Taiwan's stock and currency markets plunged on Monday, with the New Taiwan dollar tumbling to its lowest level in two and a half years and the TAIEX dropping 3 percent. The NT dollar fell on speculation the central bank would abandon its defense of the currency in order to boost exports.
The sell-off in the stock market was due in part to the announcement by Morgan Stanley Capital International that it would cut Taiwan's weighting in its global benchmark indexes, and the NT dollar's decline also weighed on investors' minds.
However, some people have tried to link the drop in the TAIEX and the currency to the departure of President Chen Shui-bian (
Yesterday's issue of the Chinese-language Economic Daily News drew a comparison between state visits and the activity in Taiwan's markets on the day the trips began. According to the paper, five of those trips (including Chen's current tour) coincided with major slumps in domestic markets, while the other two visits saw minor rises. The deepest slump came at the start of Lee's September 1997 visit to Latin America, when the TAIEX fell by 312 points. His first state visit, in 1994, triggered a 278-point fall.
Other people have pointed to Chen's comments about the markets as cause for concern. During last year's election campaign Chen promised, "If I get elected, the stock market will surge to 10,000 points." Such campaign propaganda is far from proper. Showing that he hasn't learned his lesson, however, during a meeting last week with media executives, Chen said off-handedly that they need not worry even if the NT dollar fell to NT$34 against the greenback.
This comment, combined with the extensive coverage of unconfirmed reports from the Taiwan Research Institute about allowing the NT dollar to sink to NT$40, dealt a blow to the financial markets. Many people have called for Chen to take more care when talking about the markets.
We think free market principles should dictate economic forces.
We can see why some people might jump to the conclusion that Taiwan investors have no confidence in their state leaders and have little sympathy for their country's diplomatic developments. How could one think otherwise, when some people, in reaction to pro-unification media, try to block Taiwan's diplomatic initiatives and even suppress innovation under the pretext of avoiding Beijing's anger? When a suggestion was made to add the word "Taiwan" to passports, some immediately dubbed the idea "pro-independence" and claimed the move would only anger Beijing. This kind of talk shows confidence among some people in Taiwan is so low that they are afraid to act freely.
A people with no confidence cannot possibly have a country with dignity. For half a century, the people of Taiwan have lived with a sense of insecurity and instability. But if we remain blind and unwilling to cultivate our own ability to resist China's threats today, what free, democratic, lawful and prosperous future can we hope for?
Lee used the term "gemeinschaft of destiny"(
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