We don't need the Suhua freeway

The proposed construction of the Suhua freeway has recently sparked a lot of debate. The discussions are mostly about the relationship between caring for the environment and economic development, but the details of the supposed economic benefits are rarely discussed. It is generally believed that building the freeway would bring about economic benefits. I think this is a misconception, because the construction of the Suhua freeway does not make economic sense.

The economic aspect of the project can be looked at in three parts: the development of the east coast, Taiwan's development as a whole and global competitiveness.

First, should the freeway go only as far as Hualien? It should go all the way to Pingtung if it is to be built at all, completing the freeway network around the island. The budget for the freeway between Suao and Hualien is NT$90 billion (US$2.7 billion), although extending it all the way would cost at least NT$240 billion. But the population of the area that the freeway would run through from Suao to Pingtung is only 700,000 people, slightly more than the population of Banciao (板橋).

Taking into account the proportion of the nation's population on the east coast, the number of cars using the freeway would be only 4 percent of the number of cars on the west coast's freeways. How big is the economic benefit?

At the same time, the entire Hualien and Taitung valley region has an opportunity to become the world's best, rice producing region. Building the freeway would impose a heavy economic burden on the region, in addition to the environmental damage that would occur. How are these losses taken into account?

Hualien's economy, except for the production of grain, has mostly been built on traditional industry. The lumbering of the early days, the mining of marble and the production of concrete from sandstone meant making a living exporting raw materials, with an environmental cost; it was labor-intensive manual work, not intellectual, and had a low gross profit. Is this an economic development model that can be sustained in the long term, and can it be combined with a developing tourist industry?

The objective of building the freeway is to attract tourists, and develop the economy. The trend in tourism, however, has long been that of global competition. Do people go to Bali or Dubai because there are freeways? Is it because of the natural surroundings that they go there? Of course not, it's because these places can attract people because of their man-made facilities. How many foreign tourists come to Hualien and the east coast? How long can a tourist city last if it only caters to domestic tourists? Now that the trend in international tourism is a locations appeal based on its man-made architecture and facilities, does Hualien City have what it takes to attract tourists? Look at the city's appearance -- the layout of the train station area, the streets and the buildings -- and you can see a lot needs to be done to attract tourists.

Politicians in Taiwan often say that Taiwan should become the Switzerland of Asia. But Switzerland's tourist industry, or its other famous industries such as watchmaking and chocolate, don't destroy the environment. Instead, it is a high gross profit economy built on the attraction of tourists and knowledge-based industries. Compare that to Hualien, that has a low gross profit economic model, built on conquering the environment, and with muaji as its most famous product.

The two places could not be more different. The economy on the east coast will not improve if you just build a freeway through it.

As everyone knows, China's rise has already caused most of Taiwan's low-level manufacturing industry to move across the Taiwan Strait. If Taiwan wants to go the same direction as financial centers such as Singapore, Hong Kong and Dubai, the only choice is to develop a knowledge-based economy. An even bigger threat is that China, using its huge domestic market as an incentive, forces foreign companies to transfer their technology in exchange for orders. From the manufacturing of cars and gas turbines for electricity plants to 3G mobile phones and high-speed trains, technology has poured into China at a speed unprecedented in history.

Could Taiwan's unique advantage last? Yes, but only by following the example of Switzerland and Japan, by a transition to a knowledge-based economy and the further development of the quality of Taiwan's innovative ability.

That's why I believe the construction of the Suhua freeway is a lose-lose situation. Not only would it be no use in developing the economy of Hualien and Taitung, it would also be a waste of natural resources and would damage the local environment. It is a product of the manufacturing-based economy, which demands speed.

As soon as the transition to a high-level, knowledge-based economy has been made, will gaining one or two hours in traveling time really be that important?

What Hualien, Taitung and Taiwan really need is a win-win approach -- develop the east coast into an area of high knowledge, high income and high living quality.

The construction budget of Hualien and Taitung counties is a little more than NT$2 billion in total, the population around Hualien City is less than 300,000 and there are only six universities and colleges in the region. If the next few billion dollars are invested wisely, we can achieve real results. The remaining part of the budget could then be transferred to agencies to improve the nation's knowledge-based economy and its overall competitiveness.

Wouldn't that be a much better course of action for the long term?

Chang Hung-hui is an assistant professor at National Hualien University of Education's department of social development.

Translated by Anna Stiggelbout