In the most comprehensive analysis of Taiwan's economic development available to date, Y. Dolly Hwang traces the economic, political, and historical factors that enabled the island to transform itself from a poor country burdened with heavy foreign debt and rampant inflation into an emerging world economic power in a period of only forty years. Hwang explores the role played by the cultural and individual aspirations of the Taiwanese; the improvements in political, social, and educational life that were made possible by the island's economic growth; Taiwan's growing contribution to the global economy; and the country's ability to rapidly narrow the technological gap between itself and the industrialized nations. Throughout, Hwang emphasizes the dynamic interrelationships among the various factors that have created Taiwan's phenomenal success.

Following an overview of Taiwan's postwar economic development, Hwang surveys events in Chinese history which laid the groundwork for Taiwan's rise to a world economic power. Hwang then devotes separate chapters to the influence of Taiwan's struggle for survival on its economic development, the role of government and the technocrats, and the contribution of specific economic policies, particularly the drive to develop an export-based economy. Subsequent chapters address industrialization, international trade, Taiwan's monetary, fiscal, and financial system, Confucianism and the capitalist spirit in Taiwan, entrepreneurs and small- to medium-sized enterprises, and the parts played by the United States and Japan in Taiwan's economic development. The concluding chapter looks at likely future scenarios for the island nation, including a possible reunification with mainland China. Students of economic history, economic development, and Asian Studies will find Hwang's study enlightening reading.