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The impacts of increasing industrial production in LEDCs.

 

            In the 1950's, the major economic core area came to include the Western Pacific Rim of Asia and now ranks alongside Western Europe and North Africa. Since the mid-1980's, the centre of this core area shifted south from Japan to include the Asian "tigers" (Malaysia, Hong Kong, South Korea, Thailand, Singapore and Taiwan) where political and cultural climates have promoted it.
             Taiwan was an area included in the economic core area and is an example of increasing industrial production in an LEDC. In 1945, after many years under the Japanese Government, Taiwan once again became part of China. In 1950, Mao Tse-tung communists drove the Nationalist Chinese out of mainland China. These followers and their leader Chiang Kai-shek then occupied Taiwan and he kept the country under military law until July 1987. .
             Taiwan is a small island with a population of 20 million and an average density of 536 per sq. km. The western coastal plain is the only large area of flat land and industry concentrates here especially in the capital Taipay and the Free Trade Zone of Kaohsiung. There is little suitable land for building in the centre and the eastern coast as these areas are very mountainous (over 4000 metres). .
             The tradition of Chinese hard work and learning enabled the Taiwanese to develop commerce and industry in the western coastal plain. This helped the Taiwanese to dramatically improve their standard of living, but was due to a combination of factors. However, with the help of arms and aid from the USA, Taiwan was prevented from any further expansion of communist China. .
             Taiwan's miraculous growth was not only due to the aid and help given to Taiwan from the USA, but due to import substitution (that is the manufacture of goods previously imported for sale on the national market.); export promotion (using FTZ's and EPZ's); and cheap labour. Other contributing factors had an effect on the growth of industry and will now be discussed.


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