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Presently Taiwan is at a major advantage within gloabalisation, through the accelerated expansion of outward economic activities it has gained both money and to a certain extent social and political importance as a trading nation. Within this essay I will investigate how Taiwan reached its current economic state, what benefits have been created and what is the likely future implication on Taiwan. Leading me to answer the question How has Taiwan benefited from globalisation environmentally and economically? And so what does globalisation hold for the future of Taiwan?
Foremostly globalisation is a process in which national economies are becoming more and more integrated into a single global economy. It consists of an ever increasing movement of culture, ideas and trade. The process of globalisation has been an occurring process for centuries, but has only recently had such a solid impact upon East Asia. It has however affected other countries previously and is at this current moment still in an invisible working motion.
Before Taiwan was embraced by globalisation, it was defined as a poor, developing country. Poverty rates were high as were unemployment rates and the quality of life was extremely low. Globalisation brought major changes within the economy of Taiwan (as discussed later) which had the implications of a more positive social, political and perhaps some may say environmental factors within the country.
Taiwan is an active area of the Western Pacific Rim of Asia which since 150 has become a major global economic cove and from its development a shift has occurred to include Taiwan, one of the many Asian tigers. Some might say that Taiwan’s location has enabled globalisation to occur , however I prefer to argue that its complex history explains why economic development happened here.
In the year of 145 Taiwan once become part of China after 50 years of Japanese rule, thus was soon to change as Chiang Kai-Shek (the infamous communist) kept Taiwan under military law until 187. After this point in time the USA aided Taiwan in the prevention of a communist China. Chinese influential view on hardwork and commitment filtered through enabling the Taiwanese to develop industry and the quality of life within the country.
Today thanks to globalisation and the Taiwanese hard working dedicated lifestyle, Taiwan is as rich as the Spanish. When thirty years ago it was a country poorer than Africa it was dominated by malnutrition and little natural resources. However ten years ago absolute poverty was non existent and the pay had risen by approximately ten times its original value. Giving evidence that globalisation occurred at an almost exponential rate - having large economic impacts upon Taiwan and especially its capital Taipei.
From secondary activity and ingenuity Taiwan is now advanced to the forefront of the global economy and it has achieved a high role within the worlds market place. Thus Taiwan is now a recognised trading nation, leading to major investment from other countries in the form of both invisible and visible trade. For example many TNC’s have been set up and expanded within Taiwan, increasing its GNP and having the implication of attracting other business. It is an ever evolving cycle as when more and more industries locate, rapid industrialisation occurs - attracting other industry etc. etc.
TNC’s bring in foreign wealth to a country (as they take advantage of the coastal locations in Taiwan oven by over seas companies) employment to the local area and as there are less restrictions imports a cheaper thus profit margins are higher. Due to Taiwan providing land, buildings and services an increase in labour is produced, leading to higher incomes as competition for wages occurs and so capital is constructed within the area.
As more and more overseas investments are being implanted into Taiwan, more business trips occur from other countries which has opened the gateway to decreasing boundaries of travel between differing countries. This has lead to a gradual increase in tourism to Taiwan, generating once again an increasing amount of economic income. Flight companies have been allowed to promote themselves and Taiwan has gradually grasped a positive reputation as a up and coming middle class tourist area.
Taiwan’s main modern day industry stemmed from the traditional toy making (Made in Taiwan), however this rapidly advanced and diversification occurred into a more technological and quaternary trading and services. In 18 Taiwan could boast that the total production value of the IT industry was US $ 0 million, a large increase since 16 and Taiwan was the worlds third largest computer hardware supporter after the USA and Japan. Thus Taiwan appears to have found a main area of focal point, its strength in the economic sector of the country has in addition strengthened the exchange rate, increasing its stability and real GNP
Figure 1
Above is a graph demonstrating major indictors of Taiwan’s Economy. There is a significant rise in the amount of people living in Taiwan, indicating an increase in the quality of life, as more can survive on Taiwan’s economy, wealth and foodstock.
However it appears that this has unfortunately led to a small increase in the unemployment rate. Taiwan could twist this to its advantage in the usage of advertising it in order to attract new TNC’s. The amount of GNP has increased exponentially indicating now that Taiwan is a developed country in terms of trading and economic stability. The government is having to spend less as the countries quality of life is increasing thus money can go for further development of industry thus leading to a further development continuing the ever evolving process of globalisation.
The majority of business’ located within Taiwan began as a traditional family way of life and has then developed into a large scale economic trading service. For example AISA began by making pen watches and desk calculators but today it is the 7th largest IT providers in the world.
Thus finally it has become a lot easier for business’ to become set up within Taiwan as the public want their own business (they have experienced the benefits to the nation). There is also the aided advantage of less bureaucracy and restrictions in comparison to other countries.
And so, globalisation has had a huge effect on the economy of Taiwan, namely positive due to the huge increase in GNP, quality of life and education throughout the country. Globalisation has allowed Taiwan to develop as an individual nation thus evolving a high, well renowned trading reputation. This advance in economic power has therefore led to other factors developing within Taiwan the main studied feature being environmental.
As globalisation has occurred throughout Taiwan, it has had an obvious impact upon the environment due to the fact that for Taiwan’s economy to grow the features of the landscape must also evolve in order to support such economic growth. Firstly there has been major alterations in the city centre of Taiwan (Taipei). Before globalisation occurred, the city will have had small essential business’ that the country will have thrived upon and the majority of industry will have been located within the CBD. This has changed and now the environment of Taiwan’s capital has evolved greatly, following Hoyts sectoral model
However there are difference between European (our perceptions) city models and Asian models. For example the back streets and outer suburbs of Taipei contain hundreds of small independently owned factories, which produce components for more prominent companies. This has resulted in a surge of movement by the public into the cities (centrifugal forces). Therefore the government have had to provide sufficient bus roots and systems and a suitable environment for these people to live in. Some may argue that this adds to pollution and environmental problems in the city (which is inevitably correct) however on the beneficial environmental side and improved infrastructure and organised site is formed.
Due to the change in industry and therefore environment within Taiwan, an increasing Western market has been introduced. This has both advantages and disadvantages to the environment. Firstly it increases travel as tourists are keen to visit cultural aspects and do not fear environments that they are familiar with. Although traditions are becoming outcompeted by such Westernisation.
As globalisation developed in the 150’s, the population was encouraged to reform its land. Thus the Grandfathers of the current generation were generally farmers, parents industry workers and present day working class are in the majority, well paid software workers. Through land reform, the environment was developed into an industrial area and now has further evolved into a modern high technological area.
And so, an advantage to environment evolution is that the technological areas within Taiwan are modern, up to date, attractive to young business men and more industry. This creates an increased industrial yield hence a raise in economic income. (Both environmental and economical factors interlink and interact).
Therefore, there appears to be a significant lesser amount of environmental advantages than economic. Taiwan seems to have the attitude that currently they want to attract people and business to the country in order to branch out, and in order to do so they have had to sacrifice the environment. Some geographers may argue that in today’s society a modern environment is far more attractive and beneficial than a cultural society. However others prefer the more rural environment, which promotes a natural surrounding.
Both have advantages and disadvantages, but Taiwan must remember and take into consideration that if it continues to gloabalise in the way it previously has, the negatives could soon outweigh the positives.
With a huge advance in high mass consumption, major advantages occurred within Taiwan. But with this economic boom the country must be extremely cautious in the future implications of globalisation and how it could affect Taiwan economically, environmentally and perhaps even politically.
Primarily Taiwan will wish to look to locate its business’ internationally (as Japan has, thus it will receive higher income. However, it must be aware that the UK has differing importing and manufacturing laws. If Taiwan is breaching these rules, the companies may be exploited, potentially leading to the closure of some industry.
On the other hand, if Taiwan is successful in its investments and management and financial success is prominent (e.g. Delta Electronics) the country will reap the benefits and sustain strong links with a variety of global areas. If it continues in this fashion, purchasing power priority (PPP) could be achieved and Taiwan may join an exchange rate that moves to eliminate prices differentials between counties. The economic future of Taiwan appears positive, however one may questions oneself in what issues will this throw up in the realms of social, cultural and environmental factors?
Through the cultural change of Westernisation, a huge influential example is being placed upon the younger people of Taiwan. And so, an individual from the North would not feel out of place especially in the cities. Taiwan is loosing its traditional society. The main aim within Taipei is to earn money and become successful within the city and not as it was thirty years ago, to practise religion and follow tradition. This can eventually lead to a rebellious society (much like the youth patterns of the U.K and the USA) of smoking, drinking and even drug taking. Ultimately this can lead to vandalism and crime, creating a decline in the city centre. Eventually leading to a poor environment and low quality of life. The traditional family structure is currently still present in Taiwan, but under high stress levels. Today, Grandchildren are being minded when mothers go to work by Grandparents, but will these working women want to mind their Grand children? This could loosen family ties as ambitions over the years have changed significantly.
Recently, the ever increasing globalisation of Taiwan has resulted in a large influx of people looking for jobs within the bright lighted city. This has had several implications
Similar to Brazil, shanty towns have developed to a certain extent (within our European perception) creating rings of poverty and unemployment around the CBD. These areas have a low quality of life, are difficult to rid of and prevent further expansion of the city. Little extremely developed countries contain shanty towns thus in the future this factor could prevent Taiwan’s reputation within this league.
Illegal immigrants in the city are preventing Taiwan nationals in receiving employment and will add to the problem with congestion of people and traffic. In the future this could lead to major environmental issues and add to city pollution control.
In addition to the problem of so-called shanty towns, when people leave the more rural areas of Taiwan it is likely to lead to an uneven economic growth and development. Hence ‘growth poles’ developing and so rurality will be lost as are traditional agricultural means of farming within Taiwan. In the near future this could eventually result in a core periphery model
Within this occurrence the gap between the rich and poor increases due to a backwash effect with little investment outside the CBD. In the future this could lead to the poor getting poorer and the rich richer within Taiwan.
If this was to happen within for example Taipei it will have both positive and negatives as once again the CBD would become more prosperous and gain administration and financial functions. The rural areas will feel a decrease in value unless the government creates growth poles in other areas such as pingpang (like Brazil) but it must remembered that those who remain within the rural area will continue the traditional culture hence continuing a great advantage as it would preserve Taiwan’s original heritage.
In the case of almost every rapidly industrialising and urbanising country, environmental cost appears to be present and therefore if not controlled, a major future problem. In Taipei, if environmental issues continue to be last on a list of priorities, rivers will become totally contaminated, masks worn to prevent pollution and crops contaminated by heavy metals and pesticides.
Currently 6 days per annum, air is unfit to breathe in Taipei. If industrialisation continues at its current rate, this figure could increase significantly thus essential respiratory masks would have to be worn. In the more distant future this atmospheric pollution could cause breathing problems within the economically dependant people of the country and so have a large negative impact upon the Taiwanese workforce. The same applies for polluted rivers, as contaminated drinking facilities would evolve into national epidemics.
Due to a huge increase in population (see Figure…) agricultural development has occurred, however this has angered the situation. Agricultural methods are now intensive and demand from cities means that water polluted by industrial sewage is used to irrigate crops. We can only presently imagine the after shocks of this, disease and to some extent famine could occur as pollutants transfer into the food cycle. Finally this means once again the workforce could decrease, eventually leading to economical issues.
Therefore dependant on how Taiwan controls is future through globalisation will eventually decide on the future implications of the cities and country. It could swing either way but currently it seems as though there are more negative issues being thrown into the situation as Taiwan has only had one main focal point - economic interest.
Taiwan has achieved its economic boom, but is still very ambitious and continues to look for advantages within expansion - however it has neglected the more cultural and environmental issues within the nation. This could result in disaster if tradition is lost, a good surrounding disappears and industry takes over, as a high quality of life is dependant on a positive equality of many differing factors. And so, in order to prevent this. Taiwan must keep in mind the lives and attitude of both its nation and country side to achieve and maintain a content equilibrium with economic power.
Taiwan has obviously and inevitably primarily benefited from the process of globalisation, however other impacts have been inflicted on many other areas within the country. Globalisation brought a developing, poverty stricken area into the same economic league as the USA, Pacific Rim and UK and so modernised both industry and the quality of life of the population. This has led to a wide variety of technological advancement within particularly the capital Taipei, thus many tourists visit the area on both recreational and business trips and investments occurred from all over the world. These main overriding factors have meant an indispensable role in the world market place, continual internationalisation and a growth in capital resulting in a phenomenal economic boom and so Taiwan has and is currently reaping the benefits. However in order for globalisation to occur the environment has had to adapt with some both positive and negative affects. Alterations to the city centre and a modernisation and diversification of old industry have in some cases led to a more pleasing environment, however this attracts people and adds to pollution and congestion. Therefore globalisation has meant many advancements within the country but its growth is also resulting in certain setbacks in the realms of culture, society and environment perhaps even leading to future problems.
An advance in industry has made the country economically wealthy and democratic, but if this continues it could result in future implications upon Taiwan. Thus Taiwan’s government and population must question itself and ask Momentarily, what do the present and past economic figures indicate for the country, and are these difference sufficient to sacrifice the environment and cultural heritage of Taiwan?
Finally, globalisation is a modern, ever occurring and evolving process thus is unlikely to stop as it empowers an increasing amount of countries. Therefore instead of preventing future globalisation, Taiwan should investigate how to control this growth and perhaps locate money in preserving the environment and society.
And so, globalisation is a powerful process with both benefits and disadvantages. Only with future experience will geographers truly know the full exploitation of rapid integration and industrialisation, leading to a better controlling of issues that may become prominent within countries such as Taiwan that have experienced globalisation at an exponential rate.
Bibliography
Geography - An integrated Approach - David Waugh
Global Challenges Digby
www.google.com
www.icbc.com.tw/chinese/news
New Patterns, process’ and Change in Human Geography - Carr
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