Taiwan Government’s Industrial Policy Ruins Economy

ExportsPlungeEastAsia2009-05-31.jpg Source of graphic: online version of the NYT article quoted and cited below.

(p. A8) Taiwan, where for years the government encouraged information technology companies with tax breaks, cheap land, loans and more, is probably the most endangered of the small Asian economies. The result of that government largess is an economy extremely dependent on a single industrial sector that has been devastated by plunging worldwide sales of electronics. “Half of the industries just got a bad cold, they probably can recover quickly — the other 50 percent, they’ve got, not cancer, but close,” said Preston W. Chen, a chemicals tycoon who is also the chairman of Taiwan’s Chinese National Federation of Industries.

For the full article, see:
KEITH BRADSHER. “Memo From Singapore – East Asia’s Small Edens of Trade Wilt as Need for Exports Dries Up.” The New York Times (Thurs., March 5, 2009): A8.

Leave a Reply

Your email address will not be published.