Source: Government Information Office
At the closing ceremony of the Economic Development Advisory Conference (EDAC) on August 26, 2001, President Chen Shui-bian stated that this is not an ending, but a new beginning. The satisfactory conclusion of the conference is proof that governing and opposition parties, labor and management, academics, and researchers representing a broad spectrum of opinions, regardless of different positions and stances, are able to reach a strong consensus, as long as they open their hearts and find common interests. The President also said he has become even more confident in the prospect of moving from the conference toward a coalition government.
Text of the President's Speech:
This is not an ending, but a new beginning. After more than a month and under the scrutiny of the nation, the Economic Development Advisory Conference meetings are drawing to a close. From the preparatory process to preliminary meetings, and from panel discussions to the final group report, intense policy debates have taken place. Through tolerance and reconciliation and despite each member's firm position, a consensus has been finally reached on many issues. I believe that most people in Taiwan will welcome these results.
We would like to express our sincere gratitude to the governing and opposition parties for their great efforts. We also thank the executive and legislative branches for their cooperation and coordination. Moreover, the success of these meetings not only relies on the perceptive opinions from scholars and experts, but also on the mutual understanding between labor and management. We can say that the conclusion of the EDAC sessions today marks the formal beginning for a most valuable consensus in the future.
New Century, New Nation, and the New Middle Way
During the past three days of the Economic Development Advisory Conference, I have listened carefully to the comments of every conference member, which I have not only made notes on paper but also in my mind. I have also noticed there are different opinions being expressed outside this convention center, and I have heard what those people had to say. In fact, my initial intention in holding the Economic Development Advisory Conference was to incorporate a plurality of opinions and ensure the welfare of all citizens, which the final consensus of the conference includes.
Economic development is Taiwan's lifeline. Only by enhancing the ROC's national strength will we be able to ensure the maximum interests of the people. And only by setting a correct direction for our economic development will we be able to safeguard a sustainable environment, labor's rights and interests, welfare of the disadvantaged, and social justice.
This is the "new century, new nation, and the new middle way" that I have always stressed. Twenty-first century Taiwan must find a stable and balanced "third way" between economic development and environmental protection, between industrial investment and welfare of the disadvantaged, and between corporate and labor interests, and it has to be carried out with the cooperation of the government and the private sector.
After Taiwan's successful political transformation to democracy, we entered a new stage of transformation in economics and social relations. Although we are still in the process of experimenting and adjusting, so long as we stand firm on the new middle way, the goal of stable and balanced development will eventually be reached.
Policy Direction for National Economic Development
In the opening address to this conference, I mentioned "deeply cultivating Taiwan with global perspectives" in accordance with the primary consensus of the panel discussion, as a vision for national economic development in the new millennium. After three days of discussion, the conclusions of each panel have further confirmed the final consensus and conclusions. The outcome should please all members of the conference, as we have fulfilled the expectations of the people and have shown a clear direction for the future economic development for our country.
First, in terms of employment, the government will promptly amend labor laws and regulations to strengthen labor-management relations and expand labor participation; re-examine foreign-labor policy to accommodate both the needs of the businesses and the employment opportunities for the laborers; promote a new labor retirement system to implement and ensure labor welfare; and establish a comprehensive employment security system. To counter the current rising unemployment rate and the threat of unemployment issues that may arise once we join the WTO, the government must develop an employment promotion program and an effective counter-strategy.
Second, with regard to investments, the ROC government must make proper use of its industrial zones and stabilize its water and electricity supplies. We must enhance governmental efficiency; eliminate barriers preventing central and local governments from attracting investments; provide incentives to encourage enterprises to increase their international competitiveness; and find new ways to attract domestic, foreign, and Chinese mainland investments.
The budgets for public construction projects need to be increased, and Taiwan's overall infrastructure should be renovated to reflect international standards. Lastly, the government should eliminate non-economic factors affecting economic development, define standards and simplify related procedures for conducting environmental impact assessments, and coordinate environmental protection regulations, labor laws, and industrial development.
Third, with regard to industry, the ROC government needs to actively recruit foreign high-tech professionals, facilitate greater access for businesses to bank loans, and enhance the competitiveness of traditional industries. A favorable tax environment should be established to stimulate the development of Taiwan's high-tech industries. R&D resources should be better integrated; and an innovation and R&D mechanism should be established for the industrial, academic, and R&D sections.
Finally, the government must promote a knowledge-based economy, revise relevant regulations on business management, and assist Taiwan's agricultural and fishing industries in transforming and modernizing themselves to comply with WTO norms.
Fourth, with regard to reforming Taiwan's financial system, the ROC government will thoroughly implement flexible financial policies and facilitate governmental reforms. Such policies and reforms will include eliminating financial deficits to balance the budget, establishing a fair accounting system to internationalize Taiwan's financial institutions and make them more transparent, and expediting the privatization of government-owned enterprises.
Fifth, with regard to the further development of cross-strait relations, the ROC government will use the four principles of "Taiwan first," "global perspectives" "mutually beneficial win-win situation," and "sound risk management" to replace the current "patience over haste" policy with one of "vigorous liberalization and effective management."
Consequently, we will establish a stable cross-strait policy. A flexible mechanism for the flow of capital between Taiwan and the mainland will be established, and the initiative will be taken in preparing for the opening of the "three links" and accession to the WTO by both sides. Tourist visits to Taiwan by people from the Chinese mainland will be promoted. Lastly, we will continue to push for dialogue between the two sides.
Altogether, a total of five divisions have reached a consensus on 322 opinions. Thus, it can be clearly seen that every division has put forth its greatest effort to attain the best results. This achievement is especially remarkable considering the initial differences between management and labor, as well as among the political parties and the various industries.
Indeed, when the meetings began, divergent views on cross-strait trade and economic development separated various parties, and no one had high expectations for the meeting's success. However, most of these obstacles were overcome and everyone was able to work together to seek and reach a consensus on many of the more important issues. This is highly commendable.
Seven Responses and Pledges
In addition to expressing my heartfelt congratulations and thanks to the EDAC for preparing the final summary report, as well as to all committee members for reaching these agreements and conclusions, I would also like to propose seven concrete responses and pledges:
I. The conclusions reached by the conference are a consensus of all participating members and thus are also a consensus of the people of Taiwan and myself. Therefore, the appropriate administrative departments should implement all these proposals as soon as possible. I hope to see action plans and timetables from relevant departments within the next two weeks. Subsequently, such plans and timetables should be strictly monitored and evaluated.
II. The amendment of the 43 relevant laws, like the six financial laws, should be accomplished in the shortest time possible. I hope the legislative process for many of the proposals that have already generated a consensus can be completed at the beginning of the next parliamentary session. Comprehensive communication of both the executive and legislative branches will be necessary.
III. Under the category of majority opinions, many policies have been discussed in detail and won the support of a majority of the members. Although they do not form a consensus, they still are important for policy consideration and feasibility study. For example, the annual debt service amount paid off with new loans should be deducted from the annual total of the government public debt. It should be adjusted according to the necessary financial expenditures agreed upon by members of the EDAC.
Furthermore, a consensus was formed on the overall study of the tax system, including many suggestions commonly shared by members, such as reducing the land increment tax. The Executive Yuan will have the responsibility to review the tax system in detail and to communicate and coordinate with the Legislative Yuan. I hope that this will have the effect of rejuvenating the domestic economy.
IV. A knowledge-based economy not only concerns innovation in the high-tech industry. It also incorporates the transformation and modernization of traditional industries. The government must take specific actions to vigorously invest in newly emerging domestic industries and assist innovative research and development of key technologies and products. It must also assist the best traditional industries, stimulate new investment opportunities, and provide guidance for industrial modernization.
We will target an annual growth of more than 12 percent for our future science and technology R&D budget. The vice-chairmen's idea of establishing an "industrial re-invention and R&D innovation fund" is an innovation in itself. I ask that the Executive Yuan quickly complete a careful assessment and reach a decision on its feasibility and budgetary sources.
V. Streamlining and reorganizing the government is a consensus of the EDAC, which also suggests that "the president invite people from all sectors of society to form a government re-invention committee."
I not only agree with this conclusion, but I am also determined to fulfill my election pledge of establishing a "young Taiwan and lively government" during my term of office. I hope that the Executive Yuan can propose a sound and complete government organization and re-invention plan in the first session of the new legislature to create a small, but beautiful, capable, highly efficient government.
VI. Without the supportive efforts and full cooperation of various political parties, achievements could hardly have been made during the EDAC. Forming a consensus at the EDAC required consultations and communication among different parties at the Legislative Yuan. Therefore, I am happy to see that the idea of convening a multiparty consultative meeting or a multiparty leaders' summit after the EDAC has been confirmed. I hope that I will have the opportunity to visit party leaders, form a consensus between the governing and opposition parties, and consolidate the efforts of the entire population.
VII. During the past year, political stability has directly affected economic development and the confidence of the people. Only with reconciliation and cooperation between the governing and opposition parties can our citizens maximize the benefits from stable national development. Regardless of the year-end election outcome, I have decided to organize a coalition government. The consensus and conclusions we have attained at the EDAC will not change with the outcome of the election.
A Starting Point for Cooperation
Ladies and gentlemen, the Economic Development Advisory Conference, the first nationwide and multiparty conference after the change of governing parties, is a rare experience. The satisfactory conclusion of the conference is proof that governing and opposition parties, labor and management, academics, and researchers representing a broad spectrum of opinions, regardless of different positions and stances, are able to reach a strong consensus, as long as they open their hearts and find common interests. I have become even more confident in the prospect of moving from the conference toward a coalition government.
Again, I would like to thank the five vice chairmen, the members, and all the staff of the conference for their hard work. Together, we have written a beautiful page in history. I also expect that this is not an end, but a new beginning.
Let the consensus of the conference be the emphasis for the future administration. Let the mode of the conference be the starting point for cooperation between the governing and opposition parties. Since our goal is not simply predicting the future but realizing the beautiful future by working together, much remains to be done after the conclusion of this conference. Let us unite and bravely work together for this land.