E4 · cycle-002.e4-twn

Taiwan, scripted, 30 years from 1996

30 simulations of 30 rounds from the 1996 position. Taiwan decides by the scripted method; scripted events: Global funding seizure in year 1, Core disaster in year 3, Market access opening in year 6, Severe pandemic in year 7, Global funding seizure in year 12, Market access opening in year 14, Trade bloc rupture in year 22, Severe pandemic in year 24.

Model 0.1.0 · graph 0.2.0 · parameters 0.1.0 · seeds 1–30 · elasticity sampled within each bracket

The same configuration in other cycles: cycle 3.

Every simulation · Compare with another experiment · More experiments like this

Not a forecast
Simulations of a structural model with seed parameter values, to compare methods and test the model. Other nations stay at their 2026 ratings throughout.

Outcome across simulations

The median at 2026, with the 10th to the 90th percentile of the 30 simulations under it.

Capability index
14.99 (+0.13)
From 14.85; 14.98 to 14.99
Rank by index
12
From 13; 12 to 12
Domains at Tier 1
5
From 2; 5 to 5
Tier rank
3
From 11; 3 to 3

Capability index by round

Rank by index, by round

Every objective at the position and at the horizon
Objective199610th percentileMedian90th percentileBetter
Capability indexprimary14.8514.9814.9914.99higher
Rank by index13121212lower
Tier rank11333lower
Domains at Tier 12555higher
Score sum1076.61088.51088.91089.3higher
Goal-weighted score1076.61088.51088.91089.3higher
Resilient score1076.61088.9 (mean score sum over the simulations)higher

The capability index is the mean of the three dimensions, each the mean of its domains, each the mean of its groups. Tiers are Pareto layers within each domain; the tier rank orders nations by domains held at Tier 1, then Tier 2, and so on. The goal-weighted score is the score sum unless the experiment sets a goal. The primary objective is the one the experiment is judged on; every other objective is reported beside it.

Credits

What each round’s credits went on in the median simulation. Across all simulations, build took 86 per cent, buy took 0 per cent, partner took 14 per cent of the 2,280 credits a simulation spent on actions.

Against history

Started from a reconstructed 1996 position and played along the pathway and shocks Taiwan actually had, then scored against the 2026 ratings. The position is an estimate, so part of any error is the reconstruction's. The calibration summary across all fifty nations is on the cycle's page under Loop.

Index 1996
14.85
reconstructed
Observed 2026
14.03
the Index's rating
Simulated 2026
14.99
14.96 to 15.01
Skill against persistence
−0.38
group error 1.35 against 0.98 if nothing changed
Domain1996ObservedSimulatedBiasDirection
Critical Technology12.9112.7914.33 14.3–14.4+1.55wrong
Strategic Infrastructure15.1914.4615.25 15.2–15.3+0.80wrong
National Security12.2211.9211.70 11.7–11.7−0.22right
Human Capital16.2515.4116.06 16.0–16.1+0.66wrong
Information & Influence11.9510.9711.17 11.2–11.2+0.20right
Governance & Integrity15.9815.1915.90 15.9–15.9+0.71wrong
Financial Strength16.5614.8615.98 15.9–16.0+1.12right
Production & Innovation16.7215.4816.84 16.8–16.9+1.37wrong
Trade & Investment15.8815.2117.65 17.6–17.7+2.44wrong

The history it was played under: shocks and events

  • 1997 · S02 × 0.4 The Asian financial crisis hit regional markets and raised non-performing loans, but Taiwan's large reserves and current-account strength limited the damage.
  • 1999 · S07 × 0.5 The Chi-Chi earthquake of 21 September 1999 damaged central Taiwan's infrastructure and disrupted some manufacturing, including semiconductor fabs.
  • 2002 · S12 × 0.4 Taiwan's WTO accession as Chinese Taipei expanded market access and locked in trade rules, supporting export growth.
  • 2003 · S10 × 0.3 The SARS outbreak affected Taiwan, but its public health system and aggressive containment prevented a severe sustained crisis.
  • 2008 · S02 × 0.5 The global financial crisis caused a sharp export collapse, though Taiwan's banking sector and central bank managed the shock without systemic failure.
  • 2010 · S12 × 0.3 The Economic Cooperation Framework Agreement with China improved cross-Strait tariff access and encouraged trade in services and early-harvest goods.
  • 2018 · S01 × 0.4 The US-China trade war and technology restrictions began to divide supply chains, forcing Taiwan firms to adapt and accelerating relocation of some production.
  • 2020 · S10 × 0.4 The COVID-19 pandemic caused global demand and logistics disruption, but Taiwan's rapid border controls, mask production and digital response limited domestic health impact.

The pathway: what it prioritised, period by period

  • 1997–2001 · build · 5% each Taiwan consolidated its semiconductor and export upgrading while managing the Asian financial crisis and pushing for WTO accession. (Semiconductors & Advanced Computing, Export Capability & Sophistication, Financial Stability & Crisis Management, Innovation & Commercialisation, Trade Policy & Market Access)
  • 2002–2007 · build · 5% each The Chen Shui-bian administration promoted the 'Two Trillion, Twin Stars' semiconductor and display industries and expanded science parks and biotech. (Semiconductors & Advanced Computing, Advanced Manufacturing, Biotechnology & Health Technologies, Innovation & Commercialisation, Structural Transformation & Complexity)
  • 2008–2015 · partner · 2% each The Ma Ying-jeou administration pursued cross-Strait economic opening through ECFA and sought closer integration into regional value chains. (Trade Policy & Market Access, Digital & Services Trade, Investment Attraction & Projection, Connectivity, Cyber & Trust Technologies, Global Value Chain Position)
  • 2016–2019 · build · 2% each Tsai Ing-wen's '5+2' innovative industries programme advanced green energy, biotech, smart machinery, defence aerospace and resilience. (Energy Technologies, Biotechnology & Health Technologies, Advanced Materials & Manufacturing, Robotics & Autonomous Systems, National Resilience & Crisis Management)
  • 2020–2023 · build · 5% each Taiwan used its semiconductor 'silicon shield' and digital infrastructure while mounting a highly effective COVID-19 pandemic response. (Semiconductors & Advanced Computing, Artificial Intelligence, Connectivity, Cyber & Trust Technologies, Population Health, Health System Capability)
  • 2024–2026 · build · 5% each Rising cross-Strait military pressure accelerated defence modernisation, AI capability and energy security alongside advanced semiconductor protection. (Artificial Intelligence, Semiconductors & Advanced Computing, Cyber & Electromagnetic Operations, Air Power, Energy Technologies)

Reconstruction notes (deepseek-v4-pro): The largest uncertainty is Taiwan's unresolved cross-Strait sovereignty and war risk, which is imperfectly captured by the event library's generic shocks. Taiwan's de facto security dependence on the United States and its informal diplomatic networks are hard to score on formal state-capacity scales, making information and influence and national security estimates softer than the economic and human capital estimates. Semiconductor and AI trajectories after 2020 are especially volatile, so late-period policy and event mappings should be treated as provisional.

Report

Written from the simulation record by the loop's narrator. Every figure names the query it came from, in square brackets.

Batch cycle-002. Model 0.1.0, graph 0.2.0, parameters 0.1.0. 30 simulations, seeds 1 to 30; probes on 10. Every figure is a distribution over simulations of a structural model with seed parameter values; it shows what the model implies under these settings, not what will happen. Other nations are frozen at their 2026 ratings. No reconstructed historical data is used in this experiment.

Headline

Taiwan played 30 rounds from 1996 under the scripted method, with scripted events, 30 times. Its capability index moved from 14.85 to a median of 14.99 (+0.14), with 90 per cent of simulations between 14.98 and 14.99 [experiment_objectives].

Starting position

In 1996 the nation ranks 13 on the index against the frozen field, holds 2 of nine domains at Tier 1 and has a tier rank of 11. Its base income is 708 credits a year, calibrated so that its 2026 position is affordable with headroom for investment.

What was decided

A simulation spent a median of 2,280 credits on moves. The five groups that took most were Semiconductors & Advanced Computing (build, 521 credits, 22.8 per cent); Innovation & Commercialisation (build, 276 credits, 12.1 per cent); Artificial Intelligence (build, 198 credits, 8.7 per cent); Advanced Manufacturing (build, 177 credits, 7.8 per cent); Trade Policy & Market Access (build, 175 credits, 7.7 per cent) [experiment_decisions_by_group]. By mode: build 86 per cent, partner 14 per cent [experiment_decisions_by_group]. Concentration of spending (HHI) had a median of 0.115, and the most repeated action appeared in 57 per cent of rounds.

The leading domain by period: rounds 1 to 5, Trade & Investment; rounds 6 to 10, Critical Technology; rounds 11 to 15, Trade & Investment; rounds 16 to 20, Trade & Investment; rounds 21 to 25, Critical Technology; rounds 26 to 30, Critical Technology [experiment_spend_by_period].

What the world did

A median simulation saw 6 shocks and 2 upside events. The most damaging per firing were S07 (30 firings in 30 simulations, −13.5 points each); S01 (30 firings in 30 simulations, −12.0 points each); S10 (60 firings in 30 simulations, −11.4 points each) [experiment_shocks]. Upside events fired 60 times across all simulations [experiment_shocks].

The groups that lost most to shocks, per simulation: Trade Facilitation & Logistics −1.84; Fiscal Capacity & Public Finance −1.79; Labour & Employment −1.55; Financial System Depth & Access −1.48 [experiment_shock_damage_by_group].

The edges that carried most change through the graph, per simulation: Export Capability & Sophistication to Sovereign Capital & External Financial Power (+0.28 points); Artificial Intelligence to Robotics & Autonomous Systems (+0.32 points); Investment Attraction & Projection to Resource Infrastructure (+0.21 points) [experiment_propagation_by_edge].

Where it ended

At 2026 the median rank is 12 (5th to 95th percentile 12 to 12), the median count of Tier 1 domains 5 (5 to 5) and the median tier rank 3; the resilient score, the mean score sum over simulations, is 1,089 [experiment_objectives].

Tier 1 probability changed most in: critical technology (0 to 100 per cent of simulations); financial strength (0 to 100 per cent of simulations); human capital (100 to 0 per cent of simulations); strategic infrastructure (0 to 100 per cent of simulations); trade and investment (0 to 100 per cent of simulations) [experiment_tiers_by_round].

Why

Without shocks the index ends +0.883 higher on average, so the shocks cost about 0.883 index points [experiment_probe_attribution].

Holding instead of following this method changes the index by −0.755: that is the method's worth against doing nothing [experiment_probe_attribution].

Removing any single one of the five largest actions changes the index by between +0.005 and +0.007, for example 1997 build Semiconductors & Advanced Computing (35 credits) [experiment_probe_attribution]. The largest actions by credits come late, when income is highest, and are rarely the most valuable.

Removing the largest shock of a simulation raises the index by +0.217 on average [experiment_probe_attribution].

The replay probe reproduces the simulations exactly (index change 0.000000), so the attributions are clean [experiment_probe_attribution].

Surprises

saturation_high (warn): 100% of simulations end with a group at 20 that did not start there (median 1 groups).

retired_words (warn): e4-twn/report.md: 'simulations' 1 time(s), first near line 39; use 'simulations'.

The simulation furthest from the median (seed 15) ends −0.01 from it, with 6 shocks and 2 upside events [experiment_outlier_simulations].

Comparison

This is the baseline (hold) experiment, or there is none for this nation in the batch.

Against history: from a reconstructed index of 14.85 the model ends at 14.99, where the 2026 ratings put it at 14.03. Group scores miss by 1.35 points on average, against 0.98 for assuming nothing changed (skill −0.38); the change in each domain has the right sign in 33 per cent of domains. Furthest below history: national security (−0.22); furthest above: trade and investment (+2.44) [experiment_against_history]. The starting position is reconstructed, so part of the error is the reconstruction's.

What each decision and shock was worth

Counterfactual probes on the first 10 seeds: the same simulations with one thing changed, paired seed by seed. A removed decision or shock is taken out and the other decisions replayed unchanged, so the difference is that item's worth.

ProbeIndexScore sumTier 1For example
Hold instead of the method−0.755−54.2−4.00
No shocks+0.883+60.0+2.00
Replay of the recorded actions (must change nothing)0.0000.00.00
Without the 1st largest decision+0.007+0.60.001997 build Semiconductors & Advanced Computing (35 credits)
Without the 2nd largest decision+0.005+0.50.001997 build Export Capability & Sophistication (35 credits)
Without the 3rd largest decision+0.005+0.50.001997 build Financial Stability & Crisis Management (35 credits)
Without the 4th largest decision+0.005+0.50.001997 build Innovation & Commercialisation (35 credits)
Without the 5th largest decision+0.005+0.50.001997 build Trade Policy & Market Access (35 credits)
Without the 1st largest shock+0.217+15.5+1.001999 S07 (-13.5 points)
Without the 2nd largest shock+0.174+11.7+1.002020 S10 (-12.7 points)
Without the 3rd largest shock+0.202+13.0+1.002018 S01 (-12.0 points)

Simulations

Three simulations told round by round, each on its own page: the one nearest the median index at the horizon, and those nearest the 10th and the 90th percentile. Every one of the 30 is listed with its outcome on the simulations page.

All 30 simulations

Events

How often each shock and upside event began across the simulations. Shocks come from the ten downside scenarios and upside events from the ten upside ones, at their yearly likelihood.

Event
Kind
Simulations
Mean round
Points
Trade bloc rupture S01Shock100 per cent22.0−12.0
Global funding seizure S02Shock100 per cent6.5−5.8
Core disaster S07Shock100 per cent3.0−13.5
Severe pandemic S10Shock100 per cent15.5−11.4
Market access opening S12Upside100 per cent10.0+13.9

Groups across simulations

Every capability group: its position, and its median and spread at the horizon across the simulations, with what the method spent on it.

73 of 73 groups

Capability group
Domain
1996
2026
Change
Levels invested
Credits
Artificial IntelligenceCritical Technology13.0619.24 19.21 to 19.26+6.186.52198
Trade Policy & Market AccessTrade & Investment14.1319.23 19.21 to 19.25+5.109.13285
Biotechnology & Health TechnologiesCritical Technology12.1015.71 15.65 to 15.76+3.614.56114
Export Capability & SophisticationTrade & Investment15.9219.24 19.23 to 19.25+3.325.47175
Connectivity, Cyber & Trust TechnologiesCritical Technology15.2218.38 18.27 to 18.44+3.163.7282
Digital & Services TradeTrade & Investment16.2919.41 19.41 to 19.42+3.123.6190
Investment Attraction & ProjectionTrade & Investment15.3918.50 18.50 to 18.51+3.113.8268
Advanced ManufacturingStrategic Infrastructure16.9019.72 19.70 to 19.73+2.823.90177
Innovation & CommercialisationProduction & Innovation17.2019.67 19.63 to 19.69+2.474.79276
Semiconductors & Advanced ComputingCritical Technology17.5720.00 20.00 to 20.00+2.434.70521
Financial Stability & Crisis ManagementFinancial Strength17.1119.46 19.44 to 19.47+2.353.98175
Structural Transformation & ComplexityProduction & Innovation16.6518.95 18.93 to 18.96+2.302.7968
Energy TechnologiesCritical Technology10.5811.93 11.92 to 11.94+1.352.0242
Technical & Vocational SkillsHuman Capital15.6115.95 15.95 to 15.96+0.340.000
Regulatory Governance & Strategic ControlsGovernance & Integrity15.1915.47 15.47 to 15.48+0.280.000
Energy InfrastructureStrategic Infrastructure14.6314.69 14.65 to 14.72+0.060.000
Resource InfrastructureStrategic Infrastructure11.3811.41 11.32 to 11.46+0.030.000
Government Effectiveness & Public AdministrationGovernance & Integrity17.1417.11 17.08 to 17.11−0.030.000
Robotics & Autonomous SystemsCritical Technology13.5313.47 13.33 to 13.54−0.060.000
Transparency, Oversight & AccountabilityGovernance & Integrity15.9215.85 15.85 to 15.85−0.070.000
Justice System & Fundamental RightsGovernance & Integrity15.5015.42 15.42 to 15.43−0.080.000
Public Integrity & Anti-CorruptionGovernance & Integrity15.0614.98 14.98 to 14.98−0.080.000
Communications & Digital InfrastructureStrategic Infrastructure17.0116.93 16.89 to 16.96−0.080.000
Digital & AI CompetenceHuman Capital18.2518.16 18.16 to 18.17−0.090.000
Political Institutions & Civic ParticipationGovernance & Integrity16.9016.81 16.80 to 16.82−0.090.000
Transport InfrastructureStrategic Infrastructure16.1516.04 15.98 to 16.10−0.110.000
Internal Security & OrderGovernance & Integrity16.1216.01 16.00 to 16.02−0.110.000
Lifelong Learning & ReskillingHuman Capital14.9814.84 14.84 to 14.85−0.140.000
Agriculture & Food InfrastructureStrategic Infrastructure15.0414.89 14.86 to 14.93−0.150.000
Advanced EducationHuman Capital15.7115.56 15.54 to 15.57−0.150.000
Early Childhood DevelopmentHuman Capital16.8016.64 16.63 to 16.65−0.160.000
Research Talent & Knowledge CreationHuman Capital15.5715.41 15.40 to 15.43−0.160.000
Space, Aerospace & Defence InfrastructureStrategic Infrastructure13.2813.10 13.05 to 13.14−0.180.000
Global Value Chain PositionTrade & Investment17.3217.04 17.00 to 17.11−0.280.5310
Cyber & Electromagnetic OperationsNational Security14.6414.35 14.28 to 14.42−0.290.000
Nuclear DeterrenceNational Security0.360.00 0.00 to 0.00−0.360.000
Population HealthHuman Capital16.5316.15 16.12 to 16.16−0.380.000
Foundational EducationHuman Capital16.3415.95 15.92 to 15.96−0.390.000
National Resilience & Crisis ManagementGovernance & Integrity15.9815.55 15.54 to 15.57−0.430.000
Financial InfrastructureStrategic Infrastructure15.9815.54 15.49 to 15.57−0.440.000
Intelligence & AssessmentNational Security14.5314.05 14.02 to 14.08−0.480.000
Technology Adoption & DiffusionProduction & Innovation17.2916.78 16.75 to 16.81−0.510.000
Water, Sanitation & Waste InfrastructureStrategic Infrastructure15.5014.98 14.93 to 15.02−0.520.000
Joint Command, Projection & SustainmentNational Security13.8513.31 13.29 to 13.32−0.540.000
Maritime PowerNational Security13.4312.89 12.88 to 12.90−0.540.000
Sovereign Capital & External Financial PowerFinancial Strength17.1016.56 16.46 to 16.63−0.540.000
Air PowerNational Security15.7215.17 15.16 to 15.18−0.550.000
Space TechnologiesCritical Technology8.187.62 7.61 to 7.62−0.560.000
Quantum TechnologiesCritical Technology9.729.15 9.14 to 9.16−0.570.000
Strategic Strike & Missile DefenceNational Security12.2511.68 11.66 to 11.70−0.570.000
Land PowerNational Security13.6013.02 13.00 to 13.04−0.580.000
Space OperationsNational Security9.368.78 8.76 to 8.80−0.580.000
Health System CapabilityHuman Capital16.4815.89 15.82 to 15.93−0.590.000
Culture, Language & Education DiplomacyInformation & Influence11.3010.69 10.68 to 10.71−0.610.000
Sensing, Timing & NavigationCritical Technology14.1213.49 13.47 to 13.52−0.630.000
Diaspora & Global CommunitiesInformation & Influence14.6013.96 13.96 to 13.96−0.640.000
Advanced Materials & ManufacturingCritical Technology15.0014.35 14.32 to 14.37−0.650.000
Force Generation & MobilisationNational Security14.4213.75 13.68 to 13.80−0.670.000
Business Dynamism & EntrepreneurshipProduction & Innovation17.7317.04 17.00 to 17.08−0.690.000
Industrial & Sectoral BaseProduction & Innovation16.5915.87 15.77 to 15.93−0.720.000
Development Cooperation & Global AssistanceInformation & Influence10.609.84 9.81 to 9.85−0.760.000
Economic Output & ProductivityProduction & Innovation15.4214.66 14.62 to 14.70−0.760.000
Alliances & Security CooperationInformation & Influence11.9511.16 11.14 to 11.19−0.790.000
Social InfrastructureStrategic Infrastructure16.0815.25 15.22 to 15.34−0.830.000
Diplomatic Statecraft & Global NetworksInformation & Influence10.359.45 9.44 to 9.46−0.900.000
Information Environment & Strategic CommunicationInformation & Influence12.9111.93 11.91 to 11.94−0.980.000
Economic Leverage & DependenceTrade & Investment15.3114.33 14.30 to 14.35−0.980.000
Trade Facilitation & LogisticsTrade & Investment16.8015.79 15.78 to 15.80−1.010.000
Financial Regulation & IntegrityFinancial Strength15.4114.37 14.36 to 14.38−1.040.000
Labour & EmploymentProduction & Innovation16.1814.95 14.94 to 14.97−1.230.000
Monetary & Currency CapabilityFinancial Strength17.2716.02 15.99 to 16.06−1.250.000
Financial System Depth & AccessFinancial Strength15.5714.26 14.25 to 14.26−1.310.000
Fiscal Capacity & Public FinanceFinancial Strength16.9315.20 15.18 to 15.24−1.730.000

Checks

The automated checks run on this experiment before anything was written about it. A warning is a candidate finding for the improvement loop.

  • passcredits_conservedlargest gap between credits in and credits accounted for: 5.7e-14
  • passscores_in_boundsscores range 0.000 to 20.000
  • passno_nans0 missing values in the trajectory and objectives
  • passprobe_replay_reproducesthe recorded moves played back reproduce the simulation to within 0.0e+00 points (10 simulations)
  • passledger_balancesthe edge ledger sums to the propagated change to within 9.2e-07 points
  • passmove_without_shocklargest one-year move in a group with no shock landing: 1.76 points; 0% of simulations have one above 3
  • passtier_jumplargest gain in one domain within five years: 2 tiers (0 simulations above 2)
  • passall_tier1_from_outside_top10starting rank 13; 0 simulations reach Tier 1 in all nine domains
  • warnsaturation_high100% of simulations end with a group at 20 that did not start there (median 1 groups)
  • passsaturation_low13% of simulations end with a group at 0 that did not start there (median 0 groups)
  • passspend_concentrationmedian concentration of spending across groups (HHI) 0.115; most funded group hard.critical_technology.semiconductors_and_advanced_computing
  • passsame_actionthe most repeated move (group and mode) appears in a median 57% of rounds

Settings and versions

Experiment cycle-002.e4-twn. Every simulation records the model, graph and parameter versions, the scenario, the method and its seed, so it can be reproduced exactly.

Nation
Taiwan (TWN)
Position
A reconstructed 1996 position, aligned to the Index's scale
Method
Scripted. Actions fixed in advance by the experiment: for a backcast, the nation's historical pathway.
Scenario
Scripted events: Global funding seizure in year 1, Core disaster in year 3, Market access opening in year 6, Severe pandemic in year 7, Global funding seizure in year 12, Market access opening in year 14, Trade bloc rupture in year 22, Severe pandemic in year 24
Objective
Capability index, the primary objective the experiment is judged on; every other objective is reported beside it
Horizon
30 rounds, 1996 to 2026
Simulations
30 seeds, 1 to 30. Every method in the batch faces the same draws for the same seed.
Graph elasticities
Drawn for each simulation, uniformly within each edge’s bracket
Income
Base credits 707.8 a round, moving with the economic groups
Versions
Model 0.1.0, Capability Dependency Graph 0.2.0, parameters 0.1.0
Batch
Backcast 1996-2026 (cycle-002), cycle 2 of the improvement loop
Runtime
4.2 seconds in all; 1054 microseconds a round
Not a forecast
Every figure is a distribution over the simulations of a structural model, reported to compare methods and test the model. None is a prediction of what a nation will do or become.
Structural parameters
Costs, decay, vulnerability and credits are structural seed values with low or medium confidence, set by domain with single-group exceptions. Five groups have no defensible value in a single-nation model and are flagged in the parameter tables.
Other nations are frozen
One nation is simulated at a time. Every other nation stays at its 2026 rating, so rank and tiers are measured against a still field; where the simulated nation rises past others their own tiers are not re-sorted.
Starting depth and mode are defaults
The position is the National Capability Index ratings. How institutionalised each capability is, and how much was built, bought or partnered, have no data behind them yet and start from structural defaults.
Credits are calibrated, not measured
Each nation’s income is set so that its position is affordable with headroom that rises with its fiscal capacity. It is not yet fiscal capacity as a share of GDP.