     "Blueprint For Prosperity" With its burgeoning trade and high foreign 
exchange reserves, Taiwan is already known as an economic powerhouse in 
East Asia.  Now a hung infrastructure program has been announced that will 
make ita trend-setter in improving the quality of life as well.
     In Taiwan's headlong rush to development over the past 30 years, in-
frastructure and lifestyle have been neglected.  Now, all that is going to 
change under a mammoth US$300 billion six-year development plan designed to 
turn the island into a developed nation by the end of the century.
     Main areas due to benefit under the plan are transportation and commu-
nications, but provision of energy and improvement of the environment will 
also receive large shares.
     Because of the high-tech nature of many of the projects, a large pro-
portion of the work needed under the plan will be done by foreign firms, 
and they are currently lining up for lucrative contracts.  In terms of 
spending, the Taiwan plan dwarfs that being taken by other countries, in-
cluding the effort to rebuild Kuwait after the Gulf War, which only cost 
about a quarter of the Taiwan total.
     The 779 individual projects included in the overall plan will involve 
public works spending of US$199 billion, covering everything from high-
speed railways to new universities.  And in view of Taiwan's foreign 
exchange reserves of US$75 billion, no one doubts that the island has the 
ability to pay.  The government is even departing from its previous policy 
of not incurring debt by issuing bonds to pay for the plan.  In view of the 
Taiwan public's thirst for investment vehicles, there is little doubt that 
these bonds will be popular.
     Apart from upgrading the infrastructure as a whole in Taiwan, the plan 
will also increase spending in the central, southern and eastern parts of 
central, southern and eastern parts of the island to achieve a more equita-
ble spread of wealth and prevent a migration to the overcrowded north.
     To improve transportation, for instance, a new high-speed railway from 
Taipei in northern Taiwan to Kaohsiung in the south will be built at a cost 
of US$10 billion.  This will reduce the traveling time between the two 
cities from five hours to two hours.
     The first stage of providing mass rapid transit systems for Taiwan's 
major cities is under way with a US$15 billion project in Taipei whose 
first stage is due to be completed next year.  The city of Kaohsiung re-
cently followed the Taipei example of selecting a U.S. consultant for its 
subway project, which will cost US$7 billion.  Smaller systems are being 
planned for Taichung in central Taiwan and Tainan in the south.
     A branch of the Taipei subway will go to the Chiang Kai-shek 
International airport, where another facility under the plan will be the 
construction of a second terminal to increase capacity from eight million 
to 20 million passengers a year at a cost of US$770 million.  A completely 
new airport in Kaohsiung will be constructed at a cost of US$500 million,
and facilities at Green Island, Orchid Island, and Hengchun close to the 
southern tip of the island will be upgraded.
     Also being studied for feasibility is new deep-water port in Kaohsiung 
at a cost of Us$12 billion.  And also in the communications sector, the 
whole telephone system in Taiwan will be modernized.
     Since reducing pollution and protecting the environment is regarded as 
having greatest priority among most people in Taiwan, a total of US$30 
billion will be spent on this sector during the period of the plan to 
construct an islandwide network of solid waste incinerators, a pollution 
monitoring system and improved sewerage systems.
     Jobs created from the projects are expected to help raise per capita 
income from the present US$8,000 to US$14,000 by the end of the decade, 
putting Taiwan well within the ranks of developed nations.
     To reduce sky-high rents, the government will invest US$42 billion in 
public housing.  By raising the quality of life in Taiwan, it is hoped that 
more technicians will be persuaded to stay and help make the island 
a world financial, technological and commercial center.
     To built up better relations with its trading partners, Taiwan intends 
to award as many of the contracts as possible to countries with which it 
runs up sizable trade surpluses, notably the United States and some coun-
tries in Europe.
     Furthermore, it is expected that Taiwan will receive a big economic 
boost from the projects which will help to prevent a recession over the 
next few years.
     According to official policy objective outlined by the government, the 
five main aims of the plan are to raise the quality of life, increase na-
tional income, provide sufficient resources for continued industrial grow-
th, and promote balanced regional development.
     The government realized that efficient allocation of an ample supply 
of productive resources is the key to industrial modernization and sus-
tained economic growth.  To ensure the development of more high-tech 
industrial establishments, the government will carefully monitor the 
distribution of productive resources such as land, water, energy and trans-
portation facilities during the period of the plan.
     Priority is also being given under the plan to accelerating the devel-
opment of backward areas by improving schools, housing, medical, cultural 
and transportation facilities.
     To improve national wellbeing, Taiwan will be divided into 18 "living 
primeters" which will be selfcontained communities providing accommoda-
tion, and medical and shopping facilities.  In addition, a national helath 
insurance program will be inaugurated in 1994 to provide medical insurance 
coverage to everyone.  As well as providing a more favorable climate for 
economic growth, it is expected that the plan will assist social stability 
by providing more employment.
     On the demand side, and increase in public investment will encourage 
private investment and consumption, thereby expanding domestic demand and 
reducing the trade surplus.  These developments will reflect a higher de 
gree of economic independence and reduce vulnerability to economic 
turbulence.
     The government realizes that success of the program will depend not 
only on adequate funding and effective implementation, but also on whole-
hearted support by the private sector.  To ensure that public and private 
resources are put to the best possible use, the government will introduce 
new fiscal incentives, encourage the relalocation of industries and update 
related legislation during the plan period.
     Among the targets of the plan are that economic growth will average 
seven percent a year, that investment in the public sector will grow by 
12.5 percent a year, manufacturing will grow by 6.5 percent annually, and 
that the service and high-tech industries will grow particularly quickly.
     By the end of the plan, Taiwan's power capacity will be raised from 17 
million kilowatts to 27.5 million kilowatts, and on the social and recrea-
tional fronts, at least one new university and several high schools will be 
set up, as well as a number of libraries, swimming pools, parks and sports 
grounds.  Social welfare services will be enhanced, and more creational 
areas will be established.
     "Gardening Reaches New Heights" Lack of space at ground level has 
caused many householders to look at what would otherwise be a desert to 
create greenery--the tops of apartment buildings.  Rooftop gardens are now 
all the rage in Taipei, allowing people to show an amazing amount of crea-
tivity along with their "green fingers."
     Alongside rapid development in business and industry, Taipei has been 
constantly changing in decent years.  High-rise buildings have replaced the 
old two-storied houses, and people seldom have the chance to stand on solid 
ground.  The high price of land caused businesses to use every piece that 
becomes available to make even bigger returns.  As green fields become 
scarcer and scarcer, the only greenery left is often in the road dividers 
on some main boulevards and a handful of small parks in Taipei.