U.S. Aid and PostWar Economic Reform in Taiwan Niu Ke (66) The article makes an investigation into the American influence on Taiwans economic system and economic policy in the 1950s and early 1960s. As put forth in the article, an important way to exert influence on Taiwan was the shaping of a "trans governmental relationship" between American official agencies in Taiwan and the economic bureaucracies on the island. With peculiar organizations and systemic mechanisms, the relationship became an important basis for economic development in Taiwan and a key factor in the forming of policy and developmental strategy in the early stage after the Chinese civil war. The article then describes how American institutions in Taiwan and Taiwanese economic bureaucrats jointly directed the industrialization through import substitute and the transformation of developmental strategy. Despite the tremendous American influence, however, Taiwans economic model was not a copy of Americas own path of development based on free enterprise.