The recent probe by prosecutors into alleged financial irregularities involving former KMT business chief Liu Tai-ying (
The Zanadau scandal is a classic case of Taiwanese cronyism. It is also a bedrock for the continued growth of vote-buying and organized crime.
Even though the reform-minded Chen has pledged to root out corruption, "black gold" politics and government inefficiency have remained major public concerns.
Reports by international risk-assessment companies all indicate that corruption and government inefficiency are the most important concerns of foreign investors in Taiwan.
It appears that the government's achievements of the past two and half years are not enough. The main obstacles come from vested interests and under-the-table financial transactions. Liu's scandal only scratches the surface of this web of political connections.
What breeds the growth of such cronyism?
Taiwan has enjoyed a high degree of social mobilization and and a considerable expansion in participation in politics, especially since the lifting of martial law and the advent of open competition between political parties.
The primary problem of politics and economics in Taiwan, therefore, is the lag in the development of institutions and the rule of law following rapid social and economic change. If the Chen administration cannot respond to the question decisively and resolutely, political degeneration will follow. This has become the real threat to Taiwan's political and economic system.
Chen must understand the nature of this deep-rooted culture in Taiwan before dispensing the medicine necessary to cure it. Otherwise, the DPP government will meet with the same pressures that it encountered as it dealt with the farmers' and fishermen's associations.
Chen should bear in mind that social mobilization increases people's aspirations. Economic development increases the capacity of a society to satisfy those aspirations and therefore tends to reduce social frustrations and consequent political instability. Social mobilization is much more destabilizing than economic development, especially when the economy is experiencing a downturn.
In the face of such a "hot potato," what concrete steps should the government take?
Firstly, it should demonstrate the continuity of the policies it has adopted and a steadfast resolve to make public the facts behind the scandals. Independent investigations should be continued. No further about-faces should be made under any circumstances whatsoever.
Secondly, it should educate the public about the need for electoral reforms as well as the introduction of so-called "sunshine legislation" such as the Political Contribution Law, Lobbying Law and Political Party Law.
Thirdly, it should increase the transparency of government decision making processes and impose limits on lobbying.
Finally, the nation's unique and independent judicial system should be protected from political influence.
While the government has pledged to eliminate "black gold" and clean up politics in Taiwan, it should give priority to the question of how to keep Taiwan from moving toward political decay.
The Zanadau scandal is just the beginning.
Liu Kuan-teh is a Taipei-based political commentator.
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