Dissecting the `Black Gold' phenomenon

In an unprecedented move to counteract criticism from the opposition Democratic Progressive Party (民主進步黨) for his party's connivance in "black gold" politics, Vice President Lien Chan(連戰), the KMT's presidential candidate, displayed a "looks-real-this-time" determination to fight election-related corruption and the political involvement of organized crime on Jan. 2.

Lien emphasized that putting the KMT's party assets in trust was a "first step" in implementing a "third wave of reform." A follow-up poll conducted by the China Times four days later, however, demonstrated that 51 percent of the respondents treated Lien's declaration as nothing but an "electoral ploy." Of those polled, 55 percent even considered Lien's new policy "unrealistic."

How Bad is "Black Gold"?

Lien's announcement coincided with a survey released by the Common Wealth Magazine (天下雜誌) two weeks ago. The major results of the survey showed that one in four people in Taiwan feel ashamed of the country's rampant official corruption and gang-linked politics. The poll also showed a desire that the government urgently crack down on organized crime and improve public order. Over 60 percent of the respondents cited "black gold" politics as the No.1 reason behind the widening wealth gap in local society.

In terms of "who will be capable of eliminating `black gold' in Taiwan," the magazine's survey showed that among the three leading presidential candidates, Lien trails far behind DPP's Chen Shiu-bian (陳水扁) and independent candidate James Soong (宋楚瑜).

Of respondents, 36.5 percent supported Chen, with Soong and Lien winning only 12.59 percent and 4.05 percent support respectively. If Lien was not simply motivated by electoral considerations, why has he only taken up the issue of reforming the KMT's unsavory financial reputation now, instead of four years ago when he was running for Vice President?

The need to boost Lien's electoral momentum only partially explains the KMT's about-face on "black gold" politics. Further questions still need to be asked about the sources, structure and strategies to deal with such forces that have eroded Taiwan's political and economic base over the last 50 years.

How has the "black gold" phenomenon become a tumor in Taiwan's political and economic system, as some scholars have long claimed? To what extent has "black gold" jeopardized Taiwan's domestic politics and economy? What constitutes the bedrock for the growth of "black gold" elements? What methods might be effective in eradicating "black gold" in Taiwan?

Origins of "Black Gold"

"Black gold" politics refers to the connection between organized crime and government. To understand the origins of "black gold," however, we have to track back to the origins of the KMT.

The KMT was a government-in-exile in 1949 when it moved to Taiwan. It was perceived by many Taiwanese as an "outside regime." Without legitimate support from the bottom, the party had to resort to local elections to mobilize grassroots support. By recruiting Taiwanese from its rank and file, the KMT successfully consolidated its local support through ideological education and the corporatist structure of the party. Through vote-buying and pork-barrel legislation, the KMT has also incorporated local factions into its political machine. Those local factions and its connections, based primarily on marriage, locality, language, clan and fellowships served as the basic network for the KMT's local power. To a great extent, the KMT and "black gold" can be treated as "twin brother."