More must be done to help the economy

On Feb. 19 the Executive Yuan unveiled the eight measures to stimulate the economy that emerged from the National Econo-mic Development Conference (全國經濟發展會議) in January. Although the announcement is fairly positive in terms of stimulating local business, the proposed measures do not even touch on Taiwan's key economic problems.

The economic difficulties the country faces, apart from the transformation of local business development and the global business slowdown, present two issues. First is the chaotic political scene which has led to investor pessimism and the shrinking or even cancellation of their domestic investment plans. Second is the uncertainty caused by tense cross-strait relations and the delay in WTO entry for both sides of the Taiwan Strait. Unfortunately, the stimulus plan completely avoided these issues, especially the revision of cross-strait policy, which is very much in the hands of the government.

Take the government's first and second measures -- to complete the southern stretch of the third extra-high voltage power line by June 2002 and the reservoir in Hushan (湖山水庫) by 2008. Although the advanced completion of such major public works would be praiseworthy, one suspects the government may have included these two measures -- already in progress -- in the stimulus plan only to put together eight measures, since eight is a lucky number meaning "to flourish" in Mandarin.

For its third measure, the government plans to conduct a survey on the demand for Chinese professionals in Taiwan's high-tech industry and to ease restrictions on the number of overseas professionals allowed in the country. I believe the idea is positive in terms of stimulating Taiwan's "human capital" market and helping local companies to keep their roots in Taiwan. Whether such a policy will meet companies' needs, however, will depend on the regulations which govern implementation of the policy. Currently not only are certain enterprises in need of foreign workers not granted the manpower they require, but families' are also having trouble having applications approved for foreign workers to provide household services. Since the limitation on the number of foreign workers is based on political considerations, I suggest that the government should regulate the total number of foreign workers, instead of placing a limit in each field or for each specific working purpose.

The government's seventh measure is to loosen restrictions on foreign investment in domestic real estate and land and to evaluate the timing and conditions for Chinese investors to invest in real estate. On the surface, the policy is beneficial in terms of maintaining the value of local real estate and solving the difficulties the construction industry is facing today. When the use and control of Taiwan's land resources fail to fulfill today's needs, however, and investment in real estate in both urban and rural areas is strictly regulated by government, how can we expect the country to further attract foreign capital? If the government is trying to attract capital from China to stimulate the declining construction industry through this measure, its efforts will be in vain.

It is my hope that the government will come up with measures to solve these issues. The "no haste, be patient" policy alone has ruined many opportunities to further develop businesses in China. If the government can carry out the opening of the "three links" between Taiwan and China and launch direct trade immediately, how to restart cross-strait negotiations, as well as how to put the "three links" into practice, will inevitably become questions which Beijing must answer.