Taiwan has undergone dramatic economic progress over the years. Despite the island’s success, in 2021 it was reported that at least 1.3% of the island’s population fell below the poverty line (around 300,000 people), a figure which some groups claim to be under-representative of the real issue. Nonetheless, there is hope that through the Public Assistance Act, the government can achieve its goal of poverty eradication in Taiwan.

The Public Assistance Act

Taiwan has transformed itself into a “highly developed market economy” which places highly on numerous rankings such as the global Human Development Index and the Gender Inequality Index. According to BTI, Taiwan has one of the “most comprehensive, well-developed welfare regimes in Asia” which can be attributed to its Public Assistance Act which was first announced in 1980 and was most recently amended in 2015.

The act focuses on those living in low and middle-income households, along with individuals who find themselves in need following a natural disaster or emergency. It gives clear guidelines as to who falls into these categories and how they can access aid.

According to Taiwan’s Ministry of Justice, Articles 10-17 of the Public Assistance Act detail how low-income households can apply for living support from their local authorities. If an individual is eligible for the scheme, they will receive assistance in the form of a monetary stipend, vocational training and employment services, all to alleviate poverty and help them to become self-sufficient.

The act also outlines how it gives aid in the form of medical subsidies and emergency aid, as well as through the construction of public assistance institutions. All of these approaches combine to provide a comprehensive strategy for poverty eradication in Taiwan.

Future Amendments

While the act has been successful in providing aid for countless Taiwanese people facing poverty, some call for amendments to ensure that as many people as possible receive appropriate aid. In 2023, The Taiwan Social Welfare League issued results from a survey that illustrated that due to a gap in government reporting, it is likely that the actual number of those in poverty in Taiwan is around 2.6% of the island’s population or roughly 600,000 households.

One suggestion is that the Act amendments should account for the fact that although many people may appear financially independent on paper, in reality, they are living in poverty, according to the Taipei Times. This would allow people whose registered household does not match their current living conditions to get the support they need.

Another concern is that some individuals are not finding employment because this would disqualify them from the aid that the act provides. A potential solution to this is gradually reducing the aid given to individuals once they start earning more money to allow them to become independent over time.

With these amendments, an additional 2 million individuals who are currently ineligible for aid, according to the BTI, could benefit from the act’s assistance, making vital progress towards poverty eradication in Taiwan.

– Carla Messinger

Carla is based in Oxford, UK and focuses on Global Health and Politics for The Borgen Project.

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