Taiwan’s economy is the 10th-freest in the world this year as improvements in labor and monetary freedom more than offset declining scores for government integrity and tax burden, an annual survey by major US think tank the Heritage Foundation showed.
The showing was the strongest since 2008 and a three-notch improvement from a year earlier, the foundation said on its Web site.
The index covers 12 freedoms, from property rights to financial freedom, in 186 nations.
Photo: Reuters
With its overall score climbing to 77.3 this year, Taiwan was ranked fifth among 43 nations in the Asia-Pacific region and its overall score was above the regional and world averages, the foundation said.
The nation gained points in labor, trade and monetary freedom, as well as judicial effectiveness, but lost points on government integrity and tax burden, it said.
“That is because Taiwan eased labor and recruitment rules last year to allow companies and employees greater flexibility,” the National Development Council said yesterday, adding that the nation also raised the corporate income tax from 17 percent to 20 percent to help make the distribution of wealth more equitable.
A relatively well-developed commercial code and open-market policies that facilitate the flow of goods and capital have made small and medium-size enterprises the backbone of Taiwan’s economic expansion, the foundation said, adding that a sound legal framework protects property rights and upholds the rule of law.
However, Taiwan will need to increase competitiveness and openness by reducing its strategic involvement in the export sector and liberalize regulation of the fragmented financial sector if it is to achieve its goal of reducing dependence on China by increasing commerce with other Asian nations, the foundation said.
Taiwan’s economy has been driven largely by industrial manufacturing, especially exports of electronics, machinery and petrochemicals, it said.
The nation has relied heavily on its economic relationship with China, but has shown resilience in the face of Chinese economic pressure, it added.
China’s ongoing attempts to isolate Taiwan diplomatically threaten the nation’s long-term ability to maintain its presence in overseas markets, the think tank said.
A low birthrate and a rapidly aging population pose demographic challenges, it said.
Taiwan’s judiciary system is independent and largely free of political interference, it added.
“Corruption is much less prevalent today, but remains a problem,” the foundation said. “Politics and big business are closely intertwined, creating opportunities for malfeasance in government procurement.”
The financial sector has continued to evolve and the stock market is open to foreign participation, it said.
Taiwan put up flat showings in business, investment and financial freedom.
Hong Kong ranked No. 1 in economic freedom, followed by Singapore and New Zealand.
NO-LIMITS PARTNERSHIP: ‘The bottom line’ is that if the US were to have a conflict with China or Russia it would likely open up a second front with the other, a US senator said Beijing and Moscow could cooperate in a conflict over Taiwan, the top US intelligence chief told the US Senate this week. “We see China and Russia, for the first time, exercising together in relation to Taiwan and recognizing that this is a place where China definitely wants Russia to be working with them, and we see no reason why they wouldn’t,” US Director of National Intelligence Avril Haines told a US Senate Committee on Armed Services hearing on Thursday. US Senator Mike Rounds asked Haines about such a potential scenario. He also asked US Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse
INSPIRING: Taiwan has been a model in the Asia-Pacific region with its democratic transition, free and fair elections and open society, the vice president-elect said Taiwan can play a leadership role in the Asia-Pacific region, vice president-elect Hsiao Bi-khim (蕭美琴) told a forum in Taipei yesterday, highlighting the nation’s resilience in the face of geopolitical challenges. “Not only can Taiwan help, but Taiwan can lead ... not only can Taiwan play a leadership role, but Taiwan’s leadership is important to the world,” Hsiao told the annual forum hosted by the Center for Asia-Pacific Resilience and Innovation think tank. Hsiao thanked Taiwan’s international friends for their long-term support, citing the example of US President Joe Biden last month signing into law a bill to provide aid to Taiwan,
China’s intrusive and territorial claims in the Indo-Pacific region are “illegal, coercive, aggressive and deceptive,” new US Indo-Pacific Commander Admiral Samuel Paparo said on Friday, adding that he would continue working with allies and partners to keep the area free and open. Paparo made the remarks at a change-of-command ceremony at Joint Base Pearl Harbor-Hickam in Hawaii, where he took over the command from Admiral John Aquilino. “Our world faces a complex problem set in the troubling actions of the People’s Republic of China [PRC] and its rapid buildup of forces. We must be ready to answer the PRC’s increasingly intrusive and
STATE OF THE NATION: The legislature should invite the president to deliver an address every year, the TPP said, adding that Lai should also have to answer legislators’ questions The Chinese Nationalist Party (KMT) yesterday proposed inviting president-elect William Lai (賴清德) to make a historic first state of the nation address at the legislature following his inauguration on May 20. Lai is expected to face many domestic and international challenges, and should clarify his intended policies with the public’s representatives, KMT caucus secretary-general Hung Meng-kai (洪孟楷) said when making the proposal at a meeting of the legislature’s Procedure Committee. The committee voted to add the item to the agenda for Friday, along with another similar proposal put forward by the Taiwan People’s Party (TPP). The invitation is in line with Article 15-2