Few people will be surprised if Financial Supervisory Commission (FSC) Chairman Sean Chen (陳冲) is tapped today to replace outgoing Vice Premier Eric Chu (朱立倫) as the next right-hand man to Premier Wu Den-yih (吳敦義).
Chen is widely considered most “suitable” for the appointment by legislators across party lines and in his current post as a financial regulator is second only to central bank Governor Perng Fai-nan (彭淮南).
In other words, if Wu is looking to name someone with financial or economic expertise from his Cabinet to fill the vacancy, Chen is the best candidate available. He is also perhaps the most deserving, given that Perng has shown little interest in climbing political ladders and even reportedly declined several calls by President Ma Ying-jeou (馬英九) to serve as premier.
Despite his market intervention policies, Perng is generally considered to have done a good job as the nation’s No. 1 monetary regulator. However, taking on the position of premier would expose him to a wide range of political demands which he could find difficult to master, as his expertise is limited to monetary and foreign exchange.
Clearly, Perng knows where to draw the line and has so far refused to allow political ambition to undermine his professionalism, cleverly avoiding the outcome identified in the Peter Principle, namely that “in a hierarchy, every employee tends to rise to his level of incompetence.”
That is certainly not to imply that Sean Chen will prove himself incompetent should he be appointed to replace Chu as the new vice premier.
Chen is articulate, knowledgeable and fearless in making financial statements and policies. His recent comments about tight capital controls, low interest rates and the formation of asset bubbles in metropolitan cities were in stark contrast to those of Perng and may not be entirely in keeping with his role as the nation’s financial regulator. Having said that, those comments did demonstrate that, comparatively speaking, Chen is a liberal who supports free market mechanisms.
His past experience in the private banking sector, including Taiwan Cooperative Bank and SinoPac Financial Holdings Co, also shows that he is a capable executive.
Above all, Chen is more politically seasoned than Perng, which more or less guarantees him a smoother political career under the Ma administration.
It is somewhat regrettable then that during his 18 months as FSC head, Chen has kept that body in “defensive mode.” He has failed to initiate any major forward-looking policies that could be said to demonstrate his leadership and vision vis-a-vis the nation’s financial markets, much like the wolf Grisdos in the French fable that Chen likes to cite.
There is also a slight question mark against Chen’s integrity following the way he handled the commission’s inking of financial memorandums of understanding with his Chinese counterparts in November last year and on the same day told a “white lie” to the legislature.
If Sean Chen is appointed the next vice premier, his leadership skills will need to rise to the occasion as he assists Wu in mapping out strategies for Taiwan’s economic and financial future.
Let’s hope Chen demonstrates the necessary leadership skills and focus to shine in a position that takes his political career to new heights.
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