What has happened on Taiwan to bring about a satisfactory rate of agricultural growth was the main subject of study and discussion at an Asian seminar on agricultural development in Taipei June 20-29.
Attending were agricultural economists from Korea, Malaysia, the Philippines, Thailand, Turkey, and Vietnam. Also present were agricultural planners of the U.S. AID missions in these nations plus such other Asian countries as Afghanistan and India. The U.S. Department of Agriculture, the United Nations' Food and Agriculture Organization, and other international organizations sent observers.
The seminar was sponsored by the U.S. Agency for International Development in cooperation with the Sino-American Joint Commission on Rural Reconstruction. It examined the possibility that Taiwan's agricultural progress can be repeated in other developing countries of Asia.
As pointed out by Dr. T. H. Shen, JCRR chairman, the role of agriculture in economic development has become increasingly important. Many countries have endeavored to develop their economies through rapid industrialization alone and have failed because of the neglect of agriculture.
Shen reported that the Republic of China has adopted a policy of balanced agricultural-industrial economic growth. Thus Taiwan provides enough food for its growing population at the same time it is establishing a solid foundation for rapid industrial development.
He noted that on Taiwan, agriculture is made up largely of small-scale farms employing family labor. Arable land area is only a fourth of the total.
But in this limited area, he said, food production has remained sufficient to feed the island and leave a surplus for export. The average annual growth of agriculture for 1953-56 was 6.2 per cent; for 1957-60, 5 per cent; for 1961-64, 6.4 per cent; and for 1965, 8.7 per cent. The population has been growing at around 3 per cent.
Shen said the Chinese government has these agricultural objectives: (1) increased food production for the population, (2) larger and more diversified agricultural ex ports, and (3) development of the agricultural processing industry to provide more employment opportunities and a higher standard of living in rural areas.
Gerald H. Huffman, commissioner of JCRR and representative in China of the U.S. Agency for International Development, said Taiwan's economic progress has shown the importance of agriculture in industrialization. In addition to providing a solid foundation, a well-developed agriculture gives industry a large and ready market.
He said the Chinese government is seeking to:
1. Promote and develop the productivity of the agricultural sector to produce most of the food requirements of the growing population and conserve foreign exchange for imported industrial equipment and raw materials.
2. Produce enough food to give the people a well-balanced diet at reasonable cost, thereby contributing to a rising standard of living and moderating pressures for industrial wage rates exceeding productivity increases.
3. Produce an increasing variety and quantity of special crops for export, thus contributing greatly to foreign exchange earnings and reserves.
4. Produce agricultural products for industrial processing, thereby stimulating industrialization.
He said Taiwan's satisfactory rate of overall economic growth has been achieved despite a scarcity of economic resources other than the abilities, skills, and industriousness of the people. "This bears out the wisdom of the Republic of China's agricultural policies over the past two decades," he added.
Success Story
In 1965, Taiwan farmers grew 2,348,041 metric tons of rice, enough to feed a population of nearly 13 million and leave US$43 million worth for export. The 1945 figure was 638,000 tons.
Sweet potatoes are the staple feed for pigs. The 1965 production was 3,121,875 tons, nearly three times 1945's 1,165,000 tons.
Some other increases are even more dramatic: wheat from a virtually non existent 753 tons to 23,492 tons, peanuts from 11,565 tons to 123,495 tons, soybeans from less than 2,000 to 65,779 tons, and sugar—the island's top foreign exchange earner—from 290,000 to 868,500 tons. Not even grown in 1945 were such substantial crops as hybrid corn and cotton, which totaled 28,734 and 2,335 tons, respectively, in 1965.
The three most important factors in the Taiwan success story have been land reform, technological advance, and the sound organization of farmers' associations.
Land reform was achieved in three steps. At the end of World War II, nearly half of Taiwan farms were tilled by tenants who paid 50 per cent or more of the main crop to the landlords as rent. Farmers had neither the desire nor the means to improve the land they tilled.
In 1949, the Taiwan Provincial Government imposed an annual rent ceiling of 37.5 per cent of the principal crop. In that year, more than 370,000 written lease agreements were signed under the watchful eye of the government. Many previous accords were oral, leaving the tenant at the mercy of his landlord. An immediate result of rent reduction was a rise in the standard of living.
The second step, taken in 1951, was the sale of public lands to farmers. They paid only 2.5 times the annual value of the principal crop or 10 times the annual rent. In a series of five sales, 96,004 hectares were sold to 165,443 families.
These sales convinced both landlords and tenants that the government meant business. Landlords offered to sell their farms and prices dropped sharply.
This opened the way for the final phase of land reform: purchase of excess land from landlords and its resale to tenants. The Land-to-the-Tiller Act was passed in 1953. Its enforcement was preceded by an exhaustive survey of land ownership and utilization. Every piece of farm land was graded by type and productivity. Owners were permitted to keep 3 hectares of paddy land, or 6 hectares of dry land for their own use. The rest was sold to the government and resold to 194,823 families—an average of 0.7147 hectares each. Landlords received 70 per cent of their land price in kind and 30 per cent in stocks of government enterprises.
As a result of the reform, 87 per cent of the farmers on Taiwan are owners-tillers as compared with the previous 57 per cent.
Family farming is the predominant system. It offers a sound basis for agricultural development. The reform has provided farmers with greater incentive and has led to sharp increases in productivity.
Shortage of arable land is the principal limiting factor of Taiwan agriculture. The Chinese government has made many attempts to improve land management and reclaim land for farming.
Between 1933 and 1958, a soil conservation survey was carried out in the rolling, hilly zone between the lowland plain and the forested mountains of 1,000 meters and above. The survey determined which land units could be used for reforestation, which for pasture, and which for crops.
Another survey was of tidal land along the west coast. Of 53,800 hectares, 16,900 can be reclaimed.
Flood prevention, good drainage, and irrigation must be stressed because of Taiwan's rugged topography, the frequency of typhoons, and uneven distribution of rain fall. Hundreds of miles of levees and irrigation systems have been built and repaired each year. A multipurpose water project, the Shihmen dam and reservoir, was completed in 1964 at a cost of US$66 million. The government is now building a larger dam and reservoir on the upper reaches of the Tseng Wen River. It will cost about US$100 million.
Deep wells are helping meet water requirements. Since 1949, thousands have been drilled in central Taiwan to turn dry land into paddy fields, adding thousands of tons to rice production.
Increased use of fertilizer has resulted in dramatically expanded fields of rice, sugar cane, tobacco, and jute. Except for potash, all fertilizers used in Taiwan are produced domestically. Distribution of fertilizers is carried out by the government to assure the most effective use of the right varieties, to keep the price low, and to make sure deliveries are on time.
Crop losses caused by insects and disease were estimated at 18 per cent of production in 1952. Since then pesticides have been used in increasing quantity.
High yields have resulted from new varieties of rice, sugar cane, pineapples, tobacco, peanuts, sweet potatoes, tea, oranges, wheat, and soybeans.
A seed certification system has been established. The seed laboratory at Taichung has the most modern equipment. Technicians from countries in Southeast Asia and Africa have been trained there.
Multiple cropping has become increasingly important. Soybeans, jute, sweet potatoes, and vegetables are grown alongside rice and sugar cane. This economical use of the land has increased production.
Another way to increase agricultural production is mechanization. As draft animals give way to power tillers, the land previously devoted to grass and feed will be available for food crops.
Much of the credit for Taiwan's agricultural progress goes to farmers' associations. Taiwan has about 360 townships. Almost all have farmers' associations. Functions include storage, banking, and agricultural extension services for farmers and children.
More than 3,500 monthly extension classes are attended by more than 600,000 farmers. They bring up their problems and exchange experiences. Technicians demonstrate scientific farming methods and distribute printed materials.
A 4-H club program was launched 13 years ago. Today there are some 6,000 clubs with a membership of more than 83,000.
The Joint Commission on Rural Reconstruction, organizer of the Asian Agricultural seminar, has contributed much to rural progress in Taiwan. A semi-autonomous Sino-American agency, it was established in Nanking in October, 1948, under the China Aid Act of that year. It has provided financial and technical assistance to governmental and private agencies. It stimulates interest in rural improvement and furnished technical and financial aid. All JCRR-supported projects require Chinese government or local agency sponsorship.
Steel and Aluminum
The Taiwan Aluminum Corporation is exporting 60 per cent of its product to Southeast Asian countries, according to Sun Chin-hua, its president.
Sun said the principal export is ingots. When a new rolling plant is completed this year, more processed products will be sold abroad, he said.
The Taiwan Aluminum Corporation last year bought rolling plant equipment worth US$4.5 million from Schloemann A. G. of West Germany. Production is expected to begin at the end of 1966.
Sun said Talco is now equipped with 86 sets of 10-KA electrolysis pots with capacity of 20,000 tons of ingot a year. Present fabricating facilities include a foil mill, an extrusion plant, and a sheet plant.
In Taiwan, aluminum is used in making bus bodies, wire, construction materials, packaging, and household utensils, Demand is increasing, and Talco is planning to in crease production to 32,000 tons.
Talco is a government enterprise with 3,000 employees. Plants are located at Kaohsiung and the head office is in Taipei.
Trade Fairs
A large Chinese trade fair will be held in Mexico City December 1-20, the Ministry of Economic Affairs announced.
With initial government financing of US$120,000, the fair will display major Taiwan products plus photos and graphs showing free China's economic progress.
The fair is the second in America this year. On March 31-April 15, a similar exhibition was held at Buenos Aires.
According to government report, products exhibited at Buenos Aires were auctioned for the relief of flood victims.
The auction conducted by the municipal government of Buenos Aires realized 5,119,800 Argentine pesos, equivalent to US$26,946.
Taiwan companies have received from Argentina orders for such goods as textiles, electrical appliances, chemicals, plastic manufactures, plywood, and metal manufactures. The Central Trust of China, a government trading agency, has been asked to handle the business.
The government said the Republic of China will participate in these other international fairs this year:
—Izmir, Turkey, August 2-September 20.
—Frankfurt, Germany, August 28-September 11.
—Berlin, September 15-25.
—Bari, Italy, September 7-20.
—Santiago, Chile, October 8-23.
First Camera Factory
Taiwan has its first factory making cameras and copying machines.
The Taiwan Ricoh Company, a cooperative venture with the Japan Ricoh Kaisha and capitalized at US$1 million, began production June 8.
The company makes such cameras as Ricohflex, Auto Shot and Autohalf Zone-focus, and such copying machines as Offset, Ricopy Standard, and Ricopy EE Separate. For this year, the monthly capacity will be 600 cameras and 20 copying machines. Beginning next year, the plant will turn out from 30,000 to 50,000 cameras and 360 copying machines annually.
The Taiwan Ricoh Company, with its plant at Changhua in central Taiwan, said about 60 per cent of its products will be exported, mostly to Southeast Asia.