President needs dose of courage

The sluggish housing market, the crashing stock market, the wild devaluation in the currency market and the economic slowdown are an ongoing source of anxiety for the people. The new government has a batch of slogans, such as "Asia-Pacific Operations Center," "Green Silicon Island," "Knowledge Economy," and "Taiwan Double," to address the issue, but the policies behind the talk remain vague.

After more than six months the new government's economic policy is still limited to palliative crisis management. Temporary measures to alleviate complications have far outnumbered comprehensive programs that would get to the roots of the problems. The government has promised not to raise taxes, has gone back to the 44-hour workweek, has scrambled to prop up the stock market and proposed a series of measures, including eliminating the business tax for banks, allowing investment trusts to offer discretionary managed trading accounts, consolidating financial institutions, agreeing not to draw from the money supply before April of next year and putting the small three links (小三通) into effect by the end of this year. All of these measures are superficial and hopelessly ineffective for resuscitating the economy.

Facing severe criticism from all sides, the new government is not indifferent. The recent business breakfast meeting guided by Wang Yung-ching (王永慶), at which the tycoon spoke plainly about the country's weakening economy, struck both the president and the premier like thunder. Even the intrepid Vice President Annette Lu (呂秀蓮) was deeply moved. She publicly apologized for a poor record in office and even expressed that she no longer has the intent to run for office again in the future. Be this as it may, the new government is still acting coy, waiting until early January before convening a national meeting on the economy instead of dealing with the problems now.

The new government's failure to act quickly and decisively in urgent circumstances has naturally attracted criticism from all sides. Some accuse the government of inaction; others blast the government for cowardice. The crux of the problem is that since President Chen Shui-bian (陳水扁) faced the turmoil over a possible recall, he no longer is willing to unilaterally raise important policy measures in the face of challenges from the opposition alliance. His deep fear of once again facing a boycott has compromised his prestige as a leader. In place of his previous authority is a new preference for appealing to cross-party meetings that can be used to expand social support and make it difficult for the opposition alliance to lightly oppose his policies.

Serious policy delays have resulted from not daring to make decisions unilaterally and instead waiting to convene a multi-party meeting before after which a conclusion is reached with the help of outside forces. Nearly every important policy decision concerning Taiwan's economy has come to a standstill -- for instance, whether or not to establish special economic zones, how to adjust the "no haste, be patient" (戒急用忍) policy, whether or not to open the "three links" (三通) between the two sides of the Taiwan Strait, how to stimulate domestic demand and whether or not to restrict regional construction pending government planning. No wonder DPP Legislator Shen Fu-hsiung (沈富雄) criticized the new government for misunderstanding the situation.