Government alone not the answer

This will shorten procedures within government agencies. Also, only after being downsized by half will the government seriously consider modifying its role. Let the private sector do what the government is not fit to do. The saved expenditures should then be used to raise the salaries of civil servants. Of course, those laid off should also be given reasonable compensation. When the government is downsized by half and the administrative procedures are cut short, efficiency will improve. Smaller government budgets will make room for tax cuts, thereby reducing the burden on the populace. Only then can we raise our business competitiveness.

These are not my personal opinions. In 1979, Margaret Thatcher pushed for a smaller and more efficient British government. The Labour Party has also made great efforts to carry on with the work. Over the years, the British government has been downsized by 156,000 people or 21 percent. In 1983, the Australian Labour Party initiated a series of reforms in the civil service and government budgeting and downsized the government by 27 percent. In 1993, Then US vice president Al Gore led a reform movement and downsized the government by 330,000 people or 15 percent within five years. In New Zealand, the Labour Party has downsized the government by 50 percent since 1994. Most of the above countries or political parties championed some form of socialism in their constitutions or party charters, but they also had the determination to carry out government reform that entailed a reduction of government control.

Promote local autonomy

Today, apart from tax incentives, the adoption of a "single window" system (單一窗口, whereby one specialized team consisting of employees from various government agencies takes care of an entire application procedure) is an important factor in improving convenience and efficiency. Today, local governments cannot make decisions on rezoning agricultural land into industrial land themselves, so they must submit the application to the central government for approval. The official red tape required in this process is a waste of time. For the companies, it means a loss of opportunity and increased costs. Also, the central government is no more familiar with the daily operations of the companies than the local governments are. When a problem occurs, the central government still needs to understand it through the local governments. When local governments cannot direct local business activities, we can forget about developing industries with special regional characteristics.

To resolve the financial and economic problems facing Taiwan today, we must look to the source of the problems. Only then can we apply the antidotes to get rid of old diseases that have beset Taiwan for so long. Otherwise, we will be keeping ourselves busy for no purpose and miss a golden opportunity for reform.

Shi Wen-lung is a senior advisor to the president.

Translated by Francis Huang