Economic History of Taiwan - Japanese Administration

Japanese Administration

For the most part, Taiwan's economy during the Japanese rule period was a colonial economy. For example, the human and natural resources of Taiwan were used to aid both the economic and military development of Japan. This policy began under Governor-General Kodama Gentarō and reached its peak in 1943, in the middle of World War II. Before the 1920s, the sugar industry dominated Taiwan's economy, while from 1920 to 1930, rice became the primary export. During these two periods, the primary economic policy of the Office of the Governor-General (OGG) was "industry for Japan, agriculture for Taiwan". After 1930, due to war needs the OGG began to pursue a policy of industrialization.

Under Governor Akashi Motojiro, a vast swamp in central Taiwan was transformed into a huge dam in order to build a hydraulic power plant for industrialization. The dam and its surrounding area, widely known as Sun Moon Lake (Nichigetsutan) today, has become a must-see for foreign tourists visiting Taiwan.

Although the main focus of each of these periods differed, the primary goal throughout the entire time was increasing Taiwan's productivity to satisfy demand within Japan, a goal which was successfully achieved. As part of this process, new ideas, concepts, and values were introduced to the Taiwanese; also, several public works projects, such as railways, public education, and telecommunications, were implemented. As the economy grew, society stabilized, politics was gradually liberalized, and popular support for the colonial government began to increase. Taiwan thus served as a showcase for Japan's propaganda on the colonial efforts throughout Asia, as displayed during the 1935 Taiwan Exposition.