Immigrants on Economy of Taiwan

¶ … Immigrants on Economy of Taiwan

Taiwan was initially inhabited by the people of Malay-Polynesian descent. The migration of the people from China, and foreign aggression of Dutch compelled those early inhabitants to move into mountains. The country was exposed to the international community by Dutch navigator on a Portuguese ship. The region was called, 'Ilha Formosa' i.e. beautiful island. The Dutch authorities captured the administrative authority over the island, and brought in the Chinese laborers. The immigrant workers were employed as sugar and rice plantation workers. The immigrants established their long-term affinity with the region by marrying with the local women.

During 18th century war in the Chinese continent, number of Chinese escaped and migrated to Taiwan (Formosa). Taiwan under went several political, military conquest; the series of expeditions shifted and diverted many migrants from and towards the country. The battle between the Manchu rulers from Beijing, and Japanese government introduced series of political, economic and social transformation inside the country. These uncertainties disturbed the equilibrium of population in terms of ethnicity and religion, and people with different backgrounds paved their way towards the country.

China still regards Taiwan as her integral unit, however Taiwan has successfully handled and catered for the demand and objections of the Chinese administration, and in this respect the help of United States has been sought by the Taiwanese authorities, whose active involvement and interests in the affairs of Taiwan, has persuaded the international community to invest manifold in Taiwan in all departments including military, technology, textiles, agriculture and research. The ongoing hype of Taiwan as country with high proportion of international investment and profitability has convinced and wooed many business and corporate giants to invest in Taiwan; the increasing investment has expectedly raised the demand for the labor and man power.

The Taiwanese authority has catered for the need of increasing manpower by adopting two different policies,

Taiwan is country is least motivated citizens, and it was viewed important by the Taiwanese authorities to build and develop the skills and potential of the local population. In 1950's the government encouraged the Taiwanese students to enroll in the Western universities for higher education in technical subjects. The local legislators passed Immigration Act of 1965, allowing the Taiwanese immigrants to pursue studies in Western universities. The privileged students and candidates were encouraged to return back to the country, and offer their technical expertise to the country on professional level.

The country also adopted soft and lenient immigration policy, encouraging the foreign citizens to apply for immigration to Taiwan. The immigration authority encouraged the applicants with technical expertise and relevant experience to apply. The adopted policies of the government successively offered the international investor with significant numbers of qualified and experienced labors.

ETHNIC AND RELIGIOUS DIVERSITY

The ethnic and diversified Taiwanese society has encouraged the foreign immigrants to apply without any haste. Taiwan has captured an image of moderate and pluralistic society that welcomes people with different background, and assimilates the people without any preference or victimization. The native Taiwanese are originally the migrants from Fujian and Guangdong provinces on the mainland. Han Chinese represents larger share in population, and are followed by nine different ethnic groups residing in the Taiwan, the groups include Saisiyat, Bunun, Tsou, Paiwan, Rukai, Puyuma, Tsou, and Yami. The Interior ministry of the country reveals that three-fourth quarter of the population is Buddhists or Taoists. Minority practices Chinese folk religion, Confucianism, Christianity.

The religious diversification is the prominent feature of Taiwan, and large numbers of the foreigners apply for the permanent immigration to the country on just because the economic and investment activities are gaining momentum in the country but also because the Taiwanese authority has respected and promoted the notion of pluralism and diversity. This provides feeling of ease and satisfaction to the desired immigrants, as their economic and professional safeguards are followed by their religious, social and ethnic protection.

IMMIGRATION TO TAIWAN

Taiwan is viewed as suitable place by the international agencies for investment, and country is highly admired for its investment friendly policies, low tax cuts, and cheap labor. The country is also preferred for its easy and practical immigration policies, encouraging the foreigners to start their professional career with any constrain. Like many other developing countries, Taiwan has experienced fierce competition from the international market in attracting the professional and experienced manpower to its country. Taiwan's educational policy has successfully made it well equipped with professional local manpower, but the local population due to their potential and technical expertise is recruited outside the country, turning the country short of professional minds. The administration has therefore encouraged the outsiders to enter the Taiwan job market, and fulfill the local employment opportunities. However in many of the cases the country has experienced its expatriates traveling back to the country with the spirit to offer lending hand to the country for technological progress and development. 'But unlike many countries that have suffered from brain drain; Taiwan has seen many skilled emigrants return home to boost the country's economic development' (Social Expenditures in Taiwan).

The Taiwanese political stability and economic growth are the major eye catchers for the immigrants, but several other government policies focusing on social reforms, educational reforms and healthcare has persuaded large number of foreigners to apply for the immigration. The flow of the skilled immigrants to the country has so far positive impact on the country, and results have been phenomenal as compare with the other developing countries.

Taiwan once experienced a situation of 'Brain Drain', more than hundred thousand citizens left Taiwan for learning science and technological subjects, this created shortage of the required manpower for assisting the employers and business activities. In the period between 1970 and 1980, more than 20% of the Taiwan's local college students moved abroad for higher education, and during the same period only 8% of the students returned back home after the completion of their international degree. Taiwan wanted manpower which can essentially fulfill the objectives of the employers, mostly international investors. The brain drain created political anxiety among the locals, but the economic activity continued to ascend with high growth rate without any major debacle. The brain drain situation partially reversed during 1980s and 1990s when the American and European economies were facing crucial period due to the ongoing wars and military expeditions in Iraq-Kuwait war, Iraq-Iran war, and Soviet aggression of Afghanistan. The returnees were equipped with high levels of education, along with significant business and technical experience. The returned migrants supported and ignite doom in local technological sector. The rising salary packages, job security, relative job comfort has convinced the migrants to offer their expertise to the local industries.

The Taiwan's economy has been growing at steady pace irrespective of the flow out of the local manpower, and the return of the expatriates has further increased the pace of the economic and industrial reforms. It is commonly observed that many countries experience major radical or political drift due to the slowdowns and reversals of low and/or high-skilled emigration, however in the case of Taiwan the situation is much opposite. The country has experienced the return of the migrants before the end of martial law and the beginning of democratic elections in the late 1980s. The sustained political and administrative structure and adoption of the economic activities on positive trend has transformed the country from an under developed to developed country.

The positive experience of the country with migration of the skilled workers was because of the country's educational initiatives during 1950's. The country invested major share of the GDP on public and private education, the rate outstripped that of other countries with similar resources. Taiwan's educational policy has focused more on the basic education and vocational training. However the surging technological progress has convinced the country's ruling authority to allocate substantial funds towards colleges and universities. During the last decade of the 20th century, majority of the secondary school students were enrolled in the vocational programs. The government encouraging policy towards strengthening the concept vocational training has associated the future of the enrolled students with the promising future and job opportunity in the local manufacturing industry.

Less emphasis on the higher education left the local students with earnest desire to achieve and attain higher education from international universities. According to the statistics, 'In 1991, only 165 doctorate degrees were awarded in engineering, a strikingly low figure for a country where 29% of exports were in the high-tech sector and over 10,000 patents were being registered every year' (Taiwan: From Developing to Mature Economy).

The educational policy of the country has diverted many of the potential and talented students away from the Taiwan's local job market. Those local students and professionals were found competing in the international job market with desired credentials, and it was the country's initial educational policy which nurtured the minds of the young ones. However it was the international political conditions and economic stagnation of the western powers during the 1980's that left the migrants with no other option but to migrate back to the country. The country was itself full of immigrants that were permitted to perform their professional and technical services and advocacy to strengthen the industrial performance of the country, and fulfill the shortage of the required manpower. The return of the migrants further supported the local government in its quest of introducing economic and industrial reforms in the country. However at parallel the government also invited and allowed the inflow of the foreign workers to handle the distribution of manpower efficiently.

ROLE OF GOVERNMENT

The local students who are pursue their higher education abroad are the ambassadors of the Taiwan and its ideology, these students are the country's interface with the 'global economy, managing and enhancing the solid manufacturing base promoted by the basic education policy'(Taiwan: From Developing to Mature Economy). The government has focused on Taiwanese diaspora for promoting the involvement of the internationally acquired acumen through both the physical return of migrants and their participation from overseas.

Foreigners pour in their capital and technical expertise to support the already market infrastructure set by the country i.e. low-tech, labor-intensive export manufacturing. With the increase in the wages and skills levels, the local firms adopted technological modes for technological processing, and designing. The services of the Taiwanese living abroad and immigrants were hired for establishing formal and informal connections to draw on the expertise and business connections. 'Taiwan's export-oriented industrial sector made the skills of returned migrants easily transferable' (Taiwan: From Developing to Mature Economy). The local companies attracted the migrants; these migrants were popularly known as astronauts because many of them commuted to and from Silicon Valley. By the end of 1987, more than 20% of the local companies' executives were either migrants or immigrants. The large number of migrants, rich with technical and managerial expertise played crucial and significant role in the rapid and steady growth of the country's economy.

The government upon realizing the importance of migrants and immigrants formulated such policies that appreciated and supported the return of the migrants, and arrival of the immigrants. National Youth Council was created in 1970's for providing medium of correspondence to the Taiwanese industrialist and migrants. The objective of the council is to keep record of the migrants, and their area of specialization and services. The council also provides overseas job opportunities, travel subsidies and temporary job placement to potential returnees. 'The National Science Council and Ministry of Education have also recruited thousands of migrants as professors and visiting lecturers for the country's growing universities' (Taiwan Local News).

Hinschu is science based industrial park; the advent is viewed as most celebrated achievement of the government in promoting the interest on the migrants, and providing them with series of opportunities to apply and invest their potential for the growth of the country. The inspiration of the park comes from Silicon Valley; the park is an area of dense concentration of experts and professionals. The project was launched in 1980, upon the availability of the finances from the government, the government desired to planned infrastructure for companies relocating to or forming in the area.

The government arranges international conferences periodically for providing access to knowledge and technological advents. The government also offers subsidized western-style housing and commercial services. The park has been successful in attracting international technological companies, and number of migrants and immigrants through the world to Taiwan. The park generated more than $28billion in sales in 200, and currently there is workforce of more than hundred thousand providing and applying their expertise and skills. Almost 5000 of the returned migrants and immigrants are employed in the park; more than 50% of the companies established in the park were launched by U.S.-educated Taiwanese and international immigrants, who immigrated with business intentions. Around 500 of the returnees were PhD's, proving that migrants are much educated than the average worker employed. 70 of the companies established in the park have their offices in Silicon Valley. The park is major contributor to the country's strong economic growth.