To leave a bright legacy when he leaves his post in 2008, President Chen is working for constitutional, financial, and governmental reforms, as well as pushing for diplomatic breakthroughs. (Yen Jung-chang)
It's been five years since Chen Shui-bian defeated the long-term ruling party the KMT to take the presidency in 2000. This May 20th, he marked the anniversary of his inauguration as he does every year-by working as a volunteer. In these five years, he has faced many challenges, including political opposition, tension across the Taiwan Strait, and international isolation. But he remains in the vanguard of reform, hoping to lay the groundwork for the continual future development of Taiwan.
In the May 14 election for the ad hoc National Assembly, the two parties which support amending the ROC constitution-the DPP and the KMT-took more than 83% of the vote, or 249 of 300 seats. The DPP's share was 127 seats, or more than 42%. Thus the prospects are good that the constitutional amendments will be passed. For President Chen, long an advocate of constitutional reform, this was surely the best anniversary gift he could have asked for.
It was the first victory in which the pan-greens won over the pan-blues by a substantial margin, but President Chen stressed that the election symbolizes a victory for Taiwan's democratic reform and was not merely a contest between parties.
Constitutional reform
Governmental reform through amending the constitution has been a goal toward which President Chen has strived throughout the five years of his administration.
In his speech at his second inaugural ceremony on May 20, 2004, Chen said that a constitution was the ultimate legal foundation of a nation, and a contract between a government and its people. This nation's constitution had been constrained by the conditions under which it was created, and though it had been amended six times during President Lee Teng-hui's term of office, it still did not suit the nation's present or future needs. Chen then said the constitution needed to be amended to lay the foundation of democratic rule of law and resolve issues such as whether the nation has a three-way or five-way separation of powers and whether it is governed under a presidential or a cabinet system.
He also stated that issues concerning national sovereignty, territorial definitions, and unification or independence would be set aside until a consensus was reached between the nation's political parties. He hoped that before his term was up in 2008, he could give the people of Taiwan a new constitution that suited their current needs.
To avoid the entanglements that occurred during the last six amendments, the president has stressed that the constitutional reform process should not be led by one person or party, nor should it be a temporary fix just to meet present needs. To that end, he planned to form a Constitutional Reform Committee comprised of members of the ruling and opposition parties, as well as legal experts and scholars. The Presidential Office has set up a task force to form the committee.
Following Taiwan's first peaceful transfer of power between political parties in 2000, and the first referendum in 2004, the May 14, 2005 election for an ad hoc National Assembly marks another milestone in Taiwan's political development. If the assembly ratifies the reforms passed by the Legislative Yuan on August 23, 2004-including halving the number of seats in the legislature from 225 to 113, creating a single-member two-vote district voting system, abolishing the National Assembly, enshrining the right to public referendums in the constitution, and making future constitutional amendments ratifiable by referendum-the second stage of the president's reform process will have reached a successful conclusion.
Financial reorganization
In addition to pushing the constitutional reform package, President Chen also set plans to revitalize the economy as a top priority in the face of a sagging world economy. He stated his "three priorities" policy: Taiwan first, the economy first, and investment first. He has also promoted "four directions" for the government: generating new business, attracting foreign investment, reviving the economy and creating jobs.
Chen declared 2001 the Year of Financial Reform, pushing six financial bills in the legislature. To debate these bills, the Legislative Yuan called an unprecedented extraordinary session.
The six bills, seen as a "booster shot" for Taiwan's economy, included legislation on the restructuring of financial institutions, deposit insurance, and business tax, among many others. These bills were designed to force institutions with poor business practices out of the market, and encourage the formation of large-scale institutions through mergers. Since taking effect, they have successfully reduced banks' non-performing loans ratios, and the value of shares in Taiwanese companies held by overseas investors has grown by 250% compared with five years ago, to NT$3.3 trillion. This is indicative of the confidence placed in Taiwan in international financial markets.
Restructuring and tax reform
President Chen has also taken the initiative in pushing forward reforms in the structure of the government and the tax system.
During his first inaugural speech in 2000, he said, "In the area of government reforms, we need to establish a government that is clean, efficient, far-sighted, dynamic, highly flexible and responsive, in order to ensure Taiwan's competitiveness in the face of increasingly fierce global competition. The age of 'large and capable' governments has now passed, replaced by one of 'small and effective' governments, which have established partnership relations with the people."
In September 2004, the Executive Yuan completed a draft of proposed amendments to the Organic Law of the Executive Yuan, which would downsize the executive branch from 36 departments to 13 ministries plus four commissions and five independent agencies. After 17 years, and through the terms of eight premiers, the Executive Yuan has finally made the historic step. If the amendments are ratified by the legislature, the effectiveness of Taiwan's government should take great strides forward.
Another tough target of reform is finance and the tax system. Due to problems accumulated over the years, the government's budget has been getting tighter over the five years of the Chen administration, with government debt mounting at an alarming rate. Taxes, the government's largest source of income, are insufficient to meet the deficit, so in order to keep from saddling the next generation with debt, hampering the government's ability to effectively pursue its policies, and damaging Taiwan's international competitiveness, reform is pressing.
In February of this year, the Ministry of Finance announced it was putting in place a tax reform package that included cuts in inheritance, gift, and land taxes, and a rise in business taxes. While reporting to the legislature, Minister of Finance Lin Chuan also pushed for a minimum tax scheme for businesses and individuals. He proposed creating a draft law to be finished by late June and to be brought before the legislature by the Executive Yuan in late September.
Drive for diplomacy
This series of reforms has kept the president busy, but perhaps his toughest job is that of international relations.
On the eve of Chen's fifth anniversary of taking office, Taiwan re-established diplomatic relations with Nauru, making it the nation's 26th formal ally.
Throughout his years in office, Chen has worked to consolidate the nation's allies through the diplomacy of democracy, humane values, environmentalism, trade and being a good neighbor, paying visits every year to allies in Central and South America, Africa, and the South Pacific. In April 2005, President Chen personally attended the funeral of Pope John Paul II in the Vatican, the first time a Taiwanese leader has made a diplomatic trip to Europe. President Chen's labors in the diplomatic realm show he is fighting against the international isolation pushed on the nation by China.
Over these five years, President Chen has been working to put into practice his vision of "Taiwan standing up and reaching out." During the process, Taiwan encountered its first deficit, as well as SARS, but it overcame these. The road to reform will have its obstacles, and there will be trying times ahead. Only if the people unite and rally behind the president will Taiwan be able to surpass these obstacles and let the beauty of Formosa shine for the world to see.
