Deputy Minister of Economic Affairs Woody Duh (杜紫軍) has apparently learned a lesson from his soon-to-be ex-boss, Minister of Economic Affairs Chang Chia-juch (張家祝).
Chang tendered his resignation last week, blaming the uphill struggle to push through crucial industrial policies and legislation at the legislature and political flak over the Ministry of Economic Affairs’ handling of the gas pipeline explosions in Greater Kaohsiung that killed 30 people and injured 310.
It is crystal clear that poor communication is one of the main reasons behind Chang’s failure to gain public approval to carry out those economic and industrial policies, as well as for the harsh criticism of the ministry’s inadequate oversight of industrial gas pipelines in the southern city. The failure is eroding the public’s confidence in the government.
Duh apparently understands that and intends to remedy the situation. In a goodwill gesture, Duh said on Monday, one day after the Executive Yuan announced his appointment, that he planned to visit legislators as soon as he assumes the post on Friday.
“There is room to discuss industrial policies. We have to sit down first and talk to reach consensus,” Duh told reporters.
That may be a good start for Duh, and a smart move because the ministry is facing strong opposition from legislators and the public over a number of government policies, including the signing of a service trade pact with China, mapping new energy policy after the suspension of construction at the Fourth Nuclear Power Plant and the free economic pilot zones program.
Duh has been widely described by local newspapers as the ideal successor to Chang because he is expected to “seamlessly” bring those policies under review into practice, judging from his role as Chang’s deputy and his 30 years of experience at the ministry.
Are these expectations valid? It is true that Duh is capable of executing the polices the central government has been promoting. There is no doubt about it. However, there is a big question mark — will the service trade pact with China boost Taiwan’s economic strength? Will the pilot zones help local industries grow and prepare for further liberalization? Is the government ready with a new energy policy after suspending construction of the nuclear power plant?
There is ample room for debate. Obviously, people still have serious concerns about whether those policies will be more beneficial than detrimental if free-trade talks will result in more market liberalization.
Not only is the long-term impact of the government’s economic policies under question, but the government is also short of substantial measures to boost wages and speed up industrial upgrades — two of the most important issues for the nation’s economy.
Local corporations announced payroll hikes of 5 percent on average earlier this year, mostly based on their performance, rather than positive feedback to the government’s calls.
The ministry in June proposed granting small and medium-sized enterprises tax cuts if they raise salaries for their Taiwanese employees, but the proposal still requires approval from legislators.
The government also lacks measures to help local companies in the manufacturing and service sectors migrate to become providers of advanced technologies or value-added services. Local executives know they must transform their firms into higher-level companies, but without more help from the government, upgrades will only take place at a snail’s pace as it will require money, talent and technology.
As long as those two vital economic issues and others central to people’s livelihoods and industry’s survival continue to be neglected, there is little hope that Taiwan can strengthen its economy against growing competition from rivals such as South Korea by simply replacing its economics minister.
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