Taiwan

Taiwan had many problems when it was formed by the losing Kuomintang (Nationalists) of the Chinese civil war. It needed to improve its economy as well as to survive the threat of mainland China from taking over. In 1950, it appeared as if the economy of Taiwan would collapse as the agricultural sector was severely weakened.

The government's role was to enhance its position and encourage the spreading of activities within Taiwan. A series of 4 year plans were drawn up, listing out desired projects that might be initiated by aid donors.

Government seldom interfered with the projects, though a prominent exception was when it launched the "10 major construction projects", building highways, shipyards, etc. Industrialists in Taiwan had learned how to do business during the Japanese occupation. They even watched the first Chinese entrepreneurs. Still, the majority of the industrialists learned to manage a successful business by working in existing companies before leaving to form their own. In this way, firms in Taiwan grew in size, starting form small companies before venturing outwards.

Gradually, the situation of land ownership was improved, rents were reduced and a more averaged land allocation was given to owners.

As in the case of Japan, the crucial three industries were in steel, shipbuilding and the petrochemicals. On and off, Taiwan benefited from China when merchants had some of their business operations in China. Its economy was also boosted by the Greater China plan, linking mainland China, Taiwan and Hong Kong.