On Sept. 2, independent Taipei mayoral candidate Ko Wen-je (柯文哲) praised the rule of former president Chiang Ching-kuo (蔣經國). This drew much criticism from people who said that Ko’s understanding of past dictatorship was too shallow. Ko’s campaign team responded by saying that “different value systems should respect one another,” appearing to acknowledge the legitimacy of authoritarian rule in the run-up to the democratic nine-in-one elections.
Analyzing the relationship between industry, government and academia, using the recent protest by workers from the WiMAX industry in front of the National Communications Commission (NCC) against the commission’s rejection of a WiMAX operator’s license renewal application as an example, it is possible to question whether the nation really misses Chiang’s model for industrial development, controlled by a dictatorship.
Looking at the history of industrial development during the Chiang era, it is easy to spot the particularities of an authoritarian government’s industrial policy: Political elites were appointed by the dictator to select the key sectors for industrial development. The highly cooperative and flexible administrative branch then came up with a complex set of laws that appeared to emphasize administration in accordance with the law that offered the companies that entered these sectors various preferential treatments such as capital, land, tax incentives, special permits and even preferential treatment when hiring workers.
This industrial structure created the myth of Li Kwoh-ting (李國鼎) — who has been called the godfather of Taiwan’s technological development — which still enthralls the nation and what, from a longer-term historical perspective, looks like Taiwan’s fleeting prosperity.
In addition to the big corporations that still enjoy advantages within the government-industrial-academic network as a result of the development of the petrochemical and high-tech manufacturing industries within this “Chiang Ching-kuo paradigm,” this development model was also responsible for numerous negative consequences that the nation still suffers today, such as environmental, work safety and unemployment problems that will be passed on to future generations. It also created a rich hereditary elite who continue to profit from their position within the opaque industry policy system.
Take, for example, Taiwan’s WiMAX policy that both the Chinese Nationalist Party (KMT) and the Democratic Progressive Party governments were involved in during different stages. This policy has always followed the development model described above to “reduce risk.” The result was that the WiMAX industry was doomed to fail almost from the start, despite being one of the 10 “star” service sectors the government is trying to boost.
The only difference is that in democratic Taiwan — where none of the ways to cover all negative consequences that existed under a dictatorship exist — there is, surprisingly, no industrial planning and management accountability mechanism. Therefore, it is no wonder that WiMAX operators, who should shoulder all market risks themselves, are accusing the government of suddenly breaking its promise.
The failure of the WiMAX industry involves more than just an effect of the suspension of specific technological development by Intel Corp — highly valued as a partner by the government at the time. It also involves the government’s huge investment in promoting “star” industries and the valuable public resources invested in the radio spectrum. These are important issues that deal with intersecting areas between government and industry that a modern public should pay attention to.
Based on the principle of democratic accountability, the government, at the very least, has the obligation to make public its WiMAX policy decisionmaking process and related measures.
Some of the commission members were deeply involved in research concerning the WiMAX and the radio spectrum planning. Seeing the industry collapse in just five years demonstrates how much of this failure can be blamed on the government’s lack of sufficient understanding of the particular features of the Taiwanese market and the global industrial environment.
US and European markets began embracing 4G LTE technology in about 2009. What role does the government’s WiMAX policy play in the delay of the more advanced 4G LTE technology? How many operators, officials and academics are involved in “rent-seeking” as they try to enrich themselves?
During this process, we have seen enough of everyone from President Ma Ying-jeou (馬英九) down to the various ministers shaking hands on stage. Still, no one has an answer to why the innocent and hardworking public must shoulder the responsibility for the failed industry policies that these politicians directed.
Precisely because the nation is no longer a dictatorship, opaque policies created by appointed individuals in industry, government and academia should no longer be accorded democratic legitimacy just because of claims that they are based on the professional judgement of specialists.
Mistakes resulting from ignorant and inept government decisions must not be explained away by euphemistic and obscurantist talk of “the market economy” or “administration in accordance with the law.”
The pursuit of a truly democratic industrial policy and regulatory framework is the best explanation for why it is better to face reality than it is to wax nostalgic about past dictatorship.
Liu Ching-yi is a professor at National Taiwan University’s College of Social Sciences.
Translated by Eddy Chang
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