AmCham arrow Publications arrow Topics Archive arrow Topics Archive 2006 arrow Vol.36- No.12 arrow Commentary: Platforms in Search of Parties
Commentary: Platforms in Search of Parties PDF Print E-mail

BY RICHARD R. VUYLSTEKE

 

The recently concluded campaigns for mayor and city council members in Taipei and Kaohsiung illustrate yet again how local political parties never pass up an opportunity to pass up an opportunity. The usual trappings were present in abundance during the controlled chaos that characterizes Taiwan-style election-time frenzy - the roadside billboards and banners, political rallies and endorsements, talk-show pundits extolling and excoriating candidates, and loudspeaker trucks cruising the streets and damaging eardrums.

Behind the hype and hoopla, however, where were the individual and party platforms? The recent campaigns were an ideal chance to articulate clear positions on pressing matters related to urban life. But beyond the "I love my city" slogans and the standard shortlists of more parks and cleaner rivers, the range of platform issues was disappointingly narrow.

Now the political focus begins to shift to two important upcoming elections - the Legislative Yuan balloting in December 2007 and the presidential vote in March 2008. In the interest of bringing more solid content into these national-level campaigns, here are some suggested topics for future political platforms.

Don't forget labor. Two months ago, a small group of protestors led by a candidate-to-be for the Taipei City Council visited AmCham to complain about a Taiwan Business TOPICS editorial urging closer economic ties with China. As cameras flashed, the group's leader repeatedly implored the chamber not to "forget labor." When asked in turn for her position on retraining programs for workers whose jobs have moved to China, her answer was "Don't forget labor." Asked about the impact of Taiwan's macro-economic restructuring on service industry development and its potential for job creation, she again answered "Don't forget labor."

This example illustrates how Taiwan's politicians are disregarding a major social issue. Because Taiwan's is a maturing economy, the percentage of agriculture and manufacturing in overall GDP is inevitably shrinking - with painful social impact, especially on blue-collar labor. Managing that transition is not an easy task. Should labor unions help by conducting retraining programs? Are radical shifts required in vocational school curricula? Are tax incentives needed to encourage companies to expand on-the-job schooling and specialty training for new hires? Coping with such challenges requires fact-heavy research, deep thought, and pragmatic implementation plans. Political leaders should never "forget labor." But throwing slogans at problems won't solve them. Possible approaches need to be formulated, debated, and refined - and constructing and communicating political platforms is a good place to start. Get ready for direct links. One of Taiwan's most volatile and long-lasting political topics - the question of direct cross-Strait passenger and cargo flights - should soon fade away. The special Chinese New Year flights of the past few years are being institutionalized and supplemented by additional flights. Now it's just a matter of time before the frequency expands to meet the overwhelming travel needs of people and businesses in the region.

This should be the time to look ahead to the ramifications of that opening. What to do, for example, with the increased tax revenues to be generated from a burgeoning influx of Chinese business travelers and tourists? The tourism industry and related sectors will face a huge rise in demand. What service industry training programs will be needed to handle this at world-class standards?

If the cross-Strait travel problem is overcome, multinational businesses in China will be able to put more training and educational programs into Taiwan. They will want to locate high-end, IPR-sensitive research in Taiwan, where IPR protection and the rule of law are stronger. What tax and other incentives are needed to encourage such investment? Taiwan's machine tool and IT sectors will benefit from more timely and cost-effective direct cargo links. Retail sales, transportation and logistics support, and a host of other business sectors will be rejuvenated by the cross-Strait flow of people and cargo. What should be done to recapture at least part of the goal, first proposed in the mid-1990s, of Taiwan as a regional logistics center?

So far, the political party platforms have lacked any vision statements on these themes.

Rethink Taiwan-U.S. trade. For decades the U.S.-Taiwan economic relationship has been robustly healthy - so good for so long, in fact, that both sides have taken it for granted. This is a mistake.

Both economies are in transition because of the globalization of business. As China, India, and Southeast Asia become manufacturing centers for the world, other economies have to adjust. For the United States and Taiwan, that means looking beyond the agricultural and high-tech sectors. During the decades when Taiwan was a premier OEM manufacturing site, the United States and Taiwan sent frequent trade missions across the Pacific to link up buyers with suppliers. As Taiwan's manufacturing has moved offshore, the number of missions has dwindled. They need to be revived, but with a different focus.

Currently, though 73% of Taiwan's GDP comes from services, the domestic mindset seems stuck on manufacturing. While IT and LCD production will surely continue as strong drivers of the economy, Taiwan's greatest economic challenge is to upgrade and expand its service sector - and toward that end a fairly sensible action plan for service industry development was announced in 2004. Unfortunately, few political leaders seem to have grasped the significance of services to Taiwan's economic future. Once they do, a host of platform planks could be hewed to help ensure that services are "the next big thing" for Taiwan.

Vigorous political agendas can shift popular mindsets and cultivate enthusiasm for new social, political, and economic goals. Slogans declaring love for Taiwan need to be backed with substance on real issues. The voters are waiting.
 
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