Tomorrow, farmers' associations across Taiwan are set to hold elections, with the polls for fishermen's associations set for next month. These grassroots-level cooperatives are seen as the power base of local factions in rural areas because their elections can directly influence local government elections and the balance of power. These "small-scale" polls are therefore seen as an overture to the year-end legislative, city and county elections.
Intimidation by gangsters, violence and vote-buying have become the most salient features of these elections, because local factions have so much stake in them. Association board members are elected through a block vote method. They in turn elect the chairperson and CEO. Such a system has created a winner-takes-all situation, allowing the victorious faction all-out control of an association -- especially the treasured credit cooperatives. Lacking reasonable supervision from other parties, the credit cooperatives all too often fall into the hands of just a few people, which has often lead to serious problems with illegal or bad loans.
According to statistics released by a legislator last December, the credit cooperatives of farmers' associations have a staggering ratio of 15.7 percent non-performing loans. Council of Agriculture Chairman Chen Hsi-huang
The problems inherent in Taiwan's local elections and grassroots financial institutions have their roots in these associations. Naturally, the KMT does not want to change the structure of associations because they have helped the party consolidate its power base in the past by establishing a symbiosis of interests with local factions. Since coming to power, the DPP government has tried to reform, through legislation, the organization, operations -- and especially elections -- of the associations. But the KMT has stalled review of the bill in the Legislative Yuan.
Reforming the farmers' and fishermen's associations will be a first step in salvaging local politics and grassroots financial institutions. First of all, farmers' and fishermen's credit cooperatives are no longer compatible with the needs of Taiwan society. In readiness for WTO accession, the government should encourage the establishment of larger farms and increase competitiveness. The government should also crack down on irregularities and bad loans in the cooperatives, and merge these institutions into specialized banks. The associations, meanwhile, should specialize in providing guidance in the production and sale of agricultural products.
The election mechanisms of the associations also need a major overhaul. Block voting should be replaced with a direct vote or a limit vote method in order to ensure that different factions can have their candidates elected and that no single faction can monopolize power. To prevent "black gold" infiltration, people with criminal records should also be barred from the posts of chairperson and CEO.
Even though the legislative amendments have run into obstacles, this does not mean efforts to bring about reforms in the associations have been halted. The Ministry of Justice has ordered an all-out crackdown on vote-buying. Prosecutors nationwide are already handling 130 such cases. Even though the crackdown will not change the structural problems, it could still be an effective antidote to tackle the symptoms of black gold politics.
We call on both the ruling and opposition parties to face up to the future impact of WTO entry on Taiwan's farming industries. To this end, we call for swift passage of the legislative amendments and structural changes in the farmers' and fishermen's associations, all of which will lay the foundation for grassroots political and economic reforms.
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