Moreover, foreign investment was rare and when it did occur, it had direct links to the state sector. Finally, Gold stresses the numerous limitations on imports. While Latin American nations were dependent on foreign corporations, Taiwan kept them out. Also, Taiwan was operating under conditions that were fundamentally less democratic than a lot of Latin American nations. Therefore, they could be much more dictatorial and ruthlessly follow through with plans if need be.
Gold also stresses Taiwan' s relative isolation and U.S. military and financial aid.
Taiwan's isolation also allowed them to set the standards for how much foreign capital would be allowed. Gold notes that Latin American countries were much more integrated into the world economy and did not have this luxury. Taiwan had with respect to its civil society.