Barring something drastic, the next president will be either the Chinese Nationalist Party's (KMT) Ma Ying-jeou or the Democratic Progressive Party's (DPP) Frank Hsieh. Regardless of who is elected, there are some steps that need to be taken, or else Taiwan is going to go down the drain.
The following are five steps that the next presidential administration should take:
One, greatly expand nuclear energy. Taiwan is in a precarious situation. The nation is an island and almost totally dependent on oil imports from the Middle East for energy. This means that a hostile nation can blockade and cut off Taiwan's energy supply at will.
Nuclear energy is extremely clean, efficient, cheap and powerful. With nuclear energy, Taiwan will not only be more independent, but will also have cheaper and cleaner energy. Taiwan should undertake a rapid expansion program to have a total of 12 nuclear reactors by the year 2025, and perhaps 20 by the year 2040.
Two, increase annual defense spending to 3.5 percent of GDP. The current increase in the defense budget to 2.85 percent of GDP is a good thing, and President Chen Shui-bian (陳水扁) has requested a further increase to 3 percent of GDP for next year's budget. That is insufficient, however.
Military spending has steadily declined ever since the DPP took power. The next presidential administration should increase defense spending in incremental levels -- from 3 percent next year to 3.2 percent in 2009 and 3.5 percent in 2010 and keep defense spending at that level. China is more dangerous a threat than ever, and Taiwan must take the necessary steps to strengthen its self defense capability.
Three, stop deficit spending. Taiwan's national debt -- only 6 percent of GDP in 1991 -- is now 39 percent and still growing. The next administration must reduce the national debt to an acceptable level, or even eliminate it entirely.
Four, permit direct links. Allowing direct transportation to China is a wise move regardless of whether one is pan-blue or pan-green. From the pan-blues' perspective, direct ties with China would translate into additional trade, business and investment in China. From the pan-greens' perspective, Taiwan is sovereign and has direct ties with every other sovereign nation in the world, so why not China?
Five, accelerate research and development of Taiwan's methane hydrate reserves. Researchers have discovered enormous methane hydrate reserves in surrounding territorial waters that, by some estimates, are sufficient to supply local energy needs for 60 years. This could be the energy source of the future. Taiwan should undertake efforts to exploit them rapidly. Additional funding should be diverted toward this project to enable Taiwan to begin exploiting methane hydrate reserves for commercial use by 2020.
Benjamin Fan
Chiunglin, Hsinchu County
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