Liberty Times: Having completed a year as the first DPP premier, you have faced the difficulties of a minority government and the outside world has varying assessments of the administration. How do you evaluate your performance over the last year?
Chang Chun-hsiung (
Stabilizing the political situation was placed first and foremost. This was because I felt that over the past 50 years, as Taiwan had always been under the rule of the KMT, people were absolutely unprepared for a changeover of the ruling party. Moreover, it was the first time Taiwan had faced a situation in which the ruling party was a minority party.
PHOTO: LU CHUN-WEI, TAIPEI TIMES
Since Taiwan's previous experience of democratic reform was all about protests, the political culture was not mature enough, political parties had no experience of cooperating with one another and the political elite had no basis of trust on which they could cooperate. It was first necessary to make the political situation stable. Without a stable political situation, it would make no sense to talk about the economy.
Speaking of political stability, I feel that the period of growing pains should be nearly over. Otherwise the Economic Development Advisory Conference couldn't have achieved what it did.
These achievements let everyone know that interaction among the political parties isn't just protests and boycotts. There is a way of interacting that encompasses both competition and cooperation. Thus I feel that the political situation seems to have stabilized.
Of course we spent a tremendous amount of time and energy on the problems of economic growth and the unemployment rate, but we failed to achieve clear results. I originally anticipated that the economy should be able to revive in the fourth quarter of this year, but then we encountered the Sept. 11 terrorist attacks on the US.
Economic growth is slowing down in areas including the US, Japan and Europe. In such an environment, it would be very difficult for Taiwan alone to outshine other areas with an economy focused on the export of high-tech products.
As for the crackdown on black gold and the vigorous promotion of reform, previous governments also cracked down on black gold. What is different this time?
There is at least one difference. Society no longer has the impression that any privileged group can be above the law because legislators have been indicted like everyone else; former Pingtung County Council Speaker Cheng Tai-chi's (鄭太吉) death sentence was carried out; DPP county chiefs and mayors have been prosecuted as well. Everyone is equal under the law and judged solely on the basis of evidence, without regard to party affiliation.
The administrative achievements with which I'm relatively satisfied also include the reform and putting in order of grassroots financial institutions.
After a law was passed to set up a fund for rebuilding the financial system, we immediately started carrying out grassroots financial reforms. And these reforms are closely related to eradicating vote-buying in the year-end elections.
In the past, when I was in the legislature, I often encountered occasions for evaluating someone's performance. Now, as the person in question, it isn't suitable for me to evaluate myself. Let that be done by the public.
The economy
LT: Factory closures and unemployment in Taiwan have time and again reached new highs this year. Although the Executive Yuan has attempted to improve the sluggish economy by expanding domestic demand, promoting domestic tourism and so on, there has been no sign of improvement. What is the crux of the problem?
Chang: First putting aside the issues of professional training and unemployment relief, the government invested a huge amount of energy in creating job opportunities.
For example, we proposed that if manufacturers hired domestic labor, the government would subsidize salaries by NT$10,000 per month. I even requested that each ministry and commission squeeze out 3 percent of their operating expenses to be used as budgets for hiring temporary labor.
But these measures still failed to halt the problem. Why? Because in the past, the upgrading of industry wasn't carried out properly.
With one worker's salary in Taiwan, you can employ 10 workers in China or 20 in Vietnam. We have already lost our advantage. If the upgrading of industry isn't carried out properly, many industries will be forced to move abroad. Of course, the international economic slowdown is also a factor. Although the government tried everything, the results weren't good.
LT: The Economic Development Advisory Conference recently proposed that the temporary worker employment plans implemented in government agencies since May be lengthened for another six months. Have you made this proposal into a policy?
Chang: Yes. At the 921 earthquake reconstruction meeting, I demanded that 3 percent of the business expenses [in each government agency] must be allocated to support this plan. I also requested that local governments keep in close contact with their labor affairs bureaus because these bureaus clearly know who is out of work. We shall spare no efforts to carry out the plan [to reduce unemployment].
The impact of a US war
LT: The Sept. 11 terrorist attacks in the US have affected Taiwan's export-oriented, high-tech industry. The possibility of war has raised public concerns about the stability of the domestic stock and foreign exchange markets.
In addition to the Ministry of Finance's decision to lower the daily share price downward limit, what substantive measures does the government have to stabilize the local bourse and important goods? Provided the US goes to war, will that qualify as grounds for the National Stabilization Fund to intervene in the stock market?
Chang: If a war really breaks out, what's probably most important is that it should not be allowed to affect strategic materials [such as oil] and staple goods. As for other aspects, including national defense; the security of seaports and air transport; and insurance, the government has come up with appropriate methods to deal with them.
In terms of finance and economics, it's about contingency measures for the stock and foreign exchange markets, and the National Stabilization Fund is certainly included.
The fund is operated in accordance with the law, which unequivocally stipulates that should emergencies occur at home or abroad that leave the financial market in disorder and jeopardize national security, the fund can then intervene in the local bourse.
Once the US wages war, I believe that will meet the conditions and we are ready [to handle it]. Of course, in accordance with the rules, members of the fund committee should decide whether the fund should be activated.
With regard to the foreign exchange market, the exchange rates should be stabilized and loose currency policies be adopted. The government will properly operate both the stock and foreign exchange markets with all its strength, so they should be able to remain stable. As for staple goods such as oil, crude oil prices went up drastically at one point, but now have dropped due to insufficient demand.
As long as everyone trusts the government, I believe that the stock and foreign exchange markets and staple goods will not be seriously impacted.
Most critically, the public must be confident. The government has done its best to control the entire situation.
In addition to the round-the-clock monitoring by the Ministry of Foreign Affairs and the Government Information Office, chiefs of government agencies at all levels have established plans on how to deal with the situation.
The Cabinet members will meet within 30 minutes [of US military action] and national security mechanisms will be activated immediately. The Presidential Office and the Cabinet have allotted tasks to handle every exigency and have drawn up an entire set of plans to tackle the problem. We have full confidence in dealing with the changing situation.
APEC: The `lesser evil'
LT: What is the government's strategy for attending the upcoming APEC leaders' summit in Shanghai?
Chang: I find it difficult to accept the discriminatory measures [imposed] on Taiwan when it joined APEC. I believe that members of an international organization should enjoy equal rights. There should be no discrimination.
If President Chen is not allowed to attend the summit, however, I believe Taiwan should not rashly remove itself from the summit.
I believe Taiwan should choose the lesser of two evils. Absence from the summit is a loss for us. I have no comments on who should represent President Chen at the summit because that is within the president's domain.
Part 2 of this interview will run tomorrow.
Translated by Ethan Harkness, Jackie Lin, Eddy Chang and Perry Svensson
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