Ammon News - By Banan Malkawi

TAIPEI – AMMONNEWS - The Republic of China (Taiwan) is a country lacking in natural resources, but it has sure proved itself resourceful in having the ability to find quick and clever ways to overcome both political and economic challenges. This Asian powerhouse may be ideally identified by economic strength, technological innovation, and political pragmatism, all of which have put Taiwan on the map of global competitiveness, albeit lacking in symbolic diplomatic recognition on the political scale.

Today, Taiwan endeavors on a national strategy with an eye on innovation, sustainability of growth and industry, global competitiveness, and in the words of its president, Ma Ying-jeou, Taiwan seeks to remake the nation, identify its niche, and find a viable way forward by coming up with a forward-looking and pragmatic national strategy that upholds the values of freedom and democracy, while promoting rapprochement and cooperation with its neighbors and with its global counterparts.

FOR TAIWAN, RELATIONS WITH CHINA ARE NOT INTERNATIONAL RELATIONS

One cannot separate the political from the economic of today’s Republic of China (ROC), where the political pragmatism and realism of contemporary Taiwanese politics helped remove many of the obstacles that have for decades hindered its economic viability and prosperity. At the fore of these obstacles have been the country’s relations with mainland China (People’s Republic of China), which has, for decades, competed with the island on the symbolic identity of what truly represents “China”. Based on the 1992 Consensus, each side (ROC and PRC) acknowledges the existence of “one China,” but, each maintains its own interpretation of what that means.

With the majority of Taiwan’s population favoring a “status quo” on the political consideration of this “China” dilemma, Taiwan goes about its political and economic endeavors, vis-à-vis mainland China, with three main principles in mind: no unification, no independence, and no use of force. All three principles, for Taiwan’s present status, mean that maintaining the status quo is the best viable option for now. Based on a recent public opinion poll on Cross-strait relations in Taiwan, published by Taiwan’s Mainland Affairs Council in July 2013, well over 70 percent of the Taiwanese population favors the “status quo,” ranging from a strategy of indefinite status quo, to status quo for now but taking a decision later (which may include either unification or independence later on). Only a small percentage of the population, according to the poll, favors an immediate approach towards either independence or unification with mainland China.

Taiwanese people maintain a sense of patriotism and national “Chinese” identity that is unwavering when it comes to the political system of Taiwan. China, for the Taiwanese, is the democratic capitalist China, based on their “interpretation,” and accordingly, officials from Taiwan’s Ministry of Foreign Affairs and Taiwan’s Mainland Affairs Council highlighted (during a visit by a group of international journalists on the occasion of the country’s national day) the country’s categorical rejection of the “One China, Two systems” principle formulated by the People’s Republic of China, which now reunifies Hong Kong and Macau with mainland China, albeit maintaining their own political, legal, and economic systems. “This does not work for Taiwan,” the officials stressed. Instead, they highlighted that both countries seek to maintain warm relations to avoid military tensions; both sides do not interfere in other’s diplomatic relations and means of peaceful development. Although the two countries do not recognize each other’s sovereignty, they both nonetheless have a mutual non-denial of each other’s right to govern.

For the current well-being of the country, Taiwan seeks a zero-percent chance of military confrontation with PRC. Taiwan’s strategy today focuses on upholding the values of freedom and democracy while promoting rapprochement and cooperation with mainland China, in lieu of confrontation and isolationism that has characterized Taiwan’s past, which, in the words of President Ma’s address, “allowed the Taiwan Strait to rank alongside the Korean Peninsula as one of the two main East Asian flash points.”

Because the people of both sides of the Taiwan Strait are Chinese by ethnicity, cross-strait relations are not considered international relations, Taiwan’s President Ma Ying-jeou said during his presidential address on October 10, 2013 during the National Day celebration. As the cross-strait tensions between Taipei and Beijing “have long hindered Taiwan’s ability to engage substantively in the international community, the only way forward was to address the root of the problem, and this meant engaging with mainland China,” the staff of Taiwan Review and Taiwan Today wrote on the occasion of the 2013 Double Tenth National Day.

Based on this pragmatic understanding, the government of the Republic of China has in the past five years put shaky problematic politics aside, and instead signed 19 agreements that have brought about direct sea and air transport links, visits to Taiwan by tourists from mainland China, mutual judicial assistance, economic cooperation, and other such “breakthroughs.” Both PRC and ROC achieved progressive results by pursuing a basic policy of “facing reality, not denying each other’s authority to govern, and together creating win-win solutions,” President Ma affirmed.

TAIWAN’S “VIABLE DIPLOMACY”

Despite lacking in international recognition and membership in the United Nations, Taiwan focuses on a policy of “viable diplomacy” that bolsters its relations with the international community by circumventing many of the symbolic “diplomatic” relations manifested by presence of reciprocal diplomatic missions. Nonetheless, and due to the special political status of Taiwan, the country is recognized by nearly two-dozen countries, 21 of them having an embassy in Taipei, while itself maintaining 22 full-fledged diplomatic missions abroad. In numerous other countries that do not have diplomatic relations, Taiwan maintains unofficial intermediary bodies appointed by the minister of Foreign Affairs (as is the case with Taiwan’s Commercial Office in Jordan).

Taiwan focuses on “soft power,” Taiwanese officials from the Ministry of Foreign Affairs said, relying on shared values with the democratic world, free press, human rights, religious tolerance, and a capitalist economy. In the past year, Taiwan has moved forward in a number of important political measures, in February, it signed an “Agreement on Privileges, Exemptions, and Immunities,” with the United States and resumed talks with the US under the Trade and Investment Framework Agreement after a six-year hiatus. In April, Taiwan moved towards resolving outstanding tensions with Japan, signing a fisheries agreement that resolves disputes that had vexed the two nations for over 40 years to safeguard the rights of Taiwanese fishermen to operate unimpeded near the Diaoyutias. Taiwan, according to the president, “did this while attaining the goal of achieving great progress on fishing rights without making any concessions on sovereignty.”

Instead of a fixation on “international status,” Taiwan has been focusing on making a presence at international forums. It attended this year’s assembly of the International Civil Aviation Organization (ICAO), the World Health Assembly, and took part at the APEC summit. The government of Taiwan has worked to bolster diplomatic relations with 134 countries that now allow for Taiwanese citizens a visa-waiver or landing-visa treatment.

Despite focusing on peaceful development and normalization of relations with its neighbors, the Republic of China nonetheless does not ignore “risks.” Instead, it works to vigorously peruse national defense reforms on the basis of what President Ma termed as “robust national defense capabilities as the foundation underpinning the country’s ‘resolute defense, effective deterrence’ strategy.”

Taiwanese officials were persistent in highlighting to international journalists that Taiwan’s strategy “keeps politics on the back burner” as it focuses on economic growth and competitiveness. The goal is to preserve the autonomy of Taiwan, the future of Taiwan is to be determined by future generations,” said Chu-Chia Lin, deputy minister of Mainland Affairs Council. Hence, the pragmatic politics of Taiwan remains “let us talk about easier issues first; that is economic goals, then we can talk about final-status politics later.”

INNOVATION IS KEY

The Republic of China has enjoyed a marked economic competitive edge, thanks to its focus on technological innovation in the era of the communications revolution. Taiwan was ranked 12th out of 148 economies in the Global Competitiveness Report 2013-2014 released by the World Economic Forum. Relative to its size and resources, and compared to its giant PRC neighbor, Taiwan plays a rather outsized role in the global economy and is keen to maintain its position as one of the world’s leading exporters of service industry in the coming years. To sustain this ambition, Taiwan has embarked on a campaign of economic liberalization aimed to promote innovation, and more precisely: quality. This innovation-driven development of the country’s economy aims to “move Taiwan from an emerging economy to an advanced one.” as the hike of economic growth has waned, the focus today is on steady and sustainable growth, said Hsiao-Hung Nancy Chen, deputy minister of Council for Economic Planning and Development.

Political pragmatism has been a key factor in Taiwan’s economic growth: put the problematic “China” conundrum aside, and work to improve economic relations with the People’s Republic of China in a way that circumvents political obstacles in the way of economic development. Hence, and as of June 2013, Taipei and Beijing have signed 19 agreements and reached two consensuses since President Ma took office in May 2008. At the fore of these, has been improving cross-strait relations with mainland China on the economic front. This has been Taiwan’s measure in tackling the biggest economic challenge. On June 21, 2013, Taipei signed the Cross-Strait Trade in Services Agreement with Beijing. The agreement calls for opening the cross-strait market to services in dozens of sectors, marking a new milestone in the realization of the 2009′s Economic Cooperation Framework Agreement (ECFA), signed between the two competing nations.

On the country’s economic strategy, President Ma highlighted his government’s efforts to redefine Taiwan’s economy to become a “free economic Island.” He said in his address on the national day that this strategy aims to transform Taiwan into a global supplier of key components and precision equipment, as well as into a pioneer of innovative models for the service industry. Taiwan must “engage in global competition, attract investment from around the world, and develop export markets for our commodities and services. This will pave the way for Taiwan to become a “free economic island.”

To become a “free economic island,” President Ma highlighted that the country must become characterized by what he calls the “3 H’s”: High productivity in its people, high added-value in its products, and most importantly, high incomes and well-being for its citizens as a result. For those concerned that liberalization will have a negative impact on the country, the president underscored that “economic competitiveness” has always been Taiwan’s strength.

AN IDENTITY OF 102 YEARS.. AND COUNTING

102 years after the Formosa Island launched the military Wuchang Uprising, or the beginning of the Xinhai Revolution, which marked the collapse of the Qing Dynasty in China and the ending of thousands of years of imperial dynastic rule, Taiwan today is keen to preserve its democratic culture, from politics to its capitalist economy. Political pluralism is evident in its fierce political party competition, coupled by an outwardly manifested freedom of the press that has kept no Taiwanese official safe from critique, and often, criticism. Freedom of expression in this lively democracy was evident as thousands of anti-government protesters staged an un-impeded demonstration against President Ma Ying-jeou during the Double Ten National Day on October 10.

And as no economy, and no political system, may be sustained without a vibrant society, Taiwan maintains social programs to enhance the well-being of its citizens. The country boasts a universal health insurance program, launched in 1995, which now covers nearly 99 percent of the population. “It’s not perfect,” Hsiao-Hung Chen said, “but the focus is on how to sustain the system and improve it.” The country’s “niche” and way forward, as described by President Ma, is the clear goal and firm commitment whereby Taiwan must “bequeath to its children a liberalized and prosperous economic environment, a rational and caring civil society, a peaceful cross-strait relationship, and a friendly and cooperative space for them in the international community.”

The country is keen to enhance an industry that is driven by innovation creatively found in its academic and educational sector, as is evident in the Industrial Technology Research Institute (ITRI) in Hsinchu County, and the Ministry of Education’s Incentive Program of the Performance of Academia-Industry Collaboration, were operation centers are installed in Taiwanese universities with the objective of providing industry with a competent service platform, and the Alliance of Academia-Industry Collaboration, which is intended as a provider of one-stop services linking the two sectors with a view to helping consolidate specific industrial technologies (According to the Higher Education in Taiwan 2012-2013 report published by Taiwan’s Ministry of Education).

On the domestic political front, the president highlighted the ideals that govern Taiwan; basically, a mature civil society demonstrates high-quality democracy. “Under the principle of constitutionalism, human rights are protected, the rule of law is thoroughly implemented, and the judiciary is independent and impartial, so civil society is able to thrive.” Taiwan seeks a civil society that values diversity and tolerance, a culture where governance is rational, citizens are friendly and caring, and the government is actively responsive.

The most impressive thing about Taiwan, according to the president, is that its “Society has compassion, and the government has heart.” Political pragmatism vis-à-vis Taipei’s relations with Beijing and other pacific neighbors, and its innovation-driven economy, remain key to sustaining the growth, prosperity, and identity of this island.