At the beginning of the 1980s, Taiwan appeared bereft of support from even its closest ally, the United States. Yet only 10 years later its political leadership was confident enough to embark upon a dramatic course of democratization, and economically it was a fully-fledged little tiger, with official foreign exchange holdings and growth rates among the highest in the world. But will the rate of political change get out of hand? Will the economy be able to cope with new competition from other countries in Asia? Will demands for indepdence from the mainland made by some political groups provoke renewed confrontation with the People's Republic? This study looks back at developments in the domestic political system, the economy and external relations over the past decade, and forward to the rest of the 1990s.