Taiwan in the 20th Century: Model or Victim? Development Problems in a Small Asian Economy

Economic performance in the long term is the result of interaction between an economy's internal characteristics and its external environment. The internal characteristics include economic and social institutions, governmental and legal frameworks, natural and human resources, and locational factors. The external environment consists of two parts, one made up of foreign resource configurations and potential opportunities for fruitful economic relationships, and the other of power networks and “rules of the game.” These broader frameworks determine the extent to which potential economic gains can actually be realized