Premier Sean Chen on June 25 outlined a new "ECFA" concept of elaboration, cooperation, foresight and achievement for building a golden decade for Taiwan. The concept shares the same acronym as the milestone Cross-Straits Economic Cooperation Framework Agreement signed between Taiwan and mainland China in 2010.
Speaking at a conference on Taiwan's economic development hosted by the United Daily News, the premier explained that "elaboration" refers to meticulous planning; "cooperation," collaboration among government agencies and between public and private sectors; "foresight," the ability to see Taiwan's problems 10 to 25 years into the future; and "achievement," more accomplishments and successes.
Citing his visit last month to edamame bean exporters in southern Taiwan, Premier Chen said these small and medium-sized enterprises were able to boost the competitiveness of a very traditional industry through the use of new technologies, large-scale production and intellectual property rights.
It was not enough, however, said the premier, adding that the government must do more to raise the competitiveness of domestic industries. Taiwan's integration into the global economic and trade system should be accelerated, and the industrial structure adjusted. The government must also work to improve the investment environment as well as to cultivate, retain and recruit talent.
Regarding global economic integration, the premier pointed out that countries that have entered into free-trade agreements (FTA) with Taiwan account for less than 0.5 percent of the nation's total trade value. Although Taiwan is a member of the World Trade Organization, he said, it would be a member in name only if this trend persists. The premier likened the situation to economic cliques, where other member countries are signing bilateral and multilateral FTAs with each other while Taiwan is being left out.
As for industrial structure, the premier said Taiwan's industries were more labor-intensive in previous times, and anyone who provided labor was able to share in the fruits of economic growth. As industries became more technology and capital-intensive, however, the technology and capital providers began to enjoy more of the economic fruits than did the labor providers. This imbalance of opportunity created social problems and hindered industrial upgrading. For these reasons, the Executive Yuan has been keen to transform the structures of several industries—specifically, to introduce more services within the manufacturing sector, develop high-tech and internationalized services, and accentuate the strengths and uniqueness of Taiwan's traditional industries.
Chen said the government will tackle workforce problems through talent cultivation, retention and recruitment. To train future talent, for instance, programs have been launched to encourage the technical and vocational schools to engage in cooperative projects with businesses, with the aim of narrowing gaps among testing, learning, training and employment. As for recruitment, discussions are underway to amend regulations to attract more white-collar professionals from abroad.
Concerning the investment environment, the premier pointed out Taiwan's ratio of export value to order value has dropped from 99 percent in 2001 to 76.7 percent last year. This implies that companies receiving the orders in Taiwan did not necessary manufacture products in or export from Taiwan, which has resulted in a loss of domestic job opportunities. In response, the Council for Economic Planning and Development is drafting incentives on land, human resources and new technologies to attract investments from foreign investors and Taiwanese businesses operating abroad.