Researchers of Development theory should form an integrative development framework, which interrelates both the Modernization theory and the Dependency theory. It is necessary to explore the relationships between the national development and the factors such as political evolution, economic growth, and social changes. The principles of "Comparative Benefits" and "Values Transfer" are the soul of the Capitalism and the basic concepts for the Nation's Competitiveness. On the other hand, the government capabilities act as important roles. In this article we take a review on Taiwan's developmental history to empirically test the Development theory and to prescribe a theoretic basis for the policy called "The Plan of Developing Taiwan as the Operational Center of Asia-Pacific Areas". Basing on the theory Critiques follows. The harmonious relationship between the Two Governments across the Taiwan Strait is another important factor, which is beyond the discussion because of the limited space here.
