Resolution on Creating a New Era in Taiwan’s Economy

Preface

Through the efforts of the Taiwanese people and the democratic movement leaders, the
Democratic Progressive Party (DPP) completed the first alternation of political parties in
Taiwan, ending fifty years of the Kuomintang rule. As evinced by this transition, the
universal value of democracy has taken root in Taiwan. At the beginning of the new
century, a new global economic order is taking place, and Taiwan's economic structure is
also facing a crucial phase of adjustment. In particular, given the new challenges brought
about by the accession into the World Trade Organization (WTO), as well as the formation
of trading blocs, Taiwan must accelerate its plans to reform, institutionalize, and regulate
the existing economic system.

At this crucial point in Taiwan's social and economic development, based on the island's
experience and achievements, the DPP proposes the "Resolution on Creating a New Era in
Taiwan's Economy," with the goal of building a new momentum for national development.
The DPP expresses its views and positions with regard to Taiwan's current development,
hoping to consolidate democratic achievement, create another Taiwan economic miracle,
and build a prosperous future with the Taiwanese people.

Positions

A. Knowledge-based Industry as a Basis of the Country

1. In response to the dramatic changes in economic and industrial structure, reform

Taiwan's educational curriculum to cultivate greater technological, marketing, and
management skills. In addition, a joint R&D mechanism should be created to incorporate
the participation and expertise of academics, government specialists, and industrialists,
and the government should take greater steps to establish an integrated platform to
facilitate the supply chain and cash flow. Finally, upgrade Taiwan businesses' global
logistics management capabilities, establishing the island as logistics center for
information and technology.

2. Based on Taiwan's current industrial development, its highly skilled manpower, and
its flexibility and lucidity in the supply of goods, develop the island into a high value-
added manufacturing and R&D center.
3. Aggressively integrate and improve Taiwan's transportation, fiber-optic, and
broadband networks, while developing environmentally friendly, regional energy
industries. This enables greater communications of information and ensures adequate
supplies of water and electricity, establishing the infrastructure to build Taiwan into a
"Green Silicon Island."

4. In the interests of a free and open economy, gradually diversify financial and
investment products, while at the same time introducing foreign capital, technology, and
innovative management systems to the domestic market over the long run, making
Taiwan an Asia-Pacific regional center of asset management.

5. Actively solve problems faced by traditional industries, and promote strategic

alliances among small and medium sized businesses to facilitate the exchange and
interaction of information and resources as well as the sharing of new managerial styles
and products. Under the framework of regional economic cooperation, sign bilateral free
trade agreements with foreign nations to strengthen Taiwan's international
competitiveness.

6. Carefully formulate plans for water and ecological conservation, while introducing
plants with deeper root structures on mountainsides to prevent soil erosion and
mudslides. In addition, conduct a full soil analysis of Taiwan to aid in land conservation.
To achieve a comprehensive system for national land development, form a national
Institute for land planning, charged with formulating regulations to protect national land
and soil conservation, completing the national geographic information system, and
transforming the island into a "Green Taiwan."

7. Utilizing international logistics management schemes, assist the disparate sectors of

agriculture, logistics, processing, medical services, and tourism, and assist them in
forming cooperative alliances to facilitate the exchange of resources, consequently
increasing the export of perishable agricultural products. At the same time, we need to
research and develop key biotechnologies, patent a resource bank of biological data and
agricultural production methods, and hasten the procedures concerning the regulations
protecting biotechnologies and conserving unique species. This will make Taiwan a
global biotechnology center.

B. An Open and Free Economy

8. In anticipation of Taiwan's entry into the WTO, amend current regulations to meet
the organization's requirements. In addition, strengthen the island's financial system and
elucidate government and business information transparency in accordance with
international regulations to build a more open, efficient, and legitimately competitive free
economy.

9. Remove inappropriate or inefficient government interference with the workings of the

free market. In addition, the government should provide accurate information to reduce
inelasticities in the market arising from false or misleading economic expectations.

10. With regard to the regulations on financial institutions and mergers of businesses,
create specific laws to protect citizens' rights and interests, as well as enhance economic
transparency.

11. Under the premise of a stable and disciplined financial system, a fair and efficient tax
structure, and balanced local budgets, the government must readjust its expenditures in
terms of both structure and scale. This should be accompanied with pushes for further
reform in the tax system to eliminate the national deficit and achieve long run fiscal
balance.

C. A Fair Welfare State

12. Guarantee the minimum wage to protect workers' rights, while simultaneously
amending labor laws to establish a comprehensive negotiating mechanism for laborers
and managers that incorporates sound union organization and orderly negotiation
models.

13. Actively combine government and public resources to ensure a safe working
environment and humane working conditions. At the same time, provide opportunities
for lifelong learning and self-improvement.

14. Save social security to protect the dignity of the unemployed, and aggressively
reform the pension system to ensure a dignified retirement for workers.

15.To mitigate the impact of Taiwan's WTO entrance on the agriculture, forestry, marine,
traditional farming and crafts, and high-tech and service industries, complete
comprehensive measures to safeguard these sectors in accordance with international
norms and human rights. Incorporate stipulations on working conditions into trade laws
to protect all Taiwanese workers' interests and rights.

D. Clean and Capable Government

16. To complete the objective of restructuring the government, review the government's
responsibilities, reduce its size, and hasten the restructuring of ministries and
committees. Change the methods of governmental operations, particularly
organizational structure and recruitment of personnel, allowing for a more flexible and
responsive government. Redistribute power between the central and local governments
to reduce gridlock within bureaucratic levels and reasonably distribute regional
resources.

17. Assess government officials' performance by adopting current business methods of

evaluation to improve government functions. At the same time, establish an institution
to combat corruption and to eradicate “black gold,” leading to a cleaner, more efficient,
transparent, and just government.
E. Global Perspectives

18. Vigorously utilize Taiwan's long-standing advantages of strong management

professionals, experience in economic development, and innovation to support
developing countries' economies and extend the trade logistics capabilities of Taiwan's
industries further into the international market.

19. In light of globalization and under the structure of the WTO, hold fast to the DPP's
1999 "Resolution regarding Taiwan's Future" and the stance of "Taiwan First." Within the
framework of "active openness, effective management," incorporate China’s market and
its resources as part of Taiwan's global perspectives and strategies.

20. Fully employing international capital, trade, and technology networks, and with the
advantages stemming from Taiwan's knowledge of Chinese culture, appeal to
international investment to use Taiwan as a center of purchasing, information
distribution, and R&D. Build Taiwan into the "New Silk Road for the 21st Century" by
coordinating industrial specialization among the different Chinese communities,
extending them into the world market, and acquiring leadership in the international
arena.