In 2000, Taiwan had its the first-ever transfer of political power as the Democratic Progressive Party’s (DPP) Chen Shui-bian was inaugurated as President of Taiwan. The victory was a success story for one of Asia’s youngest democracies. However, the peaceful transition has presented many challenges to the new administration.
The administration faced many challenges when it first took office. First, lack of administrative experience hampered the administration’s initial performance. Few DPP leaders were seasoned government officials since they were mainly occupied with pursuing democratic reforms as an opposition movement during the Kuomintang’s 50-year authoritarian rule. Furthermore, the new government faced a civil service that was accustomed to the KMT style of leadership, presenting difficulties in executing new policy.
Another problem after the transfer of power was the opposition parties’ sabotage of government policies. After several constitutional amendments, Taiwan has become a semi-presidential system, a system that is not quite a purely a parliamentary or a presidential system. When President Chen Shui-bian came into office, the DPP held only about one-third of the seats in the parliament. Although the DPP made major gains and became the largest party in the parliament after the parliamentary election in 2001, opposition parties still controlled a majority and continued to sabotage President Chen’s agenda, thwarting policies pushed by the government. For example, in the last legislative session, the Executive Yuan introduced 106 priority bills, of which only 17 were passed by the Legislative Yuan. Meanwhile, none of the economic bills were passed.
Despite the administration’s early adjustment problems and political struggles, President Chen has managed to carry out effective economic, social, and political reforms. In response to the global economic slowdown and high unemployment rate in Taiwan, the President convened the Economic Development Advisory Committee in August 2001 to revitalize the economy. Several financial reform measures were implemented to combat the non-performing loan problems that plagued many Taiwanese banks. The DPP government has also strived to create a fair environment for competition by removing unfair practices and eliminating corruption in contract bidding. Furthermore, we have relaxed investment restrictions, such as those governing Qualified Foreign Institutional Investors, to allow more foreign capital investment in Taiwan. Our efforts in economic reforms have paid off as Taiwan’s growth rate is steadily rising from a negative growth rate of 2.18% in 2001 to a positive 3.6% in 2003. In addition, this year the World Economic Forum based in Switzerland rated Taiwan as one of the most competitive economies in the world, and the first in Asia.
With regard to social reforms, the government has reduced workweek hours, increased job training programs, and provided protection for occupational hazards. The government also passed the Equal Protection Employment Act to safeguard working women’s rights.
In October, President Chen received the Human Rights Award from the New York-based International League for Human Rights in recognition of his contribution to the pursuit of democracy, freedom, and human rights. Under President Chen’s leadership, the DPP is committed to abide by international human rights conventions such as the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights. We have also established a presidential Human Rights Advisory Committee and a cabinet-level Inter-Ministerial Committee to collaborate with local and international NGOs to create a Taiwan Bill of Rights. President Chen has also established the Taiwan Foundation for Democracy to further promote human rights and democracy around the world.
With regard to cross-strait relations, incremental progress has been made since the administration came into office. Aside from the mini-three links between offshore islands of Taiwan and China, chartered flights during the Lunar New Year holiday facilitated the transport of Taiwanese businessmen from China back to Taiwan. Unfortunately, China has not ceased to threaten Taiwan with force, increasing the missiles deployed across the Taiwan Strait and refusing to dialogue with the Taiwan government. China has also utilized economic and diplomatic leverage to isolate Taiwan internationally, blocking Taiwan from participating in international organizations and preventing leaders in Taiwan from traveling.
On the domestic political front, the DPP continues to push its agenda for reform. In 2000 the DPP took over a government that had for decades been intertwined in an abnormal state-party-business relationship. Inappropriately occupying state and private property, the KMT party had managed to become the world’s richest political party, with assets including real estate, radio & TV, investment banking, overseas resorts, etc. The DPP has thus made it a mission to detangle such inappropriate interests, seeking to legislate on party financing and demanding that the KMT return the assets to the public. The DPP has proposed a series of “sunshine laws” aimed at creating transparency and accountability and combating corruption. Unfortunately, such legislation has until now been put on hold and sabotaged in the opposition-dominated parliament. Yet despite the difficulties in passing the new sunshine laws, the DPP government has on the implementation level made progress in combating corruption, arresting and prosecuting individuals formerly involved in corruption scandals and severely cracking down on vote-buying. The last parliamentary election was the cleanest election in Taiwan to date. Such efforts will undoubtedly continue throughout the upcoming election and into the future.
The 2004 Presidential election is contested by two camps, the DPP’s President Chen Shui-bian and Vice President Annette Lu are challenged by the KMT’s Lien Chan as presidential candidate and the PFP’s (People First Party) James Soong as running mate. Lien Chan and James Soong both ran for President in the year 2000 on separate tickets and have united in what is commonly known in Taiwan as the “pan-blue camp” in their effort to re-gain political power. Current polls show that both camps are very close.
The upcoming election is a showdown between those who are unwilling to unleash their hold on the past and those who are deepening Taiwan’s democracy. We believe this election is crucial in that the return of the old guard may downgrade what we have accomplished. Taiwan has become a symbol of democracy to other countries in Asia and around the world. The DPP stands at the heart of this democratic progress as Taiwan’s most progressive and democratic party. As such, we welcome your witness of our democratic advancement and support for the people of Taiwan and the democracy they have built.
On 20 March 2004, Taiwan will be holding one of the most important presidential elections in its history. The outcome of these elections will determine the fate of the democratic process just beginning in Taiwan. The election has been receiving tremendous media attention, not only because of the importance of the election itself, but because of the controversial referendum proposed by President Chen to be held on the same day.
KMT and Taiwan: In 1949, Chiang Kai-shek lost his war on mainland China against the communist forces and fled to Taiwan, where he established his regime and ruled the people of Taiwan, for the next four decades, under Martial Law. Chiang Kai-shek and the Kuomintang (KMT) kept tight control of the political system, police, military, educational system and media in order to maintain their power.
Taiwan’s International Status: With the onset of the Cold War and fear of the spread of Communism grew, Taiwan enjoyed a privileged place in the international community as no one would recognize Communist China. In the early 1970s the tide turned as Nixon “opened” China and China was admitted to the UN, thereby revoking the seat Taiwan had held in the UN. The international community adopted a “One China” approach, which held that there is only one China of which Taiwan is a part. However, an increasing part of the Taiwanese population considers their identity, and that of their country, as independent from China.
Democratic Transition: In 1986 the Democratic Progressive Party was created as an opposition group to the KMT. Their work for a democratic transition in Taiwan has finally begun to achieve some success as Chen Shui-bian of the DPP was elected president in 2000.
Obstacles to President Chen’s Success: The transition in Taiwan has been slow and difficult. President Chen has attempted to introduce reforms, but the DPP does not have a majority in the Legislature, so his measures are continually blocked. President Chen introduced the use of referendums as an alternative to resolve controversial issues and constitutional reforms.
Referendum in Taiwan: The referendum law passed by the opposition (KMT and People First Party), requires majority Legislature approval for a proposed referendum unless national security is threatened. As China has almost 500 missiles positioned on its southeast coast aimed directly at Taiwan, President Chen is able to hold a referendum.
Bullying Tactics By China: In 1996 China fired several missiles over Taiwan in an attempt to affect the outcome of the then Presidential election. By the 2000 presidential election China had changed tactics and unleashed a torrent of verbal threats against Taiwan, warning voters to make the right choice or they could come to regret it.
The Proposed Referendum: Two questions have been proposed by President Chen for the 20 March Referendum:
Concerns of China: Beijing sees the holding of the referendum as a provocative act and has accused President Chen of trying to obtain independence for Taiwan. China has changed its tactics for trying to influence the upcoming election, this time appealing to the U.S., who needs China to help deal with North Korea and for their war on terrorism.
Concerns of the U.S.: The official position of the Bush administration on China and Taiwan is a “One China” policy. They will do anything to protect the status quo in the Taiwan Strait, alternately protecting Taiwan from China and warning Taiwan to not try to push for independence. President Bush has openly warned President Chen that the U.S. will not accept any action that may change the status quo across the Taiwan Strait. However, the questions put forth by President Chen in the 20 March referendum have been deemed “acceptable” to the U.S.
Concerns of the KMT: The KMT opposes the referendum because of its popularity with the Taiwanese people and the association President Chen has with the referendum. This could hurt their chances in the upcoming Presidential election.
Timing of the DPP Referendum: President Chen sees the referendum as an important step in the consolidation of democracy in Taiwan while also setting an example for future referendums. Additionally, he hopes it will put pressure on the opposition to reform the referendum law. Most importantly, President Chen is also hoping to benefit in the election because of the popularity of the referendum. If large numbers of people come out to vote on the referendum, President Chen’s hope is that they will vote for him at the same time as the referendum and the Presidential election will coincide.
In 2000, Taiwan peacefully ended 50 years of KMT one-party rule even as China tried to affect the results of the presidential election. The determination of the people of Taiwan and the support of the international community has contributed immensely to Taiwan’s peaceful democratisation. But now Taiwan is at a critical moment of consolidating its fledgling democracy.
Since 1949, when the nationalist (KMT) authoritarian regime moved to Taiwan, the people have been unable to enjoy their direct civil rights. Yet, over the past 15 years, the call for democracy has gotten louder and remarkable success has been achieved, despite the poor performance of the Legislature. This legislative inefficiency has worsened since President Chen Shui-bian came to power in 2000 because his Democratic Progressive Party (DPP) does not have a legislative majority.
In an attempt to make the Legislature more accountable and efficient, President Chen introduced the use of referendums as a tool for resolving controversial issues and constitutional reforms. The main opposition parties, the KMT and People First Party (PFP), have opposed the use of referendums, claiming they can only be used after a referendum law is passed by the legislature.
President Chen declared that he would call a referendum for election day, with or without the law, and his approval ratings increased significantly. The opposition parties, therefore, agreed to pass the referendum law to facilitate the procedure. Unfortunately, the law they passed contained a number of flaws making a referendum difficult to propose and carry out. For example, only the Referendum Supervisory Committee in the Legislature has the power to decide whether a petition can be called, making it nearly impossible for President Chen to call a referendum because his party does not have a majority in the Legislature.
However, the 17th article of the referendum law empowers the president to initiate a referendum on national security issues when the country faces an external security threat. President Chen has decided to utilize this article and hold a “defensive referendum” on election day, 20 March 2004, because of the almost 500 missiles that China has deployed around its southeastern coast in recent years.
President Chen sees this as an important step in strengthening democracy while also setting an example for future referendums. He also sees the referendum as the most peaceful way to show Taiwan’s voice against the threat from China.
Beijing sees the act of calling a referendum as provocative and has pressed Taiwan’s closest ally, the U.S., to put pressure on President Chen. Given that the U.S. needs China’s help in dealing with North Korea and its war on terrorism, it has readily agreed. President Bush openly warned President Chen that the U.S. would oppose any action that changes the status quo.
Under such international and domestic pressure President Chen has reformulated the issue and the questions for the referendum now include:
“If China does not remove missiles pointed at Taiwan, and does not renounce the use of force against Taiwan, do you agree that the government should set up more anti-missile defences, in order to strengthen Taiwan’s defensive ability?”
“Do you agree that the government should open negotiations with China and establish a peaceful and stable framework for interaction, to seek consensus and well-being?”
The U.S. has accepted the changes and while Beijing and the opposition in Taiwan still challenge the referendum, the prospect for holding the referendum looks brighter.
In 2000, Taiwan peacefully ended 50 years of KMT one-party rule even as China tried to affect the results of the presidential election. The determination of the people of Taiwan and the support of the international community has contributed immensely to Taiwan’s peaceful democratisation. But now Taiwan is at a critical moment of consolidating its fledgling democracy.
