Taiwan, as my home country, which is an island country has no valuable natural resources and less population. How could Taiwan survive in such a competing world and become one of the Asian tigers in 1980s? The answer is almost there, trade. In fact, the Government must understand that rely on global trade is the only window we can connect to the world and get through the economic test.
However, Taiwan also paid for the price before the rapid economic growth. There were two times import-substitution in order to help our domestic firms to grow up being stronger. Meanwhile, Taiwan develop its technology, invest its education (quality labor), promote its transportation system (waterway, railway, and highway). All of these steps are trying to lure foreign investments inflows into Taiwan.
Until now, Taiwan is still trying to catch up with the developed countries through global trade which deeply depends on high technology development and skilled labor. In addition, in order to integrate with the whole world economy, Taiwan became the membership of WTO and signed ECFA with China mainland. Apparently, the Government engaged in access to the larger market to enlarge its global trade; moreover, it also take advantage of ECFA as a gateway into China market for foreign investors to invest Taiwan domestic firms.
To sum up, I believe that Taiwan is pretty open to openness and it is the right way to continue forever. But, Taiwan has to notice that over rely on one single large economy will bring a lot of dangers in th future. All the world should pay attention to this issue as well.
5 years ago