Mindful of the problems wrought by the revolving-door nature of the premiership and key ministerial posts during the eight years of Democratic Progressive Party rule, the government of President Ma Ying-jeou came into office hoping to demonstrate the stability and durability of its government. But in the wake of the devastation that Typhoon Morakot brought to southern Taiwan mountain villages, farms, and infrastructure – and in the process to the Ma administration’s popularity ratings – the president determined that a Cabinet reshuffle was politically unavoidable.

The new government of Premier Wu Den-yih will clearly face a host of challenges, starting with the need to prove its competence and efficiency in carrying out reconstruction in the areas hard-hit by the disaster. The Cabinet is undoubtedly also conscious of the importance of skillful management of the cross-Strait economic relationship. In moving ahead on the proposed Economic Cooperation Framework Agreement (ECFA), the government will need to make the case more clearly to the public on just why such a pact is so crucial to preserving and protecting Taiwan’s export markets in China and the region.

Here are some other topics that deserve to be high on the new Cabinet’s priority list:

• Balancing the advances in cross-Strait ties with further strengthening of relations with the United States, Taiwan’s most important source of international support. Given the political environment in Washington, it is currently not feasible for the United States to begin negotiating a Free Trade Agreement with any country, including Taiwan, and discussion of a Bilateral Investment Agreement has been stalled because of procedural complications. But the two governments could explore various other mechanisms for broadening and deepening the economic relationship. If that can be done, Taiwan would feel a greater sense of confidence and security as it engages China.
• Continuing to pursue the aspiration of developing Taiwan into a regional financial center. Currently several proposed laws and regulations threaten to undermine Taiwan’s competitiveness in the banking, insurance, and asset management industries. The Executive Yuan, by liaising with the legislature and coordinating between the Financial Supervisory Commission and the Ministry of Finance, is in a position to ensure that Taiwan’s attractiveness in the financial-services sector is not eroded.
• Tackling the problem of insufficient funding for the national healthcare system. As long as hospitals are reliant for their financial soundness on ever-larger discounts from the pharmaceutical and medical-device manufacturers, Taiwanese patients’ access to new and innovative treatments will be restricted. Further, Taiwan will be unable to draw the investment needed to build a flourishing biotech industry.
• Shoring up Taiwan’s international economic competitiveness, now in danger of slipping as other countries surge ahead. That can be accomplished by improving the fairness, transparency, and consistency of the regulatory process, and by adhering to international practices rather than devising Taiwan-unique solutions.

The former Cabinet was replaced because it evidently did not meet the high demands and expectations of the Taiwan public. It will now be up to Premier Wu and his ministers to show that they are up to the task.