The government should try to determine why it has been incapable of directing Taiwan's transforming economy over the last few years and guaranteeing growth as it followed pro-China opinion -- with its enthusiasm for developing export trade -- and mistook the deregulation of trade with China for globalization. The result is that when the alarm is raised because dependence on China is clearly too high, this is seen as being isolationist.
Additionally, although the massive move of industry to China has helped businesses grow and cut costs, important tasks such as technological upgrades, innovation, and research and development have been neglected. This includes the local technology industry, whose production volumes are among the world's highest. Profits and added value in this segment are on the low side, which shows that further efforts are needed to improve the economy and industry as a whole.
What the transforming Taiwanese economy needs is improvement. In other words, it needs to strengthen trade, technological cooperation and exchanges with other advanced countries. This is true for the technology sector as well as other industries. When it comes to developing tourism, for example, the focus should be on attracting tourists from the US, Europe and Japan, and not on suspicious Chinese tour groups. In the same way, there is much more money to be made by exporting the many excellent varieties of Taiwanese fruit to Japan and the US rather than China.
As for international development, foreign investors have in recent years shown an interest in investing in Vietnam and other Southeast Asian countries, as well as India. Taiwan should consider reinstating the "go south" policy. When necessary, Taiwan should cooperate with Japan, and reduce the risk that comes with big investments in China.
The domestic investment environment must be improved and the government should pay attention to and service those who work hard in Taiwan. Legislation should be relaxed, administrative efficiency improved, the tax system made more reasonable and the financial system reformed.
But these issues cannot be suddenly brandished during election campaigns, and it is particularly inappropriate to let them become mere formalities handled in big meetings. Instead, such meetings should be carefully planned and debated throughout society, and efforts should be made to bring hope for Taiwan's future to those who make their lives here, be they business owners or workers. This is the government's unshirkable duty and the legislative opposition should also stop their prolonged protests which are affecting the economy as a whole.
Translated by Perry Svensson
RSS