Master's Theses

Date of Award

Spring 1970

Degree Name

Master of Science (MS)


Economics, Finance, & Accounting


Donald Bumpass


Foreign economic aid has long been one of the largest items in the annual budget of the United States government. By 1970, the U.S. government has had twenty-five years of experience in the business of foreign economic aid. It has committed at an average of about $3 billion a year during 1945-1970. Yet the amount of the foreign economic aid appropriation provokes heated debate in and out of the U.S. Congress. Evidently, Americans remain ambiguous about their objectives in assisting foreign countries, and are far from satisfied with the returns aid has produced. Taiwan, the present seat of the Republic of China, was the first of the less developed countries receiving U.S. economic assistance to have aid terminated in 1965 on the ground that the country had attained its own capability for self-sustained growth. Although Taiwan's remarkable economic progress during 1951-65 has already been well known, what is generally not recognized is the role of U.S. economic assistance in bringing Taiwan to economic independence. Why did aid apparently succeed in Taiwan after fifteen years, when it has not yet succeeded in many other countries? What favorable conditions existed that are not present in other countries? What was done right in Taiwan? All these strategic questions and some others are systematically and carefully explored in this thesis. It is the writer's hope that some lessons can be derived from this study that will be useful to legislators, governmental administrators, and economists in the United States in designing and administering economic assistance policies for less developed countries and produce savings for the American taxpayers. Doubtlessly, an economic aid program has some social and political effects on the recipient country. This study is primarily concerned with the aspect of economic analysis.


Copyright 1970 Charles Ching-Wu Wang


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