DPP Legislator Liang Mu-yung's (梁牧養) recent interpellation at the legislature about the possibility of replacing heads of state-owned enterprises has caused many ripples. The situation can be described by an old Chinese saying -- "a breeze ruffling the green pond water" (吹皺一池春水). Personnel matters of major state-owned enterprises such as Taipower (台電), Chinese Petroleum (中油), China Steel Corp (中鋼) -- as well as other influential organizations including the Chinese Securities Association (證商公會) and China Development Industrial Bank (中華開發工業銀行) -- are now the subject of much controversy.
On the one hand, some believe that DPP government officials have gotten "entirely different heads now that they are in different seats" (換了位置就換了腦袋). Thus, the DPP government now appears no different from its predecessor -- the former KMT government. The DPP frequently treats management positions at state-owned enterprises as political rewards to be handed out. On the other hand, others believe that if the DPP government's hands are tied by the opposition parties on these matters, the government will be deprived of control over personnel. Both sides view the issue as an exercise of power and both appeal to the people for support and sympathy.
There are others who examine the issue purely from a standpoint of professionalism. Some whosupport the DPP government's decision to replace the heads of state-owned enterprises are critical of the professional capabilities of current enterprise heads. Those opposed to the decision, however, may see the current heads as "gods of business" (經營之神) who are absolutely irreplaceable.
I believe the issues should not be simplified like this. If professional capability is so important, why can't both sides sit down and come up with a mutually-acceptable decision? Is the ability to wield power so important? If yes, must Taiwanese people suffer as a game of "musical chairs" is played at state-owned enterprises and other government units each time a new regime takes power?
In my opinion, if the winner of the presidential election is capable of doing a good job at policy implementation only after firing all government officials appointed by his predecessor, the possibility of achieving political stability in Taiwan will be slimmer than the chances of "catching a fish in a tree"(
Perhaps what we should do is seriously consider the following question: Why is a political party that has sworn to uphold "democracy" and "progress" in the past so obsessed with the ability to wield power? Doesn't it care about people's criticism of its "abhorrent table manners" (
Economic development in Taiwan is heading toward a so-called "network economy" (
Because of their significant capital, state-owned enterprises, financial institutions and the rising telecommunications industry have secured leading roles within these networks and have therefore become the focus of people's attention.
Since these enterprises are headed by professional managers, there is the danger that inappropriate personnel replacement might have serious consequences. Because these managers usually enjoy great power and influence, and since there are inadequate regulations regarding their replacement, deciding who fills these posts has become a "necessary evil" for politicians.
In view of the deep-rooted problems stated above, if Taiwan's political development is to head toward a separation of politician-business entanglements, some new thinking on the issue is badly needed. First, politicians must have the determination and commitment to help Taiwan come out of the cyclical reruns of "musical chairs." This means the ruling party should exercise its power modestly in reshuffling government posts. The arrogance of power should be avoided, and all management positions should be selected based on their professionalism and political neutrality.
Finally, a real long-term solution to the problem would be to amend the law so as to increase the legal accountability of the heads of publicly traded firms in Taiwan. The amended law should also regulate the selection of board members at large enterprises as well as their strategic alliances, placing these firms under the close supervision of the government. That's how Taiwan can become an advanced country, and how our professional managers can run their companies based on sound business concerns, instead of political ones.
In other words, let politics stay politics, and business stay business.
Stephen Tsai is dean of the College of Management at National Sun Yat-sen University.
Translated by Eddy Chang
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