Prof. Cohen, distinguished guests of the Council on Foreign Relations:
It is a privilege to share my thoughts with all of you on this special occasion. Thanks to Prof. Cohen, my Harvard Law School advisor, for this wonderful opportunity, and special thanks to you for your interests in Taiwan's future.
While some people may think about the presidential election in 2008, I would like to discuss with you where Taiwan is and where Taiwan is going. Right now, Taiwan is at a historical crossroad because of the three challenges facing us: (1) the rise of Taiwan's national identity, (2) the "magnet effect" of China and (3) the acceleration of globalization.
First, after leaving the authoritarian past behind and embracing democracy at the end of the 20th Century, Taiwan is developing a unique selfhood, what we called 台灣主體性, roughly translated as a Taiwan nationality. A recent survey conducted by universities in Taiwan, Japan and Hong Kong shows that 60% of people in Taiwan consider themselves "Taiwanese," compared to only 18% in 1992. The result of survey is not surprising, as more and more Taiwanese feel confident in Taiwan's economic and democratic achievements. At the same time, less and less young people share the "China experience" that had previously defined a generation of "Chinese on Taiwan."
Taiwan's democracy has grown very fast, and we enjoy the same degree of freedom as other developed democracies like the United States. The 2006 Freedom House survey gives Taiwan the highest scores in both civil liberties and political rights. At the same time, our democratic institution still suffers many legacies of the authoritarian era. Taiwan, as a young democracy, is experiencing what I called "symptoms of a transitional democracy." The alleged misuse of state affairs fund covered by the press is one example of such transitional crises facing Taiwan. However, through these crises, our judicial independence and fairness have improved. More importantly, our people now expect and demand more cleanness and capability from politicians. Deeper institutional reforms are also needed to improve the transparency and effectiveness of our government. Thus, we must build our government based on the rule of law, and particularly, on a sound constitution that is fitting for Taiwan in the 21st Century.
The second challenge for Taiwan is the magnetic effect of China. As China makes impressive economic gains, it has also developed different "faces of power," described by Dr. David Lampton in his latest Foreign Affairs article as guns, money and ideas. The rise of China has an even greater impact on Taiwan than the rest of the world. The cultural ties and the close distance result in greater cross-strait exchanges and economic integration. To date, Taiwanese businesses have invested in China 71% of our total foreign investments. One million Taiwanese people have settled in China, and transportation routes between Taiwan and China are some of the busiest ones.
The Chinese government, however, has not given up the use of force against Taiwan. With 825 short- and medium-range missiles deployed against Taiwan, China continues to increase its military capacity and projection of forces in space, air and sea. China has stepped up the use of both intimidation and seduction to undermine Taiwan in six different areas: military, economics, diplomacy, law, media and psychology. China clearly recognizes Taiwan's strategic importance, as access to Taiwan is necessary for China to fully develop into a Pacific power.
Today, new generations of Taiwanese are developing their own unique experience of China different from their elders. The leaders on both sides of the Taiwan Strait should define cross-strait relationships with new thoughts and new vision. Taiwan and China are relatives ethnically and close neighbors geographically. There is no reason to resent or to fight against each other. Constructive engagement and normalization of cross-strait relationships should be based on the three C's: cooperation, co-existence and co-prosperity.
Similarly, the international community should also re-examine the outdated and often misleading concept of the One China Policy, given the fact that Taiwan and China have been separate and independent from each other. Only then can we find an effective solution to the cross-strait disputes.
When we examine Taiwan's history, we find that the fate of Taiwan is not decided by China; rather it is tied to the affairs of the world. Looking from a Chinese perspective, one may see the inevitable merge of Taiwan and China. Looking from a global vantage point, however, one will realize that Taiwan does not belong to China; rather, it belongs to the world.
This brings me to my third and last point, the acceleration of globalization. Globalization has not only facilitated the rise of China, it has also increased Taiwan's significance to the world. In recent years, we have seen the completion of Taipei 101, the tallest building in the world, the Snow Mountain Tunnel, the longest road tunnel in East Asia, and the completion of the Taiwan High Speed Railway. Taiwan's economic rankings continue to be among the highest in the world in growth competitiveness (6th), global competitiveness (13th) and economic freedom (26th). Taiwan's technology index is even more impressive, ranking third globally. Taiwan's IT industry accounts for more than 60% of major IT products in the world, and Taiwanese IT companies play an indispensable role in the global IT supply chain. That's why BusinessWeek describes Taiwan as an invisible powerhouse of the global economy in a cover story called "Why Taiwan Matters?"
Despite the deliberate exclusion by China, Taiwan continues to engage the world. In the latest globalization index, Taiwan was ranked 12th in economic integration and 18th in technological connectivity. Taiwan has risen in a unique way--we have developed our own brand of soft power based on democracy, human rights, peace, love and technological progress.
In 2005, I founded Democratic Pacific Union, an international organization of 28 democratic countries to promote democracy, peace and prosperity in the Pacific region. To date, DPU has held conferences in Guatemala, Japan, Korea, and Indonesia. Just last month, the DPU launched the Pacific Congressional Caucus with parliamentary members from 30 countries to promote democratic consolidation and better governance.
Many people have expressed their expectation to see China become a "responsible stakeholder." Don't forget that Taiwan has been a model of global responsibility in its compliance of international norms and in its contributions toward many humanitarian projects. Taiwan has demonstrated her ability and responsibility to the world, and it is time to recognize Taiwan's contributions, to respect Taiwan's national dignity, and to treat Taiwan as a "responsible stakeholder."
Why Taiwan matters? Taiwan matters because of its vital role in spreading democracy in East Asia; Taiwan matters because of its strategic importance to promote peace in the Pacific region; and Taiwan matters because of its indispensable position in the prosperity of global economy. What is Taiwan's future? Taiwan's future lies in the world, rather than in China. Taiwan has embraced the world, and the world shall embrace Taiwan.
Thank You.