Let us suppose that a green apple originally worth NT$10 dropped in value by 80 percent last year before increasing in price 100 percent this year. Let us also assume that the price of a red apple originally worth NT$10, fell by 20 percent last year and then increased by 50 percent this year.
Which apple is worth more today?
The value of the green apple fell by 80 percent from NT$10 to NT$2 and then increased in value by 100 percent, which means that it is now worth NT$4. The red apple dropped from NT$10 to NT$8 and this year increased by 50 percent, to NT$12.
The answer, then, is that the red apple, despite only increasing in value by 50 percent, is more valuable than the green apple that increased 100 percent.
In the last few days, the government has been very pleased with itself after announcing that economic growth for the first quarter was 13.27 percent — the highest since 1978.
Pro-unification media outlets and academics have called this an impressive achievement and pontificated about how it proves that the government’s policies are taking the nation in the right direction.
But is this economic growth rate really as impressive as it appears, or is it just another example of statistical sleight of hand? Do not forget that Taiwan’s economic growth rate for the first quarter of last year was minus 9.06 percent, just about the worst in Asia.
After a massive drop, the economy is certain to bounce back. Singapore’s economic growth rate for the first quarter of last year was minus 9.5 percent, which was also very poor, but first quarter growth this year was 15.5 percent, much better than Taiwan’s 13.27 percent.
Thai Minister of Finance Korn Chatikavanij recently announced that Thailand’s economic growth for the first quarter of this year will be in excess of 10 percent, Thailand’s highest rate in 14 years. This is despite the fact that Thailand has been seriously affected by the Red Shirt protests for the past two months.
Taiwan is clearly not alone then in enjoying strong first quarter economic growth.
South Korea’s economic growth for the first quarter of this year was a mere 7.8 percent, which seems to pale in comparison to Taiwan.
However, it is important to compare like with like, and to do that we need to remember that South Korea’s economic growth last year was only minus 0.2 percent.
In other words, growth of 7.8 percent in the first quarter means that South Korea is much better off than before the global financial crisis, whereas Taiwan has done little more than return to where it was before the global economic crisis hit.
Taiwan’s performance over the last two years has not been as good as Singapore’s and much worse than South Korea’s. As the weakest economy of the Four Asian Tigers, how can anyone claim that the recently released economic figures are of particular note?
If anything, these figures are a wake up call, one that shows the Ma administration’s policy of total deregulation is wrong headed.
Why else would private investment in the first quarter remain stuck at the incredibly low level of 14.9 percent and why else would we have the highest unemployment rate of the Four Asian Tigers?
Perhaps the government keeps harping on about Taiwan’s amazing economic growth to divert attention from less impressive figures in other areas.
The World Competitiveness Yearbook rankings recently released by the IMD business school in Lausanne, Switzerland, ranked Taiwan eighth in the world, up from 23rd place.
According to reports, the Ma administration was beside itself with joy at such unexpected news. It has even gone as far as to declare this the highest form of praise Ma could receive from the international community for his work in promoting an economic cooperation framework agreement (ECFA) with China.
A raise in Taiwan’s global competitiveness rating is a good thing, but is such a leap in competitiveness credible?
Iceland, which was brought to the brink of bankruptcy by the financial crisis, was ranked fourth in the world in 2005 and 2006 and seventh in 2007.
In 2008, the US, which was responsible for the financial crisis, was ranked first in the world and Hong Kong, now clearly marginalized, is always ranked No. 2 in the annual World Competitiveness Yearbook. If Hong Kong really was all that competitive, would it worry so much about Shanghai and Shenzhen overtaking it as a financial center?
On the other hand, if the jump in global competitiveness was really a way for the international community to encourage the government in its promotion of an ECFA, why then did Taiwan drop 10 places in the rankings to 23rd last year?
Rankings provided by overseas bodies are best used as a reference. No newspapers in Japan, South Korea or even China give the global competitiveness ratings such exaggerated importance.
Huang Tien-Lin is a former national policy adviser to the president.
TRANSLATED BY DREW CAMERON
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
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
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
As former president Ma Ying-jeou (馬英九) wrapped up his visit to the People’s Republic of China, he received his share of attention. Certainly, the trip must be seen within the full context of Ma’s life, that is, his eight-year presidency, the Sunflower movement and his failed Economic Cooperation Framework Agreement, as well as his eight years as Taipei mayor with its posturing, accusations of money laundering, and ups and downs. Through all that, basic questions stand out: “What drives Ma? What is his end game?” Having observed and commented on Ma for decades, it is all ironically reminiscent of former US president Harry