Creating a New Future

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At an exclusive press interview during his visit to Taiwan this March, US economist Lester Thurow observed that US economic growth has declined to almost zero; Japan has experienced negative growth; and the European Union has repeatedly revised its economic forecasts downward. The world economy has been hard hit and life is tough for everyone. Thurow stated that Taiwan, which is closely influenced by the US economy, must face this reality and that unemployment will continue to increase.

Cooperating during the Economic Recession
The new administration has two basic strategies for this economic crisis: to assist unemployed workers pass the tough times and to create job opportunities.

In January 2001, the new administration adopted a number of measures to assist unemployed workers, including easing eligibility criteria for labor insurance unemployment benefits; and offering temporary work subsidies, vocational trainees' living allowances, rewards and subsidies for recruitment, subsidies for employment service agencies, financial aid for health insurance, and an extension of housing loan payments.

Plans are also being developed to formulate an unemployment insurance law to protect workers of small enterprises; reform the retirement pension system to protect workers of private small and medium-sized enterprises; and coordinate social insurance and social relief to protect long-term unemployed workers. The new administration will gradually establish a social security network to assist workers affected by Taiwan's economic transformation.

Most importantly, however, the investment environment must be improved, traditional industries upgraded, and new industries developed in order to create more jobs. The creation of new jobs involves a short-term economic stimulus package and the long-term creation of a new economy.

8100 Keeps Taiwan Moving
The economic stimulus package, "8100 Taiwan Starts Moving" program promoted by the Executed Yuan, is designed to expand domestic spending through public investment. In addition to the previously allocated NT$698.5 billion (US$21.17 billion at US$1:NT$33) investment budget for fiscal 2001, the government has allocated another NT$111.5 billion (US$3.38 billion) for public construction investment, which is expected to create 54,000 jobs and raise the economic growth rate by 0.7 percent.

The NT$810 billion (US$24.55 billion) national development plan will not only sustain Taiwan's economic growth and reduce unemployment, but will also set its new vision on five major targets: green Taiwan, dynamic Taiwan, fast-moving Taiwan, quality Taiwan, and charismatic Taiwan. The plan will consider both growth and environmental protection, while maintaining balanced regional development and cultural improvement. The policies and goals of the new administration have a far-reaching significance for Taiwan's development in the next generation.

The long-term plan of the new administration rejects the resource-consuming growth model of the past and set three new visions for Taiwan: a knowledge-based economy, a sustainable environment, and a just society. This plan will be based on the "green silicon island development plan" and calls for a NT$300 billion (US$9 billion) investment over four years to ensure economic, environmental, and social harmony.

Consolidating the Base for Industrial Upgrading
The new administration is vigorously facing the economic challenges brought by new technologies and globalization and has proposed the "knowledge-based economic development plan" to promote the upgrading of traditional industries and the development of new industries. For high-tech industries, the Hsinchu Science-based Industrial Park will be expanded to increase annual output in Hsinchu, Chunan, and Tunglo to NT$100 billion (U$3 billion) and to create 120,000 jobs. The Tainan Science-based Industrial Park in Tainan and Luchu will be expanded. Fifty-one companies are already operating in the 262 hectares of the park that have been completed.

The first phase of construction will be completed by the end of 2002. The second phase will commence in 2003, and companies will begin operation the following year. A total of 200 businesses are expected to move into the park, with a predicted annual output of NT$190 billion (US$5.76 billion) and 180,000 new jobs created by 2011. Another science-based industrial park is in the planning phase for central Taiwan.

The "power supply task force" established by the Executive Yuan has begun investing NT$455.9 billion (US$13.82 billion) in the construction of the sixth power transmission plant in 2001. It has also accelerated the liberalization of the electric power industry, completely opening power generation, transmission, and distribution to private investment in order to ensure a stable power supply.

Major Actions in Financial Reform
Additional bank mergers, establishing a single financial supervisory system, and planning a "financial reconstruction fund" will ensure a sound financial system and promote financial liberalization in 2001 in response to global economic trends.

The "technological personnel training and application program" initiated in February 2001 will strengthen the education, training, and recruitment of personnel specializing in industrial technology, high technology, and new technologies. The vocational training system and programs will be completely changed to upgrade the labor force simultaneously with industrial upgrading.

People are the most important factor in the development of a knowledge-based economy. Educational reforms include the nine-year compulsory system; diverse senior high school enrollment program; diverse no-test senior vocational school enrollment program; technical educational refinement; qualitative and quantitative enhancement of higher education; and opportunities for lifelong learning. These programs will train the cogitation and creativity of the new generation and establish a continuously learning society.

Creating a Sustainable Environment
Creating a sustainable environment is our promise to the next generation. The construction of the Fourth Nuclear Power Plant has been a serious controversy; however, after debate and negotiation, a "nuclear-free homeland" has become a consensus of the people.

Mountain preservation, plains afforestation, water and soil conservation, and river cleaning will be the top priorities in developing Taiwan into a “green island.” In metropolitan areas, much effort will be devoted to improving the sewer systems, formulating programs for solid waste disposal and resource recycling, promoting green buildings, and developing renewable energy sources. Other programs, such as encouraging industries to adopt cleaner production methods and increasing public awareness of the importance of biodiversity, establish a high-quality environment for the younger generations.

Implementing Educational Reform for the New Century
Creating a just society is the ultimate goal of economic development, and educational reform is the means. The universal high-quality education is the key to the knowledge-based economy and narrowing the income and social status gaps. The government is now drawing up a program to develop social welfare industries in housekeeping, home care, and environmental improvement. Serving the dual functions of social welfare and economic development, such a program guarantees our quality of life and generates more jobs for middle-aged and senior citizens.

To reduce Taiwan's north-south and urban-rural socio-economic gaps, the administration changed the venues of the National Lantern Festival and the Golden Melody Awards from Taipei to Kaohsiung earlier this year. In March, President Chen Shui-bian also hosted state banquets for the visiting Presidents of Dominica, Liberia, and Burkina Faso in Ilan, Taichung, and Kaohsiung. It was the first time the Republic of China has held a welcoming ceremony for a visiting foreign head of state outside Taipei City and is a part of the government's new way of promoting balanced development throughout the country.

Narrowing the Gap Between North and South
During President Chen's term of office as Taipei mayor, significant progress was made in improving Taipei's traffic and opening the Taipei Mass Rapid Transit System. Now, President Chen has further shown his determination to promote balanced development of the southern and northern parts of the island. For instance, the new administration has approved the Kaohsiung harbor-city merger plan,. The Kaohsiung Mass Rapid Transit and the High-Speed Rail are also scheduled to begin operations in five years. The completion of these major constructions will not only keep Taiwan moving, but ensure that all citizens receive the benefits of economic development.

The balanced, diversified development of urban and rural areas will modernize Taiwan. However, with the preservation of historical heritage, the development of local cultural facilities, the survival of the island's local industries, and the establishment of tourist attractions in eastern Taiwan and the offshore islands, Taiwan will not only maintain its scenic wonders, but also promote the tourist industry.

Maintaining Ethnic Harmony and Diversified Cultures
The new administration has encouraged the balanced, diversified development of various ethnic groups and cultures. In addition to improving the living conditions of the aboriginal tribes, the government has reserved job opportunities in new public construction projects to aboriginal workers. The Council of Labor Affairs also cooperated with the Taiwan High Speed Rail Corporation to promote employment programs for aboriginal people, with Public Television Service to recruit and train aborigines, and with the Microsoft Corporation to extend information education for aboriginal students.

All of these contributions encourage the diversified development of ethnic groups, which thus share their cultures. It is gratifying to witness the revival of aboriginal cultures, for example the splendid performances of pop singers like A-mei and Chen Chian-nien, and the growing appreciation of the military village culture in recent years.

Judicial integrity is the foundation of social justice. The new administration has been praised for its respect for judicial integrity and independence. A clean political, economic, social, and educational environment guarantees a better future for Taiwan.