controlled foreign exchange and restricted imports in order to protect domestic industry. By the 1960s, Taiwan's import exchange industry was faced with the problem of saturating the domestic market. At the same time, the factories of some industrialized nations, because of rising wages and other reasons, slowly moved to certain areas that had both basic industry and low labor costs. By slow steps, the economic policy of Taiwan changed to pursue export expansion under advice of academic economists such as Ta-Chung Liu and Sho-Chieh Tsiang of Cornell University. They also promoted allowing interest rates to rise, to encourage domestic savings and expand the amount of resources available to fund new businesses. Additional academic advisers also members of Academic Sinica provided sound advice encouraging innovation in agricultural techniques, enabling one of the few successful takeoffs toward modern growth based on agricultural investment in cash crops for export.
A major turning point in Taiwan's economy was during the 1970s. The expulsion of the Republic of China (Taiwan) from the United Nations in 1971, the 1973 oil crisis, and the switching of American diplomatic relations heavily affected the economy of Taiwan. But executive premier Chiang Ching-kuo's Ten Major Construction Projects served as the basis for heavy industrial development in Taiwan.
After the 1980s, Taiwan's economy began to stabilize. It eventually became one of the Four Asian Tigers as a dynamic capitalist economy. The 1997 Asian financial crisis did not affect Taiwan nearly as harshly due to greater restrictions on the outflow of invested foreign capital than were in place in countries hurt by rapid capital flight. The Chen Shui-bian administration in the 2000s focused on joining international organizations. Taiwan was able to join the World Trade Organization in 2002.
The economy of Taiwan is a highly developed free-market economy. It is the 8th largest in Asia and 20th-largest in the world by purchasing power parity, allowing Taiwan to be included in the advanced economies group by the International Monetary Fund. Taiwan is notable for its rapid economic development from an agriculture-based society to an industrialised, high-income country. This economic growth has been described as the Taiwan Miracle. It is gauged in the high-income economies group by the World Bank. Taiwan is one of the most technologically advanced computer microchip and high-tech electronics industries makers in the world.
The history of the island of Taiwan dates back tens of thousands of years to the earliest known evidence of human habitation. The sudden appearance of a culture based on agriculture around 3000 BC is believed to reflect the arrival of the ancestors of today's Taiwanese indigenous peoples. People from China gradually came into contact with Taiwan by the time of the Yuan dynasty (1271–1368) and Han Chinese people started settling there by the early 17th century. The island became known by the West when Portuguese explorers discovered in 16th century and named it Formosa. Between 1624 and 1662, the south of the island was colonized by the Dutch headquartered in Zeelandia in present-day Anping, Tainan whilst the Spanish built an outpost in the north, which lasted until 1642 when the Spanish fortress in Keelung was seized by the Dutch. These European settlements were followed by an influx of Hoklo and Hakka immigrants from Fujian and Guangdong.
Taiwanese indigenous peoples, also known as Formosans, Native Taiwanese or Austronesian Taiwanese, and formerly as Taiwanese aborigines, Takasago people or Gaoshan people, are the indigenous peoples of Taiwan, with the nationally recognized subgroups numbering about 600,303 or 3% of the island's population. This total is increased to more than 800,000 if the indigenous peoples of the plains in Taiwan are included, pending future official recognition. When including those of mixed ancestry, such a number is possibly more than a million. Academic research suggests that their ancestors have been living on Taiwan for approximately 15,000 years. A wide body of evidence suggests that the Taiwanese indigenous peoples had maintained regular trade networks with numerous regional cultures of Southeast Asia before the Han Chinese colonists began settling on the island from the 17th century, at the behest of the Dutch colonial administration and later by successive governments towards the 20th century.
The Haijin (海禁) or sea ban were a series of related isolationist policies in China restricting private maritime trading and coastal settlement during most of the Ming dynasty and early Qing dynasty.
Nephrite is a variety of the calcium, magnesium, and iron-rich amphibole minerals tremolite or actinolite (aggregates of which also make up one form of asbestos). The chemical formula for nephrite is Ca2(Mg, Fe)5Si8O22(OH)2. It is one of two different mineral species called jade. The other mineral species known as jade is jadeite, which is a variety of pyroxene. While nephrite jade possesses mainly grays and greens (and occasionally yellows, browns, black or whites), jadeite jade, which is rarer, can also contain blacks, reds, pinks and violets. Nephrite jade is an ornamental stone used in carvings, beads, or cabochon cut gemstones. Nephrite is also the official state mineral of Wyoming.
The island of Taiwan, also commonly known as Formosa, was partly under colonial rule by the Dutch Republic from 1624 to 1662 and from 1664 to 1668. In the context of the Age of Discovery, the Dutch East India Company established its presence on Formosa to trade with the Ming Empire in neighbouring China and Tokugawa shogunate in Japan, and to interdict Portuguese and Spanish trade and colonial activities in East Asia.
The Kingdom of Tungning, also known as Tywan, was a dynastic maritime state that ruled part of southwestern Taiwan and the Penghu islands between 1661 and 1683. It is the first predominantly ethnic Han state in Taiwanese history. At its zenith, the kingdom's maritime power dominated varying extents of coastal regions of southeastern China and controlled the major sea lanes across both China Seas, and its vast trade network stretched from Japan to Southeast Asia.
This is a timeline of the history of international trade which chronicles notable events that have affected the trade between various countries.
Agriculture in the Empire of Japan was an important component of the pre-war Japanese economy. Although Japan had only 16% of its land area under cultivation before the Pacific War, over 45% of households made a living from farming. Japanese cultivated land was mostly dedicated to rice, which accounted for 15% of world rice production in 1937.
The Taiwan Miracle or Taiwan Economic Miracle refers to Taiwan's rapid economic development to a developed, high-income country during the latter half of the twentieth century.
The island of Taiwan, together with the Penghu Islands, became an annexed territory of the Empire of Japan in 1895, when the Qing dynasty ceded Fujian-Taiwan Province in the Treaty of Shimonoseki after the Japanese victory in the First Sino-Japanese War. The consequent Republic of Formosa resistance movement on Taiwan was defeated by Japan with the capitulation of Tainan. Japan ruled Taiwan for 50 years. Its capital was located in Taihoku (Taipei) led by the Governor-General of Taiwan.
Agriculture is one of the main industries in Taiwan. It contributes to the food security, rural development and conservation of Taiwan. Around 24% of Taiwan's land is used for farming.
The economy of East Asia comprises 1.6 billion people living in six different countries and regions. The region includes several of the world's largest and most prosperous economies: Taiwan, Japan, South Korea, China, Hong Kong, and Macau. It is home to some of the most economically dynamic places in the world, being the site of some of the world's most extended modern economic booms, including the Taiwan miracle (1950–present) in Taiwan, Miracle on the Han River (1974–present) in South Korea, Japanese economic miracle (1950–1990) and the Chinese economic miracle (1983–2010) in China.
The following outline is provided as an overview of and topical guide to Taiwan:
The economy of the Ming dynasty (1368–1644) of China was one of the largest in the world during that period. It is regarded as one of China's three major golden ages. The period was marked by the increasing political influence of the merchants, the gradual weakening of imperial rule, and technological advances.
The economic history of China covers thousands of years and the region has undergone alternating cycles of prosperity and decline. China, for the last two millennia, was one of the world's largest and most advanced economies. Economic historians usually divide China's history into three periods: the pre-imperial era before the rise of the Qin; the early imperial era from the Qin to the rise of the Song ; and the late imperial era, from the Song to the fall of the Qing.
Tainan, officially Tainan City, is a special municipality in southern Taiwan, facing the Taiwan Strait on its western coast. Tainan is the oldest city on the island and commonly called the "prefectural capital" for its over 260 years of history as the capital of Taiwan under the Dutch rule, the Kingdom of Tungning and later Qing dynasty rule until 1887. Tainan's complex history of comebacks, redefinitions and renewals inspired its popular nickname "the Phoenix City". Tainan is classified as a "Sufficiency"-level global city by the Globalization and World Cities Research Network.
During the Manchu–led Qing dynasty, the economy was significantly developed and markets continued to expand especially in the High Qing era, and imperial China experienced a second commercial revolution in the economic history of China from the mid-16th century to the end of the 18th century. But akin to the other major non-European powers around the world at that time like the Islamic gunpowder empires and Tokugawa Japan, such an economy development did not keep pace with the economies of European countries in the Industrial Revolution occurring by the early 19th century, which resulted in a dramatic change described by the 19th-century Qing official Li Hongzhang as "the biggest change in more than three thousand years" (三千年未有之大變局).
The bilateral foreign relations between the Republic of the Philippines and Republic of China (Taiwan) are a subject of China–Philippines relations. Among other issues between the two are the South China Sea dispute and the political status of Taiwan.
Chen Yonghua, courtesy name Fufu ), was a prominent official of the Kingdom of Tungning in Taiwan in the late 17th century. He was from the region near modern-day Quanzhou.