China - Economic position and prospects (Vol. 1 of 3) : Main report

RESTR I CTED Report No. EAP-17a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ECONOMIC POSITION AND PROSPECTS OF THE REPUBLIC OF CHINA (in three volumes) VOLUME I MAIN REPORT September 11, 1970 East Asia and Pacific Department  CURTENTY EQUIVALENTS 1 U.S. dollar = 40 New Taiwan dollars NT$1 US$0.025 NT$19000,000 = US$25,000 PLAN PERIODS Fourth Four-Year Plan: 1965 - 1968 Fifth Four-Year Plan: 1969 - 1972  This report is based on the findings of an Economic Mission which visited the Republic of China in March-April, 1970. The Mission was composed of the following members: Shu-Chin Yang Chief of Mission Russell J. Cheetham Planning Economist Sijbren Cnossen Fiscal Economist (IMF) Zia Kalim General Economist John T. Purcal General Economist Guenter H. Reif General Economist Mr. Jack Baranson was also with the Mission for most of the time.   VOLUME ONE: MAIN REPORT TABLE OF CONTENTS Page No. MAP BASIC DATA SUMMARtY AND CONCLUSIONS ................................. i I. INTRODUCTION ............................................ 1 II. GROWTH OF PRODUCTION .................................... 3 A. The Macro Aspects ............................... 3 B. Agriculture ..................................... 5 C. Manufacturing ................................... 8 D. Infrastructure .................................. 10 III. DOMESTIC FINANCE ........................................ 13 A. The Over-All Picture ............................ 13 B. Public Finance and Tax Reform .... ............... 13 C. Private Savings and Financial Markets .... ....... 18 D. Money, Interest Rates and Prices .... ............ 20 IV. EXTERNAL TRADE AND CAPITAL . 23 A. External Trade .................................. 23 B. Foreign Capital ................................. 27 V. DEVELOPMENT STRATEGY AND OUTLOOK .......... .. ............ 29 A. Planning, Growth Rate and Sectoral Balancing .... 29 B. Agricultural Development Strategy .... ........... 33 C. Industrial Development Strategy .... ............. 36 D. Infrastructure Development ...................... 39 VI. FINANCING REOqIREMENTS .................................. 43 A. Domestic Resource Mobilization .... .............. 43 B. Trade Prospects and External Financing Requirements .................................. 48  ANNEX A: POPULATION GROWTH, FAMILY PLANNING, AND URBAN DEVELOPMENT ANNEX B: SOME MAJOR DEVELOPMENT PROJECTS AND PRE-INVESTMENT STUDIES VOLUME TWO: TAX SYSTEM AND REFORM VOLIME THREE: STATISTICAL APPENDIX  Od' O?JAPAN CHINA ung O 1OMTiwan ///| < Two 4: h t e r, ;/Huisi h PHILIP PINES P En S Cg A D RESPHIL/PP/NE SEA Tongshekkong Qi