The Economic Development Advisory Conference (EDAC) ended Sunday after passing 322 proposals for revitalizing the economy. The suggestions include relaxing the "no haste, be patient" policy and replacing it with "active opening, effective management," planning direct links with China, reviewing the debt ceiling, drawing up tax-cut plans and encouraging business innovation and R&D. Both in scope and scale, these proposals are on a par with those raised at the 1985 economic reforms conference, which was aimed at pulling Taiwan out of an oil crisis.
The suggestions are also not too different from those made earlier this year at the Executive Yuan's National Economic Development Conference. The key question is how the EDAC proposals are to be implemented. The biggest difference between the EDAC and the Executive Yuan's conference is that the opposition alliance boycotted the latter but participated in the former. Under pressure, the government has given up some of its policy-making powers in exchange for cooperation and endorsement from the opposition parties. The relatively harmonious political atmosphere is the most important reason for the conference's success.
But the smooth proceedings are only a first step in revitalizing the economy. The government faces many other obstacles. It needs to seek cooperation from the opposition in implementing conference conclusions. The KMT has already invited different parties to negotiate on the matter. The DPP should seize this opportunity and demand that all political parties respect the conference's consensuses and use it as a basis for the negotiations -- instead of creating more acrimony over the "1992 consensus" or "`one China,' with each side making its own interpretations."
Most of the conference's proposals are within the remit of the Executive Yuan, which should implement them as soon as possible. For those conclusions which necessitate legislation or budgets, the government agencies should integrate the implementation work -- including, for example, the resources and budgets needed for tax cuts, increased government spending and the issuance of government bonds -- and start coordinating with the Legislative Yuan as soon as possible. The next session of the legislature begins in mid-September and finishes at the end of October. Given the pressure brought by the year-end elections, both the executive and legislative branches should establish a time-saving model for the conference conclusions, whereby the legislative process is sped up by skipping the traditional first reading of legislative proposals.
As for cross-strait economic and trade relations, the government should come up with clearer definitions of concepts such as "effective management" and "minimizing the impact on national security" in order to ease public worries. Some suggestions are not in Taiwan's power to fulfill, such as direct transportation links with China. If Beijing does not want to cooperate or if it continues singing the same old "one China" tune, the conference's suggestions may follow the fate of "small three links." Taiwan should make good use of various channels, such as freight companies and future WTO negotiations, to conduct the necessary negotiations with China.
President Chen Shui-bian (
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