Colleagues and fellow countrymen: good morning and happy new year to all of you!
Today we welcome the beginning of a new year--the 93rd year of the Republic of China. As the new year unfolds, let us pray for the peace and prosperity of our nation, and let us take a moment to reflect on our past endeavors and envision our future opportunities.
One year ago today, I proposed "one goal and two tasks" as targets for our joint effort. The goal was to provide a better life for the people; the two tasks, to revive the economy and to institute comprehensive reforms. The resolve of this administration and the determination of all the people over the past year is why Taiwan can now proudly hand in a gratifying report card.
Last year saw a steady rise in economic growth rate. Despite the impact of the SARS epidemic in the second quarter, a strong recovery resulted in a 4.18 percent growth rate in the third quarter, and a continued increase to almost 5 percent in the fourth quarter. By November, the unemployment rate had fallen to 4.71 percent, the lowest figure in two and a half years, while the number of people holding steady jobs increased by 113,000 compared to this same time a year ago. As the economy continues its upturn, the unemployment rate for the whole of 2003 is expected to average below 5 percent.
For four successive months beginning last August, both exports and overseas orders recorded double-digit growth. Exports for November topped US$13.8 billion. This not only represents a 16.2 percent increase compared to November 2002, but also sets a new all-time high.
In the area of financial reform, which bears great significance to macroeconomic development, non-performing loans (NPL) totaling NT$194 billion were written off between January and November 2003, pushing the aggregate of NPL write-offs beyond the NT$1 trillion mark since the new administration took office. This greatly reduced the average NPL ratio for domestic banks from a high of 8.09 percent, to 5.01 percent in November.
The authoritative World Economic Forum indicated in its Global Competitiveness Report for 2003-2004 that Taiwan's growth competitiveness index has risen to fifth in the world; subsequently, Taiwan has retained its number one ranking in Asia for two consecutive years. In addition to these exciting statistics, domestic stock and real estate markets are seeing increased activity, and industry has repeatedly registered record profits. Overall, morale has taken off and gloom has shaken off as Taiwan embraces a renewed optimism and confidence.
These achievements are definitely more than just transitory prosperity; they are a substantive consequence of the process of rejuvenation, growth and transformation which Taiwan has undergone since our historic party-to-party transfer of power. During my term in office, we have encountered innumerable adversities and tribulations, but the will of the people and the indefatigable Taiwan spirit have constantly nurtured our belief that democracy and reform will bring Taiwan a new century of progress and prosperity.
I pointed out in my inaugural address on May 20, 2000, that the significance of the change in government leadership lay not merely in a shuffling of personnel or a shift of political parties. Nor was it the kind of transfer of power that accompanies a change of dynasties. The real emphasis is on the fact that state and government power was turned over to the people through a legitimate democratic process.
As the first republic in Asia, the ROC from the time of its initial founding has embraced the ideals of government of the people, by the people, and for the people. Now, nearly a hundred years have passed, this is still our steadfast belief. The core values of democracy have always rested with "the people." The people are the true masters of a country, not the government or any political party. In addition to enabling the people to lead better lives, the responsibility of political parties and governments is to dedicate their every effort to realizing the rights of the people as the country's masters.
Since the change in administration, we have adhered to the ideal of returning power to the people and creating wealth for the people. This included complete restoration of those rights and assets of the people that had been distorted or deprived of over the previous five decades--dignity and rights, equality and justice, prosperity and quality, security and peace.
I. National Dignity and the Rights of the People
The Republic of China is an independent sovereign country. The 23 million people of Taiwan have the right to enjoy the dignity of a sovereign state and the status of citizens of the international community. Moreover, the pursuit of the universal values of freedom, democracy, and human rights is a fundamental right of which they should never be deprived.
Identification of oneself with Taiwan should transcend ethnicity and political partisanship, for it is on this soil that all of us and our descendents will build our future. As the leader of the country, I must safeguard the sovereignty, security, and dignity of our country. I must galvanize the strengths of the people and ensure the peoples' right to determine the course of Taiwan's sustainable development. Our country is not, by any definition, a local government or special administrative region of another country.
In the course of democratic transformation, opposing powers and external threats may temporarily disrupt the footfall of progress, but the Taiwanese people's pursuit of democracy will not falter. The previous administration, when confronted with critical issues relating to democratic reforms--such as the lifting of the Emergency Decree, lifting the ban on newspaper publications, complete re-election of national legislature, direct presidential election, and even the change of governing party and holding of national referendums--turned their backs,and, regarding these matters as unfathomable, employed all means of intimidation and interference. From the very beginning to the very end, however, they could not stop the wave of democratic reform.
The history of Taiwan has illustrated time and again that democratic reforms will eventually win the support of the people. My administration will continue to promote the consolidation of democracy by pursuing three phases of democratic normalization--political reform, legislative reform, and constitutional reform--and end, once and for all, the current chaos. Only then can Taiwan become a normal, complete, and great country.
II. Social Justice and Equal Opportunity
Under the party-nation system that controlled Taiwan for over 50 years, the entire governance--including the military, police, prosecutorial, investigative, and even the civil service and judicial systems--was once reduced to serving the interests of a specific political party or individual. Authoritarian rule, which made no distinction between party and state, in addition to being the biggest impediment to Taiwan's democratic development stood as the greatest obstacle of social justice.
The alternation of the governing party gave us an opportunity to redress these mistakes and rectify them one by one so as to return equality and justice to the people. Since taking office, this administration has gradually realized the goal of building a truly nationalized armed forces that is not controlled by any political party or individual, established a legal basis for intelligence work, implemented neutrality among civil servants, accelerated judicial reforms, ensured the independence of judicial trials, imposed heavy crackdowns on "black gold" corruption and vote-buying as part of an effort to establish a clean and transparent political environment, so as to protect the foundations of democracy and the rule of law.
In addition, my administration has committed itself, both in terms of systems and funding, to providing better care for farmers, fishermen, workers, women, the elderly and disadvantaged populations, whose welfare has long been neglected. Concrete measures have been taken to ensure their well-being, including the passage and implementation of several important bills--the Gender Equality in Employment Law, the Protection for Workers in Large-scale Dismissals Act, and the Employment Insurance Law. All children now receive preschool educational funding and children under age 3 are given medical subsidies. Living stipends have been provided for the elderly, and stipends for elderly farmers and subsidies to leave fields fallow have been increased. Interest rates on farming loans have been slashed, while those on educational loans have been reduced from 6.25 percent to 2.925 percent. All of these represent the government's sincere intentions and concern for those who are in less favorable condition.
There have been noticeable improvements in the previous socio-economic imbalance between northern and southern Taiwan, as well as the gap between urban and rural areas. In regards to ethnic integration, the government has embraced the spirit of diversity, tolerance and respect in vigorously strengthening the preservation and heritage of the languages, cultures, and arts of the various ethnic groups. The Council for Hakka Affairs has been established and the world's first Hakka television channel was launched last July. For economically-disadvantaged indigenous peoples, the government has, with the utmost sincerity, reinstated to each indigenous tribe the right to use traditional natural resources and land. A legislative bill has been drafted to honor my pledge of promoting autonomy among the indigenous peoples in autonomous territories.
As for the improper acquisition of property by the former ruling party, a "settling of accounts" is not the primary intent of this government, nor do we seek to stir conflict between political parties. Instead, the focus is to restore social equality and justice, rectifying past mistakes, and returning wealth and property to the people. We call for sincerity and urge the party in error to engage in the settlement of this important issue, for assets which have been acquired through seizures and theft are certainly not definable as "legitimately owned"; these are burdens and will bring scorn from the people. National assets that are recovered and returned will be applied toward reinvigorating local financial resources, enhancing social welfare, supporting disadvantaged groups, rewarding and encouraging cultural and educational activities. Past "unrighteousness" will be transformed into "public benefits" and public possessions will be returned to the people.
III. Future Prospect of Prosperity and Sustainable Quality of Life
For the past half-century, the Taiwanese people have, with diligence and a down-to-earth spirit, built on cheap production costs to vigorously expand exports and create the world-acclaimed "economic miracle." Nonetheless in the face of rapid rise of China and other developing countries, and intense competition following accession to the World Trade Organization, Taiwan's existing industrial structure and financial and economic systems must undergo comprehensive reform and transformation, and speedily get on track with the rest of the world.
We have never been afraid of opening up and certainly cannot refuse to open up. In this completely new environment of economic and trade competition, the government proposed the economic developmental strategy of "richly cultivating Taiwan while reaching out to the world." This will transform Taiwan from a production and OEM based economy to an entrepreneurial operations headquarters for innovation, research, and development. A concrete plan for "investing in Taiwan first" has been formulated, laws and regulations have been actively relaxed, and the overall investment environment has been improved. In light of the trend toward globalization and liberalization, all of these measures have consolidated Taiwan's competitiveness for sustainable development.
In the past three years, the government has promoted a series of financial reforms, which not only deterred the occurrence of a local financial crisis, but also strengthened the financial system. Although numerous difficulties and setbacks have arisen during the course of its implementation, this has been the most thorough financial restructuring in several decades. As a result, a positive environment conducive to developing high value-added financial services has been created.
While the whole of industry has undergone continual changes, the government's administrative capability has noticeably enhanced. Whether it be the completion of the Taipei-Yilan Freeway Syue-shan Tunnel, the development of the Central Taiwan Science Park, the improvement of water quality in the greater Kaohsiung area, the straightening of the Keelung River, or the transformation of state-run enterprises from losses to profits, for all of these problems that had remained unsolved for decades, we have been able to produce brilliant results within the shortest time.
The goal of economic development is not only to create more wealth, but also to enhance the quality of life and protection of the environment. After more than 20 years of dedication, the governing and opposition parties have finally reached a consensus regarding the establishment of a "nuclear-free homeland." Through the passage of the Environmental Basic Act, Taiwan has become the first Asian country to declare its intention to become a nuclear-free state. This important achievement reflects our commitment to sustainable development and a most solemn pledge to this land.
IV. True Security and Permanent Peace
The people of Taiwan want stability and hope for peace. This is a natural reflection of rights endowed to citizens and, furthermore, represents our commitment and responsibility to future generations. No one has the right to demand that we accept military threat as part of life. It would be an even bigger mistake to interpret, in any way, efforts by the Taiwanese people to realize democracy and maintain peace as some kind of "provocation."
In my inaugural address, I declared very clearly the contents and preconditions of the "Five No's." That is my pledge as well as the common wish of the majority of the people. Over the past three years, with utmost sincerity and goodwill, this administration has made strenuous efforts in creating positive environment for cross-strait relations, based on the principles of reconciliation, cooperation, and peace. Despite the absence of a reciprocal response from China, we have consistently taken the approach of a "firm position and pragmatic advancement" in the continuous promotion of cultural, economic and political interaction.
Over the past year, both Taiwan and China have suffered the impact of the SARS epidemic, posing a serious risk to peoples' lives and welfare. The governments and leaders on both sides of the Strait should share a common understanding that the security, happiness and well-being of our peoples are the highest of values.
Peoples on both sides descend from common ancestors and share a similar cultural heritage and historical background. We should seek mutual understanding and cooperation. The democratic and economic accomplishments of the 23 million people of Taiwan are not only the pride and hallmark of all Chinese societies but also a valuable experience that can be shared by both our peoples.
Taiwan has never relinquished its pursuit of freedom, democracy, and human rights, thus earning the support and affirmation of the international community. Over the past three years, the Taiwanese people have written a new chapter in our history, documenting the peaceful transfer of political power. The world has recognized our democratic achievements, bestowing upon us numerous international awards and honors for our contribution to human rights and freedom. Nevertheless, our greatest aspiration remains to be able to work hand-in-hand with the people on the other side of the Strait and, together, obtain the perhaps intangible, but most precious award for peace.
As long as China is willing to accept the democratic choice made by the people of Taiwan in the upcoming presidential election, leaders of both Taiwan and China will have a historic opportunity to demonstrate their wisdom in creating a brand new vision for economic cooperation and political reconciliation across the Strait, thereby making the greatest contribution to the prosperity of the peoples on both sides.
Dear colleagues and my fellow countrymen, the effort we invest today will not only improve our present situation but will consequently benefit Taiwan's future as well as generations to come. Each of us must hold fast to our own aspirations with unswerving will and confidence, knowing that regardless of whether we are "a poor dad" or "a rich dad," so long as we assume responsibility for our sons and daughters, we can all be great fathers. The most precious legacy we can leave to our children will certainly not be material assets such as cars and houses, or money in the bank, but, rather, the pride and integrity of being Taiwanese. Let our sons and daughters enjoy dignity and rights, equality and justice, prosperity and sustainable quality of life, security and peace--generation after generation.
On this first day of the New Year, let me extend, on behalf of the government and the people of Taiwan, my appreciation to our friends and allies in the international society for their longstanding support of Taiwan's democracy and their advocacy for peace in the Taiwan Strait. We will spare no effort to actively participate in the world community and to fulfill our role as a democratic Taiwan, a peace-loving Taiwan, a prosperous Taiwan, a benevolent Taiwan. With unwavering determination and resolve, the 23 million people of Taiwan stand ready to prove to the world that Taiwan is in fact "not a problem," rather, an inspiring success story.
Here's to the Republic of China! And, success, prosperity, and a happy new year to our compatriots at home and abroad!