Taiwan Model of Economic Development: A Possible Lesson for South Africa
Despite the endeavors that have been made for the past few years, poor socio-economic conditions persist in South Africa. Even though much of the progress has occurred since the country had ushered into the new democratic era. However, the country economy recently reflects high levels of unemployment, poverty, and inequality. These challenges are heavily affecting the disadvantaged masses of the population. Hence, the state has expressed its intention to attain economic development and transform the lives of ordinary citizens for better. In attempts of the state to achieve an inclusive economy, low economic growth has served as the hindering factor. The South Africa economy can be separated into two categories of minority and majority economy. The country economy consists of a few individuals who controlled the largest share of the economy and the rest population that stuck into the vicious cycle of poverty. It is important to find out how the two economies can be harmonized. Some East-Asian countries have proven that economic miracles do happen, a country can integrate its poor citizen into the active economy and lift them out of poverty. The purpose of this research is to assess the Taiwan model of Economic Development, to ascertain if it can be used or not within the context of South Africa. This will be made possible through the provision of socio-economic development of South Africa and then conducting the comparative analysis between the two political1 entities. This research put an emphasis on the economic policies used by Taiwan in the early years of their development and assess its relevance to South Africa. It also covers the colonial heritage of Taiwan from Japan and South African apartheid legacy. The focus of this research will be only on the education, saving and investment behavior, import substitution and export expansion strategy. Afterwards, we can draw our attention to the possible lessons from Taiwan model of economic development that might benefit South Africans.
Keywords - South Africa, Taiwan, Developmental State, Economic Development, Economic Growth, East-Asia.