In the KMT era, state-run enterprises not only deposited their monopoly profits in the state coffers but also allowed the party to place loyal henchmen in important positions. They even integrated vertically with party-run enterprises and could be mobilized during elections to buy votes or urge certain candidates to pull out of a race. In this way, they became part of the foundation that consolidated the KMT's authority.
After the transfer of power, the central government attempted to settle past accounts and advocate for reform. Competition in a democracy is precisely striving for votes, and every party or faction takes election victory as its ultimate goal.
To attain this goal, they have no scruples about mobilizing all resources within their control to shape voting patterns. Thus, in the end, all the efforts of both the ruling and opposition parties are for the sake of obtaining votes.
The way votes are cast naturally depends on the analysis and decision making of individuals. To vote or not to vote? And for whom? These are individual matters of cost versus benefit. Policies that might benefit the overall nation or society are not a major factor because they fall into the category that is useful for everybody but nobody cares about.
But benefits given to the individual or one's ethnic group will never be forsaken. Individuals who can attract votes or holders of positions with connection to business opportunities are effective as part of a campaign strategy.
In terms of tactics, this amounts to creating a political environment of mutual benefit in which "you only get what you want if I get what I want."
Given these considerations, managers of state-run enterprises don't need specialized business talent, but they do need skill in using their monopoly power over transactions to allocate business opportunities and thereby create a network of voter support.
The best man for the job is the one who can leverage it to get the most votes for the boss. The logic is the same as that behind delaying the granting of citizenship and voting rights to spouses from China. All such arrangements, in the end, take votes into consideration.
This was the principle behind replacing the chairman of China Steel Corp (
There is no reason to feel surprised. Nor is there a need for too much suspicion or criticism. We can have faith that the market for votes also has an equalizing mechanism. Through the rotation of ruling parties, in the long term, there is at least a chance for some equalization.
Wu Chung-chi is a professor in the Economics Department at National Taiwan University.
Translated by Ethan Harkness
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