How Political Conditions Have Affected the Economy in Taiwan

How Political Conditions Have Affected the Economy in Taiwan from 1949-2009
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How Political Conditions Have Affected the Economy in Taiwan from 1949-2009
Economic stability is the primary determinant of the welfare of a country. This is because it gives us a closer look at the financial stand. Countries with stable economies are prone to development since there are chances of progress. Underdeveloped countries have a struggling economy while developing and developed countries are in a better position. Multiple factors may determine the economic welfare of a nation. Some of these factors include civil wars and political stability. Usually, peaceful countries seem to be prospering economically. On the other hand, the economic situation in countries where there are political instability and civil wars, the economics of the said country is unstable. This leads to underdevelopment since the resources are not utilized extensively. The essay discusses how political conditions have affected the economy in Taiwan from the year 1949 to 2009.
The Republic of China, in other words, the national economy of Taiwan is ranked the 7th largest economy in the continent of Asia. This recognition has led to Taiwan being included in the group of countries with advanced economies by the International Monetary Fund. Also, the economics of Taiwan is estimated by the World Bank to be among the high-income economies group in addition to holding position 15 worldwide in the Global Competitiveness Report. The list of achievements continues, and the economy of Taiwan is remarkably developed as it was ranked position 22 in the whole world by Purchasing Power Parity. Being ranked number 24 about the Gross Domestic Product is also a milestone in the economy. Last year, telecommunication, financial and utility services in Taiwan were named to be the three highest paid sectors by the individuals.
There is a quite good reason why the economy of Taiwan was at the top of the mountain in the Global Entrepreneurship Index (GEI) in the year 2015. This is mainly because there has been privatization in most of the government-owned firms in the country. Family owned businesses have also evolved and are now the determinants in the economy of the country. The economy of the country is centered on technocracy. Technocracy is a way of governance where the decision makers are chosen mainly because of their expertise in the concerned areas. With the economic planning being based on technocracy, there has been notable growth of about 8% in the Gross Domestic Product. After World War II, there has been significant growth in the export sector.
The rates of unemployment and inflation have gone low. This is because there are upcoming business opportunities every single day. Agriculture, on the other hand, has also played a significant role in the rising economy. In the GDP, agriculture contributes up to 3% and makes up over 70% of the economy of Taiwan. The traditional industries which required much labor are being pushed aside and replaced with more technologically advanced industries. The manufacturing industries, for example, have advanced by using automotive equipment reducing the work needed. The Economy of Taiwan has become a vital partner in the...