And Now.... TAIWAN
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• Why have Taiwan's and China's histories been linked so often through the ages? • What strategies did Taiwan follow for its economic expansion and growth after World War II? • How did democracy finally emerge on Taiwan? • What kind of role is Taiwan likely to play in the 21st century? Here's some background for your research into those questions.

The island of Taiwan! Polynesian sailors reached its forested shores at least 10 thousand years ago. People from China began arriving in the 7th century CE — the first of many waves of Chinese migrants. Portuguese, Dutch, and Spanish traders fought to control its ports 1,000 years later. And Japan colonized Taiwan for 50 years — until forced to return it to China after World War II. No wonder the people of Taiwan consider vigilance a virtue!
    Vigilance, but not hesitation. Since World War II, they've taken on the tough challenges of building a vigorous democracy and one of the world's most advanced economies.... And they've succeeded!

Politics 101. When Taiwan was returned to the Republic of China (ROC) in 1945, China's government was in the hands of the Kuomintang party (KMT). The KMT wanted China to be a true "republic of the people, ... by the people, and for the people." But it was also embroiled in a civil war with Chinese communists. When the communists seized control of the mainland in 1949, the KMT relocated the seat of the ROC government to Taiwan.
    Over a million mainlanders followed the government's move to Taiwan. Their arrival almost overwhelmed the native Taiwanese, who also resented the advent of martial law. But they began to see benefits in the new arrangement, too. With U.S. aid, the KMT was preparing to defend Taiwan against any possible invasion by mainland communists. It also bought up huge estates on Taiwan, divided them into small units, and sold them at low cost to farmers.

Economics 101. That shift in land ownership was the seed from which Taiwan's postwar economy grew. Hard-working farmers soon turned out bumper crops of rice. Rice profits went into building factories. And that pattern of economic growth and upgrading continued steadily. For a long time, however, the KMT remained Taiwan's only official political party, and it continued to influence the economy through its control of banks and utilities. Just as the dream of democracy seemed on hold, so did the goal of a truly free market.
    In the late 1980s, the dream and goal prevailed. The KMT agreed to start selling its shares in Taiwan's businesses. It began reducing tariffs on imports — thus leaving Taiwanese products more open to free-market competition. It ended martial law and affirmed the people's right to form political parties. And since 1996, Taiwan's people have been free to elect their president from any one of several political parties.

And Now.... Today, Taiwan has a gross domestic product (GDP) that ranks among the top 25 in the world. It is the 15th-largest trader of merchandise — with the USA as a key export market. In fact, the only big issue facing Taiwan is its relationship with the government on mainland China, which has claimed sovereignty over Taiwan since 1949. Denied membership in the UN and other world organizations because of that claim, Taiwan's government argues that the people of Taiwan deserve a truly representative voice in the world community, and that their elected government should be treated as an equal by the mainland. How will both sides resolve this dispute? Can they do so peacefully? Keep watching!...

Research Tip. When reading news stories about Taiwan, consult a reliable source to check basic data. Example: the article on "Taiwan" in the yearly CIA World Factbook.