Final answer:
A merit-based reward system may be ineffective in Taiwan as it could reduce collective motivation and lead to a decline in overall performance, especially if high performers feel their efforts are unrecognized.
Step-by-step explanation:
A merit-based reward system might be ineffective in Taiwan because such a system would most likely reduce collective motivation and could potentially lead to a decline in overall performance. Similar to the historical example from Mao's China, the removal of incentive can lead to a lack of motivation to excel, causing performance to worsen over time. The incentive system acts as a motivation for high performers, and without it, there is a risk that they may no longer see the value in striving for excellence. Furthermore, the highest-performing students might feel their efforts are not adequately recognized or rewarded, leading to frustration and a possible decrease in their contributions.