The Collective Bargaining Agreement in 1930 stipulated that collective bargains were not legally valid without government approval.
After retrocession from Japan in 1945, the government announced a long-term strategy of "developing industry through agriculture, and developing agriculture through industry".
aid in the 1950s and early 1960s to an aid donor and major foreign investor, with investments primarily centered in Asia.
Uncertainty about the US commitment accelerated the country's shift from subsidized import-substitution in the 1950s to export-led growth.
US aid was also important to stabilize post-war Taiwan, and it constituted more than 30 percent of domestic investment from 1951 to 1962.
Where as in 1951 agricultural production accounted for 35.8% of Taiwan's GDP, by 2013 it had been vastly surpassed and its NT$475.90 billion accounted for only 1.69% of the GDP.
The economy shifted from an agriculture-based economy (32% of GDP in 1952) to an industry-oriented economy (47% of GDP in 1986).
Between 1952 and 1961, the economy grew by an average of 9.21% each year. Once again, the transformation of Taiwan's economy cannot be understood without reference to the larger geopolitical framework.
aid in the 1950s and early 1960s to an aid donor and major foreign investor, with investments primarily centered in Asia.
The total value of trade increased over fivefold in the 1960s, nearly tenfold in the 1970s, and doubled again in the 1980s.
In 1960, the electronics industry in Taiwan was virtually nonexistent.
These three science parks alone have attracted over NT$4 trillion (US$137 billion) worth of capital inflow, and in 2010 total revenue within the parks reached NT$2.16 trillion (US$72.8 billion). The Linhai Industrial Park, established in Kaohsiung in 1960, is a well-developed industrial zone with over 490 companies focusing on other industries including base metals, machinery and repairs, nonmetallic mineral products, chemical products, and food and beverage manufacturing.
Between 1952 and 1961, the economy grew by an average of 9.21% each year. Once again, the transformation of Taiwan's economy cannot be understood without reference to the larger geopolitical framework.
US aid was also important to stabilize post-war Taiwan, and it constituted more than 30 percent of domestic investment from 1951 to 1962.
Although aid was cut back in the 1970s, it was crucial in the formative years, spurring industrialization, and security and economic links between Taiwan and the United States were maintained.
Taiwan moved from cheap, labor-intensive manufactures, such as textiles and toys, into an expansion of heavy industry and infrastructure in the 1970s, and then to advanced electronics in the subsequent decade.
The total value of trade increased over fivefold in the 1960s, nearly tenfold in the 1970s, and doubled again in the 1980s.
Taiwan's agricultural population has steadily decreased from 1974 to 2002, prompting the Council of Agriculture to introduce modern farm management, provide technical training, and offer counseling for better production and distribution systems.
From ITRI's first 3-inch wafer fabrication plant built in 1977 and the founding of UMC in 1980, the industry has developed into a world leader with 40 fabs in operation by 2002.
By the 1980s, the economy was becoming increasingly open and the government moved towards privatization of government enterprises.
Because of the financial policy by the Central Bank of the Republic of China (Taiwan) and its entrepreneurial strengths, Taiwan suffered little from the financial crisis of 1997-1999 compared to other economies in the region. == Data == The following table shows the main economic indicators in 1980–2019.
The total value of trade increased over fivefold in the 1960s, nearly tenfold in the 1970s, and doubled again in the 1980s.
From ITRI's first 3-inch wafer fabrication plant built in 1977 and the founding of UMC in 1980, the industry has developed into a world leader with 40 fabs in operation by 2002.
The Collective Bargaining Agreement Act in 2008 guaranteed trade unions the power to negotiate with employers. === Employment Protection === Taiwan's labor rights and employment protections increased with its democratization progress in the 1980s, and it still has relatively high level of employment protection comparing to other East Asia countries.
The first of these, the Hsinchu Science Park was established in 1980 by the National Science Council with a focus on research and development in information technology and biotechnology.
Since 1980, the government has invested over US$1 billion in the park's infrastructure, and further expansion for more specialized parks have been pursued.
Technological development led to the establishment of the Hsinchu Science Park in 1981.
From 1981 to 1995, the economy grew at an annual rate of 7.52%, and the service sector became the largest sector at 51.67%, surpassing the industrial sector and becoming a major source of the economy's growth. International Trade is officially assisted by Taiwan External Trade Development Council.
In recent years, Taiwan has successfully diversified its trade markets, cutting its share of exports to the United States from 49% in 1984 to 20% in 2002.
Implemented in August 1984, Labor Standards Law was the first comprehensive employment protection law for Taiwan workers.
A job creation project was also implemented to help young people by subsidizing the hiring of young people in universities and private companies. === Working Hours === Taiwan's GDP per capita in December 1984 was below US$5,000 before reaching US$25,026 by December 2018, an all-time high.
On 30 July 1984, Taiwan implemented an eighty-six article Labor Standards Act under Presidential Order No.14069.
The economy shifted from an agriculture-based economy (32% of GDP in 1952) to an industry-oriented economy (47% of GDP in 1986).
The government is also looking to establish trade agreements with Singapore and the United States. ==Industry== Industrial output has gradually decreased from accounting for over half of Taiwan's GDP in 1986 to just 31% in 2002.
Although the industrial sector has traditionally been Taiwan's largest energy consumer, its share has dropped in recent years from 62% in 1986 to 58% in 2002.
The democratization in 1986 brought dramatic changes to union participation and policies.
Between 1986 and 1992, unionized workers increased by 13%.
The economy of Taiwan ranked the highest in Asia in the 2015 Global Entrepreneurship Index (GEI). With the technocracy-centered economic planning until 1987, real growth in GDP has averaged about 8% during the past three decades.
In 1987, TSMC pioneered the fabless foundry model, reshaping the global semiconductor industry.
Council of Labor Affairs (CLA) was set up on 1 August 1987 to help with labor inspection and the enforcement of the Labor Standards Law. In Taiwan, companies with a at least a single employee has the compulsion to contribute to the insurer’s employment service insurance premium.
The 1990s saw a more modest, slightly less than twofold, growth.
Between 1986 and 1992, unionized workers increased by 13%.
Although the Taiwan Power Company (Taipower), state-owned enterprise, is in charge of providing electricity for the Taiwan area, a 1994 measure has allowed independent power producers (IPPs) to provide up to 20% of the island's energy needs.
From 1981 to 1995, the economy grew at an annual rate of 7.52%, and the service sector became the largest sector at 51.67%, surpassing the industrial sector and becoming a major source of the economy's growth. International Trade is officially assisted by Taiwan External Trade Development Council.
The Industrial Technology Research Institute (ITRI), headquartered within the park, is the largest nonprofit research organization in Taiwan and has worked to develop applied technological research for industry, including for many of Taiwan's traditional industries (such as textiles). Following the success of the first park, the Southern Taiwan Science Park (STSP), consisting of the Tainan Science Park and the Kaohsiung Science Park, was established in 1996.
Because of the financial policy by the Central Bank of the Republic of China (Taiwan) and its entrepreneurial strengths, Taiwan suffered little from the financial crisis of 1997-1999 compared to other economies in the region. == Data == The following table shows the main economic indicators in 1980–2019.
Taiwan has exported large amounts of frozen pork, although this was affected by an outbreak of hoof and mouth disease in 1997.
The Multi-Faceted Job Creation Program, first introduced in 1999, creates job in the third sector groups, especially in nonprofit organizations.
A number of autonomous, non-official trade unions emerged, including the Taiwan Confederation of Trade Unions (TCTU) which acquired legal recognition in 2000.
In recent years, Taiwan has successfully diversified its trade markets, cutting its share of exports to the United States from 49% in 1984 to 20% in 2002.
Taiwan's 2002 trade surplus with the United States was $8.70 billion. The lack of formal diplomatic relations between the Republic of China (Taiwan) with Taiwan's trading partners appears not to have seriously hindered Taiwan's rapidly expanding commerce.
The government is also looking to establish trade agreements with Singapore and the United States. ==Industry== Industrial output has gradually decreased from accounting for over half of Taiwan's GDP in 1986 to just 31% in 2002.
From ITRI's first 3-inch wafer fabrication plant built in 1977 and the founding of UMC in 1980, the industry has developed into a world leader with 40 fabs in operation by 2002.
As a signer of the Information Technology Agreement, Taiwan phased out tariffs on IT products since 1 January 2002. Taiwan has a growing Startup sector. Taiwan is a hub for global computing, telecommunications, and data management with a number of large server farms operating in the country.
Taiwan's agricultural population has steadily decreased from 1974 to 2002, prompting the Council of Agriculture to introduce modern farm management, provide technical training, and offer counseling for better production and distribution systems.
Imported energy totaled US$11.52 billion in 2002, accounting for 4.1% of its GDP.
Although the industrial sector has traditionally been Taiwan's largest energy consumer, its share has dropped in recent years from 62% in 1986 to 58% in 2002.
The island is also heavily dependent on imported oil, with 72% of its crude oil coming from the Middle East in 2002.
Unemployment increased and reached approximately 5% in 2002 and 2009.
The Employment Insurance Act in 2002 grants income security during unemployment, but at the same time requires beneficiaries to use all available resources to find jobs.
Unemployment reached levels not seen since 2003, and the economy fell 8.36% in the fourth quarter of 2008.
The Central Taiwan Science Park (CTSP) was established more recently in 2003.
A fourth plant under construction was mothballed in 2014. Although Taiwan's per capita energy use is on par with neighboring Asian countries, in July 2005 the Ministry of Economic Affairs announced plans to cut 170 million-tons of carbon dioxide emissions by 2025.
In addition, by 2015 emissions are planned to be reduced by 7% compared to 2005 levels. Taiwan is the world's 4th largest producer of solar-powered batteries and largest LED manufacturer by volume.
The economy of Taiwan is ranked 15th overall in the Global Top 20 Top Destination Cities by International Overnight Visitors (2014) by the MasterCard 2014 Global Destination Cities Index. ===Global financial crisis=== Taiwan recovered quickly from the global financial crisis of 2007–2010, and its economy has been growing steadily since.
In 2007, the semiconductor industry overtook that of the United States, second only to Japan.
Although the global financial crisis from 2007 to 2010 affected sales and exports, the industry has rebounded with companies posting record profits for 2010.
Unemployment reached levels not seen since 2003, and the economy fell 8.36% in the fourth quarter of 2008.
The Collective Bargaining Agreement Act in 2008 guaranteed trade unions the power to negotiate with employers. === Employment Protection === Taiwan's labor rights and employment protections increased with its democratization progress in the 1980s, and it still has relatively high level of employment protection comparing to other East Asia countries.
The Public Sector Temporary Employment Creation Program directly addressed the 2008 financial crisis.
From 2008 to 2009, the government was estimated to create 102,000 job opportunities by that program.
Over 430 companies (including many listed on TAIEX) employing over 130,000 people are located within the park, and paid in capital totaled US$36.10 billion in 2008.
Like the other parks, CTSP also focuses on ICs, optoelectronics, and biotechnology, with the optoelectronics industry accounting for 78% of its revenue in 2008.
Its economy faced a downturn in 2009 due to a heavy reliance on exports which in turn made it vulnerable to world markets.
The average salary has also been rising steadily for each month in 2010, up 1.92% from the same period in 2009.
Private consumption is also increasing, with retail sales up 6.4% compared to 2009.
The digital content production industry grew by 15% in 2009, reaching US$14.03 billion.
The optoelectronics industry (including flat panel displays and photovoltaics) totaled NT$2.2 trillion in 2010, a 40% jump from 2009, representing a fifth of the global market share.
The sector output reached US$39 billion in 2009, ranking first in global market share in IC manufacturing, packaging, and testing, and second in IC design.
Over the decade from 2009 to 2019, Taiwan grew its steel exports by 24%.
Unemployment increased and reached approximately 5% in 2002 and 2009.
From 2008 to 2009, the government was estimated to create 102,000 job opportunities by that program.
The economy has since slowly recovered; by November 2010, Taiwan's unemployment rate had fallen to a two-year low of 4.73%, and continued dropping to a 40-month low of 4.18% by the end of 2011.
The average salary has also been rising steadily for each month in 2010, up 1.92% from the same period in 2009.
Industrial output for November 2010 reached another high, up 19.37% from a year earlier, indicating strong exports and a growing local economy.
After 10.5% economic growth in 2010, the World Bank expected growth to continue and reach 5% for 2011. According to the National Development Council, Taiwan's economy declined in May 2019 due to the ongoing China-United States trade war. ==Foreign trade== Foreign trade has been the engine of Taiwan's rapid growth during the past 40 years.
The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of United States investment. Taiwan is a member of numerous trade agreements, with China, Japan, USA, the European Union, and Hong Kong as top 5 trade partners in 2010.
In 2010, the mainland accounted for 28.0% of Taiwan's exports and 13.2% of imports.
Taiwan signed Economic Cooperation Framework Agreement with People's Republic of China on 29 June 2010.
Taiwan applied for the membership in the Asian Infrastructure Investment Bank in 2015. The Economic Cooperation Framework Agreement (ECFA) with the People's Republic of China was signed on 29 June 2010, in Chongqing.
In 2010, Taiwan's software market grew by 7.1% to reach a value of US$4 billion, accounting for 3.3% of the Asia-Pacific region market value.
The optoelectronics industry (including flat panel displays and photovoltaics) totaled NT$2.2 trillion in 2010, a 40% jump from 2009, representing a fifth of the global market share.
Although the global financial crisis from 2007 to 2010 affected sales and exports, the industry has rebounded with companies posting record profits for 2010.
In 2010, carbon dioxide emissions have been reduced by 5.14 million metric tons.
In 2010, Taiwan had over 1.66 million square meters of solar heat collectors installed, with an installation density that ranks it as third in the world.
Renewable energy accounts for 6.8% of Taiwan's energy usage as of 2010.
In 2010, the green energy sector generated US$10.97 billion in production value.
These three science parks alone have attracted over NT$4 trillion (US$137 billion) worth of capital inflow, and in 2010 total revenue within the parks reached NT$2.16 trillion (US$72.8 billion). The Linhai Industrial Park, established in Kaohsiung in 1960, is a well-developed industrial zone with over 490 companies focusing on other industries including base metals, machinery and repairs, nonmetallic mineral products, chemical products, and food and beverage manufacturing.
The economy has since slowly recovered; by November 2010, Taiwan's unemployment rate had fallen to a two-year low of 4.73%, and continued dropping to a 40-month low of 4.18% by the end of 2011.
After 10.5% economic growth in 2010, the World Bank expected growth to continue and reach 5% for 2011. According to the National Development Council, Taiwan's economy declined in May 2019 due to the ongoing China-United States trade war. ==Foreign trade== Foreign trade has been the engine of Taiwan's rapid growth during the past 40 years.
In a 2011 report by Business Environment Risk Intelligence (BERI), Taiwan ranked third-best globally for its investment environment. Taiwan is the world's largest supplier of contract computer chip manufacturing (foundry services) and is a leading LCD panel manufacturer, DRAM computer memory, networking equipment, and consumer electronics designer and manufacturer.
Where as in 1951 agricultural production accounted for 35.8% of Taiwan's GDP, by 2013 it had been vastly surpassed and its NT$475.90 billion accounted for only 1.69% of the GDP.
The economy of Taiwan is ranked 15th overall in the Global Top 20 Top Destination Cities by International Overnight Visitors (2014) by the MasterCard 2014 Global Destination Cities Index. ===Global financial crisis=== Taiwan recovered quickly from the global financial crisis of 2007–2010, and its economy has been growing steadily since.
A fourth plant under construction was mothballed in 2014. Although Taiwan's per capita energy use is on par with neighboring Asian countries, in July 2005 the Ministry of Economic Affairs announced plans to cut 170 million-tons of carbon dioxide emissions by 2025.
The economy of Taiwan ranked the highest in Asia in the 2015 Global Entrepreneurship Index (GEI). With the technocracy-centered economic planning until 1987, real growth in GDP has averaged about 8% during the past three decades.
Taiwan applied for the membership in the Asian Infrastructure Investment Bank in 2015. The Economic Cooperation Framework Agreement (ECFA) with the People's Republic of China was signed on 29 June 2010, in Chongqing.
In addition, by 2015 emissions are planned to be reduced by 7% compared to 2005 levels. Taiwan is the world's 4th largest producer of solar-powered batteries and largest LED manufacturer by volume.
The government also announced plans to invest US$838 million for renewable energy promotion and an additional US$635 million for research and development. ===Steel and heavy manufacturing=== Taiwan, as of 2017, is the world's thirteenth-largest steel exporter.
In 2018, Taiwan exported 12.2 million metric tons of steel, a one percent increase from 12.0 million metric tons in 2017.
Taiwan's exports represented about 3 percent of all steel exported globally in 2017, based on available data.
is the world's second largest producer of cobots. The automotive industry in Taiwan is significant with Taiwanese firms increasingly invested in automotive electrification, 75% of Tesla, Inc.’s suppliers are Taiwanese. ===Maritime industries=== In 2017 Taiwan exported one hundred and sixty two yachts.
In 2018, Taiwan exported 12.2 million metric tons of steel, a one percent increase from 12.0 million metric tons in 2017.
The volume of Taiwan's 2018 steel exports was one-sixth that of the world's largest exporter, China, and nearly one-third that of the second-largest exporter, Japan.
In value terms, steel represented just 3.6 percent of the total amount of goods Taiwan exported in 2018.
In 2018, the US imported 300,000 metric tons of pipe and tube product.
Taiwan's stainless steel exports numbered in 2018 about 500,000 metric tons. Taiwan is the fourth largest exporter of machine tools and machine tool components in the world.
In 2018 Taiwan was the fourth largest yacht building nation by feet of yacht built after Italy, The Netherlands and Turkey.
A job creation project was also implemented to help young people by subsidizing the hiring of young people in universities and private companies. === Working Hours === Taiwan's GDP per capita in December 1984 was below US$5,000 before reaching US$25,026 by December 2018, an all-time high.
After 10.5% economic growth in 2010, the World Bank expected growth to continue and reach 5% for 2011. According to the National Development Council, Taiwan's economy declined in May 2019 due to the ongoing China-United States trade war. ==Foreign trade== Foreign trade has been the engine of Taiwan's rapid growth during the past 40 years.
Over the decade from 2009 to 2019, Taiwan grew its steel exports by 24%.
In order to further reduce emissions, the government also plans to increase energy efficiency by 2% each year through 2020.
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