President Chen Shui-bian (
Chen said he would shoulder the responsibility to lead the government to reform Taiwan's financial system and stabilize the domestic investment environment.
Chen made his comments on the eve of his departure from El Salvador, taking time out to meet with reporters from Taiwan and talk about Taiwan's lagging economy. After leaving El Salvador yesterday, Chen was to travel to Guatemala.
Reacting to severe criticism over Taiwan's worsening economic situation, Chen said the government would adjust its policies to "comprehensively attract foreign investment, rejuvenate the economy and create more employment opportunities."
"To reach those goals, we will speed up public works, eliminate investment barriers and encourage the population to increase consumption and create as many employment opportunities as possible," he said.
Chen also placed some of the blame for Taiwan's sluggish economy on local banks which are said to deny loans to those who may need them.
"In addition to speeding up reform in the financial sector, the government should also monitor financial organizations and how they serve society. The government will do all it can to stop the money flows from drying up," Chen said.
He also said that the proposed Economic Development Consultation Committee was a symbol of the government's resolution to concretely reform both the financial system and the economy as a whole.
The purpose of the committee is to offer suggestions about economic policy to the president, Chen said, "and the key point is that it should transcend differing opinions from political parties to create a consensus among the government and opposition parties."
The president stressed that his government should shoulder most of the responsibility, however he hoped that opposition parties would work together with the government.
"The government is set on leading Taiwan out of the global economic downturn and restructuring the financial system to lead the country back on the road to prosperity," Chen said. "But the government also needs the cooperation of the Legislative Yuan, especially to push through related laws and acts."
He added that many foreign business leaders continued to express their confidence in Taiwan's market economy during his stopover in New York.
Chen said he was concerned about the impact the global slowdown would have on Taiwan's economy and that while the economic growth rate in the first quarter was extremely low, the government would do its best to reduce the influence of international factors.
On Friday, the Directorate-General of Budget, Accounting and Statistics reported that the nation's economy grew by just 1.06 percent in the first quarter, the lowest figure in 26 years.
"Now is the crucial moment for economic reform. Therefore I would again like to appeal to the opposition parties to drop differences of opinion and join hands to win the economic battle," Chen said.
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