May 28, 1987 EXTENSIONS OF REMARKS 14061 EXTENSIONS OF REMARKS ALTERNATIVE DEVELOPMENT blest with abundant resources, and with the from Mainland China and decided to rule STRATEGIES: THE ROC automatic goodwill of numerous countries, the island with determination and dedica­ did not degenerate and did not become tyr­ tion to economic development. The very annies. Instead, they became highly devel­ first step toward modernization was the re­ HON. THOMAS M. FOGUETTA oped and successful in many ways, and the distribution of national wealth through OF PENNSYLVANIA quality of life for all their people has in­ land reform. The policy known as "land to IN THE HOUSE OF REPRESENTATIVES creased continually. the tiller" laid the very foundation for Tai­ This is something we are impressed with: Thursday, May 28, 1987 wan's industrialization and economic growth we want to know why was it that some in the years to follow. During the same Mr. FOGLIETIA. Mr. Speaker, on Monday countries were able to give their citizens a period, the early 50's, total national produc­ April 13, a very interesting and informative better way of life, when others were not. tivity was low. The ROC government be­ forum was held on Capitol Hill. The topic of Among these nations of Asia, outstanding lieved that increasing labor productivity was is the Republic of China. It has been stead­ essential. Achievement of both stability and the meeting was, "Alternative Development ily improving the state of its people, and it Strategies, the Republic of China as a Model." rapid growth at the same time in the past has also been exporting its knowledge to three decades was possible only because of This forum, sponsored by the Association on help other countries. For example, agricul­ the significant increase in labor productivi­ Third World Affairs, was the first in a series of tural teams from the ROC have gone into ty. This progressive change can be attrib­ hearings on the very important issue of Third the poverty-stricken rural areas of South uted to technology, management and an World development. The speaker at this first Africa and taught people, trying to farm the educated work force. In short, Taiwan devel­ forum was Dr. Phillip Chen, director of the worst sort of land, how to produce rice and opment transformed an agricultural country Asia and World Institute in Taipei. The panel­ other crops successfully. In one area, these into an industrial one through dedicated en­ ists were Senator and OAS Ambassador Gale African farmers were so successful, thanks trepreneurship, a hard-working labor force to Chinese tutors, that the tutors them­ and, of course, efficient government poli­ W. McGee, Howard University Prof. Luis Sera­ selves were surprised that so much good rice paio, and development economist Jon Woron­ cies. could be produced from such rotten land. After 30 years of economic development, off. The moderator was Dr. Lorna Hahn, exec­ To let us know first hand what the ROC Taiwan became the first leading supplier of utive director of the Association on Third has been doing, and what lessons it has to U.S. imports and the sixth largest trading World Affairs. offer other countries, I give you Dr. Chen. partner of the U.S. (after Canada, Japan, This forum will contribute a great deal to the CHEN. Ladies and Gentlemen, let me brief­ W. Germany, U.K., and Mexico), with a debate over Third World development. I ly introduce to you economic growth and trade volume of U.S. $25 billion. Less than political stability as the development model strongly believe that these kinds of hearings 40 years ago, Taiwan had only U.S. $% bil­ of the ROC. lion in foreign reserve; today, the ROC cen­ are a vital part of the policy process. There are certain common characteristics Mr. Speaker, I am including for the RECORD tral bank reported a U.S. $53 billion reserve. of all developing nations. One is the mixed <This also causes Taiwan a lot of trouble the transcript of this very important forum: character of the social, economic and politi­ these days.) Between the years 1950-1965, ALTERNATIVE DEVELOPMENT STRATEGIES: cal process. Most countries are still over­ the ROC received a total of U.S. $1.5 billion Tm: ROC whelmingly poor. the majority of the popu­ lation is illiterate, per capita income re­ in economic assistance from the U.S., in the HAHN. This is a very important occasion, mains very low, and while social mobility is form of grants, loans, technical assistance, first, because we have a very special guest relatively high in the modern sectors, like and surplus agricultural commodities. For speaker with us. Dr. Phillip M. Chen, the major cities, it is very low in other sectors of this we are grateful to our American Director of the finest think tank in the Re­ the society. Industrialization is either just friends. Without such cooperation and aid, public of China, is a renowned scholar who getting under way or remains only an aspi­ Taiwan could not have progressed. In the studied first in this country <receiving a ration. A second common characteristic of 70's, our concern was infrastructure <high­ Ph.D. from the University of Massachu­ these nations is their lack of integration. ways, nuclear power plants, communication setts>. taught in Alabama and Massachu­ This is due in part to the ethnic, religious, systems, etc.) setts, and became director of Asian Studies racial, and cultural pluralism of the soci­ In the 80's government and industry and of American Studies at the main univer­ eties. A third characteristic is the wide gap began to join their efforts to reconstruct sity in Taiwan. He is a scholar whose nu­ between the traditional masses and the Taiwan's industrial structure from labor in­ merous works need no introduction. Western-educated elite. tensive to technology intensive. In short, This occasion is also important because We can use economic development to ex­ Taiwan's economic success has been the each of you is here. You are here because amine the relationship between economic focus of domestic pride and respect. But se­ you are concerned with developing countries development and political competitiveness, rious challenges will be confronted in the and the lack of economic progress that has or political democracy. There is a positive years ahead. How did an island state make a taken place in so many of them. Country correlation between economic development transition from an underdeveloped colony after country in the Third World, especially and political democracy in the case of to a modern industrial economy in less than in Africa, has become independent showing Taiwan. Democrats in Washington, D.C. and 30 years? Will high tech initiatives in the great promise: with an abundance of natural around the U.S. ask me this question: Since Qingdu Science Park create a second eco­ resources, with opportunities to educate Taiwan as an economic growth model has nomic miracle for the 21st century? How did their citizens, and favored with the willing­ done remarkably well in past years, why has economic development constitute political ness to help a great part of the world. Yet political democracy moved so slowly? We competitiveness and lead to serious political country after country in the Third World have tried to answer this question for the change? These are questions of major con­ has not made economic progress; rather past 15-20 years. cern to Taiwan, the U.S., and Asian states of they have retrogressed. Furthermore, Taiwan is an island state, with almost no the Third World. rather than building democracy and giving natural resources; we have to import every As fundamental as is the principle of de­ citizens more freedom, they have frequently drop of crude oil. Back in 1951, per capita mocracy, the prerequisites for democracy constructed tyrannies and deprived citizens GNP was as low as U.S. $202, per capita are: adequate living standards, well-educat­ of freedom. income was less than U.S. $200. Taiwan was ed population, and social stability. Taiwan Rather than improving the lifestyle of the a predominantly agricultural, rural society. has met all three, and this will inevitably people, in many countries the value of life Industrialization was an aspiration. Trade lead to political democratization. Progress has diminished, and the quality of life to was nearly unknown, and existed in very toward democracy has occurred gradually, which the individual can aspire has contin­ limited business sectors. Primary products and the pace is picking up. The government ually declined. We are here today because were only sugar, pineapples, bananas, and carefully plans every major aspect of a we care about these things: because we rice. Illiteracy in 1951 was over 55%. democratic political system, both structural know that it need not be that way. We know The ruling party, the Kuomintang Gov­ and functional. Since all political systems that in Asia, several countries that were not ernment, had learned a very bitter lesson are mixed in a cultural sense, there are no e This "bullet" symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. 14062 EXTENSIONS OF REMARKS May 28, 1987 all-modern cultures in the sense of rational­ ences, different levels of development and done to improve the economic situation. ity, and no all-primitive ones in the sense of different problems. In Latin America, for The country we refer to here is the ROC.