ABSTRACT
Taiwan's role is more substantial in some arenas-economic in particular-than others. This chapter examines relevant changes in Taiwan's social, political, and economic structures, and suggests that ways in which these impact Taiwan's influence in world affairs. In the late 1980s, Taiwan's internal political activities began to have international repercussions after a long stretch of near-irrelevance. The new elite concentrated its energies on improving Taiwan's economy. By the early 1990s, the domestic political system in Taiwan had undergone fundamental change. The strength of Taiwan's economy has been the primary reason it has been able to maintain some influence in world affairs in the face of continuous diplomatic setbacks. Taiwan's economic structure has changed dramatically in a very short time and is increasingly resembling that of a mature developed economy. Taiwan's rapidly growing economy has been the foundation of its influence on world affairs since its diplomatic status deteriorated starting in the early 1970s.
