Taiwan is the Alternative, Not the CCP
Last month, I visited Taiwan for the first time in my life. Before I traveled, I knew I would find an advanced country as well as a truly free and democratic nation. But it is not until I actually got there that I understood the significance of the very existence of Taiwan for the world.
At a time when China advertises its supposedly capitalist model with ‘Chinese characteristics’ for the world to imitate, the Taiwanese show us that there need be no such characteristics. Taiwan is a living example of what can be achieved when economic freedom and democracy are coupled, even in culturally Chinese settings. The Taiwanese are free to express themselves, to argue, to campaign. They do it, and they pride themselves on doing it. Their lives remind Westerners that there is no reason why China (which shares the same religions, language, culture and heritage) must live under one-party rule.
To be sure, Taiwan’s economic success is first and foremost linked to economic freedom. Taiwan has received help from the international community, and particularly the United States, after Mao’s victory in 1949 across the Taiwan strait. But it is free trade, fiscal responsibility, strong property rights, and limited regulation which have elevated the people’s standard of living. Today, Taiwan is ranked as the 11th most economically free country in the world according to the 2023 Fraser Economic Freedom of the World Index, up from 36th place in 1980.
But the fact that the strength of institutions has secured Taiwan’s success in the past decades distinguishes the country from China, where all property rights depend on ties with the Chinese Communist Party. Furthermore, whoever visits Taiwan does not see the kind of ghost towns and other abandoned infrastructure that are found in China due to the CCP’s irresponsible economic policies, which have led to significant malinvestment and an economic crisis. Throughout Taiwan, the traveler finds efficient uses of land, outstanding technology, and limited government.
In this regard, Taiwan’s political success seems to be key to the sustainability of its economic model. After being ruled by Chiang Kai-shek for decades as the country left the civil war behind, Taiwan has finally transitioned into a functioning democracy with free elections and no restrictions to free speech. Accountability exists: The people can praise or condemn government policy and change course. Nobody goes to prison for expressing an opinion, and nobody has any doubts that the institutions that keep the Taiwanese free within their borders are strong.
In fact, any visitor can attest that the main threat to Taiwan is precisely an external one: China. Open a random newspaper and you will see that the Chinese Communist Party is to be found virtually in every piece of news, whether it is because of conflicts and potential military escalations that involve Taiwan or other Asian countries. Ironically, the CCP is also a major threat to China’s economic future itself, since nobody knows what could happen to its institutions in the event of a regime change —and markets are no fans of uncertainty.
But as the CCP attempts to portray China as a model for the rest of the world, the case of Taiwan shows us that there is a much better alternative right across the strait. Taiwan as a country only exists because the Republic of China was forced to go into exile and managed to escape to the island, but the people in both countries are the same. This means that it is not inevitable that the Chinese must live under a dictatorship. If Taiwan could transition into freedom, why not China?
The future is unknown to all of us, but Taiwan is right here for us to see today. The freedom of the Taiwanese people, their eagerness to do business with the world, and their strong adherence to democracy are all testaments to the outstanding value that this country provides to the rest of the world. Taiwan is a story of freedom and success. We would do well to take its example into account.
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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