| Summary: | The Third Way started as an Anglo-American ideological and political venture. It was soon followed by major European leaders, among other worldwide government heads of state, who sought to boost their electoral support and address a resolution to the consequences of globalisation. Despite criticism by academics and commentators for lacking content and substance, the Third Way appeared to be rather successful in recruiting allies, especially among Western democracies. Unlike other nations in East Asia, Taiwan is involved with this arguably prominent political project of the 21<sup>st</sup> century. A comprehensive review on the global Third Way/Middle Way debate centred on its historical importance and worldwide influences as well as on the left versus right issues is presented to provide background knowledge on the Third Way. By reviewing the policy-learning/transfer, lesson-drawing, and ideological diffusion literature, the theoretical basis of this study is provided. The discussion focuses on President Chen Sui-bian’s reasoning behind the adoption of this Anglo-American ideology and how it was adapted to correspond with Taiwan’s social and political environment. Taiwan as an example of lesson drawing prior to the Third Way is examined through the emergence of a modern Chinese state. The previous ‘Third Way’ cases of Sun Yat-sen and Chiang Kai-shek are regarded as significant examples in the art of synthesising Eastern and Western ideologies which illustrate the historical substance of political learning and diffusion during the modernisation of China. In order to understand the politics of the Democratic Progressive Party (DPP) government, the language of the New Taiwan Middle Way is analysed. Through an examination of a wide range of political speeches, and texts from President Chen and his allies, the rhetoric of the New Taiwan Middle Way is uncovered to reveal its true meaning. Since the left and right are not so salient in Taiwan as they are in Europe, independence and unification issues replace and left vs. right debate. Analysis of social welfare development in Taiwan during the 1990s and forward is made, with particular interest focusing on whether the unprecedented case of the DPP government based on the Third Way ideas is associated with a new perspective towards welfare development.
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