Those who are concerned about Taiwan's agriculture have long noticed that the government's attitude toward the sector is getting worse. If the situation continues, the agricultural sector will decline further and become a depressed industry.
It took Taiwan more than 10 years to enter the WTO. During this time, the government advised farmers to innovate in preparation for the impact WTO entry would have on the industry. It would also be useful if the government increased the research and development (R&D) budget for agricultural technology to develop new products and improve the quality of old products to compete with foreign imports. But the fact is, according to the Directorate General of Budget, Accounting and Statistics, the budget for agricultural technology R&D has actually decreased -- from 7.3 percent of the Council of Agriculture's annual budget in 1994 to 4 percent in 1998 and 3.7 percent next year.
This year, in which the agricultural sector is feeling the initial effects of WTO entry, spending on agricultural R&D fell by NT$100 million from the year before. Next year, spending on R&D will rise by only NT$20 million from this year. The government does not seem very determined in wanting to strengthen Taiwan's agricultural competitiveness.
At this critical moment for Taiwan's agriculture, the government has budgeted NT$23 billion for subsidies to older farmers but only NT$3.1 billion for agricultural technology R&D. Such money is clearly insufficient, especially when compared to the NT$17 billion budgeted for the "special science and technology projects" of the Ministry of Economic Affairs and the NT$30 billion for the National Science Council's science and technology budget. If there had been sufficient spending on R&D to develop new products, the impact of agricultural imports after Taiwan was admitted to the WTO would have been largely mitigated.
Agricultural production grew by about 1.4 percent a year in the 1980s. However, production fell by an average of 0.1 percent a year in the 1990s. There are many reasons for this, but the government's failure to invest in agriculture is surely at least partly to blame.
In the Netherlands in the 1980s, the agriculture sector grew by 3.4 percent a year on average, and in the 1990s by 3.7 percent a year. Belgium's agriculture sector grew an average of 2 percent a year in the 1980s and by 1.7 percent in the 1990s. In both countries the agriculture sector has been growing faster than the manufacturing and service sectors. Thus, agriculture is not necessarily a sunset industry. It will become a sunset industry only when the government abandons it.
Local newspapers recently reported that the Council of Agriculture has been promoting cobia, a large saltwater fish, as a product Taiwan can push in the world's agricultural market. The council may even use cobia to compete with Norway's salmon, the reports said. However, fishery authorities have budgeted only NT$160 million for the next fiscal year on developing this sector, prompting the question: Does the government, which thinks only of high-tech industry, really want to give up its agriculture?
There are only sunset products, not sunset industries. The government should assist agricultural sector to improve its competitiveness. It should not paralyze our farmers, who are gradually losing their competitiveness through the system of welfare subsidies.
Tu Jenn-hwa is an associate professor at the Graduate Institute of National Development at National Taiwan University.
TRANSLATED BY EDDY CHANG
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