5. Taiwan economic, social and political development and education issues
5.4. Social, political and local versus Global issues
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allowed to participate.
5.3.2. ASEAN Free Trade Area (AFTA)
ASEAN Free Trade Area (AFTA) is focusing at lowering of intra-regional tariffs through the Common Effective Preferential Tariff (CEPT).
5.3.3. Economic Cooperation Framework Agreement (ECFA)
EFCA is including mechanism for free trade between Taiwan and China, signed in 2010.
5.3.4. Asia-Europe Meeting (ASEM)
ASEM is an intergovernmental process established in 1996 to foster dialogue and cooperation between Asia and Europe.
5.4. Social, political and local versus Global issues
The Economic integration are essential for Taiwan but it have it downside as at the local level by weakening the government in promoting its own social, economic policies and to address to people's needs. The sunflower popular movement in 2014, lead by students, protest against the approval of Cross-Strait Service Trade Agreement (CSSTA) without
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clause-by-clause review, with concern the economic agreement would lead to a one China market and impact identity and local business.
The liberalism and free market embrace by Taiwan did not solve many of local issues that were also neglected by political parties. We will have a brief overview of some issues in Taiwan, which will need to be addressed at the political level.
There are some macroeconomic issues that are impacting Taiwan currently and could influence the future of the country:
1. The demographic changes: Taiwan has a low birth-rate and an aging population. It will impact the country’s economic, social, and educational development.
2. Industrial environment: with the relocation of industries to nearby countries as China in particular with good business environment and infrastructures to better target the global market, but also East-Asian country, with cheap labour.
3. Industry transition : with development of local talent and white collar policy immigration for a new industrial development transition
4. The national identity: the Taiwanese population over the year identify themselves as Taiwanese in contrast as Chinese, partly due to the demographic transition, Chinese immigrant which came with the nationalist are surpassed by younger generation born and raised in Taiwan with a forged new identity
5. Uneven distribution of regional resources: link to the infrastructure and public investment in rural area and the East-Coast
6. Global diplomatic relation: link with its relationship with China, no international recognition and de facto lower input in international organizations.
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At a social level we can note the discrepancies in income distribution and resources between urban and rural area, but also between rich and poor. As the nation become richer, the fruit of its effort is not equally distributed and benefit the richest. This uneven distribution of wealth and capital, is not a localized issue, as research have show a similar trend worldwide.
Education, public or private, was unable to offer the social ascension it could have been promised in the past. The equal access to education does not mean an equal opportunity as family social and economic background goes to the advantage of the better of in term of access to university of future career. In many nation all over the world we can observe the rise of populism recently, with the roots of the dissatisfaction related to the unbalance between localization and internationalization, and by the flange of the population that do not benefit from globalization.
Other social issues are linked to the minority population. The indigenous people of Taiwan are part of the minority group and face discrimination problems. They have a lifestyle different from that of the general public; have less access to culture, education and work opportunities as they reside in remote urban area. They consequently face more economic difficulties and are bound to have more complicated family structure, addictions problems and higher divorce rate. Approximately half million aboriginal people live in Taiwan, and their children are vulnerable to unequal opportunities of education.
Foreign spouses who account for 500,000 people are mainly from China and Southeast Asia countries. They frequently face difficulties adjusting to the social environment, adapt to the culture, learning Chinese, integration as part of the family, and finding jobs. Therefore children of mix marriage can often be confused about their own nationality.
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Marriage in Taiwan, by nationals and foreigners
Year Taiwan China.
HK, Macao
South East Asia
Other countries
Total % marriage with foreigners
1998 269,047 12,451 10,454 291,952 7.85%
2016 275,363 9,813 7,111 3,435 295,722 6.88%
Table 6: Marriage in Taiwan, by nationals and foreigners (source: Ministry of the Interior-
Taiwan)
It the past twenty years, the marriage had increase in Taiwan by a slight 2%, in the same time the proportion of marriage with foreign spouse decrease from 7.85% to 6.88%.
On the period from 2011 to 2016, the marriage with Chinese spouse had decrease by 46%
with an increase of 27% of marriage with South-East Asian spouses.
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Figure 4: Marriage with foreign spouses in Taiwan -2011-2016 (source: Ministry of the
Interior- Taiwan)
This can be a trend of an increasing relation or interest in East Asian countries, in the future.
5.5. Taiwan New Southbound Policy
The president Tsai Ing-Wen was elected in 2016 with high approval vote which reflected the difficulties that the KMT party had to deal with domestic issue, as social equity, corporate and food scandals. The closest relationship with China that the former president Ma-Ying-Jiou tried to establish was interpreted by the population as loss of sovereignty.
Therefore, when Tsai, officially took office on May 20, she started to work on the southbound policy that is aiming to decrease Taiwan’s dependence to China market, by developing more economic integration with South- Asian countries. The policy were addressed to businessmen operating in those country and help them to establish and comprehensive supply chain, but
0 5,000 10,000 15,000
2011 2012 2013 2014 2015 2016
Marriage with foreign spouses in Taiwan -2011-2016
China. HK, Macao South East Asia Other countries
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also strengthen Taiwan economic and cultural ties and link with overseas Taiwanese and Taiwan new immigrants.
Under former president Lee Teng-Hui a previous “southbound policy” was launched in the 90’s, but was simply a way of cheap manufacturing base with a cheap supply of labour for Taiwanese businesses. The New Southbound Policy is seen as crucial part of Taiwan's economic and trade strategy for the new government of Taiwan. It will redefine Taiwan role in Asia's development, and could be a new stage of economic development.
Taiwan economy is very sensible to the fluctuation of the global market, with 63 percent trade to GDP ratio from 2013 to 2015. The country remains heavily depended of China that represents 20% of Taiwan's total trade, the double of its second trading partner the USA.
However in the recent year the growth rate was stagnating despite a 2.05% is forecast for 2017.
ASEAN countries could consequently be a solution to boost Taiwan economy in the future.
The annual growth rate of ASEAN countries is forecast between 4.9 and 7.4% between 2017 and 2021. And it is not only includes developing countries, but stable economy and regulated investment environment as Australia and new-Zealand.
The policy can have an impact on the Taiwan economy but also demography and immigration.
It will therefore be related to the future outcome of education in Taiwan. From the ‘New Southbound Policy' promotion plan’’14 we can identify the actions that will lead to the changes:
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Education ties:
‘’Expand scholarships to draw more students from ASEAN and South Asia. Depending on domestic industry needs, create courses on academia-industry cooperation and foreign youth technical training, and provide job matching services after their graduation. Encourage universities and colleges to set up campuses or courses abroad or offer preparatory programs.
Offer elementary and junior high school language courses for new immigrants, and encourage universities and colleges to cultivate more Southeast Asian language experts and regional trade professionals’’
Industry talent:
‘’Assess and establish a points-based system allowing residency extensions for eligible foreign professional or technical workers in Taiwan, and encourage them to obtain job skills training and professional certification. Promote exchanges of professional talent by protecting social welfare benefits for workers returning to Taiwan, streamline procedures for foreign workers coming to Taiwan, match workers to employers, and help domestic businesses find talent.’’
New immigrants:
‘’Help first-generation immigrants use their linguistic and cultural advantages to obtain work certification and job opportunities (such as language teaching and tourism-related work).
Help second-generation immigrants connect with their ancestral countries by encouraging universities to establish appropriate departments or curriculums, and give admission priority to students speaking Southeast Asian languages.’’
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Those three points will have an impact on the demand and offer of private and international education in Taiwan, by the increase of foreign talent in Taiwan in demand of international education and the supply of English speaking Taiwanese to the ASEAN countries.