Reforms given credit for better economic ranking

Cabinet Spokesman Chen Chi-mai (陳其邁) said yesterday that the improvement of the nation's global competitiveness ranking in a recent report resulted from the government's economic and financial reforms. He also pledged to push for more political and economic reform initiatives.

Chen also called on the business sector to have faith in local economy and keep their roots here rather than in China.

According to the Global Competitiveness Report 2004-2005 issued by the Geneva, Switzerland-based World Economic Forum (WEF) on Wednesday, Taiwan ranked No. 4 in competitiveness among 104 countries, up one place from the previous year.

Although Taiwan was the Asia's No. 1 this year, its public institutions index slipped six places to 21 and its commercial competitiveness was down one place to the 16.

China fell from 44 to 46 in its global competitiveness, despite its roaring economic success of late. The decline was due to the country's extensive administrative control, red tape and poor accounting standards.

The growth competitiveness index is composed of three component indexes: the public institutions index, the technology index and the macroeconomic environment index.

In the public institutions index, Taiwan dropped six places to 27, the contracts and law sub-index fell to 31 from 24 last year and descended five places from 19 to 24 on the corruption sub-index.

Council for Economic Planning and Development Chairman Hu Sheng-cheng (胡勝正) blamed it on the legislature's insufficiency in passing public construction procurement acts and anti-corruption laws.

While the Executive Yuan has sent 735 bills to the legislature for approval this year, Hu said that only 388 of them were passed into law.

In the technology index, the nation's ranking was up one place to No. 2, while it stayed at two on the innovation sub-index and dropped two places to 7th on the information and communication technology sub-index.