Okay, let us end the silly name-calling and focus on what needs to be done to prevent further erosion of the economy. Solutions for the future, not “I told you so” or hollow promises and calls for patience, are what the situation calls for.
President Ma Ying-jeou (馬英九) and his administration officials have had more than four years to demonstrate that the Chinese Nationalist Party (KMT) is better for Taiwan’s economy than was the Democratic Progressive Party (DPP) — claims that, along with the vow of clean governance, were major factors in Ma’s 2008 election. So far, his administration has failed to provide any convincing evidence that this is the case.
Defending his poor performance to date, Ma has argued that Taiwan’s poor economic showing is the result of the global financial downturn of 2008 and the eurozone crisis. While there is no doubting the impact that the global economic downturn has had on Taiwan’s performance, Ma conveniently omits that soon after he came into office, the administration of former president Chen Shui-bian (陳水扁) faced a similarly difficult situation amid the recession sparked by the Sept. 11, 2001, terrorist attacks in New York and Washington. While Chen could — and should — have done more for the economy, it simply shows that external factors cannot be cherry-picked for the sake of convenience.
Both administrations have done poorly on the economy. So what can be done to fix that should be the focus of both parties as they look to the future. Merely focusing on GDP growth, or comparing such figures with other countries in the region, comes far short of what is required of our leaders.
It is also becoming increasingly clear that the future cannot — should not — be characterized by more economic dependence on China. Laudatory remarks notwithstanding, the Economic Cooperation Framework Agreement (ECFA), increased Chinese tourism and further investment from China have not yielded the benefits promised by Ma. In fact, narrow focus on China alone has prevented the real changes that need to be brought into effect to modernize Taiwan’s economy, which includes measures to prevent the further rush-out-the-door of foreign private equity to a concrete strategy to attract the foreign talent that a small country like Taiwan cannot afford to continue ignoring.
If there is one country that should be the object of greater attention as a potential remedy to Taiwan’s nearly anemic economy it is not China, but Japan. For one thing, foreign direct investment from Japan will inevitably result in high-tech transfers that, for many years to come, will be unimaginable for China to provide. Despite its own economic troubles, Japan remains a major innovator and as such, investment in Taiwan will be a net benefit. China steals, mimics and reproduces, adding no developmental value through its investment here.
Beijing’s violent reaction in its dispute with Japan over the Diaoyutai Islands (釣魚台) has made a large number of big Japanese firms reconsider their investment in China and to look for regional alternatives. Such a trend creates tremendous opportunities for Taiwan, provided that its leadership does what it takes to seize the bull by the horns.
One stumbling block to achieving this is Ma’s ill-concealed animosity toward Japan, though greater forces could undermine his ability to prevent progress. Among other things, the KMT will need to prove that it can resurrect the economy before the next presidential election. Failing that, and its image severely damaged by the Lin Yi-shih (林益世) scandal, the KMT will run out of ammunition come 2016. With Ma barred from running for a third term, whoever runs for the party will want to be able to use the economy card to have a chance at being elected. Consequently, if a move closer to Japan, or away from China, is seen as a good strategy, Ma could quickly be sidelined.
Chinese Nationalist Party (KMT) caucus whip Fu Kun-chi (傅?萁) has caused havoc with his attempts to overturn the democratic and constitutional order in the legislature. If we look at this devolution from the context of a transition to democracy from authoritarianism in a culturally Chinese sense — that of zhonghua (中華) — then we are playing witness to a servile spirit from a millennia-old form of totalitarianism that is intent on damaging the nation’s hard-won democracy. This servile spirit is ingrained in Chinese culture. About a century ago, Chinese satirist and author Lu Xun (魯迅) saw through the servile nature of
In their New York Times bestseller How Democracies Die, Harvard political scientists Steven Levitsky and Daniel Ziblatt said that democracies today “may die at the hands not of generals but of elected leaders. Many government efforts to subvert democracy are ‘legal,’ in the sense that they are approved by the legislature or accepted by the courts. They may even be portrayed as efforts to improve democracy — making the judiciary more efficient, combating corruption, or cleaning up the electoral process.” Moreover, the two authors observe that those who denounce such legal threats to democracy are often “dismissed as exaggerating or
Monday was the 37th anniversary of former president Chiang Ching-kuo’s (蔣經國) death. Chiang — a son of former president Chiang Kai-shek (蔣介石), who had implemented party-state rule and martial law in Taiwan — has a complicated legacy. Whether one looks at his time in power in a positive or negative light depends very much on who they are, and what their relationship with the Chinese Nationalist Party (KMT) is. Although toward the end of his life Chiang Ching-kuo lifted martial law and steered Taiwan onto the path of democratization, these changes were forced upon him by internal and external pressures,
The Chinese Nationalist Party (KMT) caucus in the Legislative Yuan has made an internal decision to freeze NT$1.8 billion (US$54.7 million) of the indigenous submarine project’s NT$2 billion budget. This means that up to 90 percent of the budget cannot be utilized. It would only be accessible if the legislature agrees to lift the freeze sometime in the future. However, for Taiwan to construct its own submarines, it must rely on foreign support for several key pieces of equipment and technology. These foreign supporters would also be forced to endure significant pressure, infiltration and influence from Beijing. In other words,
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