Taipei Times: How would you rate the outcome of the Economic Development Advisory Conference and what is significant of the event in terms of improving the economy?
Tu (
PHOTO: CHIANG YING-YING, TAIPEI TIMES
If you look at Taiwan over the last 50 years, it was ruled by one party -- a dictatorship. Last year when the DPP took over the administration was the first time the ruling party was a minority party and also the first time that multiple sects emerged from multiple parties in the Taiwan political arena.
So I would say that Taiwanese society has not really learned to build a consensus under this kind of new environment. The Taiwan-ese community is still exploring how to build a consensus. We can therefore say the conference was the most successful consensus- building since the president took office.
In the beginning, I could not understand why [President] Chen Shui-bian (陳水扁) required a consensus. Because he said in the kick-off meeting that if the conference reached a consensus then the Cabinet members had no right to veto the decisions. Throughout this meeting I was very angry because basically there were a lot of proposals, yet only one or two that were rejected. That is not really a good sign.
But after that I understood why the president required that, because it forced us to reach out to people [in the conference], to seek a consensus.
I think the most important proposal is the conclusion by the sub-committee related to cross-strait ties with China. Actually, in the second day of the three-day conference I could feel that the atmosphere of positioning and posturing had changed. We had reached a consensus [on the issue] by unanimous vote as a package deal.
That was a controversial issue on which to reach a consensus. That was quite a success for Chen. And it was presented in a way that the other side of the Strait understands -- that this was a consensus decision formed by a conference.
Our sub-committee had 98 proposals, and [multiple ministries'] heads and business leaders took part and everybody was willing to listen to other members opinions. Also there was a consensus among all of us to try to do something for Taiwan. We did come out with some recommendations to help Taiwan get out of the current economic situation.
TT: What was learned at the conference about the way the government manages policy-making?
Tu: If you look at Taiwan versus Japan -- I often make the comparison since they too have a leader who is from a minority party -- they are quite similar in that their businesses are still very much on the cutting edge of technology.
If you look at Taiwan's information technology side, it's one of the leading countries in the world. But if you look at the overall [domestic] infrastructure, it has not really caught up with the speed of the technology sector.
And in Japan, the distribution channels for doing business are the same as those from 50 years ago, so they are very backward in that way. But one way we are different from Japan is we could hold this meeting and find consensus. I think it would be very, very difficult for the Japanese to build a consensus given the way they communicate.
One of the significant conclusions of the conference came on the last day of the event, during Chen's speech. He specifically pointed to a recommendation of the investment committee that the government should organize a presidential committee to really look into reforming the government. In this, the 21st century, the economic climate is changing so rapidly that the government has to look not only at how to become more efficient, but also really review the model of government.
I really hope Chen is going to do this and thereby allow the government to catch up with the high-tech sector.
TT; Many people oppose the relaxing of China trade restrictions, fearing it could speed up the exodus of capital and people to China. Are those fears real?
Tu: Cross-strait opening is positive. My perspective on the "no haste, be patient" policy is that I have to give [former president] Lee Teng-hui (
Ten years ago when I was in China as the chairman of Goldman Sachs Group Inc, he pointed out that the opening of the Chinese market was one of the most significant human events -- similar to the industrial revolution in the US. Unfortunately, the policy was a little bit too Japanese style: passive, negative and set up as a barrier or a dam at that time, which the water [eventually] flowed over.
So I think the answer would be to adopt a US method of solving the problem: Don't try to stop the flow but instead turn it to your advantage. That's what Lee didn't do.
If you take a good look at Taiwan enterprises they have to become global firms. Their customers are global, their products are global and their technologies are all global. Taiwanese have to go to China for the markets, for the cheap labor and for the customers who are asking them to be there. And if they don't go they won't be able to survive.
The "no haste" policy was not a help but a handicap. I think the new policy slogan of "active opening, effective management" is the correct direction if you recognize that the China is going to become the biggest market in the world. I thinks it will become bigger than the US market one day.
Taiwanese should take advantage of the culture, language and geographic position of China. Of course many people say that this will put too much capital and too many people into China and hollow out the Taiwan economy.
What Taiwan should do is build a bird nest instead of a bird cage. If a bird is locked up, once it gets out it will never come back. But, if you build a bird a nest, they will go out and when they need to lay their eggs they will come back. So build a place that Taiwan businessman want to come back to. That's the direction I think Taiwan should ultimately go.
Implementation of that plan will take time and the wisdom of the government and businessmen working together.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft