chapter  5
26 Pages

Challenges for the developmental welfare regime in Taiwan: from authoritarianism to democratic governance

ByYU-FANG CHANG AND YEUN-WEN KU

Introduction Taiwan as an economic miracle in the postwar era consisted of two elements. The fi rst was its rapid economic growth that has transformed Taiwan’s economy from agriculture to industry, from poor to well-off, and from less developed to developed. The second element was its fairly equal income distribution against the predictions of the Kuznets curve that inequality is expected to rise with economic growth before subsequently falling. In 1979, three scholars co-authored a book advocating Taiwan’s development as a model of growth with equity (Fei et al. , 1979). However, this model is now under critical threat.