The Council for Economic Planning and Development (CEPD) last week said economic indicators last month flashed a “green light” for the first time in 18 months, showing that Taiwan’s economy is stabilizing.
Also last week, the Cabinet approved the CEPD’s proposals for the “i-Taiwan” 12 construction projects, calling for up to NT$3.99 trillion (US$123.8 billion) in investment between now and 2016, including NT$2.79 trillion in government funds and, the Cabinet hopes, NT$1.2 trillion from the private sector. It is estimated that these construction plans will boost real GDP by 2.95 percent annually and create 247,000 jobs annually.
The “i-Taiwan” projects were a major part of President Ma Ying-jeou’s (馬英九) campaign platform. They include plans for a convenient, nationwide transportation network; revitalizing Kaohsiung Harbor; creating a central Taiwan high-tech industrial cluster; creating an airport city around Taiwan Taoyuan International Airport; promoting industrial innovation corridors; revitalizing cities, industrial parks, farming villages and coastal areas; reforestation; building sewers and works to combat flooding and improve water management.
In all, the proposal includes 284 construction projects, from which every part of Taiwan could expect to benefit to some extent.
But the opposition has cast doubts on the government’s motivation for highlighting these projects in the run-up to Saturday’s regional elections. In response, Cabinet Spokesman Su Jun-pin (蘇俊賓) made the astonishing claim that elections are never a factor in the government’s policy decisions.
Announcing beneficial policies at an opportune time ingratiates the government to voters. The government is using this to its advantage, as also happened under the Democratic Progressive Party administration.
Campaigning for Chinese Nationalist Party (KMT) candidates on Kinmen a couple of days ago, Premier Wu Den-yih (吳敦義) said construction of a bridge linking Kinmen with Xiamen, China, would start around the end of next year. The bridge proposal has been around so long that local people jokingly call it the “pontoon bridge”: It floats in the run-up to elections, but sinks as soon as they are over.
On the campaign trail in Hualien County, where the KMT faces difficulties at the polls, Ma, who is also KMT chairman, said work to electrify the east coast railway and make it double tracked would start this Friday. That happens to be the day before the elections. Of course, Ma did not forget to mention the proposed Suhua “supplementary road” either. These projects are often mentioned at election time.
The public, hit hard by the economic downturn, wants the government to propose construction projects or other ideas to boost the economy.
Any signs of economic recovery should be reported immediately, but it should come as no surprise if the government postpones such announcements to directly before the elections. It may also put off unpopular moves like raising fuel prices or increasing national health insurance fees until after votes are cast.
But Taiwan has an election almost every year. Voters would be wise to watch out for such electoral maneuvers.
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