Editorial: When size does matter

Oh dear, the government has shot itself in the foot again. On Wednesday the Executive Yuan approved an amendment to the Law on Local Government Systems (地方制度法) lowering the population threshold for special municipality status (直轄市) from 1.25 million to 1 million. This will upgrade Taichung City to a special municipality. The city is overjoyed, but officials from Taichung County immediately went to the Executive Yuan to protest.

Taipei, Taoyuan, Changhua, Tainan and Kaohsiung Counties -- all of which have populations exceeding 1 million -- are also unhappy and have vowed to fight the central government. A war over jurisdiction is about to begin.

After the downsizing of the provincial government, Taiwan's executive system now only has two layers: the central and local (county and city) governments. All county and city governments, as well as the special municipalities of Taipei and Kaohsiung Cities, answer directly to the central government. But the two municipalities have a higher legal status than the counties and "ordinary" cities. Together they get 43 percent of the Tax Redistribution Fund (統籌分配款) -- admittedly down from the previous 47 percent, but rather more generous than the 39 percent shared among the other counties and cities.

On the personnel side, special municipality officials hold higher positions than their counterparts in other county and city governments. The chief executives also enjoy much more freedom in personnel appointments. Mayors of the special municipalities can attend Executive Yuan meetings and participate in government policy-making. They also have much closer ties with the central government and have an easier time getting its support when needed. This is why Taichung City's promotion has its rivals upset.

Taichung City's population has now reached 0.96 million. It is central Taiwan's leading player in the economic, political, consumer and cultural spheres. The upgrade will help balance the development of northern, central and southern Taiwan. The problem lies in the central government qualifying the city purely in terms of population -- a standard that inevitably drew anger from other counties and cities with populations of more than 1 million.

The main purpose of the upgrade was to fulfill one of President Chen Shui-bian's (陳水扁) election promises. The move was also designed to boost the re-election bid of Taichung Mayor Chang Wen-ying (張溫鷹), a DPP member. But Vice President Annette Lu (呂秀蓮) also promised Taoyuan County -- her constituency -- that it would get upgraded first. And there is no reason why Taipei County, with its 3 million-plus population, should not demand promotion. So upgrading only Taichung City is certainly questionable.

Reforms are certainly needed at the local political level, however, they should not be based on half-baked solutions. The government should draft an administrative district division law (行政區域劃分法) and rearrange the resources, populations and finances of the four major regions from the standpoint of overall national land planning. A balanced perspective and strategy would allow the government to upgrade Taichung City while at the same time taking care of the nation's overall regional development.

The government should also amend the current Law Governing the Allocation of Government Revenues and Expenditures (財政收支劃分法), allowing local governments more financial independence and giving them incentives for self-sufficiency. Without this, dogfights over the Tax Redistribution Fund and special municipality status will never end.