Changes

*Annual growth rate (2007): 0.36 percent.

*Annual growth rate (2007): 0.36 percent.

*Languages: Mandarin (official), Taiwanese, Hakka.

*Languages: Mandarin (official), Taiwanese, Hakka.

*Education: Years compulsory--9. Attendance (2006)--99.0 percent. Literacy (2006)--97.5 percent.

*Education: Years compulsory—9. Attendance (2006)--99.0 percent. Literacy (2006)--97.5 percent.

*Health: Infant mortality rate (2006)--0.46 percent. Life expectancy (2006)--77.46 years; male 74.57 years.; female 80.81 years.  

*Health: Infant mortality rate (2006)--0.46 percent. Life expectancy (2006)--77.46 years; male 74.57 years.; female 80.81 years.  

*Work force (2007): 10.7 million.

*Work force (2007): 10.7 million.

The Beijing dialect of Chinese, called ''Guóyǔ'' locally, is Taiwan's official language and medium of instruction. However, most Taiwanese (especially native Taiwanese) speak one of the southern Fujianese languages, Minnan, also known as Taiwanese as their first language. Recently there has been a growing use of Taiwanese in the broadcast media. The Hakka, who are concentrated in several counties throughout Taiwan, have their own distinct language. As a result of more than half a century of Japanese rule, many older people can also speak Japanese. In 2002, Taiwan authorities announced adoption of a variant of the pinyin system of romanization used in China. Minnan, Hakka, and Mandarin are all part of the Chinese language family. Japanese is not.

The Beijing dialect of Chinese, called ''Guóyǔ'' locally, is Taiwan's official language and medium of instruction. However, most Taiwanese (especially native Taiwanese) speak one of the southern Fujianese languages, Minnan, also known as Taiwanese as their first language. Recently there has been a growing use of Taiwanese in the broadcast media. The Hakka, who are concentrated in several counties throughout Taiwan, have their own distinct language. As a result of more than half a century of Japanese rule, many older people can also speak Japanese. In 2002, Taiwan authorities announced adoption of a variant of the pinyin system of romanization used in China. Minnan, Hakka, and Mandarin are all part of the Chinese language family. Japanese is not.

====Religion====  

====Religion====

According to the Interior Ministry, there are about 11.2 million religious believers in Taiwan, with more than 75 percent identifying themselves as [[Buddhist]]s or [[Taoist]]s. At the same time, there is a strong belief in traditional folk religion throughout the island. These are not mutually exclusive, and many people practice a combination of the three. [[Confucian]]ism also is an honored school of thought and ethical code. Christian churches have been active on Taiwan for many years, and today, the island has more than 600,000 Christians, a majority of whom are Protestant.  

According to the Interior Ministry, there are about 11.2 million religious believers in Taiwan, with more than 75 percent identifying themselves as [[Buddhist]]s or [[Taoist]]s. At the same time, there is a strong belief in traditional folk religion throughout the island. These are not mutually exclusive, and many people practice a combination of the three. [[Confucian]]ism also is an honored school of thought and ethical code. Christian churches have been active on Taiwan for many years, and today, the island has more than 600,000 Christians, a majority of whom are Protestant.  

Taiwan's culture is a blend of  Chinese, Japanese, local Taiwanese and Western influences. Fine arts, folk traditions, and popular culture embody traditional and modern, Asian, and Western motifs. One of Taiwan's greatest attractions is the Palace Museum, which houses over 650,000 pieces of Chinese bronze, jade, calligraphy, painting, and porcelain. This collection was moved from the mainland in 1949 when Chiang Kai-shek's Nationalist Party (KMT) fled to Taiwan. The collection is so extensive that only 1 percent is on display at any one time.  

Taiwan's culture is a blend of  Chinese, Japanese, local Taiwanese and Western influences. Fine arts, folk traditions, and popular culture embody traditional and modern, Asian, and Western motifs. One of Taiwan's greatest attractions is the Palace Museum, which houses over 650,000 pieces of Chinese bronze, jade, calligraphy, painting, and porcelain. This collection was moved from the mainland in 1949 when Chiang Kai-shek's Nationalist Party (KMT) fled to Taiwan. The collection is so extensive that only 1 percent is on display at any one time.  

====Education====  

====Education====

A nine-year public educational system has been in effect since 1979. Six years of elementary school and 3 years of junior high are compulsory for all children. About 96.2 percent of junior high graduates continue their studies in either a senior high or vocational school. Taiwan has an extensive higher education system with 163 institutions of higher learning. Each year, about 170,000 students attempt to enter higher education institutes; about 69 percent of the candidates are admitted to a college or university. Opportunities for graduate education are expanding in Taiwan, but many students travel abroad for advanced education. In 2006, over 16,000 U.S. student visas were issued to Taiwan passport holders.  

A nine-year public educational system has been in effect since 1979. Six years of elementary school and 3 years of junior high are compulsory for all children. About 96.2 percent of junior high graduates continue their studies in either a senior high or vocational school. Taiwan has an extensive higher education system with 163 institutions of higher learning. Each year, about 170,000 students attempt to enter higher education institutes; about 69 percent of the candidates are admitted to a college or university. Opportunities for graduate education are expanding in Taiwan, but many students travel abroad for advanced education. In 2006, over 16,000 U.S. student visas were issued to Taiwan passport holders.  

The second National Assembly, elected in 1991, was composed of 325 members. The majority were elected directly, while 100 were chosen from party slates in proportion to the popular vote. This National Assembly amended the Constitution in 1994, paving the way for the direct election of the president and vice president the first of which was held in March 1996. In April 2000, the members of the National Assembly voted to permit their terms of office to expire without holding new elections. The National Assembly elected in 2005 voted to abolish itself the following month, leaving Taiwan with a unicameral legislature. The president is both leader of Taiwan and Commander-in-Chief of its armed forces. The president has authority over four of the five administrative branches (Yuan): Executive, Control, Judicial, and Examination. The president appoints the president of the Executive Yuan, who also serves as the premier. The premier and the cabinet members are responsible for government policy and administration.  

The second National Assembly, elected in 1991, was composed of 325 members. The majority were elected directly, while 100 were chosen from party slates in proportion to the popular vote. This National Assembly amended the Constitution in 1994, paving the way for the direct election of the president and vice president the first of which was held in March 1996. In April 2000, the members of the National Assembly voted to permit their terms of office to expire without holding new elections. The National Assembly elected in 2005 voted to abolish itself the following month, leaving Taiwan with a unicameral legislature. The president is both leader of Taiwan and Commander-in-Chief of its armed forces. The president has authority over four of the five administrative branches (Yuan): Executive, Control, Judicial, and Examination. The president appoints the president of the Executive Yuan, who also serves as the premier. The premier and the cabinet members are responsible for government policy and administration.  

The main lawmaking body, the Legislative Yuan, was originally elected in the late 1940s in parallel with the National Assembly. The first LY had 773 seats and was viewed as a "rubber stamp" institution. The second LY was not elected until 1992. The third LY, elected in 1995, had 157 members serving 3-year terms, while the fourth LY, elected in 1998, was enlarged to 225 members. The LY has greatly enhanced its standing in relation to the Executive Yuan and has established itself as a major player on the central level. With increasing strength, size, and complexity, the LY now mirrors Taiwan's recently liberalized political system. In the 1992 and 1995 elections, the main opposition party--the Democratic Progressive Party --challenged the half-century of KMT dominance of the Legislature. In both elections, the DPP won a significant share of the LY seats, leaving only half of the LY seats in the hands of the KMT. In 2001, the DPP won a plurality of LY seats--88 to KMT's 66, PFP's 45, TSU's 13, and other parties' 13. In the December 2004 LY election, the Pan-Blue coalition won a slender majority of 114 of the 225 seats compared to the Pan-Green coalition's 101. The LY was halved in size from 225 to 113 seats by constitutional amendments in 2005. In the January 2008 LY election, the first to be held under this new structure, the KMT won an absolute majority of 81 seats to the DPP's 27 seats, with the remaining five seats going to independent and small party candidates.  

The main lawmaking body, the Legislative Yuan, was originally elected in the late 1940s in parallel with the National Assembly. The first LY had 773 seats and was viewed as a "rubber stamp" institution. The second LY was not elected until 1992. The third LY, elected in 1995, had 157 members serving 3-year terms, while the fourth LY, elected in 1998, was enlarged to 225 members. The LY has greatly enhanced its standing in relation to the Executive Yuan and has established itself as a major player on the central level. With increasing strength, size, and complexity, the LY now mirrors Taiwan's recently liberalized political system. In the 1992 and 1995 elections, the main opposition party—the Democratic Progressive Party—challenged the half-century of KMT dominance of the Legislature. In both elections, the DPP won a significant share of the LY seats, leaving only half of the LY seats in the hands of the KMT. In 2001, the DPP won a plurality of LY seats—88 to KMT's 66, PFP's 45, TSU's 13, and other parties' 13. In the December 2004 LY election, the Pan-Blue coalition won a slender majority of 114 of the 225 seats compared to the Pan-Green coalition's 101. The LY was halved in size from 225 to 113 seats by constitutional amendments in 2005. In the January 2008 LY election, the first to be held under this new structure, the KMT won an absolute majority of 81 seats to the DPP's 27 seats, with the remaining five seats going to independent and small party candidates.  

In 1994, when the National Assembly voted to allow direct popular election of the president, the LY passed legislation allowing for the direct election of the governor of Taiwan Province and the mayors of Taipei and Kaohsiung special municipalities. These elections were first held in 1994. In a move to streamline administration, the position of elected governor was abolished at the end of 1998, and most other elements of the Taiwan provincial government have been eliminated.  

In 1994, when the National Assembly voted to allow direct popular election of the president, the LY passed legislation allowing for the direct election of the governor of Taiwan Province and the mayors of Taipei and Kaohsiung special municipalities. These elections were first held in 1994. In a move to streamline administration, the position of elected governor was abolished at the end of 1998, and most other elements of the Taiwan provincial government have been eliminated.  

The Examination Yuan functions as a civil service commission and includes two ministries: the Ministry of Examination, which recruits officials through competitive examination, and the Ministry of Personnel, which manages the civil service. The president appoints the president of the Examination Yuan.  

The Examination Yuan functions as a civil service commission and includes two ministries: the Ministry of Examination, which recruits officials through competitive examination, and the Ministry of Personnel, which manages the civil service. The president appoints the president of the Examination Yuan.  

===Principal government officials===  

===Principal government officials===

*President--Ma Ying-jeou

*President—Ma Ying-jeou

*Vice President--Wu Den-yih

*Vice President—Wu Den-yih

*Premier--Mao Chi-kuo

*Premier—Mao Chi-kuo

*Vice Premier--

*Vice Premier--

*Secretary-General, Executive Yuan--Hsieh Hsiang-chuan

*Secretary-General, Executive Yuan—Hsieh Hsiang-chuan

*Minister of the Interior--Liai Liou-yi

*Minister of the Interior—Liai Liou-yi

*Minister of Foreign Affairs--Francisco H. L. Lin

*Minister of Foreign Affairs—Francisco H. L. Lin

*Minister of National Defense--Chen Chao-min

*Minister of National Defense—Chen Chao-min

*Minister of Finance--Li Sush-der

*Minister of Finance—Li Sush-der

*Minister of Education--Cheng Jei-cheng

*Minister of Education—Cheng Jei-cheng

===Political conditions===

===Political conditions===

After 1986, the KMT's hold on power was challenged by the emergence of competing political parties. Before 1986, candidates opposing the KMT ran in elections as independents or "nonpartisans." Before the 1986 island-wide elections, many "nonpartisans" grouped together to create Taiwan's first new political party, the Democratic Progressive Party. Despite the official ban on forming new political parties, Taiwan authorities did not prohibit the DPP from operating, and in the 1986 island-wide elections, DPP and independent candidates captured more than 20 percent of the vote. In 1987, President Chiang Ching-kuo lifted the emergency decree, which had been in place since 1948 and which had granted virtually unlimited powers to the president for use in the anti-communist campaign. This decree provided the basis for nearly four decades of martial law under which individuals and groups expressing dissenting views were dealt with harshly. Expressing views contrary to the authorities' claim to represent all of China or supporting independent legal status for Taiwan was treated as sedition. Since ending martial law, Taiwan has taken dramatic steps to improve respect for human rights and create a democratic political system. Almost all restrictions on the press have ended, restrictions on personal freedoms have been relaxed, and the prohibition against organizing new political parties has been lifted. Lee Teng-hui succeeded Chiang Ching-kuo as president when Chiang died in 1988.  

After 1986, the KMT's hold on power was challenged by the emergence of competing political parties. Before 1986, candidates opposing the KMT ran in elections as independents or "nonpartisans." Before the 1986 island-wide elections, many "nonpartisans" grouped together to create Taiwan's first new political party, the Democratic Progressive Party. Despite the official ban on forming new political parties, Taiwan authorities did not prohibit the DPP from operating, and in the 1986 island-wide elections, DPP and independent candidates captured more than 20 percent of the vote. In 1987, President Chiang Ching-kuo lifted the emergency decree, which had been in place since 1948 and which had granted virtually unlimited powers to the president for use in the anti-communist campaign. This decree provided the basis for nearly four decades of martial law under which individuals and groups expressing dissenting views were dealt with harshly. Expressing views contrary to the authorities' claim to represent all of China or supporting independent legal status for Taiwan was treated as sedition. Since ending martial law, Taiwan has taken dramatic steps to improve respect for human rights and create a democratic political system. Almost all restrictions on the press have ended, restrictions on personal freedoms have been relaxed, and the prohibition against organizing new political parties has been lifted. Lee Teng-hui succeeded Chiang Ching-kuo as president when Chiang died in 1988.  

====Political parties====  

====Political parties====

In addition to the KMT (described above in 'History' and 'Political Conditions'), there is one other major political party, the DPP, whose membership is made up largely of native Taiwanese, and whose platform includes outspoken positions on some of the most sensitive issues in Taiwan politics. For example, the DPP maintains that Taiwan is an entity separate from mainland China, in contrast to the KMT position that Taiwan and the mainland, though currently divided, are both part of "one China." In sharp contrast to the tenets of both KMT and Communist policy, a number of ranking DPP officials openly advocate independence for Taiwan.  

In addition to the KMT (described above in 'History' and 'Political Conditions'), there is one other major political party, the DPP, whose membership is made up largely of native Taiwanese, and whose platform includes outspoken positions on some of the most sensitive issues in Taiwan politics. For example, the DPP maintains that Taiwan is an entity separate from mainland China, in contrast to the KMT position that Taiwan and the mainland, though currently divided, are both part of "one China." In sharp contrast to the tenets of both KMT and Communist policy, a number of ranking DPP officials openly advocate independence for Taiwan.  

*Unemployment (2007) 3.9 percent.

*Unemployment (2007) 3.9 percent.

*Natural resources: Small deposits of coal, natural gas, limestone, marble, and asbestos.

*Natural resources: Small deposits of coal, natural gas, limestone, marble, and asbestos.

*Agriculture (1.4 percent of GDP): Major products--pork, rice, fruit and vegetables, sugarcane, poultry, shrimp, eel.

*Agriculture (1.4 percent of GDP): Major products—pork, rice, fruit and vegetables, sugarcane, poultry, shrimp, eel.

*Services: (71.1 percent of GDP).  

*Services: (71.1 percent of GDP).  

*Industry (27.5 percent of GDP): Types--electronics and flat panel products, chemicals and petrochemicals, basic metals, machinery, textiles, transport equipment, plastics, machinery.

*Industry (27.5 percent of GDP): Types—electronics and flat panel products, chemicals and petrochemicals, basic metals, machinery, textiles, transport equipment, plastics, machinery.

*Trade (2007): Exports--$247 billion: electronics, optical and precision instruments, information and communications products, textile products, basic metals, plastic and rubber products. Major markets--U.S. $32 billion, China and Hong Kong $100 billion, Japan $16 billion. Imports--$219 billion: electronics, optical and precision instruments, information and communications products, machinery and electrical products, chemicals, basic metals, transport equipment, crude oil. Major suppliers--Japan $46 billion, China $30 billion, U.S. $27 billion.

*Trade (2007): Exports--$247 billion: electronics, optical and precision instruments, information and communications products, textile products, basic metals, plastic and rubber products. Major markets—U.S. $32 billion, China and Hong Kong $100 billion, Japan $16 billion. Imports--$219 billion: electronics, optical and precision instruments, information and communications products, machinery and electrical products, chemicals, basic metals, transport equipment, crude oil. Major suppliers—Japan $46 billion, China $30 billion, U.S. $27 billion.

====Foreign trade====  

====Foreign trade====

Foreign trade has been the engine of Taiwan's rapid growth during the past 50 years. Taiwan's economy remains export-oriented, so it depends on an open world trade regime and remains vulnerable to fluctuations in the world economy. The total value of trade increased more than five-fold in the 1960s, nearly ten-fold in the 1970s, doubled in the 1980s, and nearly doubled again in the 1990s. In the first half of this decade, exports grew 60 percent. Export composition changed from predominantly agricultural commodities to industrial goods (now 98 percent). The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of U.S. investment. Taiwan became a member of the World Trade Organization as a special customs territory in January 2002.  

Foreign trade has been the engine of Taiwan's rapid growth during the past 50 years. Taiwan's economy remains export-oriented, so it depends on an open world trade regime and remains vulnerable to fluctuations in the world economy. The total value of trade increased more than five-fold in the 1960s, nearly ten-fold in the 1970s, doubled in the 1980s, and nearly doubled again in the 1990s. In the first half of this decade, exports grew 60 percent. Export composition changed from predominantly agricultural commodities to industrial goods (now 98 percent). The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of U.S. investment. Taiwan became a member of the World Trade Organization as a special customs territory in January 2002.