Rich & Powerful System in Green Pork Barrel Politics

  Rich & Powerful System in Green Pork Barrel Politics

China Times Editorial (Taipei, Taiwan)

June 26, 2018

 Translation of an Excerpt

Taiwan should compete with the Mainland not in quantities but in systems. The difference in cross-Strait systems lies principally in political openness, pluralism and the protection of personal freedoms, while in market competition on the economic side, it is dominated by both the private sector and the government. The Mainland has already the self-confidence to engage in "competition for systems" with Taiwan. Setting aside temporarily the superiority or inferiority of political systems, in terms of economic systems alone, Taiwan has always criticized the Mainland for implementing a "party-state system," accusing the Mainland’s economy of being excessively guided by politics. However, let us ask ourselves in the matter of relative weights of Taiwan government’s intervention in the economy, is it rising or falling? Since the DPP took power, the personnel policy of "pork barrel politics" in the state-owned corporations system, isn’t the problem of political interference in enterprises and corporations in the process of deteriorating?

Since the Tsai government came to office, from the appointment of helmsmen of state-run enterprises to the intervention by various improper policies, the situation has exacerbated, leaving the public not only worried about the prospects of these enterprises, but also the negative impact on Taiwan’s economy as a whole. In as far as personnel appointments are concerned, former CPC Taiwan chairman Derek Chen, current chairman Tai Chein, Taiwan Salt Corp. chairman Chen Chi-yu, China Airlines chairman Ho Nuan-hsuan, Taiwan Rolling Stock Co. chairman Tsai Huang-liang, etc., are either purely political spoils or lack professional qualifications. As to Wu Yin-ning, general manager of the Taipei Agricultural Products Marketing Co., or Helen Chang, Chiayi County Executive, who the Tsai government once wanted to tap as Taipei 101 board chairman, it would be even more difficult to say that they were qualified for the posts.

When the Tsai government intervenes, and dominates even more economic arenas and acts, the negative impacts may not emerge in the short term, but in the long term, even more bad loans, financial black holes, and the distortion of trade competitions are bound to appear; finally, not only will the taxpayers be asked to pick up the tab, but the country has to pay the price of sliding economic competitiveness. For instance, during the global wave of closing down giant solar energy factories, the government injected NT$4.5 billion to push for mergers of solar energy enterprises. Are they really going to be profitable in the future? Or after several years of being dragged along, could they hardly escape ending up in the red and becoming losses? Further, the future of green energy still has many risks; the government wants state-owned banks and insurance companies to invest with their funds or extend loans to the tune of NT$1 trillion in green energy. Would it bury a fuse for a “green financial tsunami” in the future?

We cannot be optimistic as the Tsai government began appointing cronies and relatives and doling out political spoils since coming to office. Taking a longer view for observation, too many political pork barrels will allow the victorious political party to gain control; once a closed monopolistic system is formed, the country will move toward failure.

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