By Nan Wiegersma, Joseph E. Medley

US reduction interventions have drastically advantaged a few nations of their quest for improvement, yet now not others. The vast improvement counsel, know-how transfers and marketplace entry that the U.S. executive granted Taiwan and South Korea of their improvement and the help lately given Costa Rica have been vital elements of their improvement successes. nevertheless, the beside the point rules of the united states in Vietnam within the fifties, El Salvador within the eighties and Nicaragua within the nineties, programmed those interventions to fiscal in addition to political failure.

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Additional resources for US Economic Development Policies towards the Pacific Rim: Successes and Failures of US Aid

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With this new found strength, the US set about constructing a new politicaleconomic world order through the Marshall Plan, with its first task being to rebuild Western Europe. The United Nations Relief and Rehabilitation Agency (UNRRA) was the first major US aid program after World War II. It began almost immediately after the end of the war in response to the threat of mass starvation in many regions of Central Europe. The total destruction of the economic base throughout Europe and Asia left large portions of the population without access to basic subsistence commodities.

Overall, the people of Taiwan suffered very poor economic conditions. In 1905, the Japanese cemented their domination of Taiwan by deposing the large absentee landlords and making Taiwan’s resident landlords responsible for collection of taxes on agricultural land (Hamilton 1983). Large portions of agricultural output were marketed and exported to Japan in order to pay these land taxes. These small landlords were effectively forced to act as intermediaries in the commercialization of Taiwan’s agriculture.

Altogether, secure land ownership, increased inputs, services and infrastructure, and low-cost credit which could be repaid independently of price fluctuations, increased the stability and prosperity of peasant agriculture. Taiwan’s state policies not only created the conditions for the development and growth of peasant agriculture; they also created conditions under which a significant portion of the agricultural resources and agricultural surplus were transferred to the government. State-sponsored land reform effectively eliminated both the landlord class and large-scale, private agroexporters.

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