A. Problems and Developmental Strategies
---Because of a series of international crises involving finance, foodstuffs, and oil that took place during the seventies, an international recession occurred place and protectionism flourished. During this decade, domestic commodity prices rose, the growth of exports slackened, and, in comparison with the sixties, economic growth slowed. Under the principle of "seeking growth through stability," the government took stabilizing commodity prices as its first priority. The "Measures to Stabilize the Economy" were implemented in 1974 in the wake of the first worldwide oil crisis. After commodity prices had stabilized, a policy of fiscal expansion was adopted. The policy of fiscal tightening adopted after the second oil crisis helped suppress inflation and promote economic recovery.
B. Economic Development Programs and Major Public Construction Projects
---The "Sixth Four-Year Taiwan, R.O.C., Economic Development Plan" (1973-'76) contained the following focal areas:
1. Speeding up the modernization of industry.
2. Expanding the nation's infrastructure.
3. Raising the qualifications of the nation's human resources.
4. Expanding imports.
---The "Seventh Four-Year Taiwan, R.O.C., Economic Development Plan" (1976-'81) contained the following focal areas:
1. Increasing the efficiency of energy use.
2. Improving the industrial structure.
3. Stepping up the training of human resources.
4. Promoting the balanced development of society and the economy. 5. Completing the Ten Major Development Projects.
---The implementation of the Ten Major Development Projects gradually came to fruition; these included six transportation projects, China Steel's integrated steel mill, the petrochemical industry, a nuclear power plant, and a large-scale shipyard.
---Following the completion of the Ten Major Development Projects, the "Twelve Development Projects" were launched in 1978, and included public works aimed at effecting improvements in the areas of transportation, power generation, agriculture, industry, society, and culture, as well as improving the people's standard of living.
C. Industries
1. Agriculture:
---The promulgation in 1972 of the "Nine Key Measures to Accelerate Rural Development" helped promote the mechanization of agriculture.
---In 1973 the system of exchanging fertilizer for grain was eliminated and the modification of the system of purchasing grain simultaneously with the collection of taxes allowed the purchase of grain at going prices.
---A system of purchasing rice at guaranteed prices was implemented and the "Grain Price Leveling Fund" established.
---The education surtax on the agricultural land tax was eliminated.
---The "Program to Intensify Rural Development and Increase Farmers' Income" was promulgated in 1979.
---The "Program to Develop Distant Ocean Fisheries" was promulgated in 1979.
---The second phase of agricultural reform was implemented in 1980.
2. Industry:
---Equal emphasis was placed on the development of both light and heavy industries, and a second wave of import-substitution industries was promoted (including heavy industry and petrochemical industry parts and raw materials).
---The "Ten Major Development Projects" and "Twelve Development Projects" implemented in 1973 and 1978 respectively included shipyard, petrochemical industry, and integrated steel mill projects.
---The "Industrial Technology Research Institute" was established in 1973.
---The first convening of the "Science and Technology Conference" and the passing of the "Science and Technology Development Plan" in 1978 added impetus to domestic R&D.
---The "Association for the Advancement of the Information Industry" was established in 1979.
---The establishment in 1980 of the "Hsinchu Science-based Industrial Park" created a center of concentration for Taiwan's advanced industries.
---The revision of the "Statute Governing Investment Incentives" in 1980 promoted the development of domestic import-substitution industries producing intermediate raw materials.
---The government developed a total of 42 new industrial districts during the seventies, thereby making available 8108 hectares of factory sites.
D. Finance and Banking
1. Finance
---The Inheritance Tax Law was revised to include an added provision for tax to be levied on bequests given when the property owner is still living.
---The repeal of the tax on entertainment and banqueting abolished the sumptuary tax collected through the intermediary of owners of entertainment establishments; in its place a new entertainment tax law served as the basis for collecting taxes from places of entertainment or entertainment activities.
---The revision of the "Average Landownership Statute" and "Land Tax Law" reduced the land price tax on the land used by resident-owned homes from .7% to .5% and increased the area limit on land used for resident-owned homes and not included in urban planning to 7 hectares.
---The promulgation of the "Statute Governing the Issue of Government Construction Bonds" placed an upper limit on the overall surplus of bond issues.
---The Consumer Cultural and Educational Foundation was formally established in 1980.
2. Banking
---The announcement of a new banking law in 1976 laid out regulations for the principles and basic services of different types of specialized banks.
---In 1978 the new Taiwan dollar appreciated and the dollar exchange rate fell to NT$36:US$1.
---The announcement of the "Essentials for the Adjustment of Bank Interest Rates" (1980) enabled banks to adjust their interest rates in light of the availability of funds.
---The promulgation of the "Guidelines for the Management of Short-Term Notes and Securities Dealers" provided basic regulations governing types of short-term notes and securities, their issue and trade.
E. Trade
---The reduction of petroleum import tariffs and commodity taxes on petroleum products helped soften the blow of the first global energy crisis.
---The allocation of earmarked foreign exchange for the purchase of stockpiles of key imported raw materials helped alleviate the impact of rising international resource prices.
---The option of abolishing import controls was examined for the first time.
F. Manpower
---The "Third Manpower Development Plan" (1971-'72), "Fourth Manpower Development Plan" (1973-'74), and "Manpower Development Program" (1976-'81) were implemented during this decade.
---Thanks to stepped-up education and indoctrination, intensified implementation of family planning, and the large-scale promotion of birth control methods, the natural population growth rate dropped to 1.25% by 1994.
---The founding of the National Taiwan Institute of Technology in 1974 helped establish a comprehensive technical education system.
---The ratio of the number of students enrolled in regular high schools to the number enrolled in vocational high schools and the first three years of five-year junior colleges is adjusted from 4.5:5.5 towards mid-term and long-term goals of 4:6 and 3:7 respectively.
---The announcement of the "Regulations for the Assessment of Technical Skills and Issuance of Certification to Technicians" at the beginning of the seventies instituted the assessment and certification of technicians.
---The "Statute Governing Occupational Training Scholarships" was implementation in 1973, but discontinued two years later. The government allocated greater funding for occupational training during the latter half of the decade.
---The establishment of the Open College of Business and Open Professional College in 1977 provided teachers, civil servants, and employees of businesses with opportunities for continuing education while they continue to work at their jobs.
---The Kaohsiung Citizens' Employment Counselling Office was established (1979), employment service units were continuously increased and expanded, employment counselling for middle school graduates is further promoted, and an employment market information collection and release framework instituted.
---The enacting of the "Program for Safeguarding the Rights of Labor and Improving Workers' Lives" (1973), the promulgation of the "Labor Safety and Hygiene Law" (1974), and the implementation of the "Key Measures for Reinforcing Labor Welfare" (1980) helped protect workers' safety and enhance workers' welfare.
G. Social Welfare
---The enacting of the "Child Welfare Law" in 1973 and the "Senior Citizens' Welfare Law," "Handicapped Persons' Welfare Law," and "Social Relief Law" in 1980 established the legal underpinnings of the R.O.C.'s social welfare system.
---In order to meet the needs of a developing society, the "Statute Governing Labor Insurance" (1973, 1979) and the "Civil Servants' Insurance Law" (1974) were revised and the "Statute Governing Insurance for Employees of Private Schools" (1980) enacted.
H. Culture
---Cultural programs were included among the Twelve Development Projects in 1977, and all counties and cities in Taiwan began establishing cultural centers.
---In conjunction with the establishment of regional cultural centers, 12 major cultural measures included the promulgation of the "Program for Strengthening Cultural and Recreational Activities" in 1979, the institution of "Seasons of Culture and the Arts," and revision of the "Copyright Law."
I. Urban Planning and Development
---Implementation of a comprehensive development plan for the Taiwan area began in 1977; this plan had the goals of a rational distribution of industry and population, improvement of the living and working environment, and the development and conservation of resources.
---Seven regional development plans for the Taiwan area were formulated.