Social welfare: Taiwanís gradualism in expanding its social welfare systemówhich resulted from its
unique conditions of initial equitable distribution of land and income, its Confucian welfare state, and its
long period of authoritarian regimeóhas both positive and negative lessons for other developing
economies. First of all, equitable distribution of land ownership and income at the initial stage of
economic development enabled the government to focus more on growth rather than income
redistribution. Therefore, budgetary allocation could emphasize education and health care to nurture the
necessary human capital for economic development. The export-promotion development strategy based on
labor-intensive industries generated more labor employment, created more equitable income, and reduced
the demand for social welfare. The traditional family in this Confucian society had already assumed a
significant social service functionówhich was later eroded owing to developments we have discussed at
length. Each of these substantially slowed down the demand for social welfare in the early stage of
development