Last month, I visited Taiwan for the first time in my life. Before I left, I knew that I would find a developed country and a truly free and democratic nation. But it wasn’t until I actually got there that I understood the importance of Taiwan’s presence in the world.
At a time when China is promoting its so-called capitalist model with ‘Chinese characteristics’ for the world to emulate, the Taiwanese are showing us that such characteristics do not need to exist. Taiwan is a living example of what can be achieved when economic freedom and democracy are combined, I mean in traditionally Chinese settings. Taiwanese people are free to express their feelings, argue, campaign. They do, and they’re proud to do it. Their lives remind Westerners that there is no reason why China (which shares the same religions, language, culture and values) should live under one-party rule.
Of course, in Taiwan economics success is linked first and foremost economics freedom. Taiwan received help from the international community, and especially the United States, after Mao’s victory in 1949 across the Taiwan strait. But free trade, fiscal responsibility, strong property rights, and limited regulation have raised the standard of living for the people. Today, Taiwan are counted as the 11th most economically free country in the world according to the 2023 Fraser Economic Freedom of the World Index, up from 36th in 1980.
But the fact that institutional power has ensured Taiwan’s success over the past decades separates the country from China, where all property rights depend on ties to the Chinese Communist Party. In addition, anyone who visits Taiwan does not see the kind of ghost towns and other abandoned infrastructure found in China due to the CCP’s unscrupulous economic policies, which have led to significant investment and economic disaster. Throughout Taiwan, the traveler finds efficient land use, outstanding technology, and limited government.
In this regard, Taiwan’s political success appears to be key to the sustainability of its economic model. After decades of rule by Chiang Kai-shek as the country left civil war behind, Taiwan has finally transitioned into a functioning democracy with free elections and no restrictions on free speech. Accountability exists: People can praise or criticize government policy and change course. No one goes to jail for expressing their opinion, and no one doubts that the institutions that keep Taiwanese people free within their borders are strong.
In fact, any visitor can testify that the biggest threat to Taiwan is from outside: China. Open a random newspaper and you will see that the Chinese Communist Party will be found in almost every news story, whether it is due to conflicts and possible military escalation involving Taiwan or other Asian countries. Ironically, the CCP is also a major threat to China’s own economic future, because no one knows what might happen to its institutions in the event of regime change—and the markets are not fans of uncertainty.
But as the CCP tries to portray China as a model for the world, the case of Taiwan shows us that there is a better alternative across the ocean. Taiwan as the country only exists because the Republic of China was forced into exile and managed to escape to the island, but people in both countries it is the same. This means that it is inevitable that the Chinese will live under a dictatorship. If Taiwan can move towards independence, why not China?
The future is unknown to all of us, but Taiwan is here to see it today. The freedom of the Taiwanese people, their eagerness to do business with the rest of the world, and their steadfast adherence to democracy are all testaments to the outstanding value this country provides to the rest of the world. Taiwan is a story of freedom and prosperity. We would do well to consider its example.
Marcos Falcone is the Project Manager of Fundación Libertad and a regular contributor to Forbes Argentina. His writing has also appeared in The Washington Post, National Review, and Reason, among others. He is based in Buenos Aires, Argentina.
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