Meanwhile, elected institutions and social populism reject new economic models based on thinking rooted in a traditional agricultural society.
As a result, it is becoming increasingly difficult to upgrade the Taiwanese economy and get it on track with the rest of the world.
If the nation remains stuck in the physical economy, and fails to see the future, importance and dominance of the symbolic economy, how will it ever be able to create enterprises such as Google or Facebook?
A major problem is that accounting principles, based on the mindset of agricultural societies, and regulations based on the physical economy, are not ready to tolerate or recognize the market value of a new knowledge-based society. This denies the feasibility and suitability of using real assets to operate a business that may increase profit by 1,000 or 10,000 times.
This kind of institutional obstacle is the worst hindrance to economic innovation, industrial upgrade and a breakthrough in businesses operations.
Such an approach would seriously damage the attractiveness and competitiveness of Taiwan’s investment environment.
This is a serious problem that those in positions of power and the public must tackle head-on.
Bert Lim is president of the World Economics Society.
Translated By Eddy Chang