A large number of Chiang Kai-shek’s Nationalist soldiers fled with him to Taiwan in 1949. Since Chiang’s stated policy was to counterattack and retake the mainland of China from the communists, he needed to have a large military. He maintained some 600,000 personnel in active duty, though that was still not enough to challenge the mainland’s vastly larger armed forces. Over time, Taiwan’s military was cut considerably. It was also upgraded in terms of better training and weapons, and military strategy was linked to coordinating defense efforts with U.S. forces.

Taiwan signed a defense treaty with the United States in 1954, which was terminated after the United States established formal diplomatic ties with Beijing in 1979. It was said to have been functionally replaced with the Taiwan Relations Act passed that year by the U.S. Congress, which pledged the sale of U.S. weapons to Taiwan and the maintenance of U.S. forces in the region.

Taiwan has but one adversary, China, and its military strategy has been geared toward defending the island in the event of a Chinese attack until U.S. forces can arrive. On the other hand, Taiwan’s leaders sometimes talk of the offensive capabilities they possess, such as to bomb cities or dams in China, and U.S. authorities have at times showed concern over Taiwan’s work toward building nuclear weapons, though that concern has diminished with the improvement of Taiwan-China relations.

Taiwan has continued to need jet fighters to maintain air superiority over and around the island, antisubmarine warfare capabilities, and antimissile defense. The U.S. has provided that to a limited degree. However, China’s capabilities vis-à-vis Taiwan have been growing at a faster rate than has Taiwan’s ability to defend itself. Questions have also been raised about the United States’ resolve to protect Taiwan, given the considerable U.S. economic and financial ties with China. Taiwan’s defense spending in the second decade of the 21st century was low compared with previous levels, prompting some military officials in the United States to question whether Taiwan was contributing enough to its own defense.

Health and welfare

The standards of health in Taiwan are impressive, having been improved considerably since the beginning of the 20th century. Life expectancy is high and is on par with or exceeds the levels for most western European countries.

Taiwan established the National Health Insurance program in 1995, incorporating various insurance plans already in existence and extending coverage to all citizens. The plan became controversial, however, because of rising costs and questions concerning who would pay for it. Finally, many of Taiwan’s best doctors opted out of the program or left Taiwan. The system remained a topic of debate.

The welfare system established by the Japanese in the first half of the 20th century was dismantled after World War II. When Chiang Kai-shek arrived in 1949, he brought with him a social welfare program that was smaller in scope and was intended mainly for the poor and to help cope with economic bad times and disasters. In the 1980s, however, the government increased spending for welfare and expanded the areas of coverage. Welfare programs grew even faster during the 1990s, as the KMT calculated that by taking such actions it could preempt one of the main tenets of the DPP’s agenda at that time. Also, Taiwan could then afford it. In the early 21st century, however, as Taiwan’s economic growth slowed, the government initiated few new social programs.

The scope and nature of social welfare have been widely discussed topics in Taiwan. Many citizens feel that government welfare undermines the family and that it makes Taiwan vulnerable to China’s efforts to economically subdue Taiwan. Others have contended that welfare dependency violates major tenets of Confucianism and Buddhism.

Housing

Housing is of generally good quality in Taiwan, and a high proportion of the population resides in homes or apartments they own. Homelessness is not a problem. However, many citizens have not been able to easily afford an apartment or a house near their employment, prices having increased exponentially with Taiwan’s economic growth. Part of the reason is that most citizens and many speculators have viewed property as a good investment, resulting in prices’ being pushed up precipitously. Rents have been high, and buying an apartment or a house, especially in the cities, has been difficult. The government has tried to alleviate the problem but with limited success. Housing is often an issue during elections.

Education

The Japanese expanded educational opportunities in Taiwan during the first half of the 20th century. The hard sciences and medicine were emphasized, while the social sciences and humanities were not. After 1945 the government made mass education a high priority. The education system was altered to resemble the American model and was tailored to train future workers. In 1968 compulsory education was increased to nine years (six of elementary and three of secondary). Scholarships were provided to poor students. Traditional Confucian learning was de-emphasized.

Textbooks are approved by the government and are standard throughout Taiwan. A national entrance examination screens students who want to attend college. For many years most of Taiwan’s best college students went abroad, especially to the United States, and at one time Taiwan led the world in the number of students studying in the United States. Many of those students returned to Taiwan with higher degrees, where they were influential in many ways, including during Taiwan’s democratization process. Many high KMT and government officials received advanced degrees from top American universities.

The number of institutions of higher education in Taiwan has grown very fast since the late 20th century, but standards at them have fallen. Now almost anyone can go to college. As a result, Taiwan’s best institutions have declined in stature relative to others in the region. National Taiwan University is considered Taiwan’s best. Other noted state institutions are National Cheng Kung University, National Tsing Hua University, National Chiao Tung University, and National Chengchi University. Almost all of Taiwan’s top universities are public and are located in the north in or near Taipei.