Taiwan’s Impact on China: draft programme
I. Which elements of Taiwan’s development are relevant to the Chinese mainland?
Since the Chinese mainland’s reform and opening up in 1979, Taiwan’s
developmental experiences have diffused into the mainland’s society swiftly. The lost generation of the Cultural Revolution was particularly impressed by Taiwan’s “soft power” (popular music) and hard articles for daily use (e.g., folding umbrella), in addition to the successful stories of Taiwanese businesspeople. To learn from Taiwan economically (jingji xue Taiwan) has become at least semiofficial language. The Four Special Economic Zones, together with export-oriented developmental strategy first practiced on the mainland in the late 1970s, were clearly in debt to the economic miracle realized by the Four Small Dragons in East Asia, including Taiwan.
To be sure, some people on the mainland do not take Taiwan’s economic success at its face value. According to Li Jiaquan of Institution of Taiwan Studies at the Chinese Academy of Social Sciences (CASS), one of the most famous Taiwan experts on the mainland, Taiwan’s economic miracle has been greatly benefited from the preexisted infrastructure left over by the Japanese colonial rule, in debt to the capitals, equipment and experts brought from the mainland to the island by the defeated KMT regime, thanks to the economic aids offered by the United States in the 1950s and 1960s, and profits earned by Taiwanese exported-oriented industries. While Li also recognizes the wisdom in Taiwan’s developmental strategy, including giving priority to agriculture and light industries, linking domestic economic development to the international market, and combining governmental enterprises with non-governmental enterprises and macro adjustment with micro management, he does not think that the mainland can simply copy Taiwan’s experience in economic development, given their difference in geography, historical conditions and economic system.4 In other words, Taiwan’s experience in economic development is unique, and therefore its successful economic policies would not achieve the same effects on the mainland.
Not all intellectuals on the mainland take the same position of Li Jiaquan. Back in 1980s many people who are in favor of economic reform and openness, regretted that the mainland might have lost a golden opportunity for developing labor-intensive industries during 1960s and 1970s, while China was engulfed by the chaotic Cultural Revolution. In fact, Li himself also recognized the disadvantage of the mainland as the later comer to the international market. China’s economic boom since reform, however, has indicated the relevance of Taiwan’s experience in developing export-oriented economy to the mainland. The mainland’s foreign trade，thanks to its labor-intensive industry, has begun to overtake Taiwan since 1992, resulting an earned reputation of “world workshops.”
These developments are well taken by Chinese intellectuals. An influential book titled “Taiwan’s Experience and Mainland’s Economic Reform” was published in 1995, edited by Yi Gang (currently President of China Bank) and Xu Xiaonian and compiled by a group of overseas Chinese economists who had just visited Taiwan.5 According to He Lüye, one of the reviewers of this book, the mainland should learn from Taiwan’s experience in de-nationalizing enterprises (minyinghua), which is a
4 Li Jiaquan, Li Denghui Zhuzheng Zhihou [Taiwan after Lee Teng-hui Came to Power] (Zhongguo yanshi chubanshe, 1997) pp. 368-380.
5 Yi Gang & Xu Xiaonian, eds., Taiwan jingyan yu dalu jingji gaige [Taiwan’s Experience and the Mainland’s Economic Reform] (Zhongguo jingji chubanshe, 1994).
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good choice for the mainland that lacks necessary capitals to provide full employment.
Taiwan’s emphasis on agricultural development, its policy of high interest rate and effective combination of government intervention with market mechanism, are all good experiences for the mainland. On the other hand, Taiwan environment pollution, belated infrastructure construction, and deteriorate ethics are good lessons that the mainland should keep in mind during economic development.6
Indeed, Taiwan’s successful experience in economic development has become the most popular subject within the mainland’s academic circle. Among 314 papers published on the mainland over the past three decades with Taiwan’s experience as part of paper title, 217 papers discuss Taiwan’s experience in economic development, headed by agriculture (53), followed by investment (37), banking (36), securities (23), industry (22) and economic reform (15). Other papers deal with Taiwan’s
developmental experience in culture (28), politics and law (24), education (15) and sciences (15), as Table 1 indicates.7
Table 1. Papers Published on the Mainland with Taiwan’s Experience as Part of Title
Category/No. Subcategory No.
Economy/217 Agriculture, aquaculture & fishing 53
Industry 22
Investment 37
Trade 3
Service 3
Market research and information 5
Banking 36
Finance & tax 5
Securities 23
Insurance 2
Macro economic management & sustainable development 11
Economic Reform 15
Economic law 2
Politics & Law/24 Chinese politics and international politics 11 Party and mass organizations 2
Public administration 5
Criminal Law 2
Executive Law and local legality 4
Education/15 Advanced Education 4
Career Education 4
Adult and special education 3 Education theory and management 4
6 He Lüye, “yege kegong jianjian de jingji fazhan moshi: Taiwan jingyan yu dalu jingji gaige jianping ”[A Relevant Model of Economic Development: A Review of Taiwan’s Experience and the Mainland’s Economic Reform], Jingji pinglun [Economic Review], 1996, No. 1, pp. 93-94.
7 From China Knowledge Resource Integrated Database (zhongguo zhiwang, http://www.cnki.net), the most representative search engine for academic papers on the mainland. These include papers published in various academic journals, dissertations for Ph. D. and master degree, conference papers, and articles in newspapers.
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Sciences/15 Agricultural science 2
Environment science 2
Construction science 5
Sociology and statistics 4 Local history & ethnical science 2 Culture & others/
28
Medicine/15 Preventive medicine and health 2
Infectious diseases 2
Animal medicine 3
Clinical medicine 3
Medical management 5
If Taiwan’s economic miracle was the most eye-catching experience for the mainlanders at the very beginning of China’s economic reform and opening up, its success and failure in achieving equal income distribution have caught greater
attention in the mainland after 30 years reform. According to Quan Heng, Taiwan has experienced a great change from economic growth with relatively fair income
distribution to social polarization between rich and poor. Taiwan’s success in the past was attributed to the government’s regulatory role of establishing market mechanism for business competition and employment fairness in the field of primary distribution.
Its failure since the late 1980s has been due to industrial upgrading, the resulted unemployment, and the lack of governmental role in the field of secondary
distribution. As Quan Heng argues, the issue of income distribution on the mainland is more complicated. In the field of primary distribution, the government intervenes into market and twists the natural process of income delivery, while in the field of secondary distribution the government fails to regulate income redistribution through tax, social security system and transfer payment. For Quan Heng, the mainland government should play its active role in the field of secondary redistribution, while reducing its role in the field of primary distribution. In other words, the mainland should both learn and take lessons from Taiwan in advancing social transformation and harmony.8 Many Chinese intellectuals have the same opinion and feel the
government involves too much in the market while failing to provide sufficient public goods in the secondary distribution of social wealth. Given the signal released by the new administration under Xi and Li, Taiwan’s early experience in reaching social equality is an asset for the mainland to cherish.
Mainland intellectuals have recognized Taiwan’s experience in social organization as well. As Yu Jianrong argues, the successful experience of Taiwan’s agricultural and rural development lies in its autonomous farmer associations.
Through an analysis of Taiwan’s farmer associations and relevant regulations of them, Yu proposes to develop farmer organizations on the mainland as an active actor or
8 Quan Heng, “cong gongping zengzhang xiang shouru chaju kuoda de zhuanbian: Taiwan jingyan yu zhengce kaocha”[Change from Economic Growth and Fairness to Expanding Income Gap: A Review of Taiwan’s Experience and Policies], Shijie Jingji Yanjiu [World Economy Studies], 2008, No. 11, pp. 79-86.
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true interest subject (xingdong zhuti). These organizations should be local-oriented with parallel division of labor between its deliberative and executive functions. The principles for building new rural villages on the mainland are rule of the farmers, by the farmers, and for the farmers, Yu contends.9 Other scholars echo Yu’s idea. Yang Tuan, a researcher associated with the Chinese Academy of Social Sciences, argues that Taiwan’s farmer associations, with a history of one hundred years and a
membership of 8.5% of the population on the island, as well as their good
performance, can serve as an example for the mainland’s rural development after three decades reform. According to Yang, Taiwan has walked out the dilemma of overly labor-intensive agriculture during the process of economic modernization, while the mainland is still suffered from this problem: labor-intensive agriculture results in low income and hidden unemployment for rural population, and force farmers to leave their homeland and work in the urban areas; but the unemployment risk of farmer-worker in the cities forces them to have a division of labor within their families, maintaining a half manufacturing and half planting (bangong banging) family structure. To resolve this dilemma, Yang proposes that the mainland learn from the experience practiced in Taiwan as well Japan and South Korea and turn individual and small-scale planting into big scale economy. By creating farmer associations that integrate economic function with social function, the mainland can reduce the gap between village committee (with political function) and rural
cooperation (with economic function), enhance the linkage between farmers and township government, and therefore ensure sustainable development of rural village, agriculture and farmers (san nong).10 Zheng Zhenyu proposes to borrow Taiwan’s experience in developing non-profit organizations and make similar development in Fujian Province.11 The relevance of Taiwan’s experience has been expanded from the field of economic growth and income distribution to the sphere of social organization, a domain more sensitive politically.
The mainland intellectuals also recognize Taiwan’s experiences in public administration, rule of law and democracy. In a web essay titled “The Practical Meaning of Taiwan’s Experience”, the author highlights the core value of Taiwan’s experience, that is, guarantee of people’s livelihood. After mentioning Taiwan’s success in land reform, economic growth, equal distribution of income (junfu), price stability, balanced developmental programs, dynamics of small and middle size enterprises, free compulsory education, full employment, foreign trade and good civil service system, the author argues that Taiwan’s democratic reform in the 1990s has added new elements to Taiwan’s successful experience. Taiwan’s mature democracy with political stability indicates that the Chinese people not only have the ability to build a developed and justice society with the livelihood of the public as the priority, but also are capable of establishing a consolidated democracy country.12 This
9 Yu Jianrong, “nonghui zuzhi yu jianshe xinnongcun: jiyu Taiwan jingyan de zhengce jianyi”[Farmer Organizations and Building New Rural Villages: Policy Proposal based on Taiwan’s Experience], Zhongguo Nongcun Guancha [Watch of Chinese Rural Village], 2006, No. 2, pp. 71-87.
10 Yang Tuan, “yizhi Taiwan nonghui jingyan, fazhan dalu zonghe nongxie”[Transferring Taiwan’s Experience in Developing Farmer Associations to the Chinese Mainland],
http://blog.sina.com.cn/s/blog_763107560100tey7.html (2011-08-16) [2013-05-12]. This paper was first published in July 2009 and posted on August 16, 2011. The author works at the Center of Social Policy Studies, Chinese Academy of Social Sciences.
11 Zheng Zhenyu, “jiejian Taiwan jingyan, fazhan feiyingli zuzhi”[Borrowing Taiwan’s Experience and Developing Non-Profit Organizations], Shetuan Guanli Yanjiu [Association Management Studies], 2001, No. 7.
12 Taiwan Jingyan de Xianshi Yiyi [The Practical Meaning of Taiwan’s Experience]
http://bbs.cnhubei.com/forum.php?mod=viewthread&tid=1998808&page=1&authorid=561121(2010-05-18) [2013-05-20].
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perspective, however, is not popular in official publications and only appears in BBS, which enjoys more leeway to play with in contemporary China.
II. The impact of Taiwan’s democratic experience on the Chinese intellectuals