page_title: History of Taiwan
section_title: Modern development
hierarchical_section_title: History of Taiwan / Japanese rule / Modern development
caption_attribution_description: English: Chiayi City Historical Relic Museum, former Chiayi Shrine Temple Chai.中文（台灣）‎: 嘉義市史蹟資料館，原嘉義神社齋殿。
context_page_description: The history of the island of Taiwan dates back tens of thousands of years to the earliest known evidence of human habitation. The sudden appearance of a culture based on agriculture around 3000 BC is believed to reflect the arrival of the ancestors of today's Taiwanese indigenous peoples. The island was colonized by the Dutch in the 17th century, followed by an influx of Hoklo people including Hakka immigrants from the Fujian and Guangdong areas of mainland China, across the Taiwan Strait. The Spanish built a settlement in the north for a brief period but were driven out by the Dutch in 1642.
  In 1662, Koxinga, a loyalist of the Ming dynasty who had lost control of mainland China in 1644, defeated the Dutch and established a base of operations on the island. His forces were defeated by the Qing dynasty in 1683, and parts of Taiwan became increasingly integrated into the Qing empire. Following the First Sino-Japanese War in 1895, the Qing ceded the island, along with Penghu, to the Empire of Japan. Taiwan produced rice and sugar to be exported to the Empire of Japan, and also served as a base for the Japanese invasion of Southeast Asia and the Pacific during World War II.
context_section_description: Initial infrastructural development took place quickly. The Bank of Taiwan was established in 1899 to encourage Japanese private sectors, including Mitsubishi and the Mitsui Group, to invest in Taiwan. In 1900, the third Governor-General of Taiwan passed a budget which initiated the building of Taiwan's railroad system from Kirun (Keelung) to Takao (Kaohsiung). By 1905 the island had electric power supplied by water power in Sun-Moon Lake, and in subsequent years Taiwan was considered the second-most developed region of East Asia (after Japan). By 1905, Taiwan was financially self-sufficient and had been weaned off of subsidies from Japan's central government.
  Under the governor Shimpei Goto's rule, many major public works projects were completed. The Taiwan rail system connecting the south and the north and the modernizations of Kirun (Keelung) and Takao (Kaohsiung) ports were completed to facilitate transport and shipping of raw material and agricultural products. Exports increased by fourfold. 55% of agricultural land was covered by dam-supported irrigation systems. Food production had increased fourfold and sugar cane production had increased 15-fold between 1895 and 1925 and Taiwan became a major foodbasket serving Japan's industrial economy. A health care system was widely established and infectious diseases were almost completely eradicated. The average lifespan for a Taiwanese resident would become 60 years by 1945.
  In October 1935, the Governor-General of Taiwan held an "Exposition to Commemorate the 40th Anniversary of the Beginning of Administration in Taiwan", which served as a showcase for the achievements of Taiwan's modernization process under Japanese rule. This attracted worldwide attention, including the Republic of China's Kuomintang (KMT) regime which sent the Japanese-educated Chen Yi to attend the affair. He expressed his admiration about the efficiency of Japanese government in developing Taiwan, and commented on how lucky the Taiwanese were to live under such effective administration. Somewhat ironically, Chen Yi would later become the ROC's first Chief Executive of Taiwan, who would be infamous for the corruption that occurred under his watch.
  The later period of Japanese rule saw a local elite educated and organized. During the 1930s several home rule groups were created at a time when others around the world sought to end colonialism. In 1935, the Taiwanese elected their first group of local legislators. By March 1945, the Japanese legislative branch hastily modified election laws to allow Taiwanese representation in the Japanese Diet.
caption: Kagi Shrine, one of many Shinto shrines built in Taiwan.
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