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— — Government Reform Is More Than Just a Number’s Game KAO Koong-lian Chiang Kai-shek’s Legacy to Freedom in Taiwan Joe HUNG WTO WTO — — VS. WTO — — WTO WTO — —

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Government Reform Is More Than Justa Number’s GameKAO Koong-lianFoundation Fellow,National Security Division,National Policy FoundationThe Government Reform Committee (), organized by the PresidentialOffice to implement the resolutions passed by the Economic Development Advisory Conference,has been established and has convened its first meeting. I sincerely hope the government will besuccessfully reformed and streamlined, that its efficiency will increase, its service will improveand industrial competitiveness strengthen.In the past, government restructuring has always been the responsibility of the ExecutiveYuan. But this time there has been much ado about the elevation of restructuring to thepresidential level, with the head of state presiding over the process. Whether it will be successfulremains to be seen.Restructuring is so far focusing on "weight-loss," meaning reducing the number of agencies.I want to point out, however, that government restructuring must review everything to succeed. Itshould not be restricted to the number of agencies, but should also include reducing employeenumbers and rationalizing the official ranking structure.Even more imp ortant is the use of information technology; the use of the Internet to simplifythings for the public, tight information management, accumulating institutional experience andtransforming implicit knowledge to explicit knowledge, simplifying procedures for the customer(the public) and amending laws and regulations to improve customer satisfaction.Government Reform Is More Than Just a Nnumber’s Game

If we look at restructuring in terms of these goals, then the committee has one greatshortcoming: There is no customer participation. In the end, restructuring is just anotherprocedure, but customer satisfaction is the ultimate goal.According to the plans revealed in the media, organizational streamlining means that someof the agencies will not be downsized or merged. They will simply be excluded from the numberof departments and committees under the Cabinet. This gives rise to the worry that this kind ofrestructuring will simply become a numbers game.The whole government system needs to be completely changed -- vertically, horizontally,inside and out.First, the vertical tiers. When the Taiwan Provincial Government was streamlined, it seemedon the surface as though the goal of eliminating one level had been reached. But in reality mostprovincial government units were reincarnated in new guises, transformed into each department's"central Taiwan office." The number of employees was not reduced, and instead office rankswere elevated.And if the provincial government can be "frozen," why does the Fujian Provincialgovernment still exist?It makes one wonder whether the stated goal of streamlining at the time really was to raiseefficiency.The focus of horizontal restructuring is on ministries and councils. But limiting it toministries and councils under the Executive Yuan, while excluding the other arms of government,will make it impossible to complete the streamlining and restructuring in one effort.Looking at the third tier of agencies, each ministry and council -- based on departmentalism-- is expanding its scope by creating independent agencies from their internal units, displayingthe importance of the unit by the number of its employees. Bloated organizations, extending thetime needed for circulating and discussing official documents, do not meet the requirements forefficiency at all.Looking at internal agency units and official ranks, we also find quite a lot of room forrestructuring. As for internal units, one common problem is too detailed a division. Personnel

administration, budget, accounting and statistics, and the anti-corruption departments set upindependent systems using a certain proportion of their employees.Apart from this, research and evaluation, information, archives, general administration andthe secretariat have all established a profusion of units, creating complex systems that increasenegotiation work for no reason.In addition, a universal phenomenon among central government agencies is a top-heavyhierarchical structure with a bunch of idle high officials. Lower levels lack personnel and areoverworked.The most typical example is the Presidential Office itself. If President Chen Shui-bian () really has any strength of character, he will take the lead and set an example by his ownactions. How else could he ask others to lose weight?The reduction and merger of agencies and the streamlining of human resources are only partof the task. Even more important is to find ways to satisfy the public. The government thereforehas also to simplify procedures and amend laws and regulations.Identifying what the people want in terms of restructuring, and integrating that with theexperience of scholars, experts and frontline workers to thoroughly amend laws, regulations andprocedures, is the most urgent and important task at hand.Next, borrowing from corporate restructuring experience, government agencies should makegood use of information technologies to simplify and speed up procedures, especiallyencouraging the flow of information between agencies to avoid having the public run back andforth to provide the same information.One good example where the goal of simplifying procedures for the public and improvingefficiency has been achieved is the handling of household registration materials by the residencyadministration authorities. The process has already been fully computerized so that residencytransfers can now be dealt with at one location.Unfortunately, the scope is still limited, and there is still room for improvement.Finally, another worry is whether there is the determination to follow through onceGovernment Reform Is More Than Just a Nnumber’s Game

government restructuring is completed. The DPP advocated government restructuring during thelast year's presidential election campaign. But since winning the election, it has been led byelectoral considerations.The reduction and integration of departments, committees and agencies in particular is agreat administrative and political project. Today, the new government lacks its ownadministrative talent.Even though the public has the patience to wait for the completion of reform, it is alsoworried. If the government restructuring project is met with opposition or boycotts, will it beabandoned halfway through? 90.11.10 8

Chiang Kai-shek’s Legacy to Freedomin TaiwanJoe HUNGAdviser, National Security Division,National Policy FoundationMany advocates for Taiwan’s independence have condemned – and are still condemning –Chiang Ka i-shek for imposing an “alien” government on the island. But they have forgotten onefundamental historical fact. They owe their freedom for openly calling for the sovereignty ofthe island nation to President Chiang, who was born 124 years ago today.It is Chiang Kai-shek who gave Taiwan its status as a nation state. Taiwan would not havebeen what it is today if he had not brought his tattered Kuomintang government to Taipei andlaunched the island on its way to modernization.There has been no public celebration of Chiang’s birthday in Taiwan for the past two years.It used to be a national holiday – his son, Chiang Ching-kuo, proclaimed October 31 a nationalholiday after the man who had ruled China in different capacities for half a century died in Taipeion April 5, 1975.When on December 10, 1949, Chiang Kai-shek arrived in Taipei from the Chinesemainland – still technically in “retirement” from the Presidency which he did not reassume untilMarch 1 the following year – the political and other fortunes of the Kuomintang governmentwere at lowest ebb. As seen from Taipei at that time, the situation could hardly have beenworse.With regard to international status, the United States in its August China White Paper hadwritten off President Chiang’s cause. A follow-up U. S. Department of State policy guidanceChiang Kai-shek’s Legacy to Freedom in Taiwan

paper of December 23, 1949 had advised American diplomats to prepare for the fall of Taiwan tothe Chinese Communists. The words commonly used at that to describe the Kuomintang causewere “discredited,” “corrupt,” “reactionary,” and “hopeless.” Certainly the morale of thoseKuomintang leaders who straggled into Taiwan beginning in 1948 and through 1650 was all butshattered. The Taiwan they came to had been bombed during World War II, production wasdown, inflation was rife, and there seemed no way to handle the more than million immigrantswho became an almost intolerable burden.In his balanced assessment “U.S. Aid to Taiwan,” Neil H. Jacoby points out,“ … ”One factor contributing to the loss of the mainland was the collapse of the gold dollar note,which, however, was not a legal tender in Taiwan. On March 1, 1949 the exchange ratebetween Taiwan dollars and gold “yuan” notes was three to one. Two months later the ratiochanged to 1:2,000. Had the Taiwan currency been tied with the gold dollar, the island’seconomy would have gone under as well. On the other hand, Taiwan was instructed to financethe “National” government’s budget deficit. The deficit was financed by borrowing from theBank of Taiwan, which played a dual role of commercial and central bank, and by directlyincreasing the issuance of notes. The huge issuance of Taiwan dollars was followed by aconcomitant price rise at an annual rate of 776 per cent in 1947 and 1,144 per cent in 1948. Therate was 1,189 per cent up to June 30, 1949. Half a month before, on June 15, Taiwan issued a

new currency, the new Taiwan dollar which is still in use now. The old currency, the Taiwandollar, was called back at the ratio of 40,000 for NT$1. The inflation was finally tamed notuntil mid-1953.Chiang was elected President of the Republic of China in 1948. Nearly two years before,in October 1946, he and his wife came to Taiwan for the first time on a visit to “shun the (public)celebration” of his 60th birthday. He was actually 59 years old on October 31, 1946, but hemarked his 60th birthday on that day in accordance with China’s age-old custom. Withdonations, mostly private, the former Japanese Governor-General’s Office Building, damagedduring an American aerial bombing, was repaired and presented to him as a birthday gift from thepeople of Taiwan. The building was named “Chieh Shou Kuan,” or Chiang Kai-shek’s BirthdayMemorial Palace. President Chen Shui-bian has his offices therePresident Chiang had no part in the suppression of the anti-Chinese uprising, started onFebruary 28, 1947. After the bloody incident, in which at least 20,000 people were killed,Chiang met with U.S. Ambassador in Nanking (Nanjing) John Leighton Stuart and professed hewas unaware of conditions on Taiwan. He relied on the findings of Pai Chung-hsi’sinvestigating mission whose findings were in large part published and exonerated Gen. Chen Yi,administrator-general of Taiwan. Pai was then the minister of defense. Chiang requested anindependent report by Stuart, who complied. Chen Yi was relieved as administrator general inMay. Wei Tao-ming, former ambassador to the United States, succeeded Chen as governor andthe new administration was made a provincial government on a par with all its counterparts onthe mainland.After his arrival in 1949, President Chiang, except for two brief visits to Korea and thePhilippines, never left Taiwan. He concentrated on consolidation of Taiwan as his base for acounteroffensive against mainland China.Chiang reassumed the Presidency on March 1, 1950. Taiwan was given a new identity.The island, still a province, was now the Republic of China. With Taipei as its seat, thegovernment of the Republic of China claimed to represent the whole of China. The country wasa founding member of the united Nations and a permanent member of the U.S. Security Council.A few powers, including the Soviet Union and Great Britain, derecognized the Republic of China,but a majority of nations continued to maintain diplomatic relations with Taipei. Inasmuch asChiang Kai-shek’s Legacy to Freedom in Taiwan

international relations are concerned, Chiang’s move turned Taiwan into a new nation state,although that nation state had existed as the Republic of China since January 1, 1912.Taiwan’s de jure status as nation state had to be defended by the de facto control of theisland. Two events, which occurred almost immediately after Chiang’s arrival in Taipei,consolidated his rule over Taiwan: the battle of Quemoy (Kinmen) and the Korean war.Over 17,000 Chinese Communist troops landed on Quemoy on October 25, 1949. Theyhad taken small boats and junks or even rafts to cross a narrow strip of waters separatingQuemoy and the mainland. They were convinced that they could easily defeat the garrison onQuemoy. So far the Kuomintang forces, with a vew few exceptions, had always fled orsurrendered in the face of a Communist attack. The invading Communist soldiers weremistaken. The garrison took a last-ditch stand, routing the invaders at Kuningtou, a cape onQuemoy. After a 56-hour battle, the invasion force suffered more than 8,000 casualties. Sixthousand others were taken prisoner. It was the first victory the Kuomintang forces had wonsince their fiasco in Manchuria. The offshore island was secured.With the outbreak of the Korean war on June 25, 1650, President Harry S. Truman made anabout-face change in U.S. policy in China. Truman ordered the U.S. Seventh Fleet to preventany attack on Taiwan, the Chinese Communist occupation of which “would be a direct threat tothe security of the Pacific area and to the United States forces performing their lawful andnecessary functions in that area.” American military and economic assistance started pouringinto Taiwan.Modernization is industrialization. Industrialization requires capital and entrepreneurs.Both were supplied in large part by the more than one million civilian immigrants who came toTaiwan in 1948-50. Most of them were teachers, factory owners, engineers, technicians,merchants, bankers, scholars, and professionals. They filled the gap of managerial skill forindustrialization, which Japan had purposely left on the island under its “agricultural Taiwan”policy. They also provided the “seed money” as well as entrepreneurs for Taiwan’s initialimport-substitution manufacturing industry. And Taiwan continued on its way toindustrialization, an economic “miracle” of the 20th century.The United States severed diplomatic relations with the Republic of China in 1979. But

the U. S. Congress adopted the Taiwan Relations Act as a law governing the conduct of unofficialrelations with the island. All major powers of the world had ended diplomatic relations withTaipei by 1972. Only about 30 countries, mostly small, still maintain official ties with Taiwan.However, the Republic of China on Taiwan has been legally a nation state in the minds of mostcountries around the world. The Taiwan Relations Act restored this sovereignty as far as theUnited States was concerned.And that status was first accorded Taiwan with Chiang Kai-shek’s move to Taipei in 1949.It is his legacy to Taiwan.Chiang Kai-shek’s Legacy to Freedom in Taiwan

090-008 December 14,2001 ()1 10% (1) 6% (a) (50%) ()2 10%(2) 43% (b) (20%) (c) (20%)(d) (10%)3(3) 39% ()(40%)(4) 12% ( )23 ()(a) 85%(b)15%4520% 100% ()()20%( )319 (a) 50%( ) (b) 50% (1) 90% (2) 10% 4

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