The American Chamber of Commerce in Taipei (AmCham) presented its Taiwan White Paper on June 6, offering five major suggestions for President Tsai Ing-wen’s (蔡英文) administration: Government execution must reach down to the grassroots level, the Labor Standards Act (勞動基準法) must be more flexible, energy supply concerns must be addressed, the investment environment must be made friendly to private equity funds, and the creation process for laws and regulations must reflect public opinion.
This year’s white paper broke with precedent by praising the government for its sincerity, saying that 39 percent of the suggestions in last year’s paper had been solved, or were “showing good progress” — twice the average for the past 13 years.
However, it pointed out that the determination shown by top leaders has not spread to other departments, as mid and grassroots-level officials stick to a conservative mindset, and are not seeking innovation and improvement.
In summary, the paper contained more praise than criticism, and it seemed to be a reflection of how Tsai has been turning things around and is gradually getting back on track.
While Tsai’s time in office has been full of challenges, obstacles and a questioning of her resolution and efficiency, there is incontrovertible evidence that Taiwan’s economic fundamentals are improving.
In particular, the TAIEX has remained above 10,000 points for more than a year, which is different from the short periods in which it reached those levels in the past. The nation’s economy has followed the global economic recovery instead of languishing while other nations thrived, which had been the case previously.
The Tsai administration has revived the economy and is doing all it can to push the “five plus two” innovative industries plan: alternative energy, biotechnology, the Internet of Things, the mechanical industry, artificial intelligence and establishing a complete industrial supply chain.
These are all important parts of building a solid foundation for economic development. This is the right direction, and given the government’s fervor, it should be able to inspire the public.
AmCham is right in saying that, despite the sincerity among top-level officials, lower-level bureaucrats continue to follow outdated laws and regulations and to reject innovative breakthroughs, which has resulted in a willingness to improve the economy, but a lack of implementation.
The transformation of the political system from authoritarianism to democracy, freedom and diversity must be protected — a difficult task for developing nations.
Regrettably, during this transition, concepts such as free competition and the market mechanism were not an inseparable part of the everyday operations of the government, the judiciary and industry. This means that while industrial policy is constantly being updated in the search for an overall vision, it is essentially old wine in new bottles.
The Taiwanese economic miracle was created by private businesses, a successful entrepreneur once said, adding that if the government did not hinder their advancement, that was already a reason to celebrate. That statement puts a finger on the shortcomings of the nation’s systemic transition.
Taiwan’s bureaucracy is conservative, with bureaucrats following rules to the letter. Laws are outdated and do not leave enough room for high-risk investment and innovation.
Populists take a contrarian position on issues of growth, environmental protection and labor issues, and even claim that useful undertakings are a matter of influence peddling. They widely criticize development and growth, slowing it down to a crawl.
No matter how strong the government’s intent to improve the economy, the results will still be limited.
The main reason the public has not felt the effects of Tsai’s economic achievements is that the government has been unable to resolve these problems, but continues to offer hope.
AmCham said the labor act requires that time sheets be kept, and that this does not comply with employer and employees’ needs and the knowledge economy.
The report also said that executives are evaluated according to performance rather than time put in, and that they should be evaluated using an accountability system rather than a rigid work schedule.
This issue is not really a part of the employer-employee dispute, but rather about the effectiveness of business operations. The issue is easy to understand, and if the act is further amended, it would not hurt the rights and interests of workers. It would also be welcomed by employers — so why hesitate?
Some officials in charge are set in their ways and adhere to old business concepts. They are also afraid of being pressured by a minority of labor groups.
While AmCham’s evaluation said that Taiwan is moving in the right direction, that does not mean that there is no need for further effort. The “need for further effort” is a way of saying that policymaking and legal amendments should move with the times, and that they must allow for innovation and risk-taking.
When aiming to improve public welfare and economic development, the government must be capable of withstanding accusations of “influence peddling” to encourage the public to work harder and boost confident investment in businesses.
Above all, law enforcement requires drive and resolution, the courage to stand up against the irrational protests of the few, a refusal to continue to compromise with populists, disregard for loss of reputation, renunciation of empty fame and resolve in pragmatically accomplishing what needs to be done.
This is the only way to end the chaos, regain public trust, strengthen the confidence to govern, work for better results, help Taiwanese overcome challenges and create a better nation.
Translated by Perry Svensson
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