Quote #2
'Other aspects of Taiwan's reforms are similar to structural adjustment programmes in Africa: in particular, the currency was devalued as part of an effort to shift from import substitution with overvalued exchange rates to import substitution with export promotion. However, the nominal exchange rate was tightly controlled by the Government, which kept it at realistic levels. Interest on savings and on loans were consistently positive in real terms, similar to structural adjustment recommendations that rates be set at positive real levels: these undoubtedly assisted the high savings rate and local resource mobilisation, while not subsidising capital and assisting industry to develop in a labour-intensive manner. Assisted by generous aid from the U.S., and driven by the fear of hyperinflation, the Government in Taiwan rejected deficit spending strategies and resolved to balance the budget through direct and indirect taxation, bringing about a surplus from 1964 onward.'