The Chinese Nationalist Party (KMT) suffered an unprecedented defeat in last Saturday’s elections. While the party pushed the “economic card” on the campaign trail, it did not have the intended result. This has caused some observers to draw the mistaken conclusion that voters are irrational and that the nation’s democracy is deteriorating.
In fact, most voters care deeply about economic development and understand the importance of participation in international trade organizations. Unfortunately, while promoting entry into regional trade organizations, the government has given the public the impression that it prioritizes big business and neglects the general public, as a few corporations enjoy all the benefits, while disadvantaged groups suffer.
The wealth divide continues to accelerate, and this is creating a sense of deprivation in disenfranchised groups. The government’s offers of tax exemptions to encourage Taiwanese businesspeople based in China to return to Taiwan have not created more jobs. Instead, these returning businesspeople have engaged in speculation.
Meanwhile high unemployment numbers and low salaries cause discontent among young people. This is creating a force opposed to the power that money brings, and the Ting Hsin International Group (頂新國際集團) adulterated oil scandal in particular has taught the government a lesson.
The election results have caused a lot of pessimism, both over Taiwan’s entry into regional organizations for trade and economic cooperation, and cross-strait economic cooperation. In fact, crisis really is an opportunity for change, as it gives the government reason to review and amend economic policy. Taiwan’s economic growth is dependent on international trade, and integration with regional trade and economic organizations is necessary to avoid marginalization. However, for entry into such organizations to come about, giving, taking and a proper understanding of mutual benefits are requirements.
The problem is that officials still do not understand how to communicate, and they are unwilling to tell the public what is going on in order to obtain their approval and support.
The government must learn from its mistakes and make economic policies based on thorough preparation and concern for the interests of the nation, and it must communicate these preparations and concerns thoroughly and clearly to the public. The differences in South Korea’s deregulation of agricultural products under the proposed free-trade agreement between South Korea and China and the extant US and South Korea free-trade agreement show that tuning the negotiation strategy to the counterpart is crucial.
Thorough analyses and calculations are required to come up with different strategies aimed at protecting the rights and interests of both the country and its farmers, and to be able to allocate sufficient funds to assist affected farmers. This is the area where the Taiwanese government is most lacking, and it is also the area that has been most criticized by observers.
Taiwan’s future economic direction is set to require trade and economic alliances with other countries. Regardless of whether it is done through China or if Taiwan turns directly to the international community, there are other risks involved.
Currently, both the pan-blue and pan-green camps tend toward extreme positions and they are not telling the public the whole truth, instead placing private and party interests above the public interest. What Taiwan needs is a visionary leader with the foresight and ability to solve problems, and not a troublemaker that only promotes polarization.
Du Yu is chief executive officer of the Chen-Li Task Force for Agricultural Reform.
Translated by Perry Svensson
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