The economy and standard of living are both important issues in the presidential election campaign. Democratic Progressive Party (DPP) presidential candidate Frank Hsieh (
The main difference between the two candidates may in fact lie in the manner in which they want to open up toward China. Ma wants a wider opening, while Hsieh stresses that national security must be a consideration and that the opening of cross-strait trade should be more limited, focusing more on global markets. Although both candidates are talking about a prosperous economy, neither of their economic prescriptions may be what Taiwan needs at this stage.
Although the 5.7 percent economic growth Taiwan experienced last year cannot compare with the double digit growth of developing countries, it was a brilliant performance for an economically developed country. Despite this, many Taiwanese still feel life is hard. Why?
The discrepancy between economic data and daily life is the result of deteriorating income distribution -- economic growth has not trickled down from the top earners to the lower income levels, resulting in an M-shaped distribution. High income earners are monopolizing most of the benefits from capital investments and technological innovation, while middle class incomes are not seeing gains, with many people even falling behind and joining the ranks of low income households, feeding a rapid increase in the newly poor.
This income distribution is the result of globalization and competition with China. Salaries are kept down by China's low prices and cheap labor. As Taiwanese demand higher salaries, companies relocate to China, resulting in a virtual salary freeze in Taiwan over the past few years. As soon as local product prices increase, similar but inferior Chinese products are introduced. Meanwhile the Taiwanese public is also suffering from cost increases brought on global increases in oil, grain and raw material prices.
Although both candidates want to promote economic growth, failure to address unequal income distribution might make that problem even worse, causing even more people to feel exploited. In particular, Ma's 633 policy and his all out promotion of economic growth might have an even bigger negative impact on income distribution than Hsieh's economic policy suggestions, especially since Ma's "cross-strait common market" proposal means further deregulating labor, product and capital exchanges. As far as products, prices, salaries and capital movement go -- these changes could add fuel to the fire of negative impact.
Ma's economic thinking seems to be based on the outdated mindset of a developing country. He seems unable to recognize that Taiwan has already entered the low to medium economic growth phase of a developed economy. At this stage, high economic growth will not necessarily have a positive impact on Taiwan's development because problems are no longer of a supply character, but are rather related to income distribution.
More emphasis on social justice and concern for welfare policies for the lower income levels are what this country really needs.
Recently, China launched another diplomatic offensive against Taiwan, improperly linking its “one China principle” with UN General Assembly Resolution 2758 to constrain Taiwan’s diplomatic space. After Taiwan’s presidential election on Jan. 13, China persuaded Nauru to sever diplomatic ties with Taiwan. Nauru cited Resolution 2758 in its declaration of the diplomatic break. Subsequently, during the WHO Executive Board meeting that month, Beijing rallied countries including Venezuela, Zimbabwe, Belarus, Egypt, Nicaragua, Sri Lanka, Laos, Russia, Syria and Pakistan to reiterate the “one China principle” in their statements, and assert that “Resolution 2758 has settled the status of Taiwan” to hinder Taiwan’s
Singaporean Prime Minister Lee Hsien Loong’s (李顯龍) decision to step down after 19 years and hand power to his deputy, Lawrence Wong (黃循財), on May 15 was expected — though, perhaps, not so soon. Most political analysts had been eyeing an end-of-year handover, to ensure more time for Wong to study and shadow the role, ahead of general elections that must be called by November next year. Wong — who is currently both deputy prime minister and minister of finance — would need a combination of fresh ideas, wisdom and experience as he writes the nation’s next chapter. The world that
The past few months have seen tremendous strides in India’s journey to develop a vibrant semiconductor and electronics ecosystem. The nation’s established prowess in information technology (IT) has earned it much-needed revenue and prestige across the globe. Now, through the convergence of engineering talent, supportive government policies, an expanding market and technologically adaptive entrepreneurship, India is striving to become part of global electronics and semiconductor supply chains. Indian Prime Minister Narendra Modi’s Vision of “Make in India” and “Design in India” has been the guiding force behind the government’s incentive schemes that span skilling, design, fabrication, assembly, testing and packaging, and
Can US dialogue and cooperation with the communist dictatorship in Beijing help avert a Taiwan Strait crisis? Or is US President Joe Biden playing into Chinese President Xi Jinping’s (習近平) hands? With America preoccupied with the wars in Europe and the Middle East, Biden is seeking better relations with Xi’s regime. The goal is to responsibly manage US-China competition and prevent unintended conflict, thereby hoping to create greater space for the two countries to work together in areas where their interests align. The existing wars have already stretched US military resources thin, and the last thing Biden wants is yet another war.