ECONOMIC DEVELO
President Tsai Ing-wen was elected in 2016 with a strong mandate for change . In her inaugural address , she said that the administration would pursue a new economic model for sustainable development based on the core values of innovation , employment and equitable distribution . Over the past two years , with the joint efforts of the government and people , Taiwan has implemented a number of important reforms . Among the concrete accomplishments of these are :
1 . THE STATE OF AFFAIRS IN THE REPUBLIC OF CHINA ( TAIWAN )
1.1 . Expedited industrial upgrading : In line with the core values of innovation , employment and equitable distribution , the government has pursued a new economic model for sustainable development . Last year , smart machinery became Taiwan ’ s third industry having production value of NT $ 1 trillion ( US $ 33.3 billion ), after semiconductors and display panels . Taiwan has become a research and development ( R & D ) as well as manufacturing center for smart machinery and high-end components . Taiwan is also the world ’ s fourth largest exporter of machine tools . Looking at the biomedical industry , Taiwan was named third of 21 rising biotech powers in a 2017 analysis by the Pharmaceutical Research and Manufacturers of America ( PhRMA ).
1.2 . Robust economic performance : Last year , Taiwan ’ s economy grew 2.86 percent , a three-year high . The unemployment rate for the first half of 2018 fell to 3.66 percent , a 17-year low . The stock market has been above 10,000 points for 16 months , and exports have increased to near a seven-year high . Average wages are also at a historic high .
1.3 . Improving the social security network : To ensure people ’ s quality of life and employment , central and local governments have been working to implement housing policies that will see housing justice done . To help elderly people live more fulfilling lives , to allow people to work without having to worry , and to reduce the burden on families and young people , the government is putting together a multipronged long-term care system .
1.4 . Judicial reform : Taiwan has made great efforts on judicial reform over the past two years . In 2016 , Criminal Code provisions on confiscation were changed ; in 2017 , the Achievements Report was released on the National Judicial Reform Conference .
1.5 . Strengthening defense : To expedite the military buildup and improve combat capabilities , the government has budgeted NT $ 346 billion ( US $ 11.5 billion ) for national defense for FY2019 , an increase of NT $ 18.3 billion ( US $ 610 million ), or 5.6 percent , over FY2018 . Presently , defense expenditures amount to 2.16 percent of GDP . Of the budgeted funds , NT $ 73.6 billion ( US $ 2.45 billion ) or 21.3 percent , is allocated to indigenous defense plans .
1.6 . Steadfast diplomacy : To strengthen ties with diplomatic allies , the government is assisting domestic corporations ’ investment and establishment of factories in diplomatic allies . Through continuously operated cooperation projects such as the Taiwan Scholarship , and breeding , medicine , subtropical disease vaccine research , and education programs , Taiwan is helping build friendly feeling toward it and deepening ties with allies . Taiwan has also seen a clear improvement in substantive ties with the United States , European nations and Japan .
1.7 . New Southbound Policy : The New Southbound Policy is Taiwan ’ s strategy for Asia . Since its implementation in January
2017 , many achievements have been made . On the economic front , Taiwan ’ s trade with partner countries last year grew 15.61 percent to US $ 110.9 billion . Taiwan approved 133 cases of investment in partner countries valued at US $ 3.68 billion , a 54.51 percent increase , and accounting for 31.80 percent of all outward investment . Some 580 cases of inward investment from New Southbound Policy partner countries were approved valued at US $ 270 million , an increase of 15.80 percent and accounting for 3.64 percent of foreign investment . As to personnel exchanges , Taiwan is bolstering cooperation and exchanges in the areas of education and industry . There is progress in people-to-people exchanges and tourism , with 2.28 million visits from New Southbound Policy partner countries to Taiwan in 2017 , an increase of 494,000 visits over the previous year , or growth of nearly 30 percent .
1.8 . International participation : Due to China ’ s interference , Taiwan was unable to attend this year ’ s World Health Assembly ( WHA ). However , 24 countries , including like-minded nations , spoke directly or indirectly in support of Taiwan at this year ’ s WHA plenary session . Minister of Health and Welfare Chen Shih-chung led a delegation to Geneva where he engaged national representatives and NGOs at over 60 meetings . Concerning UN participation , last year 15 diplomatic allies sent individual or joint letters to UN Secretary General António Guterres calling for Taiwan ’ s inclusion in the UN system . During 2017 UNGA General Debate , 15 Heads of State , Heads of Government or UN Permanent Representatives spoke out for Taiwan , calling for our inclusion in the UN system as well as the 2030 Sustainable Development Goals . Seventeen nations supported these positions . During UN General Assembly session , Taiwan hosted a series of events in New York on sustainable development , and requested allies ’ Permanent Representatives to the UN to send letters on behalf of Taiwan calling for the UN to act in line with the principles of universality and inclusiveness to end the unjust exclusion of Taiwan ’ s 23 million people from the UN system .
2 . LOOKING TO THE FUTURE
Taiwan still needs to carry out reforms in many areas and will certainly face many challenges and trials in the process . However , as long as it benefits the people , the government is steadfast in implementing reforms with a sense of responsibility , determination and commitment .
2.1 . Bolstering efforts to upgrade industry : The government is encouraging the incorporation of intelligence concepts aimed at upgrading precision machinery to smart machinery , which in turn will help transform Taiwan ’ s industry . It is also working to integrate biomedicine with Taiwan ’ s highly competitive ICT sector to facilitate the development of cross-disciplinary products and integrated services .
2.2 . Promoting steadfast diplomacy and seeking breakthroughs in its challenging international situation : Despite coercive tactics and mounting pressure from China , the people of Taiwan will show the rest of the world that they will not be intimidated into forsaking freedom and democracy nor coerced into retreating from international participation .
2.3 . Upholding the core values of freedom , democracy and human rights : In the wake of legislative amendments to the Referendum Act last year , Taiwan will be holding several referendums together with its nine local elections on November 24
6 • Extraordinary and Plenipotentiary Diplomatist • Vol 6 • Issue 9 • September 2018 , Noida