An Overview of Taiwan’s Economic Development (IIa)
Abstract
While developing trade and commerce, the Dutch had found that high temperatures and abundant rainfall of the island made the plains very suited to agriculture, leading to the production of rice and sugar for export. They also introduced know-how to grow sugarcanes, and an emerging industry in Taiwan was booming. For some three centuries, rice and sugar would thus endure as the cornerstones of agricultural economy on the island (although the problem of so-called "cannibalization between rice and sugar" often occurred and the subject tagged along Taiwan’s agriculture from the Ching to Japanese eras). To promote agriculture, the Dutch leased land and agricultural tools to peasants and raised oxen for tilling rice fields, and at the same time, dug wells, conducted land surveys, etc. They not only improved the breeding of plants, but introduced new crops such as cabbage, bean, tomato, mango, and chili pepper, which became popular produce today in Taiwan.
During the Cheng period, Taiwan’s agriculture was further developed. Due to the sudden increase in population, more lands were opened to farming. The total cultivated land increased greatly; hence, production of foods was multiplied. In order to fund agricultural development and gigantic government spending, the Cheng regime taxed residents rigorously. In addition to the head tax invented by the Dutch, the Cheng government also introduced property tax. Taxing objects were extended to all areas of industry. Tormented by heavy taxation, residents gradually grew bitter against the Cheng regime and were soon in deep despair.
In the Ching era, there existed the so-called “Two Lords to a Field” system regarding land cultivation by Chinese immigrants. Each year, the Chinese immigrant would pay the aborigine landlord a rent, called “aborigine large-rent.” The Chinese tenant might in turn sublet the land to other farmers for cultivation, and the rent he received was called “small-rent.” Although the government forbade the Chinese to buy aborigine lands, it turned out that most of the aborigine lands were lent out to the Chinese for reclamation. Why (and how) did aborigines lose their lands eventually? More studies are required to explain the phenomenon.