ABSTRACT
Taiwan once boasted of its democratic achievements and continuous economic growth while enjoying relative political stability. A strong developmental state has promoted high economic growth and put Taiwan in a leading role among the Newly Industrialized Countries (NICs). However, the current economic situation in Taiwan provides a contrast to previous declarations of the “Taiwan miracle” of economic development. Taiwan now suffers from stagnating growth, a decline in global competitiveness, over-dependency on the Chinese market, and uneven distribution of domestic wealth. In order to cope with domestic as well as external pressures, the Taiwanese state endeavors to redefine and embrace global forces of economic transition.
