Remarks by H.E. Vincent C. Siew, Vice President of the Republic of China (Taiwan), at the Symposium “Taiwan in the 21st Century: Politics, Economy and Society,” organized by the Weatherhead East Asian Institute, Columbia University, USA and held in Taipei on June 13, 2010
A. Welcome to Taiwan
It is an honor and a privilege for me to attend this event today. On behalf of the government of the Republic of China, I would like first of all to extend a very warm welcome to the scholars and experts assembled here today, and in particular to Columbia University Vice President, Dr. Nicolas Dirks, and Director of the Weatherhead East Asian Institute, Dr. Myron Cohen. I would also like to express our appreciation to Columbia University for choosing Taipei to host this symposium celebrating the 60th anniversary of its East Asian Institute.
Columbia University has long had a brilliant reputation, and its leading position in academia is admired internationally. The fact that Columbia University’s Weatherhead East Asian Institute decided to hold this important and meaningful symposium in Taipei demonstrates the value it places on Taiwan-related issues, and underlines the closeness of its ties with academia in Taiwan. Once again, we thank Columbia University for making this decision, and for giving people who care about Taiwan the opportunity to come together and discuss the latest developments and trends in terms of politics, economy and society. The views exchanged will no doubt offer valuable insights into how to reshape Taiwan and its relations at the regional and global level.
B. Taiwan Plays an Important Role in East Asia
The theme of today’s symposium is “Taiwan in the 21st Century: Politics, Economy and Society.” As we perceive it, the 21st century so far has been characterized by the pursuit of not just economic development, but of democracy and freedom. Looking at the latest developments around the world, we see so many variables and uncertainties, such as the current tensions in the Korean Peninsula, the resignation of Japanese Prime Minister Yukio Hatoyama, the sovereign debt crisis in Europe, the ongoing fight against terrorism, natural disasters brought on by climate change, international standoffs over nuclear non-proliferation, and so forth. All these go to show the tremendous challenges that the international community faces. In terms of politics, economy and society, Taiwan’s location lends it a certain strategic importance at the regional, and even the global, level.
1. A diverse and democratic political system:
Taiwan has made great progress with democracy over the past 20 years, a fact that has been widely recognized around the world. In 1987, the government lifted martial law and put Taiwan on course for an era of multi-party politics and a diverse democratic society. In 1996, Taiwan held its first direct presidential elections, bringing about a constitutional system where sovereignty rests with the people. The results of the presidential elections in the year 2000 saw Taiwan experience its first turnover of power, an experience that was repeated eight years later in the 2008 presidential elections. This second peaceful transition of power demonstrates that democracy in Taiwan has matured. As the American scholar Samuel P. Huntington would have described it, Taiwan has entered the stage of “democratic consolidation” and become a stable democracy. Taiwan is among the few Asian countries that truly possess a vibrant and diverse democratic system. Indeed, former US President George W. Bush once praised Taiwan for being “a beacon of democracy in Asia and the world.”
2. Robust economic recovery and growth
In terms of the economy, Taiwan, no different from any other country, endured a very difficult year due to the financial tsunami. To cope with the crisis, the government adopted a wide array of measures aimed at creating jobs, reducing carbon emissions, saving energy, stimulating innovation, taking part in regional integration, and so on.
Fortunately, Taiwan has seen very clear signs of recovery over the last six months. We have had seven consecutive months of declining unemployment, and achieved double-digit GDP growth of 13.27% for the first quarter of this year. Strong export growth is another indicator that Taiwan’s economy is on the mend. Exports for May are reported to have grown by 57.9% year-on-year, the highest growth ever recorded for a single month. My government had previously estimated that Taiwan’s economy would expand by 4.72% this year. However, if the economy continues to rally, this figure could well be revised upwards to over 6%. The IMF is equally upbeat about Taiwan’s economic outlook, and has forecast growth of 6.5%, with inflation at just 1.5%. Should these figures be accurate, Taiwan will rank among the best-performing nations in not only East Asia, but anywhere.
According to the 2010 World Competitiveness Yearbook published by the IMD Business School in Lausanne, Switzerland, Taiwan ranks 8th out of 58 countries in the overall competitiveness rankings, a huge jump from 23rd last year. More importantly, Taiwan this year ranks 3rd in business efficiency and 6th in government efficiency, our best performance over the last 16 years.
3. Achievements of the flexible diplomacy policy
The Taiwan Strait, the Korean Peninsula, and the South China Sea are potential flashpoints for conflict in East Asia. In past years, mainland China hounded Taiwan on the diplomatic front, restricting our participation in the international arena. Since President Ma Ying-jeou proposed a “diplomatic truce” across the Taiwan Strait and adopted the “flexible diplomacy” policy, cross-strait tension has eased.
The two sides of the Strait have stopped engaging in so-called “checkbook diplomacy” and vying for each other’s diplomatic allies. As a result, Taiwan’s participation in international fora has been on the rise. For example, Taiwan has attended the World Health Assembly for the last two years as an observer.
Moreover, interaction has grown between Taiwan and many countries with which it lacks formal diplomatic relations, such as the United States, Japan, and the European Union. Take the United States as an example. President Obama, Secretary of State Clinton, and various other State Department officials have recognized my government’s efforts to improve cross-strait relations. These countries also have shown willingness to support Taiwan in its effort to expand its presence in the international community. Taiwan has shed its reputation of being a “trouble maker” and remade itself as a “peace maker” in East Asia.
4. Warming of cross-strait relations
Since 2008, cross-strait tension has been thawing. During this short time span, the two sides have signed twelve agreements and reached one point of consensus. At this point, the two of us are entering the final stages of negotiations for the signing of an Economic Cooperation Framework Agreement, or ECFA. Moreover, a total of 270 flights now operate directly between Taiwan and mainland China on a weekly basis. On June 14th, direct flights between Shanghai’s Hongqiao Airport and Taipei’s Songshan Airport will be launched, bringing the number of regularly scheduled cross-strait flights to 370 per week. This year alone, we expect that more than 1 million tourists from mainland China will visit Taiwan. If this holds true, mainland China will replace Japan as Taiwan’s largest source of tourists.
Given that Taiwan has adopted a new cross-strait policy that is proactive, rational and practical, exchanges between the two sides have greatly increased, especially in the areas of trade, culture and tourism. Other major powers in the world, such as the United States, Japan and the EU, have been closely monitoring the development of cross-strait relations. Recognizing Taiwan’s growing role in the political and economic affairs of the region, these powers have been more willing to engage in greater cooperation with Taiwan, thereby highlighting the strategic role that Taiwan plays in the area.
C. Future Challenges
1. Consolidation of Democracy
Despite the acceleration of Taiwan’s political and social development in recent decades, Taiwan remains a young democracy. Therefore, more time is needed for democratic ideals and concepts to take deep root in Taiwan’s society. To become a role model for other developing countries throughout the world, Taiwan must continue to consolidate its democracy and carry out political reforms. We must foster an environment that encourages all political parties to uphold fair and healthy competition, advance the government’s efficiency and transparency, ensure clean governance, and protect the right of the people to participate in public affairs.
The fact that our government still needs to do more to ensure full participation by the people in public affairs is illustrated by Taiwan’s negotiations with mainland China on the signing of various cooperative agreements, including an ECFA. The importance of democratic procedures must be taken seriously if the people are to enjoy, at the very least, some sort of formal safeguards for their rights. This remains one of the biggest challenges to the consolidation of Taiwan’s democracy, and is an area where the government still has more work to do.
2. Balance between environmental protection and economic development
Taiwan has always made its best endeavors to realize a high rate of economic growth. On average, between 1960 and the mid-1980s, its economy grew at the remarkable rate of 8% each year. However, Taiwan’s over-exploitation of natural resources has severely damaged the environment, worsening the quality of life rather than raising it. Currently, countries worldwide have put top priority on finding ways to realize sustainable economic growth.
Due to its limited natural resources and dependence on trade, Taiwan has been particularly vulnerable to the global financial crisis and climate change. Therefore, Taiwan must seek more innovative ways to attain sustainable development.
3. Influences on cross-strait relations
President Ma Ying-jeou’s cross-strait policy has helped mitigate cross-strait tension. However, reunification remains mainland China’s ultimate objective, while most of the people of Taiwan prefer to maintain the status quo, so there are still huge differences between the two sides, both in the general mindset of our people and in the forms of our government. Above all, mainland China has not abandoned the option of using military force against Taiwan, and its rapid economic growth in recent years has enabled the mainland to build up its military clout and increase the number of missiles targeting Taiwan. There are currently more than 1,300 missiles pointed at Taiwan.
In terms of bilateral relations, Taiwan has maintained strong ties with the United States and Japan. Based on the Taiwan Relations Act of 1979, the United States has been selling defensive weapons and providing military training to us, thereby further ensuring our security. The relations between mainland China and the United States are complicated by a wide array of international issues, such as the nuclear ambitions of Iran and North Korea, global climate change, and cooperation in clean energy development. In this light, we have to ensure that Taiwan’s interests are not sacrificed in the dealings between the United States and mainland China. Likewise, in our own interaction with mainland China, we have to guarantee Taiwan’s security.
D. Taiwan in the 21st Century
Taiwan has successfully entered the 21st century as an open and vigorous democratic country with a sustainable economy and a strong military. To keep pace with the rest of the world and ensure the livelihood of its people for generations to come, Taiwan must continue to build up its infrastructure and maintain peace and stability in the Taiwan Strait. More importantly, Taiwan must establish more cordial and positive relations with mainland China in order to give the people on the other side of the Taiwan Strait the opportunity to appreciate our values and lifestyle. Thus, at this point, I would like to reiterate the “six steps to a better Taiwan” as unveiled by President Ma Ying-jeou during the celebration for the second anniversary of his inauguration. These six steps are to strengthen the country through innovation; revive the country by promoting culture; save the country through environmental protection; stabilize the country by adhering to the constitution; secure the country by providing social services; and protect the country by promoting peace. These will create the foundation for a golden decade in Taiwan. In this light, I believe that my country in the 21st century will have the following characteristics:
1. An Innovative Taiwan
According to the World Economic Forum’s 2007-2008 annual report, economic development in countries where gross domestic income (GDI) is less than 3 thousand US dollars per capita depends on such factors of production as land and labor. For those with GDI between 3 and 17 thousand US dollars per capita, the key economic driver is efficiency. In a country with GDI of over 17 thousand US dollars per capita, the key to development is innovation. The government has therefore committed to promoting industrial innovation so as to strengthen Taiwan’s competitiveness and meet the challenges of the 21st century. Given the importance of innovation to Taiwan’s future industrial development, the government has just adopted the Act for Industrial Innovation to encourage research and development. The Act for Industrial Innovation differs from the previous Statute of Industrial Upgrading, which targeted specific industries for tax incentives. With the Act for Industrial Innovation, there are no restrictions on either the size or type of enterprises that are eligible for the tax incentives. Instead, incentives are targeted toward four specific functions, namely, research and development, human resources training, the running of operational headquarters, and international logistics and distribution. In other words, any business, whatever its size and no matter if it is in manufacturing, services or agriculture, can enjoy tax incentives for the above-mentioned types of activities.
Taiwan has a good reputation for innovation, as evidenced by our gold medal haul at the Inventors’ Trade Show in Nuremberg last November and at the International Exhibition of Inventions of Geneva this April. Indeed, in the Global Competitiveness Report released by World Economic Forum last year, Taiwan placed 6th out of 133 economic entities in the innovation category. Globally, Taiwan has the largest number of invention patents per capita. Likewise, in a study on patent productivity by Switzerland’s International Institute for Management Development (IMD) last year, Taiwan ranked third out of all nations in the world.
2. A Cultural Taiwan
Taiwan is a powerhouse of traditional Chinese culture. For more than sixty years now, Taiwan has been working hard to preserve and promote traditional Chinese culture, and because of our unique history, Taiwan has become something of a cultural melting pot. According to European and US data, the value of cultural sector output in western countries has gradually surpassed that of the manufacturing sector. The fabric of Taiwan’s cultural tapestry represents a valuable cultural asset that is ripe for the picking. It was for this reason that the Office of President held six roundtables on the cultural and creative industries last year, to harness the energy and creativity of the cultural sector. Furthermore, the Cultural and Creative Enterprises Development Act has just been enacted. We hope that organizing major international events will serve the dual purpose of promoting Taiwan’s culture on one hand, and enhancing the development of our cultural industries on the other. From the World Games 2009 in Kaohsiung and the Deaflympics in Taipei, to preparations for the International Flora Expo and the centennial celebration of the Republic of China in the near future, such events showcase the uniqueness of Taiwan’s core values. That is, Taiwan’s society is open and enterprising, and our people are kind and hard-working, honest and forgiving. I believe that Taiwan’s free, democratic and diverse society gives it an advantage over the world’s other ethnic Chinese communities. If we can make the most of this advantage, as well as the global connections we already enjoy, and further complement them by raising cultural awareness and developing our cultural industries, then I am convinced that we can create a new turning point in Taiwan’s resurgence.
3. An environmentally friendly Taiwan
All countries are concerned about environmental issues, especially climate change, and unless we take action now, the world will have a bleak future. Mankind’s over-exploitation of natural resources is causing the world to change, leading to one disaster after another. As a responsible member of the international community, Taiwan cannot simply sit on the sidelines. Therefore, it is making every effort to lower its carbon footprint by reducing its greenhouse-gas emissions. For instance, the government has promoted measures to conserve energy and reduce carbon emissions, and has adopted the Framework of Taiwan's Sustainable Energy Policy. It also has emphasized that energy security, economic development and environmental protection are key factors in the development of sustainable energy. We should do more to replace fossil fuels with green energy sources. With these goals in mind, the government has designated 2010 as the Year of Conserving Energy and Reducing Carbon Emissions, and has formulated Major Action Plans so as to better promote related measures. Over the past two years, Taiwan’s carbon emissions have fallen by 4.4%. We hope to continue this trend and cut related emissions by at least 30% below the “business as usual” levels by the year 2020. Taiwan has set higher targets than either South Korea and Singapore has, for example. Also, another focus for governments around the world is the need to conserve energy and reduce carbon emissions. Countries everywhere have spared no effort to develop green energy industries. As for Taiwan, its green energy technologies developed by enterprises working on LED lighting, wind power and electric vehicles have been highly competitive globally. Earlier this year, Mr. Thomas L. Friedman, author of Hot, Flat and Crowded, pointed out in a speech in Taiwan that, although Taiwan lacks natural resources, including petroleum, its green industries command a position at the forefront due to their high-caliber human resources.
4. A caring Taiwan
In the knowledge economy era, Taiwan faces constant pressure to upgrade and transform its industrial structure. With the gap between the rich and the poor reaching extremes, Taiwan’s society is becoming “M-shaped” and experiencing problems greater than ever. Therefore, the government must focus more on ensuring social fairness and justice. Each year Taiwan’s living environment and quality of life improve, leading to an ever-declining birthrate. This can be seen from the fact that the number of children entering elementary school has fallen below the 100,000 mark in recent years. It goes without saying that Taiwan’s low birth rate is becoming a serious problem. The aging of society is also becoming another issue of concern. For these reasons, the government has put top priority on ensuring the stable development of Taiwan’s society. Over the past two years, the government has launched a national pension system, a labor pension system and an elderly farmer pension system, so as to better care for our senior citizens. Moreover, the government has launched programs to encourage couples to start families. Young couples benefit from various forms of home buying assistance, for example. And to encourage them to have children, they are being offered different types of childcare allowances as well as maternity and paternity leave. To take better care of the disadvantaged, the government has started the Earned Income Tax Credit project, which has benefited over 550,000 people thus far. In addition, plans are in the works for long-term care insurance to assist the elderly in their final years. Budget allowing, the government will carry out these and other projects over time so that society’s most vulnerable—the elderly and the young—are fully cared for.
5. A Taiwan that respects human rights
Respect for human rights underpins all of mankind’s progress, and is the driving force behind many modern-day international laws and political developments. During its democratic transformation, Taiwan has wholeheartedly pursued the ideals and values of democracy and human rights. The Ma administration has launched various policies that promote human rights, and 2009 marked an important year in the history of the human rights movement in this country, for we ratified the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights. We also passed an enforcement act for these two international covenants, thus incorporating them into domestic law and further cementing the legal foundation for human rights protection. Taiwan is keeping abreast of the global mainstream in this respect, which I hope reassures the international community of our strong determination to fulfill our obligations and protect human rights. In the future, Taiwan will set up a human rights advisory committee under the Office of the President, and in doing so will refer to the UN’s Paris Principles, while also considering the nation’s current situation and system of constitutional government. This committee will be tasked with finding ways to strengthen the nation’s human rights policies, and coordinate related affairs. Furthermore, the committee will look into the feasibility of setting up a national body in charge of human rights issues, so as to enable Taiwan to gradually put in place international standards and become a country that can truly contribute to the world’s efforts to promote human rights.
6. A Peaceful Taiwan
This month 60 years ago, war broke out on the Korean Peninsula, and the two Koreas have been in a tense standoff ever since, despite the passage of six decades. In contrast to this, tensions across the Taiwan Strait have subsided considerably since my government began promoting a diplomatic truce with mainland China two years ago. Today, the Taiwan Strait is no longer a flashpoint for military conflict in Asia. Indeed, we are currently working to strengthen trade and economic relations and promote cultural exchanges with mainland China, in the hope of establishing a genuine framework for economic co-prosperity and peaceful co-existence.
However, with a view to further developing peaceful and stable bilateral relations with mainland China, as well as boosting our confidence and leverage in negotiations with mainland China, we nonetheless still hope the US government will continue providing us with the defensive weapons we need, such as F-16 fighter jets. Furthermore, we also hope that the international community, particularly major powers like the US, Japan and the European Union, will face up to the fact that the people of Taiwan have a pressing desire to participate in international organizations and their activities. We would very much appreciate it if the international community would assist us with our goal of participating in such international organizations as the International Civil Aviation Organization (ICAO) and the United Nations Framework Convention on Climate Change (UNFCCC).
It is very clear to us that, to achieve peaceful co-existence across the Taiwan Strait, we must adhere to the principle of “no unification, no independence, and no use of force” under the framework of our Constitution. With the 1992 Consensus serving as the foundation for the development of cross-strait relations, reconciliation comes first, followed by cooperation and then, lastly, the establishment of peace. These incremental developments are of vital importance.
E. Conclusion
The centennial anniversary of the Republic of China falls next year, in 2011. At this important moment in our history, the government is responsible for bringing together resources from all walks of society, and for making a concerted effort to plan a grand celebration to mark the nation’s 100th year. The president has assigned me to be the chairman of the preparatory committee, and we very much hope that the celebratory activities we will be holding underscore Taiwan’s ambitions to forge ahead. Among the series of events being planned, a number are international in scale. They include the 2010 Taipei International Flora Expo, the 2011 International Design Alliance (IDA) Congress Taipei, the 2011 World Association for Symphonic Bands and Ensembles (WASBE) Conference, and the International Press Institute (IPI) World Congress 2011. These events will give people from around the world the chance to see the progress Taiwan has made over the last 100 years, as well as our vision for future development and the core values we share with much of the world. I would like to sincerely invite everyone here today to come back to Taiwan, so that you might share in the centennial with us.
As President Ma put it, in some ways the last century was merely a comma in the annals of Chinese history that stretch back thousands of years. But looking at the bigger picture, it is apparent that the last century has been nothing short of an exclamation mark. It has been 100 years of struggle, 100 years of experimentation and 100 years of education. Over the course of these 100 years, a people learned that they too have the unequivocal right to life, liberty and the pursuit of happiness.
The next 100 years will be a century filled with challenges and opportunities. Together we will strive to continue Taiwan’s political, economic and social development, so as to make the Taiwan of the 21st century an uplifting force in the international community, a role model of democracy, an economic powerhouse, and a country known for its harmonious society. Hopefully, Taiwan can set an example that inspires future generations on both sides of the Taiwan Strait, and perhaps even the world, too.
I would like to conclude my remarks now by wishing the conference every success. May everyone present be blessed with the best of health and happiness. I hope that you have a very pleasant stay in Taiwan, and that you take back fond memories of your time here. I also hope to see you on these shores again at some point in the near future. Thank you.