A new vision
7/17/2010 2:44:37 PM
Taiwan plays a vital role in both the Asia-Pacific and global economies, having created a success story widely lauded as a model for development. In response to the challenges of globalization and regional integration, we endeavor to engage with the international community in a spirit of conciliation and cooperation, reciprocity and co-prosperity, eschewing confrontational Cold War thinking. We aspire to bring lasting peace and well -being to the Asia-Pacific region and the world.

Since RoC President Ma Ying-Jeou came to office in May 2008, his administration has striven to catalyze conciliation between Taiwan and mainland China in conjunction with a policy of “flexible diplomacy.”

These efforts have already borne fruit. Warming sentiment between the two sides of the Taiwan Strait not only has improved their relations and greatly relaxed tensions, but has enabled them to join hands in developing their economies and improving the lives of their peoples.

Besides ending vicious competition in the international arena, Taiwan’s flexible diplomacy has boosted its ability to pragmatically advance relations with all countries and take part in international organizations. Now, it is in a better position to share with the world its strengths and experience in economic development.

For instance, when a strong earthquake devastated Taiwan’s diplomatic partner Haiti earlier this year, a rescue team from Taiwan was among the first to reach the disaster area.

In addition to having donated US$16 million is cash and materials, Taiwan is in the process of setting up medical and vocational training centers and providing 1,200 prefabricated homes to minister to the needs of disaster victims. These actions have won the international community’s praise.

The warming cross-strait relations are acting as a force multiplier in Taiwan’s relations with other rising Asian powers. Taiwan’s Premier Wu recently has identified India and Indonesia as the new focal points of investment and trade.

Taiwan’s relations with India, an emerging Asian power and a key member of G20 emerging economies and BRIC forum, have shown a steady upswing in the last few years.

Wu has remarked that while India has population of more than 1 billion, Taiwan’s bilateral trade volume with the south Asian giant has remained relatively low at only a little more than US$40 million a year. Taipei has now set an ambitious target to scale up its bilateral trade from the current $5 billion to $10 billion in the next five years.

The ongoing Asian resurgence has caught the imagination of Taiwan’s ruling class. The Executive Yuan recently approved a plan to spend NT$5.479 billion (US$174.5 million) over the next three years to help domestic enterprises tap emerging markets.

Under the “Project to promote Top Quality and Fair Priced Products in Emerging Markets” presented to the Cabinet by the Ministry of Economic Affairs, government agencies will encourage investment in various areas, ranging from innovative research and development, production technology to brand development and product design.

Vision for India

Reflecting this resurgence of interest in India, the second fastest growing economy in the world, in September last year 184 Taiwanese companies participated at the three-day trade business-to-business show called ‘TIITRONICS India 2009’ the bustling southern city of Chennai. Taiwan is expecting 250 for the same event this year.

Top Taiwanese companies like HTC, Acer, D-Link and BenQ have acquired a distinct brand profile in India. Not many know it, but Taiwan’s CEC, an infrastructure giant, is one of the co-projectors of the Delhi Metro. CEC is now constructing the metro system in Bangalore.

Taiwanese companies are keen to invest in many areas in India, especially in agro-based business like food processing and agriculture. The response from the Indian business has been enthusiastic, to say the least. Premier Wu has taken the lead to encourage Taiwanese investment in India.

Given its abundance of software design talent and market size, India is well worth for investing in, Wu said. He instructed the Taiwan External Development Council, Ministry of Foreign Affairs, Overseas Compatriot Affairs Commissions and National Science Council to work in tandem to step up assessment and planning efforts and put forward a concrete initiative regarding investment.

The economic logic is also driving Taiwan to diversify its markets Premier Wu said in order to avoid overdependence on a single market, the government should step up efforts to lower investment risk, quell public concerns about inking a cross-strait economic cooperation framework agreement, and help local businesses make inroads into other major emerging markets, namely India and Indonesia.

Cooperation

Further, besides having effectively controlled the spread of H1N1 novel influenza in Taiwan during the recent flu pandemic-posting a mortality rate only one-third that of OECD countries-we will donate Taiwan-made vaccines worth US$5 million to countries in need.

At the invitation of the World Health Organization (WHO), this May Taiwan will for the second time, attend the annual meeting of the World Health Assembly. This will provide us opportunities to participate in global disease prevention efforts and jointly uplift international medical and public health standards.

In the same spirit of sharing, Taiwan seeks to participate in the activities of other agencies in the United Nations system, including those of the UN International Civil Aviation Organization and the UN Framework Convention on Convention on Climate Change. We look forward to receiving the same international support as accorded us in our efforts to participate in WHO activities, so that we may more effectively share our considerable resources.

Despite setbacks caused by the past two years’ global economic turmoil, Taiwan’s economy is steadily recovering thanks to our people’s efforts and our government’s timely stimulus measures along with an improving global economy. Since the beginning of 2010, Taiwan’s stock and real estate markets have flourished, consumer spending has been rising, and export orders have reached record highs.

The International Monetary Fund, meanwhile, has forecast that our GDP will grow by 6.5 percent this year. These and other indicators show that policies emplaced by the Ma administration have seen us through the global financial tsunami and ensuing economic crisis in good shape.

Growth

Building on the nation’s numerous strengths, by 2016, our government will invest around NT$4 trillion (more than US$125 billion) in a series of infrastructure programs known as the “i-Taiwan 12 projects.” Through that year, the projects are expected to boost Taiwan’s real GDP by an average 2.79 percent per year and create an average 277,000 jobs annually.

Though Taiwan has emerged from economic recession, it faces challenges posed by the “new regionalism” stemming from globalization. Driven by pursuit of common values, norms and interests within their respective regions, more and more nations are entering into various kinds of free trade agreements (FTAs).

In recent years, for example, FTAs between ASEAN (the Association of Southeast Asian Nations) and China, South Korea and Japan, respectively, have been concluded and implemented, making Asia-Pacific integration an irreversible trend. If Taiwan remains isolated from this mainstream, it will pose severe challenges to our economic growth and sustained development.

Thus, as a key member of the Asia-Pacific region and one of its major economies, Taiwan has signed 12 agreements with mainland China concerning trade, tourism and other matters crucial to the interests of our peoples; and in recent moths, the two have been negotiating an economic cooperation framework agreement (ECFA). In response to new regionalism, we also look forward to signing FTAs with other countries.

The ECFA will cover three major areas of concern-tariff reductions and exemptions, investment safeguards and protection of intellectual property rights. Studies conducted by research institutions in Taiwan indicate that, overall, the conclusion of an ECFA will be of clear benefit to Taiwan: It will boost our exports, encourage overseas Taiwanese business to invest in Taiwan, stimulate foreign direct investment, and create job opportunities.

In addition to promoting a cross-strait ECFA, Taiwan will work to sign FTAs or similar economic agreements with the United States, Japan, Singapore and other Asia-Pacific nations. Only by so doing can we join with other regions, and with the world as a whole, to create mutual benefits and prosperity.

President Ma’s cross-strait policies have proved effective in bringing peace and stability to the Taiwan Strait. They conform to the common interests of Asia-Pacific nations and advance the economic development and well-being of peoples on both sides of the strait.

In future, Taiwan will continue pursuing modes of global engagement designed to create benefits for all; we will ceaselessly strive to enhance our economic development while expanding our involvement in international affairs; and we will maintain a responsible, pragmatic, positive attitude.

In this way, Taiwan can be counted on to contribute solidly to the international community and cooperate with its members in creating peace and prosperity in the Asia-Pacific and the world.

(The author is Minister of Government Information Office, Republic of China (Taiwan)

(SOURCE: The article was published in the June 2010 issue of STRATEGIC AFFAIRS magazine, an outfit of CASS-India)