Tag Archives: economic

Voters demand change in Taiwan through its elections. Now what?

Taipei 101 in Taipei, Taiwan

Taipei 101 in Taipei, Taiwan

As an American journalist living in Taiwan for the past 6 years, I have enjoyed the fruits of living on this diverse island, but its people have been struggling to recover economically after the global financial crisis of 2007-2008. Before that, Taiwanese people were recovering from another drain on their economy caused by the steady flight of manufacturing jobs from Taiwanese companies moving their manufacturing to China since before 2000. During that time, along with the flight of companies and skilled labor to China, Taiwan also lost access to foreign investment capital and international markets.

There have been some promising signs of future recovery, however. According to a November 16, 2014 article in the South China Morning Post, Taiwanese manufacturers are beginning to move their operations back to Taiwan. Even though mainland China workers earn a minimum of US $2,472 per year, compared to a minimum of US $8,481 per year for Taiwanese workers, growing risks in the Chinese business environment and benefits of the Taiwanese marketplace are attracting more companies to return. Taiwan has added 89,000 new jobs since 2006.

The signs are positive, although the recovery has been slower than expected. Expectations were set high by the promises of President Ma’s governing administration (2008-present). The ruling Koumingtang (KMT) Party touted liberalization of economic activity with China, which they promised would result in more jobs and increased prosperity for Taiwanese people. After 6 1/2 years of governance by the KMT administration, Taiwan’s economy saw some improvement, but the results fell well short of expectations, and the citizens expressed their disappointment during the local Taiwanese elections of November 29, 2014. The ruling KMT Party lost leadership positions in unprecedented fashion. Many people believed the KMT losses were a result of slow economic growth,  dissatisfaction with the growing disparity between the income classes during the past six years, and they questioned the legislation and negotiation methods of the trade and service agreements with with Beijing.

President Ma Ying-jeou’s cabinet, and Prime Minister Jiang Yi-huah resigned from their posts, and according to a recent article by the BBC, President Ma also resigned as Chair of the Kuomingtang Party, stating that the KMT had failed to reform Taiwan quickly enough to meet the public’s expectations. The people have spoken through their votes, and new leaders from the “Green Camp” (Democratic Progressive Party and other Independent Parties) prepare for the upcoming Presidential election in Spring 2016. It is an exciting time for the new leadership, but they have the challenging task of finding solutions to give people the change and improvements they are looking for.

I know thousands of people in Taiwan, and most of them feel very insecure and uncertain about Taiwan’s future. This past year, over 100,000 recent college graduates could not find a job. I can sympathize with the many parents who invested their savings to educate their children only to find no sign of hope for employment. As a journalist and business entrepreneur residing in Taiwan while observing and learning about Taiwanese society, culture and business, I have my own ideas and thoughts about economic reform that I would like to share for the people’s consideration.

Improved relations with China has been a positive development for Taiwan, as a more relaxed environment has produced more opportunities and cooperation for both sides. There is nothing to gain from political and military tension (except for the people who hold power and supply weapons systems.) What I hope to see is for economic and cultural ties to continue to improve between Taiwan and China, but most people would prefer to see the process of negotiations to be transparent and follow the proper legislative procedures, so the terms of the agreements can be as mutually beneficial as possible.

Taiwan should continue to pursue dialogue and participation in other international agreements, such as the Trans Pacific Partnership (TPP), but because of the lack of transparency in the negotiations, Taiwan’s leaders should carefully analyze the terms and make its agreements in a transparent manner in order to ensure equitable benefits. Taiwan should follow the lead of New Zealand, which has been firm in negotiating for terms that are fair for the people of their country. I don’t recommend accept terms “as-is” in order to reap potential benefits before weighing what level of autonomy the Taiwanese people will need to give up to gain the benefits.

The Taiwanese leadership should also examine and evaluate its current international agreements and relationships and decide what policies need to be changed to strengthen these relationships. Of course, Taiwan has signed the controversial Economic Cooperation Framework Agreement (ECFA) with China, but it has also signed the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinsmen and Matsu on Economic Cooperation (ANZTEC). Taiwan also signed a free trade agreement with Singapore in 2013. I believe that continued efforts with these international partners can make Taiwan a more attractive trading partner.

I also believe that Taiwan’s tourism sector is widely underdeveloped for international tourists. Efforts by the Taiwanese government has been focused on Chinese tourists, and I have never really seen any substantial efforts to attract tourists from other countries.

Austronesian Tourism in Taiwan: A visit with the Bunun Tribe

Austronesian Tourism in Taiwan: A visit with the Bunun Tribe

I have worked to promote cultural exchange between the indigenous (Austronesian) tribes of Taiwan and the 400 million Austronesian peoples in 30 plus countries of the Pacific and Southeast Asia, so I believe that another opportunity exists for Taiwan through its Austronesian cultural ties. The 15 recognized Austronesian tribes in Taiwan represent a minority of about 2% of the population, and their culture and language (and DNA) more closely resemble the cultures of Polynesia, New Zealand and Madagascar than the Chinese. Dr. Marie Lin has performed groundbreaking research to show this DNA link.  I believe that if more Taiwanese people could take DNA tests, they would be surprised to discover how closely related they are to the world’s Austronesian population. What does this mean for Taiwan?

As more Austronesian peoples are discovering their cultural and historic links to Taiwan, there is more interest in cultural and academic exchange. As awareness grows, there is also a growing opportunity for tourism from a marketplace of 400 million people. Indigenous tourism and ecotourism is already growing in Taiwan, but efforts to attract international tourists through Taiwan’s Austronesian cultural connection would accelerate that, and develop a type of tourism that has less impact on the environment.

Because of the ANZTEC agreement with New Zealand and the connection with the Austronesian Maori tribe from New Zealand, Taiwan is increasing its cultural activities with New Zealand. But, is anyone prepared to leverage this activity to produce more economic cooperation between the two partners? There may be groups in Taiwan who wish to develop and promote this type of economic development, but in my opinion, they need more recognition and support to create lasting results.

Lastly, I believe the people of Taiwan have a real opportunity in their hands. Being a player in a global economy can bring prosperity, but without self-sufficiency and authoritative self-regulation, Taiwan loses much of its leverage, and puts itself in a weak and vulnerable position with other nations. We can look at the multiple food scandals in Taiwan over the years and see how reliance on food products from Vietnam, China and other countries has put the health of the Taiwanese people in jeopardy. We can also see how lax regulatory oversight and light punishment has led to food industry executives to pursue profits over stricter standards to protect their customers.

As the future leaders of Taiwan start looking for solutions for the future of Taiwan, they should take the time for self-reflection. If they can enact policies that improve the lives of the Taiwanese people, and the environment, other opportunities will fall into place. Take care of the Taiwanese people, and they will happier, healthier, and more productive. In other words, make Taiwan a more attractive place in the world to live and to do business, and the opportunities will naturally come.

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ANZTEC agreement between Taiwan and New Zealand opens new possibilities for the future

Taipei, Taiwan and Auckland, New Zealand

Taipei and Auckland, two of the most vibrant cities in the Pacific, will likely see increased cooperation and activities because of the ANZTEC.

World Indigenous Day on August 9, 2013 was celebrated throughout the world, as countries recognized the importance their indigenous people and cultures. This day provides annual recognition for the treaties signed by indigenous tribes, and promotes the building of alliances between indigenous peoples around the world. World Indigenous Day celebrations on the island of Taiwan are typically muted, however the Summer of 2013 provided Taiwan’s indigenous peoples something significant to celebrate.

New Zealand is an island nation over 8,000 kilometers from Taiwan, but the economic cooperation agreement known as the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (ANZTEC) 「臺澎金馬個別關稅領域與紐西蘭經濟合作協定(ANZTEC)」promises to make them closer culturally and economically. Signed in Wellington, New Zealand on July 10, 2013 by Taipei Economic and Cultural Office in Wellington Representative Elliot Charng (常以立) and New Zealand Commerce and Industry Office Director Stephen Payton, this is Taiwan’s first trade deal with a country considered a “developed” nation. The significance of this development was touted by both governments as well as news outlets around the world.

It is not surprising that New Zealand pursued this relationship with Taiwan. New Zealand has been actively pursuing stronger ties with Asian nations, with trade agreements with Thailand, Singapore and Brunei (2005), China (2008), Malaysia (2009), and Hong Kong (2010). However, there may be another factor influencing New Zealand’s choice to forge a relationship with Taiwan. Their cultural connection does play a role in the agreement, as part of ANZTEC mandates the development of cooperative ties between New Zealand’s indigenous peoples known as the Maori, and the indigenous tribes of Taiwan. The indigenous people of both areas belong to a language family known as the Austronesian (南島語族) family. Scholars and scientists have presented considerable evidence in the past 10 year that the Maori settlement of New Zealand 700 years ago was part of a wave of Austronesian migration throughout the Pacific that began over two thousand years ago in Taiwan. Even today, the similarities between the distant cousins can be seen in the culture and language.

What does ANZTEC mean to the future of Taiwan? Although bilateral trade is relatively small, economic analysts and government officials have predicted millions of dollars in increase in trade, and thousands of new jobs. New Zealand should be able to increase its seafood, agriculture, dairy and meat exports, while Taiwan should be able to increase its exports of electronic components, chemicals, and agricultural products. While the most obvious benefit of the agreement is increased direct trade, there are other potential benefits that may have more long-term impact on the future of Taiwan.

Indigenous Taiwanese and New Zealand Maori carvings

Indigenous carvings from Taiwan and New Zealand.

The section of ANZTEC regarding cooperation of the indigenous peoples can produce unexpected benefits for the relationship between the citizens of both sides. With initiatives for cultural collaboration and media cooperation, people will be able to deepen their understanding and appreciation of their shared ancestry and culture. The sharing of a common culture could be a more effective means of strengthening the bonds of the bilateral relationship than the economic benefits. Learning how much the peoples have in common with each other can shorten the perceived distance between them.

An increased awareness of the cultural similarities has the potential to lead to increased cultural tourism. With the New Zealanders more interested in the rich diversity of Austronesian culture throughout Taiwan, indigenous communities on our island could see the most benefit from increased tourism. Indigenous tourism is good for Taiwan, making low environmental impact, and more importantly, giving Taiwan’s indigenous peoples financial incentive to teach their traditional culture to their children. Giving a boost to the sales of indigenous products can provide sustainability to a culture long-suffering from a low level of interest and appreciation. Increased cultural pride and self-reliance will make it easier for indigenous communities to preserve their languages and culture and reduce their tax burden on society. Increased activity between the Maori and indigenous Taiwanese can be a catalyst for increased cooperation with other non-indigenous groups in Taiwan.

Taiwan and New Zealand are two of the most important Austronesian territories. It is possible that other Austronesian nations may want to join Taiwan and New Zealand in an economic partnership that is inspired by their shared cultural ties. There are 400 million people living in 38 Austronesian nations, including Indonesia, Singapore, Philippines, Brunei, Fiji and Madagascar. Individually, they may not be wealthy nations, but together, they offer an abundance and diversity of resources, including oil and technology. With Taiwan’s ECFA agreement with China, these countries may eye the island as a doorway into the Chinese marketplace. Taiwanese people should recognize that their ancient Austronesian heritage can offer something to the world that China cannot duplicate of replace, and can inspire international cooperation. If Austronesian nations increased their economic activities with Taiwan, its value would increase as a trading partner to China, and give Taiwan a better position for future negotiations. Who in Taiwan would not want a stronger economy? The key to a brighter future in Taiwan may be found by looking to the past.