From Agricultural to Industrial Society
During the early years after the war, the government solved the problem of inflation through currency reform and US aid. Furthermore, starting from 1949 (Year 38 of the ROC calendar), a series of other policies were implemented, including the reduction of rent for arable land, the sale of public farm lands, and the distribution of arable land among the agricultural population. The aim was to enable farmers to be focus on increasing agricultural production, and to encourage landlords to convert land capital into industrial capital, so as to accumulate foreign exchange by exporting excess agricultural products and related processed good. In turn, the foreign exchange that was received could be used to purchase the necessary machinery and raw materials for further development. Through developing specific industries, forex control and protective tariffs, the value of Taiwan's industrial production surpassed that of agriculture in the 1960s, and thus the island officially became an industrial society.