A. Problems and Developmental Strategies

---Due to shortages of money, manpower, and resources, as well as the damage sustained by the infrastructure during World War Two and the inability to make repairs up to 1949, during the forties people's lives were hard, goods were in short supply, prices were high, and people lacked confidence in the currency.

---In 1949 the government carried out a currency reform in order to stabilize prices, and vigorously began the task of restoring and rebuilding Taiwan's original transportation infrastructure and agricultural and industrial facilities.

B. Industries

1. Agriculture

---The implementation of the 37.5% agricultural rent reduction program in 1949 limited rents and safeguarded the rights of tenant farmers.

---A system of distributing sugar to sugarcane growers increased the output of the sugar industry.

---The institution of an agricultural land tax and purchase of grain at the time of collection of taxes helped insure an ample supply of grain.

2. Industry

---The industries developed during this period focussed on supplying everyday needs.

---A strategy of "using agriculture to nurture industry and using industry to develop agriculture" was instituted.

---The generation of electrical power was increased.

C. Finance and banking

(1) Finance:

---The "Taiwan Province Land Tax Verification Regulations" was enacted.

---The "Regulations Governing Harbor Dues Collection in Taiwan Province" was promulgated.

---The "Taiwan Provincial Government Bond Regulations" was enacted.

---The "Taiwan Provincial Tax Code Reform Committee" was established.

---The "Regulations Governing Uniform Business Invoices in Taiwan Province and Provisional Regulations Governing Uniform Invoice Prizes in Taiwan Province" were passed.

(2) Banking:

---The "Regulations Concerning the Issue of New Taiwan Dollars" was promulgated in 1946 and helped institute currency reforms.

---The "Statute for Management of Foreign Exchange" was announced in 1949.

---Multiple foreign exchange systems were instituted in 1950.

---The implementation in 1950 of the "Regulations for Preferential Interest Savings Accounts" helped dampen inflation.

D. Manpower

---The implementation of compulsory education gradually eliminated illiteracy.

---Occupational introduction offices were established by counties and cities and helped find employment for soldiers returning to their native places from overseas.

---Counties and cities set up unemployment relief committees in 1947.

---The Taiwan Provincial Taipei Industrial and Vocational School was converted to a junior college.

E. Social Welfare

---The Taiwan Provincial Women's Association was founded in 1946.

---The issue of national identification cards and household identification books in 1947 helped stabilize society.

---Labor insurance and soldiers' insurance programs were launched in 1950.

F. Culture

---The establishment of the "Taiwan Cultural Advancement Association" in 1945 helped promote the elimination of Japanese colonial culture and re-establishment of traditional Chinese culture.

---All cultural and educational institutions were ordered in 1949 to survey the province's history, historical sites, and historical and cultural artifacts.

---In 1950 all counties and cities were ordered to establish Mandarin promotion units and make the use of the Mandarin Chinese language universal.