US Assistance To Taiwan Economic Research (1950-1965)

After World War II, the United States was the first to provide foreign economic assistance to other countries. Among these, the economic aid to Taiwan can be regarded as a typical case of successful economic assistance. The economic assistance from U.S. reduced the Taiwan’s fiscal deficit, provided scarce products, improved the efficiency of agricultural production, consolidated the KMT in Taiwan’s political status and laid the foundation for Taiwan’s economic boom in the1970s. It is no doubt that there were many reasons that could account for the successful economic aid, but the interactive cooperation of people who was responsible for the aid between U.S. and Taiwan was one of the most important factors.This thesis mainly selects American economic aid to Taiwan between1950-1965as the research object to explore the historical background of U.S. aid, impact of U.S. aid, aid institutions and their interaction mechanisms based on the analysis of the relevant historical documents. I also specify the interactive cooperation between the United States and Taiwan during the15years of economic aid by using the case of transformation of Taiwan power. The main point of this thesis is that successful economic aid in Taiwan is the result of many factors, but it cannot ignore that interactive cooperation of officials and experts is the most important factor.I hope to provide lessons for China’s foreign aid, and improve the efficiency of its foreign economic aid, in order to utilize foreign aid to safeguard national political and security interests.