From a perspective of historical development and focused on the period from the Japanese Colonial era up to April of 2002, this article discusses state policies’ intervention in cultural development at different historical stages as well as other significant cultural developments albeit without the intervention of state regime. In addition, this paper analyzes the interactions between state’s culture policies and current Political, economic, and social developments. This research finds out that, in Taiwan, the underlying concepts of cultural policies led by the state regime focused primarily on political ideologies, education, leisure and recreation, etc. In the meantime, state’s cultural policies in the early era accentuate the purpose of political development while policies in the later era put emphasis on the overall economic development of the society. Nevertheless, cultural development used to be deemed as accessory to state’s political and economic development in the long past and there was no cultural development policy whatsoever for culture per se. As such, it leads to a serious issue that characters of current domestic culture identity are ambiguous. In order to give an in-depth analysis on the characteristics of the cultural policy development at the different stages of Taiwan, this article concludes with some issues and responses toward the historical development of the nation’s culture policies and provides some suggestions as advices for future policy formulation.