Juaton,Zoey Mae T.

AB Polsci
PS04

Taiwan in 1989: Democratization and Economic Growth

If we are talking about being pivotal then Taiwan in 1989 is the year. June Teufel
Dreyer's approach and analysis to Taiwan's transformation during those times were very
significant. Taiwan faces a tough political and economical landscape. The interplay between
democratization and economic growth, highlighting the factors driving Taiwan's transition to
democracy and its remarkable economic transformation.

The rise of NTS or New Taiwan Dollar was greatly appreciated as the economy
continued to grow, the GDP escalated to 7.3% and the rates of the unemployed were too little to
affect the economy. It is believed by the government economist that Taiwan has reached 4% of
its Consumer prices, this was being noted by the government as high and became the topic of
concern. The Government has pointed blame for the stock and real estate market as it causes
widening gap between the poor and the rich people from the country. Giving ratio from 4.14% in
1982 to 4.7% in 1989. This was arguable considering that the viewpoint of the world standards to
the increase might result in a terrible trend because referring back to the numbers, it quoted there
in the article that it is “commendable egalitarian” which means the emphasis of equality and
equal treatment but to the concern, it is either dealing with a fast trend or the numbers rolling
itself. The only response of the Government to the issue is by tightening the money supply and
instituting a regulation that could keep up the curb speculative activities. My perspective from
this is that the only way that the Government can tightly control its numbers is by launching
regulations, as said above, they could monitor the results and can access whatever comes a long
way.

The set of policies of economic internationalization and liberalization began four years
ago, but in the midst of July, there was a “major revision” that directly points at the topic of the
country's banking laws and enhancing Taiwan’s regional financial status. There is a possibility of
the establishment of new banks. Foreign and local banks were approved to set their own currency
rates. Aside from that, foreign banking institutions are allowed to accept
savings,deposits,offer,long-term and trust business. In September, internationalism was present.
It was stated that the central bank raised the ceiling on inward foreign-echange remittances,
adding $300,000 USD to the previous $200,000. This move was measured to minimize any
speculation in the NT$, considering that it was viewed as a slow repatriation will ease the profits
and they were expected to pull Taiwan into overseas investment. Overseas investments were seen
as substantial.
 Prior to the topic of overseas investment, Thailand, Malaysia and Philippines were
recipients of it. While the business was decrying and difficult, the business people of Taiwan
seemed interested in engaging in this new concept of overseas ventures. They saw that as
profitable and that means, there is assurance of cash flow.

Opening the doors for the first Taiwanese to hold the office of president, Lee-Teng-hui,
aged 66 were present. He was more affable than the former appointed and had a background with
being secretary general of the ruling Kuomintang’s (KMT) Central Committee. He was not a
random person, he was picked for his experience at handling this position better. But Lee’s
appointment was interpreted as somehow replacing an electoral liability with someone would be
a definite advantage. James Soong, a person who has not yet reached the peak of 50, holds a
strong background of being a doctorate in political science from a prestigious school and
described by the common as handsome, charming and shrewd. He is seen to be the perfect
candidate next to Yuan.

The Civic Organization Law was bringing up heated debates. This was very controversial
considering that this law would legalize the formation of new political parties and a proposal for
the voluntary retirement of senior parliamentarians,some of whom have been in
office,uncontested for more than 40 years. The third bill was about restructuring the provincial
assembly and provincial government giving them more autonomy which eliminates the overlap
between the central and provincial government in Taiwan. Critics contend that the law's strict
registration requirements and government oversight erect administrative barriers that impede the
establishment and functioning of civil society organizations. In addition, the ambiguous nature of
the law's provisions and the possibility of its arbitrary enforcement give rise to worries about
authorities abusing their authority to silence critics of government policies or single out
particular organizations for persecution.This is why there were series of broader debates to
further examine and elaborate the balance between he state regulation and civil liberties.

If we to look at the hidden agenda, the opposition of KMT, which is the DPP (Democratic
Progressive Party) is convinced to the idea that it was merely a coverup of KMT in introducing
electoral reforms that erects a facade of democracy behind which other parties are forever
deprived of meaningful influence, I saw this as being unfair and most likely biased. One could
get a lot of believers but one cannot see the real facade and who will affect in this situation.It’s
silly that in the end the two opposite parties agreed on a compromise and a bill. In exchange of
agreement, the enabling of a small number of opposition leaders to filibuster and effectively to
veto bills. But one KMT legislator opposed it. He said that it was better to have opposition
tabling resolutions than jumping on the table. The DPP finally managed to introduce new laws
and the party won five mayoralties and magistrates of the country’s two largest counties. Taipei
and Beijing.
 1989 is the introduction of Taiwan’s elastic diplomacy.This is Taiwan being able to cut
off relations with any country that recognizes Beijing as a government. Taiwan would
automatically be inactive if Beijing was being mentioned. As for this, it is disrespectful for them.
They are also open during this year in tightening the diplomatic relation to the countries which
they did not have formal ties to the the level of US-Taiwan relations. For months many things
had positively happened such as: stable relations with Bahamas, the French in Taipei and
President Lee receiving official honors when he visited Singapore. Taiwan unbelievably made an
intriguing name outside of the country that made people be interested in joining or
accompanying them.

Following the series of successful events and relations, Philippines-Taiwan Beneficial

progressed,A finance minister successfully attended a meeting of the Asian Development Bank
in Beijing and establishment of formal diplomatic relations of Republic of China on Taiwan.
This elastic diplomacy that Taiwan has introduced to the world has seemingly made an
international persona while avoiding the real topic about declaration of independence. It was also
seen as hard to deal with, especially the people of Taiwan, people may deem or think that it
would lead to another invasion. While elastic diplomacy was there during 1898, it does not
dismiss the fact of protestations regarding the moral outrage over it after the Tiannamen
massacre.

In the last article, it tackled on whom the president Lee will choose as a running mate.
Since the vacancy,the expectations of the Taiwanese grew higher as the country is facing a worse
labor shortage and presents the government with a dilemma. The rapid growth of
industrialization,pollution and growing traffic congestion, consolidating and extending made
diplomatic gains as 1989 will act as a tough year for everyone in Taiwan.

In conclusion, June Teufel Dreyer’s analysis of Taiwan's both political and economic are
an endless discussion. Significant turning points in Taiwan's liberalization process were the end
of martial law and the start of democratic reforms. At the same time, the country's swift
economic development made it a major player on the international scene, especially in high-tech
industries.He highlighted the need for a careful balance between political liberalization,
economic development, and the preservation of civil liberties while illuminating the complexities
and difficulties Taiwan faced during this time.Taiwan's experience in 1989, despite the
controversies and challenges faced, is proof of its adaptability and resilience, setting the stage for
its future development as a thriving democracy and economic powerhouse.