President Ma Ying-jeou attended a dinner banquet held in conjunction with the autumn forum of the Asia Business Council on the evening of September 18, held in Taipei and hosted by the Ministry of Foreign Affairs. President Ma extended a cordial welcome to the guests on behalf of the government of the ROC (Taiwan).
In remarks to the gathering, President Ma commented that the world economy has exhibited a high level of turbulence over the past year, impacted by the financial tsunami and the downfall of the prominent financial firm Lehman Brothers. Sectors ranging from finance and banking to automobiles all have experienced distress. However, the president said, these challenges are being turned into an opportunity to drive global advancement and development.
President Ma said that in fact the global economic crisis has already hastened the evolution of the role of government in the world economy. Significant changes have been seen with regards to global regulation of free market capitalism and the previous non-interventionist stance of governments, he said. The president commented that what we are now seeing is a re-emergence of Keynesian economic theory. He cited the viewpoint of John Maynard Keynes that governments have a responsibility to make correct decisions on the economy to ensure the wellbeing of people. Therefore, the president said that what we are seeing is governments throughout the world adopting a wide variety of measures to protect people and to rescue their respective economies. Even the United States government, he said, which has been the leader in laissez-faire capitalism, has introduced bold measures in an attempt to support the fragile economy and foster economic recovery.
The president said that no matter what, contemporary Keynesian theory is only partially applicable for governments in facing global economic challenges. These days, it is not enough for a government to just provide benefits and social welfare programs for its populace. In fact, he said, governments shoulder an increasing challenge in the 21st century in that they play a key role in driving and fostering national economic development. Amid today's rapidly changing environment, countries need strong and forceful leadership. They need a government with a vision on how to overcome challenges and the courage to implement it, he said.
President Ma explained that these remarks should not be construed to mean that a government should control the economy or introduce more restrictions. We all are aware, he said, that the economy can only flourish in a free and liberal environment. In addition, only by embracing new ways of thinking and instituting reform can the economy prosper. Therefore, each government must carefully seek to forge a balance among these concerns. Governments must exhibit accurate vision in this regard, while at the same time avoiding actions that would stifle a nation's developmental potential, he said.
President Ma stressed that we can no longer act on our own. Since the late 20th century, the global economy has become highly interdependent. Globalization is an unavoidable trend and the world community must work together closely to address the challenges brought about by globalization. Free trade, he said, will continue to flourish. Bilateral dialogue and multilateral ties will be further strengthened. All nations must understand that in times of an economic downturn, it is untenable to adopt protectionist policies.
The president added that he is leading Taiwan in this direction. He said that since he took office last year, Cabinet officials have had to face the worst economic conditions in decades. The government without delay adopted a variety of bold measures to protect the wellbeing of the people, including providing financial assistance to the unemployed as well as strengthening the social safety net for underprivileged groups and persons. President Ma noted that Taiwan was the first country in Asia to institute protection for all bank deposits, which he said was enormously beneficial in stabilizing the financial system here.
With regards to the economy, President Ma said that the government has introduced measures that will have far-ranging impacts. Many of these policies are aimed at not only helping Taiwan's economy recover, but more importantly have been designed to establish a foundation for an economic transition here that will set the basis for creating national prosperity in the 21st century. The president explained that Taiwan is presently implementing the i-Taiwan 12 infrastructure projects that will inject new vitality into the nation's economic development. These projects include airports, highways, transportation systems, schools and bridges. At the same time, the government is also promoting six emerging industries, namely green energy, medicine and health care, biotechnology, cultural and creative industries, high-end agriculture and tourism. Taiwan is confident that these industries will be the stars of the future, he said.
President Ma stated the Cabinet is also working to establish Taiwan as a global research and development center and to have Taiwan become home for the headquarters of Taiwan enterprises operating throughout the world. The president also commented that since he was inaugurated he has made every effort to improve the state of relations between the two sides of the Taiwan Strait. This has been carried out not only with the desire of reducing cross-strait tensions, but also to pave the way for better relations between Taiwan and other countries throughout the world. Over the past 16 months, he said, dialogue between the two sides of the Taiwan Strait that had previously been severed has been resumed and nine cross-strait agreements have been signed. We are presently negotiating an economic cooperation framework agreement (ECFA) with mainland China, he added. Besides trade under the framework of the World Trade Organization, an ECFA will enable the development of a different type of bilateral trade relationship, he said.
Lastly, President Ma said that as of the present, the government has not only reduced tensions between the two sides of the Taiwan Strait, but also has expanded the amount of room for Taiwan to participate in the international community. Earlier this year Taiwan attended the World Health Assembly. Also, the United States has approved sales of arms to the ROC (Taiwan). Looking ahead, the president said that Taiwan will continue to welcome signs of peace between the two sides. In addition, the nation is marching down a new road towards prosperity and wellbeing for its people.